Why the Cloud Titans Drive DC Strategy and how you benefit! Mark Carnighan. November 2015
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1 Why the Cloud Titans Drive DC Strategy and how you benefit! Mark Carnighan November 2015
2 Cloud Providers Business Problem 1. Revenue per bit is declining Usage is up Cost not dropping fast enough 2. Launching new services is HARD 2
3 ARISTA OVERVIEW! 3
4 Arista Networks (NYSE:ANET) Building networks designed to meet the requirements of the cloud and bring those architectures and capabilities to the enterprise Employees - >50% in R&D Customers $4B+ Market Capitalization
5 2001 Google released an RFP for 10,000 ports of Gb Ethernet for $100/port No vendor could meet this requirement
6 GARTNER MAGIC QUADRANT 2015 Data Center Networking Source: Gartner May
7 Market Share High Speed Data Center Switching Market Share in Ports (10/40/100GbE) Arista Cisco Source Arista 2011 revenue based on management estimates. All other information based on Crehan Research 2Q15 Data Center Switch Report
8 Broad, Blue-Chip Customer Base Web Financial Services Service Provider / Cloud / Hosting High-Tech Government Media & Entertainment Education Oil and Gas Business Services Research Labs Healthcare Retail Manufacturing Howard Hughes Medical Institute
9 Cowen and Company Q2 15 report Our industry checks indicate that ANET has successfully retained its position as key strategic L2 switch supplier to MSFT (i.e., for its Azure platform)--which our checks indicated JNPR was aggressively trying to intercept--and continues to benefit from strong MSFT revenue contribution. We believe MSFT accounted for ~ 12-14% or $21 25 mln of ANET s 1Q15 revenue and will likely have similar level of contribution in 2Q15. Beyond MSFT, as we highlighted in a previous note ( FY1Q15 Preview: Expecting Solid Print but NT Risks; LT Looks Solid, dated May 12, 2015) our industry checks now indicate that ANET has been selected by AT&T for a data center/nfv project worth ~ $100 mln. This project has the potential to grow substantially in scope and could be worth hundreds of millions of dollars over the next month period. 9
10 IN A PREFECT WORLD I WANT TO! 10
11 1. Reduce CAPEX 2. Reduce OPEX 3. Launch new products faster 11
12 Moore s Law = Reduced CAPEX 12
13 Arista Networks: The Best Data Center Portfolio m e t s y S g n i t a r e p O e l b i s Exten 7500E 7050 S/T/Q 7048T 48-port Data Center Class Gigabit Ethernet Switch 1/10G & 10/40G Data Center Switches 10G SFP+ / 10G-T Dense Virtualization 10GbE / 40GbE 7150S Ultra Low Latency 24,52,64-port SFP+ 1G-40GbE Switches LANZ and DANZ 7050X & 7250X 7280SE Dense Low Latency 32 & 64-port QSFP 10/40/100G 96xSFP+/8xQSFP Advanced Virtualization Scale-out Visibility Ultra Deep Buffers VOQ and Lossless Enhanced Visibility LANZ/DANZ NEBS 7300X High Density, Modular System supporting up to GbE Cloud Scale Leaf and Spine 10/40G Lossless, High Density, Modular Switching System supporting up to 1152 Wirespeed 10GbE Ports LANZ / DANZ Spine 10/40/100G
14 Reduce OPEX Less down time Fewer / shorter maintenance windows Less operations staff (fewer people) Less power and space Lower support costs from vendors 14
15 Arista EOS: Resilient Cloud Scale Software Fully modular, multi-process, multi-threaded, stateful restart Core SysDB for all session state and inter-process communications In-service-software-upgrades Extensible architecture with open APIS enables 3 rd party applications Focused on making operations simpler with One system Linux Kernel Image EOS is the Key Decade of Investment
16 The Transition to Cloud Networking Legacy Networking Cloud Networking Manual, Box-by-Box Automated, Network-wide Closed architectures Open, Standards-based approaches Limited integration and control Control through deeper Programmability at all layers Networking skillsets New Skillsets: Virtualization, DevOps, Scripting
17 Launch products faster Controller is key Must be open Need standard MANO layer There will be more than one Open control plane OVSDB, E-VPN Multiple encaps VxLAN, MPLS, GRE 17
18 The Controller Landscape Cloud Orchestrators Network Overlay Controllers Network Underlay Fabric Controllers Global Cloud Network Controllers Functions as an end-to-end platform across networking, storage, and compute devices Functions across a virtual network using hypervisorbased virtual switches Software & Hardware approach for automating physical network devices Network Wide Portal Approach to workloads, workflows and applications Overall network integration Virtual to network integration Single Function focus Improved programmable underlay Networking Multifunction Network wide for operational visibility & automation The Many Facets of Controllers 18
19 Scaling Controller Integration Traditional Approach CloudVision Approach Topology/Device Dependent Overlay Controller Controller Layer Overlay Controller Topology/Device Abstraction Network Layer OVSDB 10x Improvement OVSDB SysDB State Sync 19
20 A Single Interface to Automation
21 Universal Telecom / Cloud Network 21
22 Thank You
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