Cisco and Arista have agreed to suspend (not end) their legal battle for a few years. Is there anything we can learn ?
Link: Joint Statement – Agreement Resolving Litigation – https://blogs.cisco.com/news/protecting-innovation-litigation-update
- Cisco has been unable to land a ‘killing blow’ in the court case. Nearly all of the matters brought before the courts have been dismissed including critical ones. Only one or two issues remain and the case looks weak overall.
- Cisco is validating Arista as a competitor, something that is has never done before.
- Arista quickly engineered around the early decisions. You could assume that they could do it again.
- SDN makes the CLI irrelevant in the near future any way.
- Customers did not abandon Arista or stop moving to Arista – certainly was some disruption.
- Arista has been taking market share in the Data Centre which was hurting Cisco four or five years ago. Yes, most of the employees are ex-Cisco but thatâ€™s true for most startups in Silicon Valley – e.g.
- Arista was making products that customers wanted. There isnâ€™t much innovation in building a better switch than Cisco that looks the same but customers have voted with their purchase orders.
- Chambers era move. The exercise seems to have an element of personal egos involved, now the Chuck is more firmly in control
- Cisco is not just a networking company, its spending money in many area but none of them are network. See Duo Security, Jasper, App Dynamics etc.
- Cisco sales reps will no doubt tell customerrs that ARista stole sutff and paint a negative picture. E.g. Cisco reps are still telling customers that Huawei stole IOS ten years ago. Big companies are stupid and sales people do not act well.
- Arista share price up 4% or 760MM so the paying a fine is ok with shareholders.
- Nobody wins here. Not customers, Arista or Cisco.