Study details how AI network upgrades are driving consulting revenue

Setting up a data center switch or router is easier in many respects than it was a decade ago. Large network suppliers have equipped their hardware with AI features that automate configuration tasks. Some market players, notably Nvidia, are taking it a step further. The company sells its network equipment as part of systems called DGX appliances that also contain GPUs, CPUs and storage drives. That arrangement speeds up installation by removing the need for customers to manually integrate the different components with one another.
Even though network equipment has become easier to use, enterprises still hire consulting firms to help them set up the hardware. Moreover, the availability and quality of consulting services remain major factors in network buying decisions. That’s one of the findings of a recent IDC study commissioned by NTT Data and Cisco.
Many network upgrades are driven by companies’ generative AI initiatives. The reason is that AI-optimized servers have different connectivity requirements than standard machines. As a result, many enterprises have found themselves needing to extend their existing network infrastructure with new hardware.
IDC asked the study participants what factors they evaluate when comparing network equipment suppliers. Among the respondents whose companies have an early-stage AI program, 33% named pre-sales and post-sales assistance, services, systems integration and support as priorities. IDC posed the same question to companies that are using AI on a limited basis or at “substantial” scale. The question drew a positive response from 26% and 28% of the participants, respectively.
Consulting services appear to be a particularly important element of networking upgrades in the manufacturing sector. IDC asked manufacturing decision-makers to list factors they consider when choosing a network partner for generative AI projects. According to the research firm, 23% named the prospective partner’s “network advisory, design and implementation services for GenAI” among their top two considerations. Another 26% said they look for a “strong partner ecosystem focused on networked GenAI deployments.”
IDC received similar responses when it asked manufacturers about their plans to use AI in network management workflows. According to the research firm, 33% of the participants prefer to entrust network management to a third-party service provider that uses AI tools.
The financial services sector is another segment where AI-driven network upgrades are creating opportunities for consulting firms. Like all heavily regulated firms, banks place particular emphasis on cybersecurity when it comes to IT projects. IDC asked a group of financial companies to specify what “cybersecurity architecture assessment and design” consulting services they’re currently prioritizing. Nearly three quarters said they were interested in services related to network security and SASE. SASE is an industry term for products that combine networking and cybersecurity capabilities in a single package.
Image courtesy of NTT