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AI demand is so high, AWS customers are trying to buy out its entire capacity | Network World

Cisco: Latest news and insights 2026 network outage report and internet health check Selector targets the network visibility gap in multi-cloud infrastructure Top network and data center events of 2026 How AI is transforming network incident response (and where it still falls short) Google opens TPUs to enterprises beyond its own cloud via Blackstone JV AI, cybersecurity skills top IT pay premiums Startup Bolt Graphics promises 5x performance over Nvidia’s best GPU Wireless security is a battle of AI vs. AI NetOps teams look to AI to automate Day 2 operations Digital twins reshape network and data center management Network outages, power failures strain data center resiliency Five takeaways from Cisco's blowout quarter and what it means to customers Cisco to cut nearly 4,000 jobs despite strong growth in AI, enterprise networking Startup SPAN teams with Nvidia to put data center nodes in your backyard Hard drive shortage affecting enterprise storage needs Wi-Fi 8 is closer than you think. Here’s what you need to know Cisco open-sources agentic AI security spec HPE revamps private cloud stack for enterprises rethinking VMware Versa takes aim at fragmented enterprise security with CSPM, orchestration update, and AI agent controls Red Hat opens Ansible to AI agents, within limits Red Hat offers endless Linux support — for a fee Red Hat: Sovereignty is more than just compliance Tech job postings hit three-year high as AI demand fuels hiring rebound HPE memory server targets compute-heavy and agentic AI workloads PCI group begins work on new spec to support bandwidth-hungry apps like AI, HPC Q&A: Quantum physicist Sonia Fernández-Vidal on why classical computing isn't going anywhere OpenAI-led consortium seeks to address AI processing bottlenecks AWS hit by US-East-1 outage after data center thermal event Gluware's Titan rises to meet Mythos network vulnerability challenge AMD launches AI-targeted PCIe cards for current servers Supply constraints, optical advances dominate Arista's Q1 Lumen advances cloud networking vision with $475M Alkira buy HPE bolsters autonomous network operations for Mist, Aruba Central Netskope launches AI agents for SOC and NOC automation Intel, behind in AI chips, bets on quantum and neuromorphic processors Switch storm coming: Gartner forecasts price hikes, long lead times for enterprise data center switches Extreme moves toward autonomous networking with advanced AI agent, management tools Broadcom bets big on VMware Cloud Foundation 9.1 IBM unveils its blueprint to help enterprises run AI at the core of their business Ruckus Networks on the move again, this time acquired by Belden for $1.85 billion AMD and Intel partner to deliver AI performance advancement Cisco grabs Astrix to secure AI agents Beyond the pitch: A look at Atlético Madrid's connected stadium StarlingX 12.0 is right on time for mixed-hardware edge deployments Cisco nerds out: May the Fourth be with your AI assistant Memory shortage and cost surge push enterprises toward the cloud Extreme Networks: Memory advantage, Wi-Fi 7 and competitive flux drive momentum Scenes from the great data center revolt Enterprise Spotlight: Transforming software development with AI When 170,000 people show up: Network refresh readies Churchill Downs for Kentucky Derby IT certification pay surges as noncertified skills slump QuEra claims quantum error correction breakthrough with 2-to-1 qubit ratio HPE expands ProLiant line with rugged edge servers Deconstructing the data center: A massive (and massively liberating) project Cisco bolsters security, AI support in latest SD-WAN release The era of chatbot AIOps is fading as agentic AI gains traction Auvik bets agentic AI can fill the networking skills gap AI data flows force rethink of data center networking at Backblaze Nvidia's 'AI insurance policy' balances immediate and future AI approaches Cirrascale to offer on-prem Google Gemini models Space data-center news: Roundup of extraterrestrial AI endeavors Network jobs watch: Hiring, skills and certification trends Cisco switch aimed at building practical quantum networks How AI is changing copper, fiber networking Almost 40% of data center projects will be late this year, 2027 looks no better It’s the end of set-and-forget security Google bets on workload-specific TPUs with 8t and 8i launch SUSE bets automated migration can break VMware's grip on virtualization How Zero Networks is closing the network enforcement gap for AI agents Cloudflare wants to rebuild the network for the age of AI agents AI fuels wireless talent shortage Broadcom's Facebook friend will help train it to accelerate AI workloads Data centers are costing local governments billions Equinix offering targets automated AI-centric network operations AI shifts IT roles from operator to orchestrator IBM unveils security services for thwarting agentic attacks, automating threat assessment Maine to put brakes on big data centers as AI expansion collides with power limits Satellite backhaul service Globalstar has a new, rich owner amid challenging market conditions DNS security is often inadequate, and network engineers should get more involved Curious about quantum? 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Turn enterprise AI into real business value with a secure, scalable factory
By Paul Desmond · 2026-06-18 · via AI demand is so high, AWS customers are trying to buy out its entire capacity | Network World

Cisco and NVIDIA make a strong argument for their approach to enterprise AI factories, including built-in security, observability, accelerated computer, networking, storage, and AI software capabilities.

Building an enterprise AI factory is a complex endeavor that few organizations can tackle alone. The solution requires infrastructure capable of managing massive compute workloads generated by AI training and inferencing, high-capacity/low-latency networking within data centers and to the edge, and security to mitigate the risks that AI introduces.

Abhinav Joshi, leader of AI solutions and product marketing at Cisco, identifies three key challenges inherent in building enterprise AI infrastructure: deployment complexity, security vulnerabilities, and performance bottlenecks. Agentic AI, with its heavy reliance on inferencing, places greater demands on infrastructure across all three dimensions.

3 challenges in building enterprise AI factories

The deployment complexity challenge is driven by the need to quickly operationalize an AI infrastructure that fully integrates compute, networking, storage, security, and observability. A Kubernetes-based container management platform and a robust AI software toolchain are likewise essential to ensure the consistent development, testing, and deployment of containerized AI applications, Joshi says.

The second challenge is mitigating security vulnerabilities. “Many organizations lack integrated security measures to protect the AI models, frameworks, applications, and the supporting infrastructure throughout the stack,” Joshi says. Attackers can exploit vulnerabilities by manipulating large language models (LLMs) with malicious inputs, which can disrupt operations and extract sensitive information. As AI agents ingest diverse data and act independently, they introduce new attack surfaces, including prompt injection, model poisoning, and data leaks. 

Performance, especially around networking, is the third challenge. Tasks such as pre-training, post-training, and fine-tuning AI models, along with retrieval-augmented generation (RAG) pipelines and inferencing (including reasoning and agentic) all generate enormous amounts of network traffic. This creates severe bottlenecks across three critical communication paths: high-speed interconnects between graphics processing unit (GPU) servers, data throughput to storage layers, and real-time response delivery to end users.

Without high-performance network connections, GPUs may be underutilized and jobs may take longer to complete, affecting token economics. If bottlenecks reduce infrastructure utilization, organizations may pay more for every useful token generated. High-performance networking helps keep AI workloads moving efficiently as agents retrieve context, coordinate tools, and execute multi-step workflows.

Address all 3 issues at the same time

Cisco and NVIDIA jointly address these challenges with Cisco Secure AI Factory with NVIDIA, a modular reference design for rapid, core-to-edge AI adoption. The solution integrates high-performance compute, networking, and storage infrastructure with Kubernetes and AI software. With built-in security and observability, it ensures resilient AI operations across a variety of AI use cases, enabled by a robust software provider and technology partner ecosystem. The full stack is also pre-validated, reducing deployment risk and accelerating time to value —   particularly as enterprises move beyond pilots toward production-scale agentic AI deployments.

The design is modular and compliant with NVIDIA Enterprise Reference Architectures. It provides flexibility for users to choose the components that best meet their immediate needs, with the assurance that they can add capacity later.

Security is embedded at every layer of the full stack, including AI models, applications, and agents to provide protection from the supply chain to runtime. This protection is delivered through Cisco products such as Cisco AI Defense, Cisco Hybrid Mesh Firewall, Cisco Isovalent Runtime Security, and Splunk Enterprise Security.

Tight solution integration also enables quicker response to critical exposures. Cisco’s Live Protect capability puts guardrails around AI jobs, enabling them to keep running despite vulnerability, an important consideration given that jobs like model training can take days to complete.

Another challenge Cisco helps organizations overcome is a lack of in-house IT talent with AI experience. Enterprises can take advantage of professional services from Cisco and its channel partners.

At a recent Cisco Live event, Cisco announced new deployment automation software, Stack Automation by Quali. “It further reduces deployment time from a few days to a few hours for secure AI infrastructure,” Joshi says. “It will help both our own professional services teams and our customers who want to stand up environments on their own.”

Taken together, these offerings reduce the risk of deployment errors, accelerate time to value, and provide a foundation for deploying efficient, secure agents grounded in enterprise context.

As enterprises move from experimentation to production-scale agentic AI, success will depend on more than raw compute. Organizations will need AI factories that securely deliver valuable outcomes while operating efficiently at scale.    

Learn how Cisco Secure AI Factory with NVIDIA helps you build a sound foundation for your enterprise AI projects.