Where should AI live?

Cisco commissioned Omdia to survey 1201 IT leaders on AI infrastructure. The verdict: hybrid wins. And most organizations wish they'd gotten there sooner.

94% of IT Leaders

have regrets about their initial AI infrastructure decisions

96% of IT Leaders

run AI workloads in a hybrid mix of cloud, on-premises, and at the edge

60% of IT Leaders

have already moved some AI workloads back on-premises

Findings from Omdia's survey of 1201 infrastructure decision makers. Individual results may vary.

What's driving AI workload hosting strategies

Cloud costs add up quickly

Cloud spending jumps an average of 30% after AI deployment, pushing over half of organizations to scale back their initiatives.

Workload fit drives the shift

54% of organizations cite workload optimization as the top reason for adopting a hybrid strategy.

Security shapes the architecture

Controlling access to AI systems and data is a significant factor in infrastructure decisions for 82% of organizations.

Sovereignty draws the line

For most organizations, data sovereignty isn't a side consideration—76% agree it directly influences where their AI can run.

Build for what's ahead: AI's next era starts with infrastructure

52%

Server bottlenecks are closing in

More than half of organizations (52%) expect their server infrastructure to become an AI bottleneck within 12 months, reinforcing the need for robust, scalable data center capacity.

67%

The network is running out of runway

67% of organizations expect network bottlenecks within a year, a reminder that server and network capacity must scale together, or the bottleneck simply moves.

97%

Edge is going mainstream

Edge inferencing is surging—97% of organizations are deploying or planning to deploy within 12 months (a 2.4x increase from today).

90%

Validated designs are accelerating

90% of organizations are using or plan to use integrated AI solutions in the next 12 months to simplify complexity and speed up on-premises deployments.

Real voices from infrastructure leaders across industries

Manufacturing

"Anything that needs a real-time decision stays on-premises, but everything else can go to the cloud." — CIO (10,000+ employees)

Healthcare

"You're probably sitting on more unstructured data than anybody wants to believe. How on earth can you train that model?" — C-level executive (1500+ employees)

Construction and engineering

"You really have to be specific with what you want to do with AI." — C-level executive (10,000+ employees)

Across every industry

65% of organizations say the actual cost of AI has been significant—a lesson learned no matter the sector.

"We've done cost analysis, and we realized that the cost advantage of moving AI workloads to the cloud is not that significant in the long run."

C-level executive, Manufacturing (10,000+ employees)

Get the Omdia AI infrastructure report

Cost, security, sovereignty, capacity—the report breaks down what's really driving hybrid AI decisions, backed by 1201 infrastructure leaders and five executive interviews.