Actionable news
0
All posts from Actionable news
Actionable news in CSCO: Cisco Systems, Inc.,

Arista: Legal Challenges Rear Their Heads Again in 2018, Says Piper

The company can continue to take share from Cisco Systems (CSCO), he writes:

According to IDC, Arista has ~13% market share of the $11B data center Ethernet switching market. Market share gains have been strong in recent years against traditionally dominant players like Cisco, driven by Arista's better solution that drives simplicity and a network for today's needs. Organizations are upgrading their Ethernet switches to faster bandwidth, which should further drive market share gains.

On the legal front, however, several cases brought against the company by Cisco, which were temporarily resolved by Arista implementing workarounds, are going to be ongoing challenges in 2018, he writes.

Fish offers several pages of assessments of the various patent infringement claims brought by Cisco against Arista. A sampling of what he’s talking about:

The 944 Case: Re- designs the Key to Arista’s Success Thus Far, but Key Events in 2018 (Feb, June, Sept) […] The Judge who has been ordered to investigate further has an initial determination deadline on June 4, 2018 with September 4, 2018 as the new target date for enforcement action based on this determination […] the Judge who has been ordered to investigate further has an initial determination deadline on June 4, 2018 with September 4, 2018 as the new target date for enforcement action based on this determination [...] 577 and 668 Patents Review to be Completed in Mar-Apr 2018 [...] Cisco has filed a request for expedition on this, specifically related to the 577 patent, asking for completion by December 11, 2017.

His assessment is that the legal events “may cause stock volatility,” and he thinks Cisco won’t be willing to settle, because “for Cisco to ‘win,’ it just needs 1 of the 538 claims it initially started with to ‘hit’ Arista."

In addition to the Cisco suits, the company is being sued by OptumSoft, a maker of some components included in Arista's "EOS" operating system. THe company was founded by an Arista co-founder, David Cheriton, notes Fish. He expects "Arista is likely to either win the case against OptumSoft or reach a settlement."


More