The Blueprint for AI-Driven Connectivity

The internet ecosystem is in constant transition, and with that evolution comes changing dynamics and shifts across the value chain. As a result, these hubs were traditionally confined to a set of larger cities and contained to a small set of facilities within those.

While the traditional interconnect model has served its purpose for decades, it is now becoming increasingly outdated. The evolution of distributed, dynamic services is exposing the inefficiencies, bottlenecks, and large failure domains associated with centralized points of interconnection and backhaul from lower-tier locations. These pressures, coupled with the emergence of new factors such as the hyperscalers’ relentless search for sustainable energy to power metro-wide AI data centers, are redrawing the internet map in real time. As with any transition, these shifts open up the opportunity for monetization and value creation as requirements evolve, new services emerge, and the traditional lines between market segments blurs.

Cisco Agile Services Networking: An architecture for AI-ready connectivity

When we introduced Cisco Agile Services Networking, it was to help customers navigate the transition to simple, resilient AI connectivity with intelligent and flexible service delivery. This vision is echoed by key industry leaders like Colin Bannon from BT Business, Puneet Garg from Reliance Jio, Cameron Daniel from Megaport, and Dave Ward from Lumen. Their perspectives on building and operating some of the world’s largest private and internet backbone networks are evident in our recent press release, emphasizing the importance of future-ready architectures to address:

• Measuring, monitoring, and differentiating SLAs amid more multi-agent and multimodal workloads
• Adhering to data protection and sovereignty regulations
• Building simple, sustainable networks
• Maintaining the flexibility to offer any services anywhere through API consumption

The backbone of global connectivity: Arelion’s Story

Arelion’s strategic partnership with Cisco and use of Cisco Agile Services Networking has driven its API-based network strategy, solving global connectivity challenges for multinational enterprises. Connecting more than 700 cloud, security, and content providers, Arelion’s multi-phase journey has included:

• Sustainable routing infrastructure: Cisco Silicon One-based 8000 Series Routers provide a unified architecture for operations and automation.
• IP and optical convergence: Routed Optical Networking (RON), with the most recent OpenROADM-compliant 800G ZR+ and 400G ultra-long haul trials showing savings up to 66% CapEx and 95% OpEx compared to legacy, discrete solutions.
• Programmability and NaaS: Segment routing with SRv6 in IOS XR enables consistent and flexible routing, tailored to SLA requirements.
• Monitoring and analytics: Enhanced IP Measurement (IPM) with Cisco Silicon One and visibility from Cisco Provider Connectivity Assurance.

The four phases of Arelion’s partnership with Cisco

Primed to capture the AI opportunity

Artificial intelligence is deeply integrated into Arelion’s infrastructure, from carrying and delivering AI traffic to optimizing operations and automation. With foundational building blocks from Cisco and a pragmatic network architecture, Arelion is poised to offer differentiated capabilities, monetize their sustainable network, and uphold their API-first philosophy.

Mattias Fridström, VP and Chief Evangelist at Arelion, sees immense opportunities that AI will bring. New use cases will process, transport, and consume more data, relying on high-capacity network transport with SLA guarantees around ultra-low latency and resiliency.

To capture Arelion’s innovative approach to reliably transporting the new wave of AI-driven traffic, let’s hear directly from Mattias Fridström.

Gustawsson: To kick things off, can you share a few words about Arelion.

Fridström: At Arelion, we build and operate the world’s #1 Internet backbone, delivering twice as much IP transit traffic compared to anyone else. In fact, we experienced 42% growth in Internet traffic in 2024 alone. With 70% of internet routes on net and connecting more than 128 countries, we have organically grown the backbone of global connectivity since 1993.

Gustawsson: Over the last few years, Cisco has pushed the envelope and achieved several world firsts together, including Routed Optical Networking (RON), a global 400G IP backbone, and Resource Public Key Infrastructure (RPKI). What enables you to implement cutting-edge technologies at such a rapid pace.

Fridström: Differentiation comes from superior user experience, great people, transparency, and software. We focus on an API-first philosophy and have ʺunlearnedʺ many traditional telco ways. This includes network architecture, processes, testing, lifecycle management, development, and sourcing. In addition, we have had to become very selective with our partnerships to ensure that they can match our pace and thus allow us to maintain that competitive advantage.

Gustawsson: How would you describe the partnership between Arelion and Cisco, and what value and outcomes do you see?

Fridström: The partnership goes beyond products and financing solutions across optics, optical, routing, assurance, and automation. It’s about strategic collaboration in future state architectures and market trends. A compelling example was during the first months of the COVID pandemic when we had just transitioned to drastically more optimized building blocks with Cisco. Through joint planning, Arelion managed to deploy more than 20,000 100GE/400GE ports even as many other providers were significantly challenged amid spiking demands.

Gustawsson: Arelion was an early adopter of Cisco Silicon One and the Cisco 8000 Series Routers. We recently launched the new A100, K100, and P100 silicon devices and associated systems, and Arelion is now deploying them across all the various network roles globally. What are the benefits you see in leveraging af differently optimized silicon devices?

Fridström: Building entire networks with a single silicon device means significant compromises in cost and sustainability. Historically, the alternative has been deploying multiple platforms instead, resulting in significant operational overhead and inconsistent behavior. A key benefit of the Cisco 8000 platform is the unified experience and capabilities across multiple silicon devices. This allows us to use the same platform and lifecycle management for all roles and with optimal efficiency. We also believe Cisco’s ownership of SDK development will lead to faster resolution times by eliminating reliance on third parties.

In addition, we are excited about the enhanced IP Measurement (IPM) capabilities of Cisco Silicon One that will complement our assurance platform, enhance route analytics, and enable faster root cause analysis.

Gustawsson: Forming the very core of the internet, Arelion is perfectly positioned to observe in real time how the default-free zone is evolving amid the increasing share of AI traffic run across Arelion’s internet backbone. What implications do you see in both the near-term and when more distributed, agentic architectures become prevalent?

Fridström: In the short term, the emergence of AI-driven security attacks is already becoming noticeable. On the opportunity side, we see a significant uptick in demands from Neoclouds as well as a growing demand for regional fiber and wave services to connect AI data centers. Looking ahead, there is already a pattern of requests related to AI in dynamic routing beyond the simplistic case of secure low-latency paths to meet other compliance, performance, and sovereignty requirements. Cisco Agile Services Networking provides the foundation for this evolution. With simple building blocks like Routed Optical Networking, programmability for NaaS consumption models, and service assurance, this foundation also enables the flexibility needed for deeper metro integration and edge expansions—driving enhanced user experiences.

Navigating network evolution with industry leaders

Partnering with leaders like Arelion, we navigate the evolution of network architectures to power and monetize AI connectivity. For more insights from other leading service providers, get this white paper, Evolving IP Network Architecture for the AI Era, from Omdia.

Meet with us at Mobile World Congress, March 3 to 6 in

Barcelona, to see Agile Services Networking in action firsthand.

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