At a time when numerous tech companies are jockeying for a lead position in artificial intelligence, Cisco Systems Inc. has found itself having to play catch-up.

Two analysts from theCUBE Research participated in a briefing at MWC Barcelona on Tuesday in which Cisco’s chief executive Chuck Robbins discussed his firm’s challenges. Earlier this month, the company announced plans to trim 5% of its global workforce and issued weaker than expected guidance in its earnings report.

“He did admit they’ve lowered expectations two quarters in a row, which he said they’ve never done before,” said Zeus Kerravala (pictured, second from right), guest analyst for theCUBE. “They had heard the noise that a slowdown was coming from customers who said they were having a hard time digesting all the product they bought, but the impact of that was greater than they realized.”

Kerravala spoke with theCUBE Research analysts John Furrier (second from left), Dave Vellante (left) and Savannah Peterson (right) at MWC Barcelona, during an exclusive broadcast on theCUBE, SiliconANGLE Media’s livestreaming studio. They discussed key takeaways from the analyst briefing and Cisco’s future competitive picture. (* Disclosure below.)

Splunk could give Cisco an AI boost

Cisco’s acquisition of Splunk Inc., set to close soon, is expected to provide a boost in annual recurring revenue, according to Kerravala. However, the analysts discussed how the networking giant will still need to find a way to pursue an AI strategy by leveraging Splunk’s massive data platform.

“They’ve got AI throughout the stack, but they don’t communicate an AI strategy,” Vellante said. “They’re getting no tailwind for that. They don’t sell AI, but are there ways they could monetize it?”

In announcing Cisco’s reduction in force, Robbins noted the future growth opportunity offered by AI. This will take a business transformation that begins with its core networking platform, according to Furrier.

“They need a software layer that’s actually more than just window dressing,” Furrier said. “They have to take their core platform and get the data out of it. They’ve got to look at generative AI and make this a true platform with observability to get in and get the AI action.”

Partnerships could also help Cisco position itself for the AI future, as exemplified by the multiple alliances that companies, such as Nvidia Corp., have formed over the past year.

“The winners of the next few years are going to be the ecosystem players,” Peterson said. “Network is a part of it, but it’s going to be who’s pulling in the biggest collaborators. That’s one of the things that Nvidia does incredibly well. They are an ecosystem partner with pretty much everyone here.”

Cisco is also facing competitive headwinds as networking rivals, such as Hewlett Packard Enterprise Co., develop AI-related solutions. HPE recently announced plans to acquire Juniper Networks Inc., which will include Mist Systems and its cloud-based AI platform.

“HPE is as full stack a company as anybody,” Kerravala said. “Storage, servers, now they have all the networking stuff. They’ve got AI, and if they can apply Mist to compute, they could deliver a full turnkey AI system. I think that’s HPE’s opportunity to compete with Cisco.”

Here’s the complete video discussion, part of SiliconANGLE’s and theCUBE Research’s coverage of MWC Barcelona: 

(* Disclosure: TheCUBE is a paid media partner for the MWC Barcelona event. No sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: SiliconANGLE