With rise of IOT and AR, Cisco Systems, Inc (NASDAQ:CSCO) has positioned itself perfectly to ride the next wave of growth. Cisco Systems, Inc (NASDAQ:CSCO) currently holding 60% of data centre market and with $1.4 billion acquisitions of IOT platform provider Jasper has gained an advantage over rival Arista Networks Inc (NYSE:ANET). Cisco has been trying to gain upper hand at emerging technologies – cloud application, IOT and artificial intelligence mainly through acquisitions.
Arista Networks Inc (NYSE:ANET) has been focusing on high speed 40 to 100 gigabit networks driven by IOT and AR and is expected to more than triple in market share by 2020. Currently Cisco holds close to 56% of the 100 gigabit network market while Arista Networks Inc (NYSE:ANET) holds around 16%. With long term growth in focus Arista Networks has been working on speedy network switches and faster network speeds. By 2020 Arista Networks Inc (NYSE:ANET) is set to add $200 million to $300 million in revenue by adding over 100 routing customers and 4000 switching customer by mid-2017, this puts Arista Networks Inc (NYSE:ANET) directly denting Cisco revenues.
Cisco Systems, Inc (NASDAQ:CSCO) is seeing declining trends in its traditional routing and switching revenues and legacy hardware offerings, and is now trying to position as software-centric business model with acquisitions of AppDynamics, Viptela, and MindMeld.
Arista Networks Inc (NYSE:ANET) stock price has recorded growth of 55% in 2017 and revenue boosted by 35% in 2016 by enterprise customers like Microsoft (MSFT), Amazon.com (AMZN) and Facebook (FB). The recent ITC decision with Cisco Systems is seen as only a short term setback for Arista Networks. Cisco Systems, Inc (NASDAQ:CSCO) cybersecurity segment has continued to outperform with 12% annual sales growth while the routers and switches segment saw a lower 3% growth this year.