Arista almost done with Cisco workarounds as revenue and profit soar Customer certification delays resulting from its ongoing patent lawsuit brought by Cisco have delayed some of its revenue, but upstart Arista Networks still turned in a tidy result for Q4 2017 and for the full year. The company last Friday announced US$467.9 million in revenue for Q4 2017, up 42.7 per cent on Q4 2016, and a …
Juniper have a fairly broad product range (WAN/LAN/WLAN/Security) in comparison to Arista that is pretty much just Ethernet switches. Juniper has around 3x the revenue/gross income figures for Arista. While Aristas share price looks good at the moment, I'm not sure it's based on anything solid or long term aside from missing the Cisco steam roller in a lawsuit.
My expectation for cloud providers is that they will go with custom white boxes for that majority of their networking requirements with maybe a few big Juniper/Cisco units managing BGP due to them being the de facto standards. i.e. what AWS/Google have done. I'm surprised that MS haven't looked elsewhere if they really are making up 16% of Aristas sales or ~US$265m as that's a big chunk of change even if you are spending ~US$10B/annum on cloud DC's - I would expect Google and AWS to be spending less than half that for similar DC spend.
Arista's products are all based on merchant silicon (probably Broadcom) with Arista software. i.e. doing it yourself if you have the scale is cheaper.
Where does that leave Arista in 12-24 months?
It's FUD that enterprise networking is undergoing a decline due to the move of services to the cloud when 6/7ths of the big cloud vendors use white box switching for the majority of their top of rack requirements?
It's FUD that Juniper revenues/net income are three times that of Arista?
OK....
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