Arista Brings 400G Platforms To Transform Cloud Networking
Zacks Investment Research | May 15, 2019 08:27AM ET
Arista Networks, Inc. (NYSE:ANET) recently announced its new 7800R product family for 400G cloud networking, along with the latest generation of 7500R and 7280R Series to address every layer of the network. Notably, the platforms support 100G and 400G Ethernet with throughput, density and price-performance.
The expansion of the R-Series to 400G and the new 7800R3 would provide customers with better performance to deal with traffic growth, network segmentation, telemetry and cybersecurity challenges. The solution offers new telemetry and intelligence into the network for service providers, 5G and Internet of Things. The new R3 Series products are expected to be shipped in the third quarter of 2019. As the company continues to diversify the business, it is witnessing the deployment of cloud principles into new enterprise markets backed by its robust business model.
Arista continues to benefit from the expanding cloud networking market, owing to strong demand for scalable infrastructure. In addition to high capacity and easy availability, its solutions promise predictable performance along with programmability that enables integration with third-party applications for network management, automation and orchestration. The company’s comprehensive product portfolio facilitates the implementation of high-performance, scalable and appropriate solutions for every environment.
Arista’s strategy of leveraging merchant silicon from multiple suppliers has augmented its portfolio with increased ability to offer products at cheaper prices. This has also helped it to focus on software like EOS (Extensible Operating System) and CloudVision. While EOS is core to the company’s cloud networking solutions for next-generation data centers and cloud networks, CloudVision is a network-wide approach for workload orchestration, workflow automation and real-time telemetry.
The cloud networking company is well positioned with its key customers and is focused on expanding presence across all the verticals. For second-quarter 2019, the company projects revenues in the range of $600-$610 million. It anticipates non-GAAP gross margin of 64-65% and non-GAAP operating margin of around 36%.
Apart from driving the cloud area networking, Arista boasts the number one market position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. In addition, it has successfully integrated two M&A transactions, Mojo Networks for Cognitive Wi-Fi in the campus and Metamako for ultra-low latency networking, which remain additional tailwinds for business growth.
Arista is earning a strategic role with customers deploying transformative cloud networking. It aims to sustain healthy revenue growth and cash generation in 2019 and beyond on the back of industry-leading product offerings. Driven by proper execution of operational goals, the stock has recorded an average return of 18.1% compared with the Zacks Investment Research
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