Amazon Will Become A Network Vendor

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About: Amazon.com, Inc. (AMZN), ANET, CSCO, Includes: JNPR
by: Hervé Blandin
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Hervé Blandin
Long only, value, long-term horizon
Summary

Amazon will start competing directly with traditional network vendors like Cisco in the cloud data centers.

The online retailer and public cloud provider will sell white-box switches to business customers.

Although this looks like a big news, the threat for competitors, especially Cisco, is limited.

The market is overreacting and this could create an opportunity to buy Cisco.

A news on Seeking Alpha cited today an article from theinformation.com about Amazon (NASDAQ:AMZN) planning to sell its own network switches to business customers, competing directly with Cisco (CSCO), Arista (