Amazon Tipped To Shake Up Networking Market
E-commerce giant, Amazon, has further expanded its home-brand electronics portfolio, following reports it’s developing a line of networking hardware – news which has caused Cisco shares to dive 4%.
As per The Information, Amazon is tipped to build its own low-cost data centre network switches, competing with Cisco’s core business.
Shares in Juniper Networks and Arista Networks also slipped following news of Amazon’s entry.
Alongside Amazon Web Services, the company is reportedly looking to undercut similar networking products by around 70%, in addition to releasing its first white-box switch on the commercial market.
Tipped to launch in the next 18 months, the affordable device comes pre-installed with software to connect to Amazon Web Services’ storage and compute resources.
The device is complemented by Amazon’s significant experience running similar white-box switches in its own massive data centres.
Some analysts claim it may be difficult for Amazon to penetrate the Fortune 500 client market, resulting in the sale of switches to small businesses.