Click here to close now.




















Welcome!

@BigDataExpo Authors: Adrian Bridgwater, Elizabeth White, Dana Gardner, Bob Gourley, 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."

@BigDataExpo Stories
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
With SaaS use rampant across organizations, how can IT departments track company data and maintain security? More and more departments are commissioning their own solutions and bypassing IT. A cloud environment is amorphous and powerful, allowing you to set up solutions for all of your user needs: document sharing and collaboration, mobile access, e-mail, even industry-specific applications. In his session at 16th Cloud Expo, Shawn Mills, President and a founder of Green House Data, discussed h...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit f...
"We have been in business for 21 years and have been building many enterprise solutions, all IT plumbing - server, storage, interconnects," stated Alex Gorbachev, President of Intelligent Systems Services, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to tran...
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
"Our biggest growth area has been the security services, the managed services - the things that differentiate us in the market that there is no client that's too small and there's no client that's too big," explained Paul Mazzucco, Chief Security Officer at TierPoint, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
"We do data integration for B2B also application to application, and we do data management and enable Big Data," explained Pat Adamiak, Vice President, Product Marketing at Liaison Technologies, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
SYS-CON Events announced today that Agema Systems will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Agema Systems is the leading provider of critical white-box rack solutions to data centers through the major integrators and value added distribution channels.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share w...
In the midst of the widespread popularity and adoption of cloud computing, it seems like everything is being offered “as a Service” these days: Infrastructure? Check. Platform? You bet. Software? Absolutely. Toaster? It’s only a matter of time. With service providers positioning vastly differing offerings under a generic “cloud” umbrella, it’s all too easy to get confused about what’s actually being offered. In his session at 16th Cloud Expo, Kevin Hazard, Director of Digital Content for SoftL...