Welcome!

Big Data Journal Authors: David Fletcher, Carmen Gonzalez, Jason Bloomberg, Jnan Dash, Kevin Jackson

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."

@BigDataExpo Stories
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. 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 development cycles that produce software that is obsolete...
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, p...
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com...

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's

"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
“We are a managed services company. We have taken the key aspects of the cloud and the purposed data center and merged the two together and launched the Purposed Cloud about 18–24 months ago," explained Chetan Patwardhan, CEO of Stratogent, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session a...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in San...
As enterprises engage with Big Data technologies to develop applications needed to meet operational demands, new computation fabrics are continually being introduced. To leverage these new innovations, organizations are sacrificing market opportunities to gain expertise in learning new systems. In his session at Big Data Expo, Supreet Oberoi, Vice President of Field Engineering at Concurrent, Inc., discussed how to leverage existing infrastructure and investments and future-proof them against e...
"Desktop as a Service is emerging as a very big trend. One of the big influencers of this – for Esri – is that we have a large user base that uses virtualization and they are looking at Desktop as a Service right now," explained John Meza, Product Engineer at Esri, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core...
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and...
You use an agile process; your goal is to make your organization more agile. But what about your data infrastructure? The truth is, today's databases are anything but agile - they are effectively static repositories that are cumbersome to work with, difficult to change, and cannot keep pace with application demands. Performance suffers as a result, and it takes far longer than it should to deliver new features and capabilities needed to make your organization competitive. As your application an...
An effective way of thinking in Big Data is composed of a methodical framework for dealing with the predicted shortage of 50-60% of the qualified Big Data resources in the U.S. This holistic model comprises the scientific and engineering steps that are involved in accelerating Big Data solutions: problem, diagnosis, facts, analysis, hypothesis, solution, prototype and implementation. In his session at Big Data Expo®, Tony Shan focused on the concept, importance, and considerations for each of t...
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal S...
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial C...