Arista keeps eating cisco lunch and growing top and bottom lines. Where is cisco ELT team plan?
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yeah that's why their stock price is in the toilet and ours is raising.....yup....sure...
The stock price isn't the business, but let's look at some numbers:
Cisco Arista
Price to sales: 4.59 16.61
5-year returns: 66.89% 604.04%
Operating margins: 22.99% 42.84%
Revenue ttm Q3CY2020 (Arista's last negative growth)
Value: $48.07 $2.222B
Inflation adjusted: $59.25 $2.74B
Revenue ttm most recent peak
Quarter ending: 10/31/23 03/31/2025
Value: $58.034B $7.436B
Inflation adjusted: $60.51B
With Splunk InfAdj: $64.61B
Cisco's latest reported revenue ttm was $55.623B, way below the inflation adjusted values of $59.25 from Q3CY2020 and far more below what it should be from Cisco's peak in Q3CY2023 adding in Splunk's last reported annual revenue before being bought all adjusted for inflation of $64.61B. It's going to be years for Cisco to break even with inflation from 2023.
Cisco itself could have been Arista...
Cisco creating a consistent hardware control plane architecture with one operating system and one set of consistent APIs? HAHAHAHAHAHAHAHAHAHAHAHA.
Whaddaya mean "what's ELT's plan"? it's about 10 years too late Arista has been eating Cisco's lunch for about a decade. Cisco itself could have been Arista, but Chambers let the technology walk right out the door. Then realizing they sc--wed the pooch, they put Prem, Mario and the bunch on on the task for trying to catch up. Chuckie was not the #1 choice when Chambers left.....he's lucky he's stuck as long as he has. Ah well, what the heck, I really don't care, I have millions of my own, can watch from a distance and just reflect on what a $%itshow it was in many ways....
We have an in houseGeneration 2 AI OP. What are you talking about we are way ahead of everyone.
Welcome to G2 AI
yeah that's why their stock price is in the toilet and ours is raising.....yup....sure...
It’s the same plan they had for Webex during the pandemic. Do nothing.
DC leadership is incredibly weak at Cisco. Cisco had NXOS and ACI to propose to customers. But you see two competing solutions ain't enough, so they created Hyperfabric. Now customers get to pick from three overlapping offers! Of course none of them integrate with one another or other Cisco products, customers are left figuring it all out.
For the same dollar increase in revenue 28% growth for Arista is adding 4% to Cisco. 28% growth for Cisco is adding 200% to Arista. Arista has a far narrower product line developed with software technologies from the past 50 years because they started from Cisco after Cisco created so much technical debt without skills from the past 50 years so Arista isn't actively choking itself out.
I'm more concerned about the significant drop in revenue before Cisco acquired Splunk and when they brought it on with $4B/yr in revenue Cisco's revenue was still down significantly. What parts of the business are dying fast enough to destroy so much total revenue?
OP failed math
Totally eating their lunch with 1/7 of the revenue.
We have made every attempt to drive away talent on ACI side. There is a hatred for good engineers in DC these days. If you don’t su=ck up to your VPs, you will be made to leave. Doesn’t matter how good you are and what you contribute. They need slaves and yes men. Both the VPs promotion picks if you see represent that or promoting their old buddies. Yet to see one good and hard working talent recognized under them in either technical or Management ladder. Switching is even worser with exact id1ots picked for promotions while even the staff of VP do not know what those people did.
ELT is still trying to figure out which room to p-e in. No time for actual strategic evaluation or implementation.
elt is sitting and talking about the next LR to move the stock price and help shareholders with greater returns.
dei is out for now