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Analyst: Here's Why Arista's New 7500R Architecture Will Make It A $1B Company

Fast-growing networking startup Arista Networks turned heads last week with the launch of its 7500R Series, a combined switching and router architecture.

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Arista Networks' new 7500R, dubbed "Universal Spine," is targeting cloud service providers and next-generation enterprise data centers. Santa Clara, Calif.-based Arista designed the 7500R to make cloud routing as scalable and simple as data center switching, aiming to disrupt the $41 billion switching and router market currently dominated by Cisco Systems.

UBS financial analyst Steven Milunovich released a report on the 7500R, predicting that the architecture will help drive annual revenue at Arista to more than $1 billion in 2016, up from $838 million in 2015.

Key reasons why UBS is predicting significant growth is because the 7500R could drive an upgrade cycle for organizations, according to Milunovich. He says the 7500R has a significantly better price-performance compared twith Arista's previous generation of switches, the 7500E. UBS believes roughly 50 percent of Arista's revenue comes from spine switches, which means the new series could be a huge boost.

Solution providers say customers are already asking for the 7500R. "We've had clients that have been asking us about this for some time now, so we're definitely incorporating this into our portfolio immediately," said Andrew Fisher, CEO of Myriad Supply, a New York-based solution provider and Arista partner.

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