Cisco delivers strong Q3 amid AI infrastructure, security traction

Larry Dignan

Editor in Chief of Constellation Insights
Constellation Research

Larry Dignan is Editor in Chief of Constellation Insights at Constellation Research, where he leads editorial coverage focused on enterprise technology, digital transformation, and emerging trends shaping the future of business. He oversees research-driven news, analysis, interviews, and event coverage designed to help technology buyers and vendors navigate complex markets with clarity and context. ...

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Cisco reported better-than-expected third quarter earnings as the company saw a surge in AI infrastructure demand and strong results from Splunk.

The company reported third quarter earnings of 62 cents a share on revenue of $14.1 billion, up 11% from a year ago. Non-GAAP earnings were 96 cents a share.

Wall Street was looking for fiscal third quarter non-GAAP earnings of 92 cents a share on revenue of $14.06 billion.

Cisco said product orders were up 20% from a year ago and 9% excluding Splunk. AI infrastructure orders from hyperscale vendors topped $600 million in the quarter.

As for the outlook, Cisco projected fourth quarter revenue of $14.5 billion to $14.7 billion with non-GAAP earnings of 96 cents a share to 98 cents a share. Fiscal 2025 revenue will land between $56.5 billion to $56.7 billon with non-GAAP earnings of $3.77 a share to $3.79 cents a share.

Chuck Robbins, CEO of Cisco, said it was seeing strong demand due to secure networking and AI infrastructure.

Cisco has been stepping up its visibility in emerging technology areas including AI and quantum with a push. Consider:

• Cisco said it will join the AI Infrastructure Partnership (AIP), which is led by BlackRock, Global Infrastructure Partners (GIP), MGX, Microsoft, NVIDIA and xAI. GE Vernova and NextEra Energy also recently joined.
• The networking giant also said it will partner with Saudi Arabia's AI enterprise HUMAIN to scale cost efficient AI infrastructure. Cisco will offer its networking and data center stack, security tools and software.
• Cisco also said it extended a partnership with G42, a UAE-based AI company, to develop AI infrastructure. The two companies signed a memorandum of understanding that revolves around go-to-market, AI infrastructure expertise and global expansion. The two companies will also consider co-developing AI cybersecurity applications.
• Cisco said its quantum networking chip prototype was developed with UC Santa Barbara and generates up to 1 million entangled photo pairs per second at room temperature.

By the numbers:

• Cisco’s networking business posted third quarter revenue of $7.07 billion, up 8% from a year ago.
• Security revenue in the third quarter was up 54% to $2.01 billion.
• Collaboration revenue was up 4% to $1.03 billion.
• Observability revenue was $261 million, up 24%.

Agentic AI protocols: MCP and A2A today, many more tomorrow

Larry Dignan

Editor in Chief of Constellation Insights
Constellation Research

Larry Dignan is Editor in Chief of Constellation Insights at Constellation Research, where he leads editorial coverage focused on enterprise technology, digital transformation, and emerging trends shaping the future of business. He oversees research-driven news, analysis, interviews, and event coverage designed to help technology buyers and vendors navigate complex markets with clarity and context. ...

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Agentic AI protocols have coalesced around Anthropic's Model Context Protocol (MCP) and Google Cloud's Agent2Agent, but Boomi experts expect protocols to emerge to create a crowded field.

Boomi Innovation's Michael Bachman said:

"Now we're somewhere between seven to nine different agent to agent protocols. It seems like we're probably going to have a battle of who's going to win. The nice thing about all of these protocols is we can expose those APIs regardless of whichever type of protocol we're dealing with. It's how we're going to implement those protocols into the stack, platform, runtime, and different modules."

Boomi World 2025: Boomi acquires Thru, makes case for AI orchestration, automation platform | Boomi World 2025: Agentstudio, AWS pact, 33,000 AI agents deployed

Although MCP and A2A have wide support from enterprise vendors, there’s still more work to be done as inter-agent collaboration is sorted out.

Boomi's top protocols include:

• MCP.
• A2A.
• AGNTCY, an open source collective for agent collaboration.

Boomi's plan is to build those protocols into the broader platform. "Each of the modules within the platform itself will have some layer of agentic protocol associated with it in some way, shape or form," said Bachman.

• Microsoft supports Google Cloud's Agent2Agent standard
• OpenAI's support puts MCP in pole position as agentic AI standard
• BT150 CxO zeitgeist: AI agents promising, but in transition period
• Agentic AI: Everything that’s still missing to scale

Bachman said that Boomi will be involved in AGNTCY for agent-to-agent communications. The company will have more to say about that protocol going forward.

Markus Müller of Boomi Innovation said the company is looking to build MCP into APIs and create a gateway that's enterprise grade.

"Just combining what we have with that API to MCP bridge, I think we will really hit the nerve with our customers, making sure they have the API in a shape that is consumable by AI agents and ready to be consumed by either direct access or MCP," said Müller.

For enterprises, MCP developments are like drinking from a firehouse. Müller said that enterprises will need to think through governance, integration and optimization as well as security.

Boomi acquires Thru, makes case for AI orchestration, automation platform

Larry Dignan

Editor in Chief of Constellation Insights
Constellation Research

Larry Dignan is Editor in Chief of Constellation Insights at Constellation Research, where he leads editorial coverage focused on enterprise technology, digital transformation, and emerging trends shaping the future of business. He oversees research-driven news, analysis, interviews, and event coverage designed to help technology buyers and vendors navigate complex markets with clarity and context. ...

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Boomi said it has acquired Thru in a move that will give it the ability to extend its platform into unstructured data. Boomi laid out the case that it should be a platform for AI-driven automation.

Speaking at Boomi World 2025, Boomi CEO Steve Lucas announced the deal. "We've entered into an agreement to acquire a Managed File Transfer platform called Thru," said Lucas. "Thru will give every single one of you the capability to extend Boomi beyond structured data into the world of unstructured."

The extension into unstructured data was part of a broader argument from Lucas that AI agents are a part of a bigger picture that revolves around the intersection of orchestration, automation and integration.

• Boomi World 2025: Agentstudio, AWS pact, 33,000 AI agents deployed
• Agentic AI protocols: MCP and A2A today, many more tomorrow
• Every vendor wants to be your AI agent orchestrator: Here's how you pick

Lucas argued that Boomi customers are integrators that are the "digital alchemists" that power AI transformation. Boomi announced a broader partnership with AWS, availability of Agentstudio and other additions to broaden its platform.

The goal for Boomi: "We are going to commoditize creating AI agents," said Lucas. He walked through Boomi agent building tools for cash to order processes and other workflows. Boomi Agentstudio demos highlighted how agents can find new shipping options and integration with Amazon Q. "We can agentify everything," added Lucas.

He said:

"What is coming is the largest transformation in business, in human not business history. Digital transformation will pale in comparison. What is going to happen? Every software application will be rewritten. The user interface, as we already argued, will change entirely. We won't log into systems, but so much more will be rewritten. Entire software stacks will be built natively around AI. This will all happen. We are not going back."

AI agents have the potential to collapse complexity in businesses and enterprise technology. "What will happen over the next 24 months? It will not take longer, because we will demand it is you'll have an AI agent," said Lucas.

But there's a catch: AI agents are going to add another layer of complexity. Lucas said:

"We have hundreds of apps in our organizations. We have 1000s of databases, 10s of 1000s of APIs. How many agents will we have? If you ask Jensen over at Nvidia, he says 10s of billions with a beat. He didn't even like slow roll that in their line. He was like, well, it could be a lot. He was like, No, 10s of billions. Okay. Well, if there's 10s of billions who's watching them?"

Other takeaways from Lucas' keynote:

Boomi is going with ServiceNow CRM and 'a little petty is fun.' Lucas walked through the ServiceNow partnership. ServiceNow has embedded Boomi into its Workflow Data Fabric. Lucas noted that Boomi is a ServiceNow customer across multiple functions and is now going for ServiceNow CRM. "We're moving to ServiceNow for sales, which means we will be removing gladly, I might add, Salesforce," said Lucas.

AI haves and have nots: "We are in this incredible moment, and I believe that we're seeing this divide, and this divide is something I'm not comfortable with. It's the AI haves and have nots. This is what I worry about. I worry about the small companies, the ones that aren't spending billions of dollars on AI research. Those companies. How will you compete?"

Enterprise software regrets: "I am going to do a little teeny, tiny mea culpa here for a moment, because for 30 years I have participated in this. You got a software thing? I show up. Some of you see me, I'll be like, Hey, man, you want some sap? I got some, right? And Salesforce here, right? We do that. And the pitch, there's always a slide in the deck, and it says, if you just buy this, you will be profoundly happier and super productive, right? It's that is a universal software slide. Everyone has it. It's a thing, and so we buy it. The average company today has 360 SaaS applications alone in the enterprise, 360 so is it 361 that's just gonna fix everything. But we know one universal truth about software is there will always be more of it, and it will be more complex."

All in on AWS: Lucas said Boomi has decided to run solely on AWS because "it gives us the platform that we need to innovate for you."

iPaaS is limiting: "Integration has fundamentally changed. I think about this all the time. What is the word that we call Boomi? Is it integration? Is it iPaaS? I say this with all love and respect to the analyst community, but I bristle a little when I hear iPaaS. It's an if you label me, you negate me kind of a thing," said Lucas, who said integration, automation and AI have blended together.

Boomi World 2025: Agentstudio, AWS pact, 33,000 AI agents deployed

Larry Dignan

Editor in Chief of Constellation Insights
Constellation Research

Larry Dignan is Editor in Chief of Constellation Insights at Constellation Research, where he leads editorial coverage focused on enterprise technology, digital transformation, and emerging trends shaping the future of business. He oversees research-driven news, analysis, interviews, and event coverage designed to help technology buyers and vendors navigate complex markets with clarity and context. ...

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Boomi said that it has more than 33,000 Boomi AI Agents deployed across enterprises as it rolled out new agents for Boomi Enterprise and Boomi Agentstudio went generally available.

Separately, Boomi and Amazon Web Services announced a strategic partnership that revolves around SAP implementations.

The news, announced at Boomi World in Dallas, comes as the race to become the control tower for enterprise agentic AI heats up. Boomi has many of the characteristics needed to be on a shortlist to manage AI agents.

• Boomi acquires Thru, makes case for AI orchestration, automation platform

• Agentic AI protocols: MCP and A2A today, many more tomorrow

• Every vendor wants to be your AI agent orchestrator: Here's how you pick

Speaking at Boomi World 2025, CEO Steve Lucas said Agentstudio will be built into the platform and available to all customers May 24. Lucas said:

"We want you to leave here excited about creating agents, excited about transforming your processes. You'll be able to build as many agents and test them till your heart’s content. We are also giving you the ability to deploy those agents in a production up to 100,000 messages. If you want to buy more messages with your agent traffic, it's a slider thing. You can just buy more. You can buy less. And then, of course, we have a pro enterprise edition that will allow you to add governance, observability, policies, controls, and audit.”

Ed Macosky, Chief Product and Technology Officer at Boomi, said the company is looking to be positioned at the "intersection of AI, enterprise data, and business process automation."

In a briefing Macosky framed Boomi's opportunity.

"We are under an evolution from being a pure play iPaaS vendor to a broader platform that covers AI, AI agents, automation integration and both data and app integration. We are truly seeing AI agent adoption driven by our customer base. This world of integration, automation and AI is evolving by the minute, but the future is here."

Here's a look at the news:

Boomi Agentstudio, formerly Boomi AI Studio, is generally available. For Boomi, Agentstudio represents its platform strategy to create, manage, govern and orchestrate AI agents. Steve Lucas, CEO of Boomi, said the company is well positioned to be the platform to automate everything with AI agents.

• Agentic AI: Everything that’s still missing to scale
• BT150 zeitgeist: Agentic AI has to be more than an 'API wearing an agent t-shirt'

Agentstudio will include integration with Amazon Q Business. Boomi is also an approved data processor enabled for all AWS customers to aid the building of AI agents on AWS. Boomi also added a new Agent Step feature that allows integration developers to embed registered agents into Agentspace's Process Canvas.

Boomi starts to scale AI agents. The company said customers have deployed more than 33,000 Boomi AI agents to automate tasks, optimize processes and accelerate integration for applications, data and APIs.

• The Future of Agentic AI: Get Ready to Build Your Own Agents With Ease
• Constellation ShortList™ Cross-Platform Agentic AI

The company also outlined new out-of-the-box agents including:

• Integration Advisor Agent, which autonomously reviews integration processes with feedback to improve efficiency and maintenance.
• API Design Agent, which designs and edits APIs and generates OpenAPI specifications.
• API Documentation Agent, which generates business and technical documentation for API definitions.
• Data Connector Agent, which designs and creates data integration connectors for any REST-based data source.

Model Context Protocol (MCP) support. Boomi Enterprise Platform will support native MCP throughout its architecture and API management tools. Boomi Agentstudio will use MCP to access tools via a new gateway for tool aggregation and discovery.

Boomi Data Integration, which was acquired in the Rivery purchase, is now part of the broader Boomi platform. Boomi Data Integration includes automated data pipelines, managed data connectors, change data capture, and more observability tools. Boomi acquires Rivery, adds data integration tools to iPaaS stack

A multi-year AWS collaboration

Boomi and AWS announced a multi-year strategic collaboration agreement that will tie together AI agent management capabilities. The partnership is designed to give customers the ability to build, manage and monitor AI agents across their respective platforms.

In addition, the agreement between Boomi and AWS will focus on accelerating SAP migrations from on-prem to AWS. SAP is also trying to migrate its customer base to the cloud and its S/4HANA platform.

Key items in the Boomi-AWS pact include:

• Amazon Bedrock, which manages models for enterprises, will be integrated with Boomi Agent Control Tower, which centralizes agent management across hybrid and multicloud environments. Boomi Agent Control Tower is part of Boomi Agentstudio.
• Customers will be able to leverage Boomi to manage agents executing in their AWS accounts.
• Boomi's low-code Agent Designer is now integrated with Amazon Q index, which gives AI agents context and model selection.
• Under the agreement with AWS, Boomi launched new native connectors for AWS Lambda, Amazon Bedrock, AmazonDB and Amazon Selling Partner Appstore.
• Boomi for SAP as part of the agreement will provide SAP-certified native integration between SAP and non-SAP systems.
• The companies will support cloud migration extract, load and transform capabilities.
• Enterprises will be able to move SAP data into any AWS data warehouse or data lake.
• Boomi is also an AWS Generative AI Competency Partner.

Databricks acquires Neon, sees Postgres scaling key to agentic AI

Larry Dignan

Editor in Chief of Constellation Insights
Constellation Research

Larry Dignan is Editor in Chief of Constellation Insights at Constellation Research, where he leads editorial coverage focused on enterprise technology, digital transformation, and emerging trends shaping the future of business. He oversees research-driven news, analysis, interviews, and event coverage designed to help technology buyers and vendors navigate complex markets with clarity and context. ...

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Databricks said it will acquire Neon, which offers serverless Postgres database services. Databricks' move into the database market is part of its plan to enable agentic AI workloads.

Terms of the deal weren't disclosed, but various reports put the purchase price at about $1 billion.

According to Databricks, more than 80% of databases provisioned on Neon were created by AI agents rather than humans. Databricks is betting that the database market is going to need more scale for AI agents.

• Databricks forges partnership with Anthropic, adds innovative system to enhance open source LLMs
• Databricks, Palantir forge integration pact
• Databricks annual revenue run rate hits $3 billion, compared to Snowflake’s $3.77 billion
• SAP launches Business Data Cloud, partnership with Databricks: Here's what it means

Neon has more than 18,000 customers and competes with AWS Aurora Postgres database service. Microsoft Azure and Google Cloud also have Postgres database services.

Databricks CEO Ali Ghodsi said in a statement that Neon will give developers "a serverless Postgres that can keep up with agentic speed, pay-as-you-go economics and the openness of the Postgres community."

According to Databricks, Neon's serverless Postgres architecture will be integrated with the Databricks Data Intelligence Platform.

This acquisition is just the latest for Databricks, which recently added Fennel. Databricks typically acquires larger startups around its Data + AI Summit in June.

• Databricks adds on to the Lakehouse, acquires MosaicML for $1.3 billion
• Databricks acquires Arcion for $100 million

Stargate Project sites under due diligence, says SoftBank

Larry Dignan

Editor in Chief of Constellation Insights
Constellation Research

Larry Dignan is Editor in Chief of Constellation Insights at Constellation Research, where he leads editorial coverage focused on enterprise technology, digital transformation, and emerging trends shaping the future of business. He oversees research-driven news, analysis, interviews, and event coverage designed to help technology buyers and vendors navigate complex markets with clarity and context. ...

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The Stargate Project is currently eyeing as many as three sites for AI data centers and Softbank executives said due diligence is currently underway on multiple proposals.

Speaking on Softbank Group Corp.'s fourth quarter earnings call, a trio of CFOs talked investments in Project Stargate and a portfolio that includes OpenAI, Ampere and Arm.

Project Stargate launched in January with plans to allocate $100 billion to build an AI data center in Texas. Investors included SoftBank, OpenAI, Oracle, and MGX. Technology partners included Arm, Microsoft, NVIDIA, Oracle and OpenAI.

• OpenAI's Stargate Project diversifies its cloud infrastructure
• Softbank buys Ampere for $6.5 billion, says complements Arm, AI infrastructure push
• AI infrastructure becomes one big leveraged bet

Yoshimitsu Goto, Board Director and CFO, said Stargate is an effort in collaboration with chipmakers, energy power producers and power generators. When the first Stargate site launches, that capacity will go to OpenAI. Goto added:

"In the Stargate's program here, right now, there are more than hundreds proposals are being made, and we are having a due diligence for those sites.

But still, not being able to announce first yet. I believe that one will be coming out from state of Texas. Maybe first, second and third will be coming from the state of Texas, but there are several going on parallelly so that we are not yet sure. I cannot really be specific which one will be the first, but I believe we are very close there."

Goto on the earnings call fielded numerous questions about the investment in OpenAI as well as Stargate. Goto said there are plenty of banks willing to finance data centers and tariffs haven't been an issue--largely because Softbank is thinking long-term and tariff volatility and policy changes occur almost daily.

On tariffs and Stargate, Goto said:

"Stargate was announced in January. The tariff discussion had not been started back then. So compared to that time, things are changing every day. At this moment, I don't want to be too specific. We try to explore the best decision, best option at the time. But I don't think the tariff itself is going to stop the project's progress. We would like to wait and see a little bit. But more than that, project itself is something that we would like to make sure to launch, and that negotiation is very important for us."

In many ways, Softbank argued that the acquisition of Ampere, Graphcore and ownership of Arm is all a play to be able to power compute for massive data centers in Stargate. Those three companies in the Softbank family are capable of developing chips for large data centers and there are partners already under contract for other capabilities.

Bottom line: Stargate is playing a big role in Softbank's AI long game. Time will tell how it works out.

Work management systems eye automation, agents to coordinate humans, AI workflows

Larry Dignan

Editor in Chief of Constellation Insights
Constellation Research

Larry Dignan is Editor in Chief of Constellation Insights at Constellation Research, where he leads editorial coverage focused on enterprise technology, digital transformation, and emerging trends shaping the future of business. He oversees research-driven news, analysis, interviews, and event coverage designed to help technology buyers and vendors navigate complex markets with clarity and context. ...

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Asana and Monday.com are seeing customers increase use of AI actions as both companies--along with the likes of Atlassian and Smartsheet--aim to coordinate AI agents and humans.

In recent earnings calls, it's clear that work management platforms are aiming to use agentic AI to be more relevant and coordinate work across platforms.

Monday reported better-than-expected first quarter earnings with revenue growth of 30%. As of the end of the first quarter, Roy Mann, co-CEO of Monday, said users have performed more than 26 million AI actions to date. "We are thrilled to see such rapid growth and usage of AI as our customers utilize the features to automate complex tasks, extract insights and accelerate decision making," said Mann.

Eran Zinman, co-CEO of Monday, said enterprises are the fastest growing market for the company and it launched a bevy of work management features that appeal to enterprises.

Monetization of automated AI actions will come over time, said Mann. "We see a lot of customers get value out of those actions and the numbers are great, but they don't really represent the value," said Mann. "The monetization is still early in early stages and we're experimenting with it. We do see a correlation between usage and pricing and the fact that people do actually pay when they get the real value."

Asana had a similar story and is leaning into AI agents for work coordination. CEO Dustin Moskovitz, who plans to step down, said on the company's fourth quarter earnings call that the goal was to become "the definitive platform for human AI coordination." Asana reports its first quarter results June 3.

• Smartsheet vs. Asana vs. Monday: What you need to know

The company features an AI Studio that now has a Smart Workflow Gallery, a suite of prebuilt AI-powered workflows to improve employee productivity. Smart workflows are focused on marketing, IT and operations. The idea is that Asana can coordinate cross-functional workflows because of its visibility into work and its proprietary Work Graph data model.

"My vision for Asana is to be the defining platform for human-AI coordination. This isn't just about adding AI features. It's about fundamentally transforming how organizations coordinate and execute work at scale, enabling more and higher-level work to become self-driving over time," said Moscovitz.

Asana's fourth quarter revenue was up 10% from a year ago.

Smartsheet is also looking to bring agentic AI to its work management platform via a high-profile partnership with AWS. Specifically, Smartsheet has tight integration with AWS' Amazon Q agentic AI efforts. Smartsheet also launched a new user experience and visualization tools.

The company is likely to have more to say later in 2025 given it has been busy adding leaders since its go-private deal with Blackstone and Vista Equity Partners is now complete. Smartsheet to go private in deal valued at $8.4 billion

All those work management systems are likely to face a threat from Atlassian, which is leveraging its foothold with developers and IT to expand into other team management areas.

Atlassian is developing a System of Work platform that shifts the company from standalone products to a vision of apps and agents grouped into collections. Rovo, Atlassian's AI engine, sits in the middle.

• Atlassian: A look at its system of work strategy, enterprise uptake, AI approach

In the fiscal third quarter, Atlassian delivered revenue of $1.4 billion. The company noted that its Teamwork Graph, which is powered by more than two decades of data on how work is done, can expand its total addressable market.

Atlassian CEO Mike Cannon-Brookes said the company's AI platform has more than 1.5 million monthly active users. "We do think that the future of teamwork is going to be about this sort of iterative human AI human agent collaboration," said Cannon-Brookes. "We've started making the shift from standalone products to a vision of apps and agents with Rovo at the center of everything."

5 projects we’re watching in May 2025

Larry Dignan

Editor in Chief of Constellation Insights
Constellation Research

Larry Dignan is Editor in Chief of Constellation Insights at Constellation Research, where he leads editorial coverage focused on enterprise technology, digital transformation, and emerging trends shaping the future of business. He oversees research-driven news, analysis, interviews, and event coverage designed to help technology buyers and vendors navigate complex markets with clarity and context. ...

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Enterprises are pursuing AI agents as part of a broader transformation and automation push. Here’s a look at the projects we’re watching for May.

Paypal: Building agentic commerce

Paypal has big dreams of being an agentic commerce platform that can connect consumers, merchants, and decision support into one AI-driven loop. It's a promising vision.

But first the company has to get down its tech debt.

The company must collapse its data silos to create one customer platform. Then it has to get to cloud native capabilities across its platform. From there, PayPal is expecting to rock its AI strategy at full speed.

• PayPal eyes agentic commerce platform, but first has to retire tech debt

Here's a look at the timeline.

Bank of America scales its AI agent plays

Bank of America was early in the AI assistant game with Erica way back before generative AI took off.

Today use newer models, Erica is getting an overhaul that will be aimed at not only customer support but internal employee experience.

• Bank of America's AI investments boost digital engagement, customer satisfaction

Citigroup: AI enablement

Citigroup outlined how it is using Google Cloud as an AI enabler across the company. Now it is ready to scale its use of AI to drive efficiencies.

Like PayPal, Citigroup has had to collapse a bevy of systems, refine its data strategy and do a lot of blocking and tackling to rev its AI strategy.

• 9 Google Cloud customers on AI implementations, best practices

Citigroup has been under transformation for years, but now looks like it's ready to actually move on its AI dreams.

Walmart: Continuous optimization

Walmart has more projects than you can mention, but its ability to use AI for experience and supply chain optimization is going to be critical in the current environment. Some items being rolled out. A look at Walmart’s platform approach to data, AI, optimization

• Sparky, an AI shopping assistant.
• Trend-to-Product, a tool to speed up fashion design.
• Just Go AI Checkout, a computer vision checkout system that will be rolled out to all Sam's Club locations.
• Wally, an AI assistant for merchants that will evolve into an inventory AI agent.

Bank of New York Mellon: A bet on OpenAI

With a partnership with OpenAI, BNY is building a platform that will leverage AI agents through the enterprise. The effort is a work in progress, but BNY is making good progress. I'm watching this project because it’s one of the large enterprises betting on OpenAI innovation.

• Financial services firms: The only certainty is investing in AI transformation

Classiq raises $110 million, plans to build out quantum computing software reach

Larry Dignan

Editor in Chief of Constellation Insights
Constellation Research

Larry Dignan is Editor in Chief of Constellation Insights at Constellation Research, where he leads editorial coverage focused on enterprise technology, digital transformation, and emerging trends shaping the future of business. He oversees research-driven news, analysis, interviews, and event coverage designed to help technology buyers and vendors navigate complex markets with clarity and context. ...

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Classiq, a quantum computing software company, said it raised $110 million in Series C funding. The company is looking to build the software stack for quantum computing.

The funding, led by Entrée Capital and a bevy of other investors, will be used to build Classiq's go-to-market, customer success and R&D teams globally.

Classiq's software has been used for multiple projects and has the promise of being the software layer across the various types of quantum computing systems. Classiq has raised $173 million in total funding.

Nir Minerbi, CEO of Classiq, said the goal is to build "the essential software stack to empower the development of real-world quantum applications."

Constellation Insights caught up with Minerbi recently to talk strategy and its hardware agnostic approach. Classiq, based in Israel, was founded in 2020. The company said it has tripled its customer base and revenue in compared to a year ago.

• Classiq CEO Minerbi on the intersection of quantum computing, HPC and use cases
• Constellation ShortList™ Quantum Computing Software Platforms

Classiq counts BMW, Citi, Deloitte and Toshiba as customers.

Constellation Research analyst Holger Mueller said:

"Classiq's funding is another sign of the quick maturation of the quantum computing industry. The funding for software highlights what really matters in quantum computer after the hardware.

Funding for Classiq is the proof point here, and the good news for CxOs is that Classiq is providing the abstraction layer between different quantum computing platforms. Classiq's claim to be for the quantum industry what Microsoft has been for the PC is a valid one, but needs to materialize."

Key items about Classiq:

• The company's software can be deployed on multiple quantum hardware systems via AWS Braket, Microsoft Azure Quantum, Google Cloud.
• Classiq has direct integration with IBM, IonQ, QuEra, Quantinuum, OQC, AQT, Alice & Bob, Rigetti and most leading simulators including NVIDIA and Intel.
• Classiq has more than 60 filed patents on core quantum modeling and compilation technologies.
• The company has about 70 employees, up from 40 in 2022.
• Classiq covers multiple industries including finance, healthcare, pharma, manufacturing, logistics, automotive, aerospace and defense and automotive.

More quantum:

• IBM sees quantum advantage 2026, fault tolerant quantum in 2029
• 2025 is the year of quantum computing (already)
• CxOs need to focus on quantum computing readiness, not the noise
• IonQ’s plan: Quantum networks extending into space