Arista and SDN's security benefits

Investment Analysis Clubs Saul’s Investing Discussions
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Arista is an upcoming player in what’s called SDN: Software Defined Networking. I think this company has a really bright future. My light reading last night was “Beyond Cybersecurity.” Here’s a brief quote:

SDN separates the decisions about where network traffic is sent from the underlying system that transmits the traffic (i.e., the control plane from the data plane). Practically speaking, SDN allows an organization to set up a network in software rather than in the configuration of the underlying hardware. This means that networks can be managed via a set of APIs, and a library of different network configurations can be stored for reuse. No one should be under any illusion— implementing SDN is a dramatic change that will require investment in new hardware, new operational processes, and new management capabilities. But it also brings huge efficiencies, saving as much as 60 to 80 percent of data center network costs thanks to vastly improved productivity and the use of commoditized hardware. It also helps enormously in the fight against lateral movement by making it much easier to set up network zones and segments in a rapid, automated way, thereby eliminating the tough choice between efficiency and compartmentalization.

So, while there’s a cost to the change, the net benefit is both tastes great and less filling. AND, it’s actually a security enabler, not a security risk.

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So, while there’s a cost to the change, the net benefit is both tastes great and less filling…

Thanks for this, Smorgasboard.

Any idea where Arista is in the process of this change? In other words, do you anticipate that we will soon see the costs of this change affecting its earnings?

Also, any idea how long the change takes to complete?

thanks,
az5speedy

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Any idea where Arista is in the process of this change? In other words, do you anticipate that we will soon see the costs of this change affecting its earnings?

This isn’t something Arista needs to change. It’s something that companies adopting SDN need to do, so it’s a hurdle to adoption. However, the benefits are clear in terms of cost, flexibility, and security. My post was intended to add the bit about security benefits to our understanding.

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Thanks for the clarification!

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I am worried that all the hardware will be through white boxes though and is one of the reasons I invested in ACACIA and Nvidia instead. I figured everyone would need the parts to build the box even if they do not use Anet or Infn. Although Anet does have the software I think there will be a lot of competition in the software side too.

Andy

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AZ,
This is going to be huge in the industry and will take years to complete for the Tier 1 providers. This will also have an effect on jobs in the industry and could help companies that provide service a boost in earnings with fewer hands to do the work.

Andy

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Thanks Andy!