Welcome!

SDN Journal Authors: Liz McMillan, Elizabeth White, Nate Lindstrom, Dana Gardner, Pat Romanski

Blog Feed Post

5 things Arista’s impending IPO says about networking

Networking seems to be an industry that thrives on anticipation. At various times, the anticipation bounces between topics (when SDN will hit production environments, when Cisco would spin in Insieme, and so on), but the entire space seems to bounce around from anticipated event to anticipated event. It would seem that the next one in the queue is Arista’s IPO.

On the surface, Arista’s public offering is primarily about raising funds and rewarding people who have worked hard to build a successful company over the past several years. But what else does it say about the networking industry at large?

Networking is not dead

When the Internet was created, networking was huge. The companies that provided the gear to make the Internet work were handsomely rewarded for figuring out how to push bits from here to there. Over the past 15 years, however, a lot of the luster has worn off. Infrastructure is less sexy than Web 2.0, social media, and crowdsourcing. Talent follows opportunity, and with most of the opportunity in other hotter spaces, vendors have had a more difficult time attracting the kind of talent necessary to evolve the space.

The effects of an aging workforce are dramatic. Without new blood, you don’t get access to new ideas. It is unsurprising that the industry has floundered a bit for the past 15 years, adding on incrementally but rarely breaking free from the inertial chains of yesteryear.

If Arista’s IPO is successful, it could provide a jolt to the collective industry. By showing that the space is lucrative, Arista could help bolster the case for many networking companies that there is excitement to be had outside the glow of social media and Web 2.0.

The end game is more than a mega acquisition

Some would argue that there has been a steady stream of cash flowing into networking since about 2010. With SDN, there has been a boom in new companies all making the world a better place through some kind of separation of software and hardware. The poster child for this boom is certainly Nicira ($1.2B turns heads), but there have been a a number of companies that have cashed in on this SDN wave.

A successful IPO would show the world that networking success is not limited to being bought out by one of the few larger players.

If we are being honest, we will admit that the hype that surrounds SDN, NFV, and network virtualization is driving up perceived values of these startup companies. But are revenues following? If they are not, then the only successful outcome for a lot of the startups in the space is acquisition. There are a large number of people banking on dumb money taking them out before they ever have to prove that their product ideas can translate to business returns.

If Arista demonstrates that the market will support a full-blown business, it shifts the focus back to building something sustainable. In other words, you can be successful through good, old-fashioned hard work, not just by riding the wave and slapping an “SDN Inside” tag on the outside.

The market is hungry for alternatives

That Arista is gaining ground says as much about Cisco as it does about Arista. The switch markets generally have been a fairly comfortable space for Cisco for the better part of two decades now. But most markets require more than a single dominant incumbent. Having at least one solid alternative puts pressure on everyone in the space. Innovation thrives on competition, and customers benefit from innovation.

The interesting footnote to this is how the definition of alternative might play out. Legacy networking has been yearning for real competition, and Arista seems to have stepped into that role. What happens if the market shifts now? Will there be another set of SDN solutions seeking an SDN alternative? If so, does that open the space to other companies?

Market success starts with narrow focus

While the emphasis around the IPO will be on the broader switching TAM, what Arista’s exit really does is reenforce the fact that successful enterprises start with a narrow focus. Arista was very successful in leading the charge towards merchant silicon in support of faster, cheaper solutions for financial services companies. By reducing the problem set to those things needed by a specific market, Arista was able to make meaningful headway against its unfocused incumbent, and then use the resulting capabilities to move into adjacent spaces.

Interestingly, if you look at the other major networking company to have success against Cisco’s incumbency, you would see that Juniper used a similar tact in grabbing share in the service provider space.

As investor eyes move from Arista to the plethora of other companies in the infrastructure space, what does this tell us? The SDN dialogue is largely about general networking. Most companies pursuing SDN publicly are building general networking solutions. Arista and Juniper tell us that focus is a key ingredient to sustainable success. It is probably less important who exists within the hype and more important which companies are focused on specific problems within specific segments.

Workflow is the new black

Arista sells hardware, but a good part of their success is actually baked into the software. What Arista realized fairly early on is that automating networking workflows reduced the barriers to entry and created compelling reasons to buy. If SDN is an organic industry reaction to the difficulty in managing networks, it would seem Arista might have provided a blueprint for others in the space.

Going forward, the question is whether those workflows are bounded by the networking devices (things like autoload, for instance), or if IT is moving to a point where workflows across infrastructure need to be coordinated. For example, would Big Data workflows that include both networking and storage be a good target for workflow automation?

Reapplying the Arista workflow emphasis at a broader level will likely yield strong results. The questions shift from managing information inside the box to handling information across infrastructure boundaries. Predicting success could be about locating companies with their eyes focused a bit outside the box.

The eventual outcome for Arista’s exit is unknown. But it very well could be that what we learn is most relevant to the next crop of companies.

The post 5 things Arista’s impending IPO says about networking appeared first on Plexxi.

Read the original blog entry...

More Stories By Michael Bushong

The best marketing efforts leverage deep technology understanding with a highly-approachable means of communicating. Plexxi's Vice President of Marketing Michael Bushong has acquired these skills having spent 12 years at Juniper Networks where he led product management, product strategy and product marketing organizations for Juniper's flagship operating system, Junos. Michael spent the last several years at Juniper leading their SDN efforts across both service provider and enterprise markets. Prior to Juniper, Michael spent time at database supplier Sybase, and ASIC design tool companies Synopsis and Magma Design Automation. Michael's undergraduate work at the University of California Berkeley in advanced fluid mechanics and heat transfer lend new meaning to the marketing phrase "This isn't rocket science."

@CloudExpo Stories
To leverage Continuous Delivery, enterprises must consider impacts that span functional silos, as well as applications that touch older, slower moving components. Managing the many dependencies can cause slowdowns. See how to achieve continuous delivery in the enterprise.
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
SYS-CON Events announced today Telecom Reseller has been named “Media Sponsor” of SYS-CON's 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Ixia (Nasdaq: XXIA) has announced that NoviFlow Inc.has deployed IxNetwork® to validate the company’s designs and accelerate the delivery of its proven, reliable products. Based in Montréal, NoviFlow Inc. supports network carriers, hyperscale data center operators, and enterprises seeking greater network control and flexibility, network scalability, and the capacity to handle extremely large numbers of flows, while maintaining maximum network performance. To meet these requirements, NoviFlow in...
Enterprises have forever faced challenges surrounding the sharing of their intellectual property. Emerging cloud adoption has made it more compelling for enterprises to digitize their content, making them available over a wide variety of devices across the Internet. In his session at 19th Cloud Expo, Santosh Ahuja, Director of Architecture at Impiger Technologies, will introduce various mechanisms provided by cloud service providers today to manage and share digital content in a secure manner....
StarNet Communications Corp has announced the addition of three Secure Remote Desktop modules to its flagship X-Win32 PC X server. The new modules enable X-Win32 to safely tunnel the remote desktops from Linux and Unix servers to the user’s PC over encrypted SSH. Traditionally, users of PC X servers deploy the XDMCP protocol to display remote desktop environments such as the Gnome and KDE desktops on Linux servers and the CDE environment on Solaris Unix machines. XDMCP is used primarily on comp...
As the world moves toward more DevOps and Microservices, application deployment to the cloud ought to become a lot simpler. The Microservices architecture, which is the basis of many new age distributed systems such as OpenStack, NetFlix and so on, is at the heart of Cloud Foundry - a complete developer-oriented Platform as a Service (PaaS) that is IaaS agnostic and supports vCloud, OpenStack and AWS. Serverless computing is revolutionizing computing. In his session at 19th Cloud Expo, Raghav...
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Fact: storage performance problems have only gotten more complicated, as applications not only have become largely virtualized, but also have moved to cloud-based infrastructures. Storage performance in virtualized environments isn’t just about IOPS anymore. Instead, you need to guarantee performance for individual VMs, helping applications maintain performance as the number of VMs continues to go up in real time. In his session at Cloud Expo, Dhiraj Sehgal, Product and Marketing at Tintri, wil...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Using new techniques of information modeling, indexing, and processing, new cloud-based systems can support cloud-based workloads previously not possible for high-throughput insurance, banking, and case-based applications. In his session at 18th Cloud Expo, John Newton, CTO, Founder and Chairman of Alfresco, described how to scale cloud-based content management repositories to store, manage, and retrieve billions of documents and related information with fast and linear scalability. He addres...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aspose.Total for .NET is the most complete package of all file format APIs for .NET as offered by Aspose. It empowers developers to create, edit, render, print and convert between a wide range of popular document formats within any .NET, C#, ASP.NET and VB.NET applications. Aspose compiles all .NET APIs on a daily basis to ensure that it contains the most up to date versions of each of Aspose .NET APIs. If a new .NET API or a new version of existing APIs is released during the subscription peri...
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...