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kq4ym
kq4ym
8/17/2018 | 7:38:49 PM
Re: A bargain
I wonder how much the attorney fees were for Arista or how much would be contemplated if there were no settlement. i would guess those numbers had a great deal to do with what has come about even when considering who might be legally correct or at least the lawyers led them to believe they were.
bosco_pcs
bosco_pcs
8/6/2018 | 9:09:59 PM
Re: A bargain
Thanks, i stand corrected
BigBro
BigBro
8/6/2018 | 9:05:14 PM
Re: A bargain
Your memory is *very* faulty. It's OK, we all get there eventually... :)

The pre-IPO lawsuit you're probably thinking of was the OptumSoft vs. Arista suit, which had nothing to do with Cisco: https://www.forbes.com/sites/ryanmac/2014/06/05/on-the-verge-of-ipo-arista-networks-faces-lawusit-from-a-billionaire-cofounder/

Regarding Cisco's relationship with Arista, you might be mistaking Arista for one of Cisco's spin-ins (Insieme), but to clarify:

Cisco was never an investor in Arista. Arista was funded by Andy Bechtolsheim and David Cheriton.

Arista never used even a single line of Cisco code (and Cisco never accused Arista of doing so; see this blog post for more details: https://blogs.arista.com/blog/protecting-ip-or-market-share).

Arista's CEO (Jayshree Ullal) was not Cisco's CTO. She headed the switching business unit at Cisco, so she was a "mini-CEO" of switching, if you will. A very important role, to be sure, but not formally a "CxO".

The lady who was Cisco's CTO for a while is Padmasree Warrior. Before she went to Cisco, she was CTO at Motorola, and predicted that the iPhone was a "fad" that was going to fail. If you Google "Padmasree Warrior iPhone", you'll find the article she wrote. It's pretty hilariously wrong, not just in hindsight, but even at the time...
James_B_Crawshaw
James_B_Crawshaw
8/6/2018 | 7:10:29 PM
Re: A bargain
Well the stock did go up a few percentage points on the news so I guess it is seen as good though nott otally unexpected news. It is nice to see companies dropping the lawsuits  and focusing on differentiation through technology. We had a similar detente between Amdocs and Openet recently. In fact, litigation in the telecom industry appears to be on the decline somewhat as the video below explains. 

https://www.linkedin.com/feed/update/urn:li:activity:6426759268007059456
BigBro
BigBro
8/6/2018 | 6:58:14 PM
Re: A bargain
"[Everyone] knew about the suit at the time of its IPO".

Would be interesting to hear who is "everyone" in this context.

The suit was filed by Cisco in December 2014, almost to the day 6 months after Arista's IPO. The timing coincided with the expiration of the post-IPO lockup period for Arista employees, no doubt with the intent to screw Arista employees by torpedoing the stock price right around the time that people could start selling a little bit of stock.

This entire lawsuit has been bullsh*t from Day One. It was Cisco's last chance to slow down Arista, and it has had its intended effect of being hugely distracting and expensive for Arista.

On the corporate level, it was the 800 lb gorilla bullying a small, nimbler competitor who was earning market share with a superior product and support/customer service. On a personal level, it was pettiness from JC, Mario, Luca, and their gang, who were afraid that they were going to be "shown up" by Andy, Jayshree, and co. (and rightly so, as history now teaches us).


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