Technology

How Cisco built an enterprise AI Factory

Cisco IT modernized its data center into a multi-tenant AI factory to support enterprise-wide AI — tripling GPU utilization, expanding existing compute capacity 6x, and proving on-premises deployment delivers predictable economics and 99.99%+ availability. 

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The ask from the business

As Cisco rolled out its super agent to 90,000 employees, it needed to quickly scale its infrastructure to meet AI demand securely, reliably, and economically.

Challenge

As AI needs evolved from isolated projects to mission-critical enterprise-wide platforms, Cisco IT needed to address physical, economic, and operational barriers, including:

  • Stranded capacity & low GPU utilization: Fragmented, project-specific clusters trapped compute in isolated silos, stranding GPUs at low utilization.
  • Unpredictable cloud costs & workload placement: Relying solely on closed-source cloud models became cost-prohibitive as AI scaled enterprise-wide. Without token-level visibility, forecasting expenses and proving business ROI was nearly impossible.
  • Expanding security attack surfaces: Scaling multi-tenant autonomous agents introduced new threats, from prompt injection and intellectual property loss to lateral network threats moving across data centers undetected.
  • Thermal & power density constraints: Traditional air-cooled facilities hit physical heat limits long before they could energize high-density GPU clusters — and waiting years to build costly new data center space would stall AI innovation.


Solution

Cisco IT modernized its infrastructure into a full-stack, multi-tenant AI factory that embeds compute, networking, security, and observability across global data centers using the following model:

  • High-bandwidth pooled network fabric: Programmable Cisco Silicon One and Cisco switches eliminate data bottlenecks and GPU packet drops, pooling network capacity to dynamically route multi-tenant workloads and future-proof the fabric.
  • Heterogeneous compute architecture: Cisco UCS X-Series servers with a mix of NVIDIA and AMD GPUs provide flexibility to optimize token economics and adapt to evolving hardware supply. 
  • High-density rack cooling: Rear-door heat exchangers retrofitted onto existing cabinets absorb heat at the source, doubling compute density to two full AI nodes per rack within the existing data center footprint.
  • Natively embedded AI security: Cisco AI Defense inspects runtime prompts and responses, while Live Protect delivers real-time vulnerability shielding — securing the network switches and the data traversing them. Cisco Hypershield is architected for future fabric-wide segmentation.
  • Real-time observability and tokenomics: Splunk Observability Cloud and Splunk Cloud Platform unify infrastructure metrics, traces, and logs to accelerate Mean Time to Resolution and enable closed-loop operations, with expansion to Agent Observability and Tokenomics in progress.

Outcomes

Improved GPU utilization:

Increased average GPU utilization from 15% to ~50%, with peak workload periods reaching 80%, supported by adaptive silicon and a power-efficient architecture engineered for AI scale.

Expanded compute 6x in existing footprint:

Scaled active capacity from ~250 to over 1,568 enterprise GPUs in under two years without acquiring new data center real estate.

Proven on-premises cost efficiency:

Identified that running 80% of steady-state inference on-premises delivers maximum cost efficiency, where we are starting with high-volume workloads.

Delivered 99.99%+ enterprise availability:

Elevated operational support to Cisco’s highest SLA tier, guaranteeing high availability for both external customer platforms (Cisco IQ) and internal super agent (MyAgent) by leveraging security built into the full stack to reduce exposure.

Hear from the team

Cisco IT leaders share how Cisco transformed its data center infrastructure to scale AI enterprise-wide.

Dive deeper: Hear the full conversation

Join Cisco IT leaders for the full, in-depth discussion on how they transitioned from fragmented AI clusters to a shared enterprise model — gaining control over rising token costs, power limits, and emerging security threats.

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