Service Provider Cloud

Arista Finds Its Campus Mojo

Portfolio enhancement
Arista sees the addition of Mojo's management tools as a way to enhance its entire product line, including its traditional data center products, building on Arista's efforts to provide a uniform environment and set of tools from the network core to the edge, McCool says.

And that uniformity is a competitive advantage as Arista goes up against the much bigger Cisco Systems Inc. (Nasdaq: CSCO) in the campus market. While Cisco has numerous platforms -- multiple sets of tools that network managers need to understand and handle -- Arista has just the one. "We vastly simplify the number of devices that you need to deploy," McCool says. (See Arista Takes Aim at Cisco: 'Legacy Routers Are a Thing of the Past'.)

Historically, each part of the network required different devices, with different ASICs and software. "We think that was maybe an awesome idea in 1990, when you had to build the Internet for the first time, but in the world of cloud, more homogeneity of your equipment, more disaggregation of your software, and richer APIs is the way you've got to do it. And you can simplify your operating model tremendously," McCool says.

It's not just Cisco and Arista. VMware Inc. (NYSE: VMW) and Juniper Networks Inc. (NYSE: JNPR) are making their own end-to-end campus plays, bridging networks from the data center to the campus and to the network edge.

Cisco launched APIs in June to allow third parties to program its networking equipment, extending its automated network management strategy -- which it calls "intent-based networking" -- from the data center to the campus. (See Cisco Shows Open Networking Intent.)

VMware outlined a vision in May for a unified network architecture spanning the on-premises data center, enterprise branches and Internet of Things, as well as multiple cloud providers. (See VMware Takes On Cisco & Juniper With Network Vision.)

Juniper spelled out its strategy in February for breaking down networking silos between branch, campus, data center and cloud. (See Juniper Looks to Weave Multicloud Network.)

The Mojo acquisition was one of three milestones for the normally quiet Arista this month.

It agreed to pay $400 million to settle allegations that Arista made unauthorized use of Cisco intellectual property in its equipment. That's a lot of money, even for Arista, but it settles a lawsuit that threatened to cripple the company. (See Arista Shelling Out $400M to Settle Cisco Litigation.)

And in its earnings report for the quarter ending June 30, Arista surpassed a $2 billion run rate by reporting quarterly revenues of $519.8 million, up 28.3% year-over-year. (See Arista Passes $2B Run Rate with $519.8M 2Q Revenue, Up 28.3% YoY.)

Arista's stock is currently trading at $269.28, up from $231.03 at the beginning of this calendar year.

— Mitch Wagner Follow me on Twitter Visit my LinkedIn profile Visit me on Tumblr Follow me on Facebook Executive Editor, Light Reading

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