Arista Networks Inc (ANET) 2015 Q1 法說會逐字稿

Welcome to the first quarter 2015 Arista Networks financial results earnings conference call.

歡迎參加 Arista Networks 2015 年第一季財務業績電話會議。

(Operator Instructions)

（操作員說明）

As a reminder, this conference is being recorded and will be available for replay from the Investor Relations section at the Arista website following this call. I will now turn the call over to Mr. Chuck Elliott, Director of Investor Relations. Sir, you may begin.

謹此提醒，本次會議正在錄製中，並可在本次電話會議後在 Arista 網站的投資者關係部分重播。我現在將把電話轉給投資者關係總監 Chuck Elliott 先生。先生，您可以開始了。

Thank you, Operator. Good afternoon, everyone, and thank you for joining us. With me on today's call are Jayshree Ullal, Arista Network's President and Chief Executive Officer, and Andy Bechtolsheim, Arista's Chairman and Interim Chief Financial Officer.

謝謝你，接線生。大家下午好，感謝您加入我們。參加今天電話會議的有 Arista Network 總裁兼執行長 Jayshree Ullal 以及 Arista 董事長兼臨時財務長 Andy Bechtolsheim。

This afternoon, Arista Networks issued a press release announcing the results for its first fiscal quarter ended March 31, 2015. If you would like a copy of the release, you can access it online at the Company's website.

今天下午，Arista Networks 發布了一份新聞稿，公佈了截至 2015 年 3 月 31 日的第一個財季業績。如果您需要新聞稿的副本，可以在公司網站上在線訪問。

During the course of this conference call, Arista Networks management will make forward-looking statements, including those related to our financial outlook for the second quarter of FY15, industry innovation, our market opportunity, and the impact of litigation which are subject to the risks and uncertainties that we discussed in detail in our documents filed with the SEC, specifically in our most recent Form 10-Q and recent Form 10-K and which could cause actual results to differ materially from those anticipated by these statements. These forward-looking statements apply as of today and you should not rely on them as representing our views in the future. We undertake no obligation to update these statements after this call.

在本次電話會議期間，Arista Networks 管理層將做出前瞻性聲明，包括與我們 2015 財年第二季度的財務前景、行業創新、我們的市場機會以及受到風險影響的訴訟影響相關的聲明我們在向SEC 提交的文件中詳細討論了不確定性，特別是在我們最新的10-Q 表格和最近的10-K 表格中，這些不確定性可能導致實際結果與這些聲明中預期的結果有重大差異。這些前瞻性陳述從今天起適用，您不應依賴它們來代表我們未來的觀點。我們不承擔在本次電話會議後更新這些聲明的義務。

Also, please note that certain financial measures we use in this call are expressed on a non-GAAP basis and have been adjusted to exclude certain charges. We have provided reconciliations of these non-GAAP financial measures to GAAP financial measures in our earnings press release. With that, I will turn the call over to Jayshree.

另請注意，我們在本次電話會議中使用的某些財務指標是在非公認會計準則基礎上表示的，並已進行調整以排除某些費用。我們在收益新聞稿中提供了這些非公認會計原則財務指標與公認會計原則財務指標的調節表。這樣，我會將電話轉給 Jayshree。

Thank you, Chuck. Thank you, everyone, for joining us this afternoon for our Q1 2015 earnings call. I am pleased to report our fourth consecutive [beat] as a public company.

謝謝你，查克。感謝大家今天下午參加我們 2015 年第一季的財報電話會議。我很高興地報告我們作為一家上市公司連續第四次[擊敗]。

Consistent with prior quarters, customer demand for our 7000 Series products drove our results that exceeded the consensus. From a geographic perspective, our customers in the Americas generated 71% of our sales. A significant and major contributor to the international increase came from the US cloud customer expansion to both Europe and Asia. Without this, our organic international was 20% and the Americas was 80%.

與前幾季一致，客戶對我們 7000 系列產品的需求推動我們的業績超越了共識。從地理角度來看，美洲客戶創造了我們銷售額的 71%。國際成長的一個重要貢獻者來自美國雲端客戶向歐洲和亞洲的擴張。如果沒有這個，我們的有機國際比例為 20%，美洲為 80%。

Revenue grew 52.8% year-over-year to a record $179 million. For the first time, service contributed more than 10% of the overall revenue as we are now breaking it into a separate category. We delivered non-GAAP gross margins of 66.1%, resulting in a doubling of our non-GAAP earnings-per-share to $0.50 since Q1 2014, growing profitably in our competitive and dynamic industry. We now have over 3200 customers and continue our acquisition trend of one to two new customers per day.

營收年增 52.8%，達到創紀錄的 1.79 億美元。服務首次佔總收入的 10% 以上，我們現在將其劃分為一個單獨的類別。我們的非 GAAP 毛利率為 66.1%，自 2014 年第一季以來，我們的非 GAAP 每股收益翻了一番，達到 0.50 美元，在競爭激烈、充滿活力的行業中盈利不斷增長。我們現在擁有超過 3200 名客戶，並繼續保持每天一到兩名新客戶的成長趨勢。

This quarter our key highlights include we announced our flagship extensible OS as a disaggregated cloud-based software-only purchasing model. EOS as a subscription called EaaS, offers customer balanced CapEx and OpEx accessibility. We expect the results of this model will be more measurable in the next one to three years.

本季我們的主要亮點包括我們宣布我們的旗艦可擴展操作系統作為基於雲端的分類軟體純購買模式。 EOS 作為一種稱為 EaaS 的訂閱，為客戶提供平衡的資本支出和營運支出可近性。我們預計該模型的結果將在未來一到三年內更加可衡量。

We formalized our conversion for structured solutions with Supermicro Systems for high-performing 10 and 40 gigabit ethernet compute networking. We forged technology alliances with Lawo at NAB 2015 for frame accurate IP-based video writing and Infinera for metro-optical networking solution.

我們與 Supermicro Systems 正式實現了結構化解決方案的轉換，以實現高效能 10 和 40 Gb 乙太網路運算網路。我們在 NAB 2015 上與朗沃 (Lawo) 建立了技術聯盟，以實現幀精確的基於 IP 的視頻寫入，並與英飛朗 (Infinera) 建立了城域光網絡解決方案。

We believe that Arista is the first data center networking vendor to receive application marketplace certification from ServiceNow [called store]. Customers can now have a more complete configuration archival, versioning, and merging of dev ops and net ops for cloud business platform.

我們相信 Arista 是第一家獲得 ServiceNow [稱為商店] 應用程式市場認證的資料中心網路供應商。客戶現在可以擁有更完整的配置存檔、版本控制以及雲端業務平台的開發作業和網路操作的合併。

In March of 2015, Crehan Research published their 2014 market share numbers for high performance 10, 40, and 100 gigabit ethernet switching minus blades. We believe this is a more realistic switching category than individual port speeds which are less precise. Arista grew both in port share from 6.7% to 9.3% and in revenue share from 5.3% in 2013 to 7.7% in 2014. While quarterly trends may vary, we continue to expect that we will gain market share in 2014 -- 2015.

2015 年 3 月，Crehan Research 公佈了 2014 年高效能 10、40 和 100 吉比特乙太網路交換減刀片的市場份額數據。我們相信這是一個比不太精確的單一連接埠速度更現實的交換類別。 Arista 的港口份額從2013 年的6.7% 增長到9.3%，收入份額從2013 年的5.3% 增長到2014 年的7.7%。雖然季度趨勢可能有所不同，但我們仍然預計我們將在2014 年至2015年獲得市場佔有率。

Finally, for the first time, leading analyst Gartner recognized Arista as a leader in the 2015 magic quadrant for data center networking. It was based on a number of factors including are high growth, our technology solutions, and our flexible software. Given that there's been no leader in the data center sector since its inception, we are particularly honored by this validation.

最後，領先分析師 Gartner 首次將 Arista 評為 2015 年資料中心網路魔力像限的領導者。它基於許多因素，包括高成長、我們的技術解決方案和我們靈活的軟體。鑑於資料中心領域自成立以來一直沒有領導者，我們對此驗證感到特別榮幸。

Now, I would like to turn it over to our interim CFO, Andy Bechtolsheim, for Q1 2015 details. Andy?

現在，我想將 2015 年第一季的詳細資訊交給我們的臨時財務長 Andy Bechtolsheim。安迪？

Thanks, Jayshree. Before I discuss our financial results and guidance, I would like to note that except for revenue numbers that are GAAP, all financial numbers that we will discuss are non-GAAP unless stated otherwise. Every constellation of our selected GAAP to non-GAAP results is provided in our earnings release. Also, starting this quarter we will break out service revenue which has become more significant to us, and we'll break this out separately along with the related costs.

謝謝，傑什裡。在討論我們的財務表現和指導之前，我想指出，除了按 GAAP 計算的收入數據外，除非另有說明，我們將討論的所有財務數據均為非 GAAP 數據。我們選擇的 GAAP 與非 GAAP 結果的每個星座都在我們的收益發布中提供。此外，從本季開始，我們將細分對我們來說變得更加重要的服務收入，我們將與相關成本一起單獨細分。

Let me first comment on the 8-K that we filed earlier today disclosing that we are going to amend our 10-K for 2014 due to a classification error in our 2014 statement of cash flows. The error was the result of a duplicate reporting of excess tax benefits associated with our equity incentive plans resulting in a $17.4 million understatement of cash from operating activities and a $17.4 million overstatement of cash from financing activities. There was no change to the ending cash balance and there was no impact to our net income or the balance sheet.

讓我先評論一下我們今天早些時候提交的 8-K，其中披露了由於 2014 年現金流量表中的分類錯誤，我們將修改 2014 年的 10-K。該錯誤是由於重複報告與我們的股權激勵計劃相關的超額稅收優惠而導致營運活動現金少報 1,740 萬美元，融資活動現金多報 1,740 萬美元。期末現金餘額沒有變化，對我們的淨利或資產負債表沒有影響。

The error occurred due to inadequately designed controls surrounding our statement of cash flows which resulted in a material weakness in our internal controls over financial reporting. We plan to remediate this controlled deficiency in the coming quarter by including additional review procedures to ensure the accuracy of the calculations and related disclosures in our cash flow statement.

此錯誤的發生是由於我們現金流量表的控制設計不充分，導致我們對財務報告的內部控制有重大缺陷。我們計劃在下一季透過納入額外的審查程序來糾正此受控缺陷，以確保現金流量表中計算和相關揭露的準確性。

Now, let me turn to our Q1 results which reflect our continued market momentum as our customers embrace our innovative and best-of-breed software defined cloud networking solutions. From a top-line perspective, total revenue for Q1 was $179 million, an increase of 52.8% year-over-year and 3% sequentially. We grew profits faster than revenue with net income of $35.5 million, up 117% from a year ago and fully diluted EPS of $0.50 a share, up 100%. Our fully diluted GAAP earnings-per-share was $0.34 a share up from $0.20 a share a year ago.

現在，讓我談談我們的第一季業績，它反映了我們持續的市場動力，因為我們的客戶接受了我們創新的、同類最佳的軟體定義的雲端網路解決方案。從營收來看，第一季總營收為 1.79 億美元，年增 52.8%，季增 3%。我們的利潤成長快於營收成長，淨利潤為 3,550 萬美元，比去年同期成長 117%，完全攤薄後每股收益為 0.50 美元，成長 100%。我們完全攤薄後的 GAAP 每股收益為 0.34 美元，高於一年前的每股 0.20 美元。

Gross margin Q1 was 66.1% down from 67% in the prior quarter and 69.6% in the year-ago quarter. Gross margin came in at the high end of our guidance due to favorable product and customer mix during the quarter.

第一季毛利率為 66.1%，低於上一季的 67% 和去年同期的 69.6%。由於本季有利的產品和客戶組合，毛利率達到了我們指導的上限。

Our operating expenses were $67.1 million or 37.5% of revenue compared to $69.9 million or 40.3% of revenue in Q4 2014. The sequential decline in operating expenses down 4% quarter-over-quarter was primarily due to additional bonuses a cured in Q4 2014. Operating expenses did increase 23% year-over-year reflecting increased investments and head counts.

我們的營運費用為6,710 萬美元，佔營收的37.5%，而2014 年第四季為6,990 萬美元，佔營收的40.3%。營運費用較上季下降4%，主要是因為2014 年第四季取消了額外獎金。營運費用確實年增了 23%，反映出投資和員工數量的增加。

Operating income for the first quarter was a record $51.3 million, increasing sequentially from $47.1 million in the prior quarter and an increase of 92% from $26.8 million in Q1 2014. Our non-GAAP results exclude expenses related to our litigation with OptumSoft and Cisco which totaled $6.7 million for the quarter.

第一季的營業收入達到創紀錄的5,130 萬美元，比上一季的4,710 萬美元有所成長，比2014 年第一季的2,680 萬美元成長了92%。我們的非GAAP 業績不包括與OptumSoft和Cisco 訴訟相關的費用，該季度總計 670 萬美元。

Turning to the balance sheet, we had cash, cash equivalents and investments of $484.3 million at the end of Q1, growing nearly $35 million from $449.5 million in the prior quarter. Accounts receivables was up $16.1 million from the prior quarter to $113.1 million resulting in DSOs of 57. Inventory increased $10.7 million sequentially to $91.2 million in Q1, yielding turns of 2.5. The increase in accounts receivable and inventory resulted from increased volumes to support our revenue growth.

就資產負債表而言，截至第一季末，我們的現金、現金等價物和投資為 4.843 億美元，比上一季的 4.495 億美元增加了近 3,500 萬美元。應收帳款比上一季增加 1,610 萬美元，達到 1.131 億美元，導致 DSO 達到 57 個。第一季庫存環比增加 1,070 萬美元，達到 9,120 萬美元，週轉率為 2.5。應收帳款和庫存的增加是由於銷售增加以支持我們的收入成長。

Total deferred revenue was $132.8 million, an increase of $26.4 million over the prior quarter. This resulted from increased product deferrals and new service agreement renewals.

遞延收入總額為 1.328 億美元，較上一季增加 2,640 萬美元。這是由於產品延期增加和新服務協議續約所致。

Let me now move to our guidance for the second quarter. Let me remind you again that our comments include forward-looking statements. You should review our recent SEC filings that identify important risk factors and understand that actual results could materially differ from those contained in the forward-looking statements and actual results could be above or below guidance.

現在讓我談談我們對第二季的指導。讓我再次提醒您，我們的評論包含前瞻性陳述。您應該查看我們最近向 SEC 提交的文件，其中確定了重要的風險因素，並了解實際結果可能與前瞻性陳述中包含的結果有重大差異，並且實際結果可能高於或低於指導。

We expect total revenue between $183 million and $191 million. Gross margin in the range of 63% to 65%, and we anticipate operating margin in the range of 23% to 25%. As we said previously, our gross margins will fluctuate from quarter to quarter, depending primarily on product and customer mix.

我們預計總收入在 1.83 億美元至 1.91 億美元之間。毛利率在 63% 至 65% 範圍內，我們預期營業利潤率在 23% 至 25% 範圍內。正如我們之前所說，我們的毛利率將逐季度波動，主要取決於產品和客戶組合。

The above guidance excludes expenses related to the OptumSoft and Cisco litigation which we anticipate will be in the range between $10 million and $12 million for Q2 2015. Our non-GAAP effective tax rate is forecasted to be in the range of 28% to 30%. As a reminder, Arista will not comment on it's financial guidance during the quarter unless it is done through an explicit public disclosure. With that, I'll turn the call back to Jayshree.

上述指引不包括與 OptumSoft 和 Cisco 訴訟相關的費用，我們預計 2015 年第二季的費用將在 1,000 萬至 1,200 萬美元之間。我們的非 GAAP 有效稅率預計在 28% 至 30% 之間。提醒一下，除非透過明確的公開揭露，否則 Arista 不會對其本季的財務指引發表評論。這樣，我會將電話轉回 Jayshree。

Thanks, Andy, and thanks for doing a fantastic job is our acting CFO this quarter. Andy and I are also pleased to report that we have completed our search for a chief financial officer for Arista. Effective Monday, May 18, 2015, [Eda Brenan] will be Arista's new CFO. [Eda] brings over two decades of finance executive and operating skills that align closely to Arista's culture, values, and goals. We welcome her enthusiastically and wholeheartedly to our leadership team.

謝謝安迪，感謝我們代理財務長本季所做的出色工作。 Andy 和我還很高興地報告，我們已經完成了 Arista 財務長的搜尋工作。 [Eda Brenan] 將擔任 Arista 的新財務官，自 2015 年 5 月 18 日星期一生效。 [Eda] 帶來了二十多年的財務執行和營運技能，這些技能與 Arista 的文化、價值觀和目標密切相關。我們熱情、全心全意地歡迎她加入我們的領導團隊。

So, in conclusion we are off to a good start this year. I am not only proud of our results, our customer traction, and our growing market share, but very encouraged and excited by Arista's increased market opportunities ahead.

因此，總而言之，我們今年有一個好的開始。我不僅對我們的業績、客戶吸引力和不斷增長的市場份額感到自豪，而且對 Arista 未來增加的市場機會感到非常鼓舞和興奮。

We will now begin the Q&A portion of that Arista earnings call. We are expecting a lot of great questions. However, due to time constraints I'd like to request that everyone limit themselves to a single question, please. Thanks. Operator?

我們現在將開始 Arista 財報電話會議的問答部分。我們期待著很多很好的問題。不過，由於時間有限，我想請大家只回答一個問題。謝謝。操作員？

(Operator Instructions)

（操作員說明）

Jess Lubert of Wells Fargo.

富國銀行的傑西·魯伯特。

I will see if I can squeeze two in here. I had a question first on the outlook. You're guiding below seasonal trends during the June quarter. So, I was curious if you pulled some business forward into Q1 that was may be impacting Q2 or if there was some other reason you are expecting less seasonality in what is typically a stronger period especially for some of your cloud titans. And then the second question, I was hoping you could provide some more details regarding which products are being made available on the subscription pricing basis? How broad of a customer set is interested in this method of consuming your offerings and the impact that the availability of subscription pricing is likely to have on growth going forward?

我看看能不能擠兩個進去。我首先對前景有一個疑問。您的指導低於六月季度的季節性趨勢。因此，我很好奇，您是否將一些業務提前到第一季度，這可能會影響第二季度，或者是否有其他原因導致您預計在通常強勁的時期（尤其是對於某些雲巨頭而言）季節性會減少。然後是第二個問題，我希望您能提供更多有關哪些產品以訂閱定價的方式提供的詳細資訊？有多少客戶群對這種消費您的產品的方法感興趣，以及訂閱定價的可用性可能對未來成長產生的影響？

Jess, I'll take your first question. I think our guidance is cautiously optimistic and conservative. Not having a new CFO, we stayed with the current consensus estimates for the most part. The cloud titans were large contributor to Q1. Q1 is historically our weakest quarter seasonally, and then Q2, Q3, and Q4 are all strong quarters, so I wouldn't call out Q2 as the only strong quarter, hopefully all three will be. And so we feel comfortable with our guidance. I think we have an opportunity to meet it and maybe beat it.

傑西，我來回答你的第一個問題。我認為我們的指導是謹慎樂觀和保守的。由於沒有新的財務官，我們在很大程度上維持了當前的共識估計。雲端巨頭是第一季的主要貢獻者。第一季是歷史上我們季節性最弱的季度，然後第二季度、第三季度和第四季度都是強勁的季度，所以我不會將第二季度稱為唯一強勁的季度，希望這三季度都是如此。因此，我們對我們的指導感到滿意。我認為我們有機會迎接它，甚至可能擊敗它。

And then on the subscription pricing?

那麼訂閱定價呢？

Specifically, we introduced EaaS specifically on our high-volume platforms, the top of rack switches. The 7050 Series family is the main one. It comes in different form factors, 48, 64, 32 port, 40 gig, and the goal here really is to start offering our customers options. We've always said we are a software company and we can now make software available on the Arista blue box, if you will, on a monthly subscription basis. Most people, most comfort buyers like to see the two bundled, but I think, as I said, I think this will take time to absorb, but particularly with top of racks which makes a lot of sense because the life span of those switches are two to three years rather than five to seven years.

具體來說，我們專門在我們的大容量平台（架頂式交換器）上引入了 EaaS。 7050 系列是主要的家族。它有不同的外形尺寸，48、64、32 連接埠、40 gig，這裡的目標實際上是開始為我們的客戶提供選擇。我們一直說我們是一家軟體公司，如果您願意，我們現在可以在 Arista 藍色盒子上提供每月訂閱的軟體。大多數人，大多數舒適買家都喜歡看到這兩個捆綁在一起，但我認為，正如我所說，我認為這需要時間來吸收，特別是對於架頂式交換機來說，這很有意義，因為這些交換機的使用壽命很長。兩到三年而不是五到七年。

Can you maybe just talk about the customer that's showing interest in this? Is this mostly cloud customers and what are you hearing?

您能談談對此表現出興趣的客戶嗎？這主要是雲端客戶嗎？您聽到了什麼？

You've now come to a third question, Jess, so you will be off the charts now already. But, no, typically cloud customers tend to look at scale and volume. This would apply more to entry-level customers who are starting with small projects or smaller companies that don't have immediate large CapEx spend and are looking for that CapEx, OpEx balance and flexibility in their budget.

現在你已經提出了第三個問題，傑西，所以你現在已經超出了記錄。但是，不，雲端客戶通常傾向於關注規模和數量。這更適用於從小型專案開始的入門級客戶或沒有立即大量資本支出並在預算中尋求資本支出、營運支出平衡和靈活性的小型公司。

Thanks, guys.

多謝你們。

James Faucette of Morgan Stanley.

摩根士丹利的詹姆斯·福賽特。

I wanted to ask a couple of related questions and hopefully we'll count those as one. First, we've started to hear about new products from competitors based on some of your suppliers' merchant silicon anticipated for later this year. I'm just wondering if you can talk about timing for that and your expectations for being able to maintain market advantage, time-to-market advantage. And then I guess kind of consistent with that also wondering if and where we might be seeing expansion of the use of Arista's switching products and applications that are not necessarily directly switching but are more akin to routing, et cetera. Thanks.

我想問幾個相關的問題，希望我們能將這些問題算作一個。首先，我們已經開始聽說競爭對手的新產品，這些產品基於您的一些供應商的商用晶片，預計將於今年稍後推出。我只是想知道您是否可以談談時機以及您對能夠保持市場優勢、上市時間優勢的期望。然後我想與此一致，也想知道我們是否以及在哪裡可能會看到 Arista 交換產品和應用程式的使用擴展，這些產品和應用程式不一定是直接交換，而是更類似於路由等。謝謝。

Okay. As you know, our software has always been architected to support multiple software architectures; today we support three. And we are very nimble and very agile in usually being the first vendor to support new silicon architectures; our leading vendors here have been Broadcom and Intel. We will be looking to add silicon diversity both in new chips from these vendors and we will be looking at other vendors as well, but we tend not to preannounce it. Usually the silicon vendors will announce the silicon and products from Arista can be anywhere from 9 to 12 months after that. Andy, do you want to add something to that?

好的。如您所知，我們的軟體始終支援多種軟體架構；今天我們支持三個。我們非常靈活，通常是第一個支援新晶片架構的供應商；我們這裡的領先供應商是博通和英特爾。我們將尋求在這些供應商的新晶片中增加矽的多樣性，我們也會考慮其他供應商，但我們傾向於不預先宣布。通常，晶片供應商會在 9 到 12 個月後宣布 Arista 的晶片和產品。安迪，你想補充點什麼嗎？

Yes, we obviously don't preannounce future products, but I will say we expect to be among the first who will ship new silicon once it's production worthy, in other words once we get production parts.

是的，我們顯然不會預先宣布未來的產品，但我會說，一旦新矽具有生產價值，換句話說，一旦我們獲得生產零件，我們預計將成為第一批發貨的公司之一。

And we're particularly excited about not just the 40, 100 gig options but also the 25 and 50 that's emerging later this year. What was the second question?

我們不僅對 40、100 演出選項感到特別興奮，還對今年稍後出現的 25 和 50 演出選項感到特別興奮。第二個問題是什麼？

Sorry, I was just asking about if you are seeing any cases where customers are using your products outside of traditional switching applications, like for example in what you typically assume routing?

抱歉，我只是問您是否看到客戶在傳統交換應用程式之外使用您的產品的情況，例如您通常假設的路由？

To us, switching improves routing. We have always been shipping options for both switching at layer two and wire speed switching at layer 3, aka routing. So, when you look at our lead spline products, many of them, a large level of them go out with routing features and this has been true for us for the last three to five years. We will be looking to expand into routing adjacencies beyond that as well. So, routing features vary depending on whether you are on the leaf or whether on the spline or whether you're on the core.

對我們來說，交換改進了路由。我們一直在提供第二層交換和第三層線速交換（又稱路由）的選項。因此，當您查看我們的導程花鍵產品時，您會發現其中許多產品都具有走線功能，在過去三到五年中，我們的情況就是如此。我們也將尋求擴展到除此之外的路由鄰接。因此，路由功能會根據您是否位於葉節點、樣條曲線或核心節點而有所不同。

Arista does not address the core routing market today, we largely interoperate with Juniper or Cisco or Alcatel in that case. Some of these core features one could argue are changing, and particularly with the advent of large-scale ECMP and MLAG and VXLAN where you can scale to 6 million nodes at L2 over L3, there is no reason a data center interconnect not be a core routing or L2 over L3 fabric as well. So, I think many routers, the noun, would turn into routing, the adjective, and Arista is already in the middle of that.

Arista 目前並非針對核心路由市場，在這種情況下，我們主要與瞻博網路、思科或阿爾卡特進行互通。有人可能會說，其中一些核心功能正在發生變化，特別是隨著大規模ECMP、MLAG 和VXLAN 的出現，您可以在L2 上擴展到600 萬個節點，而在L3 上，資料中心互連沒有理由不成為核心路由或 L2 over L3 結構。所以，我認為許多路由器（名詞）會變成路由（形容詞），而 Arista 已經處於其中。

Thanks.

謝謝。

Brian Modoff of Deutsche Bank.

德意志銀行的布萊恩·莫多夫。

Can we just talk a little more around the new products? We've got Tomahawk coming later this year. How do you see that impacting your business and can you give us your opinion of what you think of (inaudible)? And then how do you see the 25 and 50 gig port offering -- do you see that as additive? And then finally just kind of back on your guidance, you're saying then you feel like your guidance right now is really just the fact that you have a new CFO and you are not about to put aggressive numbers out there for the new CFO to deal with.

我們能多談談新產品嗎？我們將在今年稍後推出「戰斧」。您如何看待這對您的業務的影響？您能否向我們提供您的看法（聽不清楚）？那麼您如何看待 25 和 50 gig 連接埠產品——您認為這是附加的嗎？最後，回到你的指導，你說你覺得你現在的指導實際上只是這樣一個事實：你有一個新的首席財務官，你不打算為新的首席財務官提供激進的數字處理。

So I think just to reiterate, we feel good about our guidance. We want to be able to meet it and there's always room for improvement. I'll remind you that we are still growing at double digits on a fairly large base of revenue, so don't knock that guidance too much.

因此，我想重申一下，我們對我們的指導感到滿意。我們希望能夠滿足這個要求，並且總是有改進的空間。我要提醒您的是，我們在相當大的收入基礎上仍在以兩位數的速度增長，所以不要過多地改變這一指導。

Going back to a question on new products. Tomahawk, yes, very much an important silicon for 25 and 50 gig. I think much of this is tail end of the year, really an impact on 2016. That's important to remember because it takes customers time to test, qualify. We don't look at products as just silicon and hardware. We also have a tremendous amount of software releases coming. We tend to go at the rate of three or four software releases a quarter -- sorry, a year, and our last release just had 120 new features in our [cross release spline] and in many cases core routing as well.

回到關於新產品的問題。 Tomahawk，是的，對於 25 和 50 gig 來說是非常重要的晶片。我認為這在很大程度上是在今年年底，對 2016 年確實產生了影響。記住這一點很重要，因為客戶需要時間來測試和鑑定。我們不僅僅將產品視為晶片和硬體。我們還將發布大量軟體。我們傾向於每季發布三到四個軟體版本——抱歉，一年，而我們的上一個版本在我們的[跨版本樣條]中只有120 個新功能，在許多情況下還有核心路由。

So, very comfortable that not only are we expanding our performance and scale but also our feature velocity and programmability in many of these cases. Yes, we will look to add silicon diversity, but we're not ready to talk about chips that are not available.

因此，我們不僅擴展了效能和規模，而且在許多此類情況下還擴展了功能速度和可編程性，這讓我們感到非常放心。是的，我們將尋求增加晶片多樣性，但我們還沒有準備好談論不可用的晶片。

Okay. Thank you.

好的。謝謝。

Kulbinder Garcha of Credit Suisse.

瑞士信貸銀行的庫爾賓德‧加查 (Kulbinder Garcha)。

I just have a question really around customer concentration and the vertical geographies. Jayshree, can you just clarify, did you say the Americas grew 80% and international grew 20%. Did I hear that right?

我只是有一個關於客戶集中度和垂直地域的問題。 Jayshree，您能否澄清一下，您是否說過美洲成長了 80%，國際成長了 20%。我沒聽錯吧？

No. No. No. I said the Americas contribution was 80% and international was 20%. I was clarifying that that's the organic international. If you take the expansion of our cloud customers who deployed internationally, then it was 70/30.

不不不，我說美洲貢獻了 80%，國際貢獻了 20%。我正在澄清那是有機國際。如果以我們在國際上部署的雲端客戶的擴展為例，那麼比例是 70/30。

And then basically in terms of customer concentration in the quarter, how many 10% customers were there? And are all four verticals roughly still running at 25% and is that something you can hold as you go through this year do you think?

那麼基本上從本季的客戶集中度來看，10%的客戶有多少？所有四個垂直領域都大致仍以 25% 的速度運行嗎？您認為今年可以保持這一水平嗎？

First of all, we don't break out customer concentration on a quarterly perspective. I'll reiterate that the only customer concentration that we have announced and we still would talk about is Microsoft. They remain the only one if we were to have broken it out.

首先，我們不會按季度來細分客戶集中度。我要重申的是，我們已經宣布並且仍然會談論的唯一客戶集中是微軟。如果我們要解決這個問題，他們仍然是唯一的一個。

Cloud titans contributed very strongly this quarter. And so they were more than 25%. All four verticals did contribute, but in order of contribution I would say cloud first, service providers and Tier 2 second, high-tech enterprise third, and financial fourth.

雲端巨頭本季貢獻非常強勁。所以他們超過了 25%。所有四個垂直行業都做出了貢獻，但按照貢獻順序，我認為雲端運算第一，服務提供者和二級企業第二，高科技企業第三，金融第四。

One followup on that. If that's the case, your gross margin still exceeded and so is there something about the gross margin structure of the business that pleasantly continuously surprises? I would've thought the mix was high towards cloud it would have brought you more towards perhaps the lower end of your gross margin where it very obviously hasn't.

對此的一個後續行動。如果是這樣的話，你的毛利率仍然超過了，那麼該業務的毛利率結構是否有一些令人驚訝的地方？我以為雲的混合程度很高，它會讓你更接近毛利率的低端，但顯然它並沒有。

Look, I think you should continue to expect to see our gross margins trend downward not only because of the cloud concentration, but even as mainstream customers buy high-volume that they are going to get cloud type of discount. So, I wouldn't want to leave you with a message that our high-growth margin this quarter is a trend. I would continue to reiterate that our long-term view is 60% to 65% and then our guidance for next quarter is 63% to 65%. So, we're executing very well. We're managing our discounts with great discipline. We continue to favor high discounts and low gross margins for large customers in general, including the cloud.

聽著，我認為你應該繼續預期我們的毛利率會呈下降趨勢，這不僅是因為雲端的集中度，而且即使主流客戶大量購買，他們也將獲得雲端類型的折扣。因此，我不想向您傳達這樣的訊息：本季我們的高利潤率成長是一種趨勢。我想繼續重申，我們的長期觀點是 60% 到 65%，然後我們對下個季度的指導是 63% 到 65%。所以，我們執行得非常好。我們以嚴格的紀律管理我們的折扣。我們繼續偏向為包括雲端在內的大客戶提供高折扣和低毛利率。

Simona Jankowski of Goldman Sachs.

高盛的西蒙娜·揚科斯基。

Jayshree, I wanted to clarify, first, on the EOS as a service product. Of the customers you've attracted so far, have they been new customers to Arista for deploying that or has it been existing customers who are choosing to use that payment structure? And then I also wanted to ask you about the strategic significance of your tie-up with Infinera.

Jayshree，我想先澄清 EOS 作為服務產品。在您迄今為止吸引的客戶中，他們是部署 Arista 的新客戶還是選擇使用該支付結構的現有客戶？然後我還想問一下你們與英飛朗合作的戰略意義。

Okay. First of all, it's a very new introduction. We just introduced that in March, so it's still too early to call in terms of a lot of new customer wins. They've mostly been in single digits. Of the ones I recall, all of them have been new.

好的。首先，這是一個非常新的介紹。我們剛剛在三月推出了這項功能，因此就贏得大量新客戶而言，現在斷言還為時過早。它們大多是個位數。我記得的那些都是新的。

Okay. And then on Infinera?

好的。那麼英飛朗呢？

I think Infinera is an example of an important strategic interoperability and solutions [tie]. It highlights, Simona, something you know very, very well and we've discussed which is that we can't be everywhere. We work closely with our technology partners to provide the best of capabilities in each one of us. So, what we are really participating in Arista is in the data center and intra-data center opportunities. Obviously, a lot with third-party optics, but what we like about in Infinera, in particularly with their Cloud Xpress product line, is we can now interoperate on office solutions, inter-data center across much longer haul and distances. They are obviously more operating at layer one and we are doing so more at layer one, two, three, and four.

我認為 Infinera 是重要的策略互通性和解決方案的一個例子 [tie]。西蒙娜，它強調了你非常非常了解的事情，我們已經討論過，那就是我們不可能無所不在。我們與技術合作夥伴密切合作，為每個人提供最好的能力。所以，我們真正參與 Arista 的是資料中心和資料中心內的機會。顯然，許多第三方光學元件，但我們喜歡 Infinera，特別是他們的 Cloud Xpress 產品線，是我們現在可以在辦公室解決方案、資料中心間跨更長的距離和距離進行互通。顯然，他們更多地在第一層進行操作，而我們則更多地在第一、二、三和四層進行操作。

Thank you, Jayshree.

謝謝你，傑什裡。

Erik Suppiger of JMP.

JMP 的 Erik Suppiger。

Yes. On the litigation you were about $7 million in the quarter and that is going to $10 million to $12 million. Do think that $10 million to $12 million as a reasonable base to go forward in terms of the litigation cost on a quarterly basis?

是的。本季訴訟費用約為 700 萬美元，預計將達到 1,000 萬至 1,200 萬美元。您認為 1,000 萬至 1,200 萬美元是推進季度訴訟成本的合理基礎嗎？

It's hard to predict litigation. I will tell you this is a complex case and expensive. I'm going to ask Marc Taxay if he can answer that question. We feel good about 10 to 12 for Q2, but we are at the peak of our activity, aren't we?

很難預測訴訟。我會告訴你，這是一個複雜且昂貴的案件。我要問 Marc Taxay 他是否可以回答這個問題。我們對第二季的 10 到 12 感覺良好，但我們正處於活動的頂峰，不是嗎？

I think that's right. I think Q3 of this year actually is probably going to be a little higher. The expectation would be just because the hearings in the [ITT] will be occurring then. But otherwise I think what we've got there is pretty consistent.

我認為這是對的。我認為今年第三季實際上可能會更高一些。這種期望只是因為 [ITT] 的聽證會將在那時舉行。但除此之外，我認為我們所得到的東西是相當一致的。

That sounds like a norm, but there will be some peaks.

這聽起來像是一種常態，但也會有一些高峰。

Okay. One other quick one. Cisco is talking yesterday about some good growth in their APIC customer adoption. What are you seeing on the SDN front? How is that market evolving from your perspective?

好的。另一個快點。思科昨天表示其 APIC 客戶採用率出現了良好成長。您對 SDN 前景有何看法？從您的角度來看，這個市場正在如何演變？

I have to be honest here. It almost seems like we are on two different planets. I haven't seen any of the APIC customers, so they must be very much Cisco-specific applications. The 9K, which is also considered to be a strong contributor, my guess is it's 3% of their total switching revenue. So, again, pretty insignificant. Our real focus is on building open, programmable systems where customers are going from yesterday's enterprise application to tomorrow's modern cloud applications. I think we have to make a distinction between APIC being bundled to customers and what's really in production. According to leading analysts, there's very few in production.

我必須在這裡說實話。看起來我們似乎身處在兩個不同的星球。我沒有見過任何 APIC 客戶，因此它們一定是思科特定的應用程式。 9K也被認為是一個強大的貢獻者，我猜它佔了他們總轉換收入的3%。所以，再一次，相當微不足道。我們真正的重點是建立開放的可編程系統，讓客戶從昨天的企業應用程式轉向明天的現代雲端應用程式。我認為我們必須區分捆綁給客戶的 APIC 和實際生產的 APIC。據主要分析師稱，生產的數量很少。

Very good. Thank you.

非常好。謝謝。

Subu Subrahmanyan of Juda Group.

Juda 集團的 Subu Subrahmanyan。

My question was on adjacencies. You talked about this briefly. When you think about LAN opportunities, be it more routing-like functionality, maybe optical integration into [backhaul] platforms. Can you talk about where you are in kind of the process of providing that functionality and when that can start to become meaningful from a revenue perspective?

我的問題是關於鄰接的。你簡單地談到了這一點。當您考慮 LAN 機會時，可能是更多類似路由的功能，也可能是光學整合到[回程]平台中。您能否談談您在提供該功能的過程中處於什麼階段，以及從收入角度來看什麼時候可以開始變得有意義？

Subu, first of all I want to highlight that one of the beauties of adjacencies is we want to be able to develop the ones that our software and our merchant silicon is naturally [adhering] to rather than go off and create a new one. As we look at adjacencies, they have to be part and parcel of our engineering strength and our go-to-market strength. That's a key tenet for us, that we're not going into a completely different market or segment or decision maker or buyer.

Subu，首先我想強調的是，鄰接的好處之一是我們希望能夠開發我們的軟體和我們的商業晶片自然[堅持]的鄰接，而不是去創建一個新的鄰接。當我們考慮鄰近地區時，它們必須成為我們的工程實力和進入市場實力的重要組成部分。這是我們的關鍵原則，即我們不會進入完全不同的市場或細分市場、決策者或買家。

So, when you look at the kinds of adjacencies that we've already done, I want to talk about the ones we've already done, there are two that come to mind. One is we are already supplying through Merchant Optics a variety of short range, long-range, single mode, multi mode, universal optics that provide a huge range of interconnect options for our leaf and spline solutions. As you know, we were the pioneer of leaf and spline and cloud networking back in 2010.

因此，當您查看我們已經完成的鄰接類型時，我想談談我們已經完成的鄰接類型，我想到了兩個。一是我們已經透過 Merchant Optics 提供各種短距離、長距離、單模、多模、通用光學元件，為我們的葉片和樣條解決方案提供了廣泛的互連選項。如您所知，早在 2010 年，我們就是葉樣條和雲網路的先驅。

A second example of where we're already in adjacencies would be data analytics. A set of features we introduced over a year ago called DANZ, data analysis, is now really a nice option where customers don't have to buy a dedicated switch and a dedicated appliance for their data collection and monitoring and analysis. This is a big deal for big data structured and unstructured data, and it ends up being just a software option rather than dedicated hardware.

我們已經處於鄰接關係的第二個例子是資料分析。我們一年多前推出的一組稱為 DANZ（數據分析）的功能現在確實是一個不錯的選擇，客戶無需購買專用交換機和專用設備來進行數據收集、監控和分析。這對於大數據結構化和非結構化資料來說是一件大事，它最終只是一個軟體選項而不是專用硬體。

And then there's what you bring up. I think the advent and embracing of large multicast and routes (technical difficulty) is going to be a natural feeder at the spine for us to do more routing. There is two aspects of that. One is (technical difficulty) larger and larger routes. You're going from 16,000 routes to potentially 100,000 routes to even 1 million. The second is our software is getting more and more capable in this area and this is why EOS has moved from, what was it, Andy when you founded the company, a million lines of code to over 8 million. This is what driving and scaling protocols and programmability and working with all of our partners is doing for us. So, I hope I answered some aspects of your question. There is a natural adjacency there and I'm excited about the increase in TAM that could do for us in the next few years.

然後就是你提出的問題。我認為大型組播和路由（技術難度）的出現和採用將成為我們進行更多路由的天然饋線。這有兩個面向。一是（技術難度）路線越來越大。您將從 16,000 條路線增加到潛在的 100,000 條路線，甚至 100 萬條。第二個是我們的軟體在這個領域的能力越來越強，這就是為什麼 EOS 已經從安迪創立公司時的 100 萬行程式碼變成了超過 800 萬行程式碼。這就是推動和擴展協議和可編程性以及與所有合作夥伴合作為我們所做的事情。所以，我希望我回答了你問題的某些方面。那裡有一種天然的鄰近性，我對 TAM 的成長感到興奮，這可以在未來幾年為我們帶來好處。

Thank you.

謝謝。

Scott Thompson of Wedbush Securities.

韋德布希證券公司的史考特湯普森。

Question around the Savvis deal. It sounded as if that was strong this quarter. Should we expect that to continue? Could this be a trend where service providers come on strong for a few quarters or is it maybe a sign that things are getting a little more competitive and you guys are mixing it up there? Can you comment a little bit on service providers and Savvis in particular? Thank you.

關於 Savvis 交易的問題。聽起來這個季度的表現似乎很強勁。我們應該期望這種情況會持續下去嗎？這可能是服務提供者在幾個季度表現強勁的趨勢，還是可能是競爭變得更加激烈而你們正在混合的跡象？您能否對服務提供者尤其是 Savvis 發表一些評論？謝謝。

I can definitely comment on service provider, but I didn't mention anyone by name, Scott.

我絕對可以評論服務提供者，但我沒有提到任何人的名字，斯科特。

Okay. Go ahead and comment on service provider. I guess I heard something that was mispronounced or something.

好的。繼續評論服務提供者。我想我聽到了一些發音錯誤的東西。

Okay. Maybe it was my accent. Service providers generally come in two or three flavors for us. There's Tier 1 service providers and, as you can imagine, they are the most difficult to engage with and penetrate and you can imagine we've been working with them in large trials. We tend to work with them on a project basis. This represents a tremendous opportunity for us. Today, it's very early days for us.

好的。也許這是我的口音。對我們來說，服務提供者通常有兩種或三種類型。有一級服務提供者，正如您可以想像的那樣，他們是最難接觸和滲透的，您可以想像我們一直在與他們合作進行大型試驗。我們傾向於在專案的基礎上與他們合作。這對我們來說是一個巨大的機會。今天，對我們來說還為時過早。

Then, there is Tier 2 service providers and internet hosting providers and content providers. This is where Arista has actually shined. We've done very, very well because all of the media and streaming and content generation resembles, in many ways, and then the metro junction resembles in many ways distributed aspects of the cloud titan market. So, everything from scale, the features, and the demands they put on us are somewhat similar to that.

然後是二級服務提供者、網路託管提供者和內容提供者。這才是 Arista 真正閃光的地方。我們做得非常非常好，因為所有媒體、串流媒體和內容生成在許多方面都很相似，而地鐵樞紐在許多方面都類似於雲端巨頭市場的分散式方面。所以，從規模、功能到他們對我們提出的要求，一切都與此有些相似。

I would say our success to date has been in those three segments, the internet hosting providers, the Tier 2 cable providers, and the content providers. I would say we've got a lot of room and scope there and we've got a lot of room internationally and we got a lot of room in Tier 1 service providers. One of our areas of great focus in addition to finance shows is really a go-to market and ahead of service providers, particularly in North America right now. Stay tuned. Maybe we'll be able to share more wins. We feel quite good about that.

我想說，迄今為止，我們的成功在於這三個領域：網路託管供應商、二級有線電視供應商和內容供應商。我想說，我們在那裡有很大的空間和範圍，我們在國際上有很大的空間，我們在一級服務提供者中有很大的空間。除了財經節目之外，我們重點關注的領域之一實際上是進入市場並領先於服務提供者，特別是目前在北美。敬請關注。也許我們能夠分享更多的勝利。我們對此感覺很好。

Mark Sue from RBC Capital Markets.

加拿大皇家銀行資本市場的馬克‧蘇 (Mark Sue)。

Maybe the economics and the rationale as you push more into market adjacenies. Is the goal to expand your wallet share with existing customers are they asking you to move into these areas, or is it more broader vertical expansion from your part? Just trying to get a sense of how we should track your early success as you spread your wings further?

當你更多地進入市場鄰近地區時，也許會涉及經濟學和基本原理。擴大你與現有客戶的錢包份額的目標是他們要求你進入這些領域，還是你的部分是更廣泛的垂直擴張？只是想了解一下，當您進一步展開翅膀時，我們應該如何追蹤您的早期成功？

Thanks, Mark. I think first it's important to reiterate that we've got a long ways to go in our primary market, which is the data center, which is a $10 billion going to $15 billion within our four verticals. Our share, as I shared with you in 2014, is in the 7% to 9%. So, we are looking to grow that into the double digits and more double digits and more double digits. No triple digits for sure. So, that's important and that's where our primary focus is.

謝謝，馬克。我認為首先需要重申的是，我們在主要市場（即資料中心）上還有很長的路要走，在我們的四個垂直領域中，該市場的價值為 100 億美元到 150 億美元。正如我在 2014 年與大家分享的那樣，我們的份額在 7% 到 9% 之間。因此，我們希望將其成長到兩位數，更多兩位數，並更多兩位數。肯定沒有三位數。所以，這很重要，也是我們的主要關注點。

In terms of adjacencies, the point I'm really making is the adjacencies are coming to us, both in terms of technology and as you rightly point out in terms of customer demand. They're saying, hey, if we are using an Arista spine, why can't we make the spine do other things whether it's a data center interconnect or DANZ features or more optics or more routing. Arista is the only product who has a real spine. Anybody who says they're a spine is not, many of them are spineless products. And so these have, in my view, the most capacity, scale, and capability and software advantages to offer our existing four verticals the best adjacencies.

就鄰接而言，我真正要表達的觀點是鄰接正在向我們襲來，無論是在技術方面還是正如您在客戶需求方面正確指出的那樣。他們說，嘿，如果我們使用 Arista 主幹，為什麼我們不能讓主幹做其他事情，無論是資料中心互連、DANZ 功能還是更多光學或更多路由。 Arista 是唯一具有真正骨幹的產品。凡是說自己有脊椎的人都不是，很多都是沒有脊椎的產品。因此，在我看來，這些擁有最大的容量、規模、能力和軟體優勢，可以為我們現有的四個垂直產業提供最佳的鄰接關係。

That's helpful. Jayshree, maybe just the Cisco lawsuit. Is it having an impact on your rate of bookings? Any color there would be helpful.

這很有幫助。 Jayshree，也許只是思科的訴訟。這對您的預訂率有影響嗎？任何顏色都會有幫助。

That's a good question. We've said this in the last quarter and I'll reiterate again. I want to be really clear on that. The impact of the lawsuit with our customers has not been there. We do have to explain it. There's no doubt that we're spending a lot of time and money on the lawsuit litigation process itself, but our customers have been very savvy and understanding.

這是個好問題。我們在上個季度已經說過這​​一點，我將再次重申。我想澄清這一點。與我們客戶的訴訟的影響尚未出現。我們確實必須解釋一下。毫無疑問，我們在訴訟程序本身上花費了大量的時間和金錢，但我們的客戶非常精明和理解。

That's helpful. Thank you. Good luck.

這很有幫助。謝謝。祝你好運。

Ehud Gelblum of Citigroup.

花旗集團的埃胡德·格爾布魯姆。

Thanks. Appreciate it. Couple things. First of all, clarification. When you said, Jayshree, in earlier question that you don't see APIC, I thought APIC for the most part was proprietary to run on Nexus, and so anyone who's going to actually consider APIC by definition almost has sort of a pure Cisco deployment to begin with; they made that decision ready. I just want to confirm or clarify that it would be odd for you to actually see an APIC consideration because you wouldn't have invited that switch party anyway. I just want to confirm that that's true.

謝謝。欣賞它。夫婦的事情。首先，澄清一下。 Jayshree，當你在前面的問題中說你沒有看到 APIC 時，我認為 APIC 大部分是在 Nexus 上運行的專有的，因此任何真正考慮 APIC 定義的人幾乎都擁有某種純粹的 Cisco 部署首先；他們已經做好了這個決定的準備。我只是想確認或澄清一下，如果您真正看到 APIC 的考慮，那會很奇怪，因為無論如何您都不會邀請該轉換方。我只是想確認這是真的。

That will lead into my other question about overlay controllers. How often -- obviously you partner with NSX, you partner with Nuage. How often are you seeing deployments together with overlay controllers versus how often you are seeing bare switch deployments? And is that ratio kind of changing or kind of trending over time, and then I have a followup.

這將引出我關於覆蓋控制器的另一個問題。顯然，您與 NSX 合作的頻率，與 Nuage 合作的頻率。您多久會看到覆蓋控制器的部署，而您看到裸交換器部署的頻率如何？隨著時間的推移，這個比率是否會改變或趨勢，然後我會進行後續追蹤。

Both good questions. On the APIC, yes, that's exactly right. Maybe we are on two different virtual machines and planets. If APIC is being installed with Catalyst and existing Nexus, there's a good reason we don't see it. We do see the Nexus 9K, so that's why I'm a little surprised we see that but we don't see the APIC. I think it really goes down to there is a set of customers, especially all four verticals, that really demand open standard innovation and I'm not really looking for vendor lock-in. Like you pointed out, there's probably a set of customers that are not in which is more the traditional enterprise that is fine to be end-to-end Cisco, if you will.

兩個問題都很好。在 APIC 上，是的，這是完全正確的。也許我們在兩個不同的虛擬機器和星球上。如果 APIC 與 Catalyst 和現有 Nexus 一起安裝，那麼我們有充分的理由看不到它。我們確實看到了 Nexus 9K，所以這就是為什麼我有點驚訝我們看到了 Nexus 9K，但沒有看到 APIC。我認為這實際上取決於有一群客戶，特別是所有四個垂直行業，真正需要開放標準創新，而我並不是真的在尋找供應商鎖定。正如您所指出的，如果您願意的話，可能有一群客戶不屬於適合端到端思科的傳統企業。

To answer your second question on overlay controllers, as you know, for the two years that we've all talked about SDN, Arista has been adamant that we are going to focus on building a programmable underlay software stack. It's taken us the better part of 10 years to do that. It's programmable at least six levels, kernel, data plane, management plane, control plane, application plan, and customer scripting plane and virtualization plane, but our goal has always been BYOC, bring your own controller.

為了回答關於覆蓋控制器的第二個問題，如您所知，兩年來我們一直在談論 SDN，Arista 一直堅持我們將專注於建立可編程底層軟體堆疊。我們花了十年的時間才做到這一點。它至少可以編程六個級別，核心、資料平面、管理平面、控制平面、應用程式平面以及客戶腳本平面和虛擬化平面，但我們的目標始終是BYOC，自帶控制器。

One of our favorite partners is VMware, both with the vSphere vCenter and NSX. We see a lot of customer activity together. It's been early days. It's really been -- we announced this relationship specifically on NSX last August, so it's been about six months, and we're very pleased with the momentum and progress there. We do work with other controllers and we also connect natively very many times into OpenFlow or OpenStack. We don't preclude any of those options because we have all the right [nodes] northbound and southbound APIs. We have many savvy customers want to play with our [SDK] and customize it, too. So, all of the above options are very, very valid but it all starts -- you can't do much with an overly controller if you don't have a good software underlay.

我們最喜歡的合作夥伴之一是 VMware，它們都提供 vSphere vCenter 和 NSX。我們一起看到很多客戶活動。已經是早年了。去年 8 月，我們專門在 NSX 上宣布了這種關係，現在已經過去了大約六個月，我們對那裡的勢頭和進展感到非常滿意。我們確實與其他控制器合作，並且我們也多次本地連接到 OpenFlow 或 OpenStack。我們不排除任何這些選項，因為我們擁有所有正確的[節點]北向和南向 API。我們有許多精明的客戶想要使用我們的 [SDK] 並對其進行自訂。因此，上述所有選項都非常非常有效，但這一切都開始了——如果您沒有良好的軟體底層，那麼您就無法使用過度控制器做太多事情。

Right. Finally, your inventory was up $10 million sequentially. Last quarter it was up $20 million sequentially and you made the comment that it was so much because of the quote unquote support revenue growth. The fact is only up $10 million versus last quarter's $20 million, how should we read into that? Does it look like perhaps some of the strength this quarter due to builds and that happened late last quarter that you got inventory in place for but couldn't quite deliver by the end of the quarter? So did that help boost this quarter and are we kind of back to some sort of a normal trend?

正確的。最後，您的庫存比上季增加了 1000 萬美元。上個季度它連續增長了 2000 萬美元，您評論說增長如此之多是因為報價支持收入增長。事實上，與上個季度的 2000 萬美元相比，僅增加了 1000 萬美元，我們該如何解讀這一點？看起來本季的實力是否是由於上季度末的建設而產生的，您的庫存到位，但在季度末無法完全交付？那麼這是否有助於推動本季的發展，我們是否又回到了某種正常趨勢？

I'm going to ask my CFO to take that one. Andy?

我會請我的財務長接受這個決定。安迪？

Obviously, we had an increase in deferred revenue, a significant increase in deferred revenue this quarter which goes hand-in-hand with an increase in inventory.

顯然，我們的遞延收入有所增加，本季遞延收入大幅增加，這與庫存的增加密切相關。

Okay. I will follow up off line. Appreciate it.

好的。我會線下跟進。欣賞它。

Simon Leopold from Raymond James.

雷蒙德詹姆斯的西蒙利奧波德。

A quick clarification that hopefully is easy and then a broader question. I think, Jayshree, you talked about a split between domestic and international of 80/20. In the past you have given us I think a split Americas/EMEA/Asia-Pac. I'm wondering if we could get a like for like comparison on the regionals.

希望這是一個簡單的快速澄清，然後是一個更廣泛的問題。我想，Jayshree，您談到了國內和國際之間 80/20 的分歧。我認為過去你們為我們帶來了美洲/歐洲、中東和非洲/亞太地區的分裂。我想知道我們是否可以在區域上進行類似的比較。

What I was hoping to ask you about was earlier you talked about the four key verticals and I wanted to really understand the mirror image of that in terms of understanding the progress. How much business have you done outside of the historic four key verticals? What's been the progress? What measurements can we take in terms of understanding the movement into the other markets that you've talked about in the past?

我本來想問你的是早些時候你談到的四個關鍵垂直領域，我想真正了解這在理解進展方面的鏡像。除了歷史悠久的四個關鍵垂直領域之外，您還做了多少業務？進展如何？我們可以採取哪些措施來了解您過去談到的其他市場的動向？

Okay. I'm going to take your last question first because otherwise I have trouble remembering, so if you don't mind. Our four verticals, Simon, really account for more than 90%, that's why they're our top four verticals in a huge way, because even when we do some enterprises generally they tend to be high-tech enterprise and we put them into high-tech enterprise bucket. At this point, I would look at us as very much driven by these main four verticals and there's not a lot we are expanding yet or going into beyond these four verticals at the moment. There is so much to do in these four verticals, is something I would reiterate.

好的。我將首先回答你的最後一個問題，否則我很難記住，所以如果你不介意的話。我們的四個垂直行業，西蒙，確實佔了90%以上，這就是為什麼它們在很大程度上是我們的前四個垂直行業，因為即使我們做一些企業，通常它們往往是高科技企業，我們把它們放在高技術領域。- 科技企業桶。在這一點上，我認為我們很大程度上受到這四個主要垂直領域的驅動，目前我們還沒有太多擴展或進入這四個垂直領域之外的領域。我要重申的是，在這四個垂直領域中還有很多工作要做。

Just to clarify the geography, I hope I didn't confuse you all. Our actual Q1 2015 numbers is Americas at 71% -- or 70%, and EMEA and Asia-Pac at 30%. What I tried to say in that 30% is that a contribution to that EMEA and Asia-Pac of 30% came from the US cloud titans deploying there. If it took those out, it would be 80/20. Beyond that, we really don't break out EMEA and Asia-Pac separately. So, it's 70/30 or 80/20 depending on how you count organic and inorganic.

只是為了澄清地理，希望我沒有讓大家感到困惑。我們 2015 年第一季的實際數字是美洲為 71% 或 70%，歐洲、中東和非洲和亞太地區為 30%。我在這 30% 中想說的是，歐洲、中東和非洲和亞太地區的 30% 貢獻來自部署在那裡的美國雲端巨頭。如果去掉這些，那就是 80/20。除此之外，我們確實不會單獨劃分歐洲、中東和非洲地區和亞太地區。因此，它是 70/30 或 80/20，取決於您如何計算有機和無機。

Thank you. I'm suitably confused, but I get it.

謝謝。我確實很困惑，但我明白了。

Paul Silverstein of Cowen.

考恩的保羅·西爾弗斯坦。

This is [Fahad] in for Paul. If you could provide the total customer count for this quarter?

這是保羅的[法赫德]。您能否提供本季的客戶總數？

I think we said over 3,200.

我想我們說的是 3,200 多個。

Over 3,200, sorry. And lastly on the competitive front. Can you comment about the increasing threat from top of the rack vendors entering into the leaf part of your business? Do you see an increasing competitive threat from white boxes?

超過3,200，抱歉。最後是在競爭方面。您能否評論一下頂級供應商進入您業務的葉子部分所帶來的日益嚴重的威脅？您是否認為白盒的競爭威脅越來越大？

No change for us. I know we've discussed white boxes quite a bit. The heart of a white box is the software. Anybody can build a box but nobody can build the software. I think there's really three types of software stacks. The classic what I call [blob] OS and the cloud OS is what we're building, and then build your own stack which you can do with many operating systems, but the majority of the customers don't build their own PC or server let alone their network which is so mission-critical. A lot of discussion, but no change in competitive dynamics.

對我們來說沒有任何改變。我知道我們已經討論過很多白盒子了。白盒的核心是軟體。任何人都可以建造一個盒子，但沒有人可以建立軟體。我認為軟體堆疊實際上分為三種類型。我們正在建立經典的 [blob] 作業系統和雲端作業系統，然後建立自己的堆疊，您可以使用許多作業系統來實現這一點，但大多數客戶不會建立自己的 PC 或伺服器更不用說他們的網路是如此關鍵的任務。很多討論，但競爭動態沒有改變。

All right. Thank you.

好的。謝謝。

Tal Liani from BofA Merrill Lynch.

來自美銀美林的塔爾·利亞尼。

Two questions. One, the easy one is on service margins. We only have two data points. We have last year and this year on the quarter and it went down from 73% to 64% roughly. Can you discuss the service gross margin dynamics? I don't have anything in between, so I don't know if it went up and down and kind what are the trends there?

兩個問題。第一，最簡單的一個是服務利潤。我們只有兩個數據點。我們有去年和今年的季度數據，大致從 73% 下降到 64%。您能討論一下服務毛利率動態嗎？我沒有介於兩者之間的任何東西，所以我不知道它是否上漲或下跌以及那裡的趨勢是什麼？

Second, it's more kind of a broader question. I read an interesting article this morning about Cisco actually having a white box strategy taking the 3K stripping out the software and letting Amazon put in their own software on top of it. Whether it's right or wrong, I have no idea but the hardware is basically the same. Generically, it's the same hardware based on the same ASICs that everyone else is using. So, the question I have is how difficult is it for your key customer, your large customer, Microsoft, how easy or how difficult is it for them to switch out the vendor to replace you with someone else? Can you speak -- not the hardware part but rather the software part, can you speak about how you are entrenched into their network, into the system? Is it your software or their software, et cetera? Thanks.

其次，這是一個更廣泛的問題。今天早上我讀到一篇有趣的文章，內容是思科實際上有一個白盒策略，將 3K 剝離掉軟體，讓亞馬遜在其上安裝自己的軟體。不管是對還是錯，我不知道，但硬體基本上是一樣的。一般來說，它是基於與其他人都使用的相同 ASIC 的相同硬體。所以，我的問題是，對於你的關鍵客戶、你的大客戶微軟來說，他們更換供應商以用其他人取代你有多容易或有多困難？你能談談－不是硬體部分，而是軟體部分，你能談談你是如何融入他們的網路、系統的嗎？是你的軟體還是他們的軟體等等？謝謝。

Okay. So your first question was on service margins and why have they come down year-over-year. As you know, our revenues increased significantly year-over-year. It's an area we are making significant investments both in people and in software-as-a-service investment. I think 73% was too high and 64% is more real. That's the first question.

好的。所以你的第一個問題是關於服務利潤率以及為什麼它們逐年下降。如您所知，我們的收入同比大幅增長。我們在這一領域在人員和軟體即服務投資方面進行了大量投資。我認為73%太高了，64%比較真實。這是第一個問題。

In terms of the strategy on leaf and spine and how sticky we are with customers, the spine tends to be a three- to five-year decision. It's extremely sticky, both in hardware and software. It's not the kind of thing they easily move from one to the other. Clearly, that's where a lot of our strength comes from. Leaf in general tends to be a more disposable unit. Usually, those switches and the silicon churn is every, what do you say, Andy, 18 months, 2 years? So the product is at least two to three years. Every cloud provider in general the lifespan of a leaf product is two to three years. The lifespan of a spine product can be five to seven years. So our stickiness is shorter in a leaf then in a spine.

就葉子和脊椎的策略以及我們對客戶的黏性而言，脊椎往往是一個三到五年的決定。無論是在硬體還是軟體方面，它都非常具有黏性。這不是一種他們可以輕易從一個轉移到另一個的事情。顯然，這就是我們的大部分力量的來源。一般來說，葉子往往是一個較一次性的單位。通常，這些開關和矽片的攪拌時間是每一次，安迪，你怎麼說，18 個月，2 年？所以產品至少還有兩到三年的時間。一般來說，每個雲端提供者的葉子產品的生命週期是兩到三年。脊椎產品的使用壽命可達五到七年。所以我們在葉子上的黏性比在脊椎上的黏性短。

Got it. Jayshree, just one follow-up. Your position, you are entrenched into the 25 gig and 50 gig cycles for next year. You're one of the leaders in the space. I remember that from the beginning early on. The question is where can you innovate there? Meaning, is it just about your operating system and I'm asking the question and a dumb way, but is it that important or can it be replicated with other operating systems, the same kind of value you bring in?

知道了。 Jayshree，只是一個後續行動。你的位置，你已經進入了明年 25 場演出和 50 場演出的週期。您是該領域的領導者之一。我從一開始就記得這一點。問題是你可以在哪裡進行創新？意思是，這只是關於你的作業系統嗎？我問這個問題是一種愚蠢的方式，但它真的那麼重要嗎？或者它可以與其他作業系統複製嗎？你帶來的同樣的價值嗎？

You asked the most insightful question that I didn't answer the previous time you asked it, which is anybody can churn chips and build boxes in Asia or here and they can be white or bright or blue, but Arista and our competitors value add is really the software. Building high-quality, rich protocols, stable, single-image software that solves your OpEx and CapEx problems is a non-trivial effort. It's taken us several hundreds of engineers. It's taken us 2004 to 2015, so over 10 years. And there is a real case and many customers do ask us, would we port our EOS to other platforms? And as I've often said and I've said very openly, to me that's not a white box, that's a software strategy that we don't preclude.

你問了一個最有洞察力的問題，上次你問的時候我沒有回答，那就是任何人都可以在亞洲或這裡攪拌晶片並製造盒子，它們可以是白色、亮色或藍色，但Arista 和我們的競爭對手的增值是真的是軟體。建立高品質、豐富的協議、穩定的單一映像軟體來解決您的營運支出和資本支出問題是一項艱鉅的工作。我們花了數百名工程師。我們從 2004 年到 2015 年，已經 10 多年了。而且有一個真實的案例，很多客戶確實問我們，我們會把我們的EOS移植到其他平台嗎？正如我經常說的，而且我非常公開地說，對我來說，這不是白盒，而是我們不排除的軟體策略。

Thank you.

謝謝。

That's the real differentiator, whether it's on 25, 40, 50, or 100 gig. Executing on the hardware you have to do every year. Executing on the software is a multi-year, multi-decade effort.

無論是 25、40、50 還是 100 演出，這才是真正的差異化因素。在你每年都必須做的硬體上執行。該軟體的執行需要多年、數十年的努力。

Thanks.

謝謝。

Sanjiv Wadhwani from Stifel.

來自 Stifel 的 Sanjiv Wadhwani。

Two questions, Jayshree. On the international/domestic mix, understanding that [70/30] because [providers] building out of the US, is that something that we should continue to see? Are we going to see more 70/30 mix versus sort of the 80/20 you've had in the most recent quarters? And then second question you kind of partially answered it. Understanding that your software is the differentiation, however, there was one other key element of the white box to support and are you starting to see more bright box in RFPs or more penetration of bright box? Again, I understand the software aspect, but the support aspect seems to be addressed by the bright boxes. Thanks.

有兩個問題，傑什裡。關於國際/國內組合，理解[70/30]因為[提供者]在美國之外建設，這是我們應該繼續看到的嗎？我們是否會看到更多的 70/30 混合，而不是最近幾季的 80/20 混合？然後第二個問題你已經部分回答了。了解您的軟體是差異化的，但是，白盒還有另一個關鍵要素需要支持，您是否開始在 RFP 中看到更多的亮盒或亮盒的更多滲透？再說一遍，我了解軟體方面，但支援方面似乎是透過亮框解決的。謝謝。

Okay. So, the 80/20 has been pretty steady for the last four quarters in our domestic and international mix. We would like to see it improve and that's why we are making significant investments on international and I'd certainly like it to see it going from 80/20 to 75/25 for starters and then 70/30.

好的。因此，過去四個季度我們的國內和國際組合中的 80/20 一直相當穩定。我們希望看到它有所改善，這就是我們在國際上進行大量投資的原因，我當然希望看到它從 80/20 上升到 75/25（對於初學者），然後是 70/30。

The international mix we had this quarter was really due to the fact that many of our cloud providers who we have been selling to for a long time first started their deployments in the US and now in their second and third year are adding international expansion. That, I believe, contributed to this quarter and can contribute to subsequent quarters because more and more of their success in the US will require them to think of how they will do this outside the US since many of them are worldwide organizations. That's why from a measuring point of view I want to make sure that Arista measures both organic and inorganic international success. So I view this as more cloud success than international success to be very clear.

我們本季的國際組合實際上是因為我們長期以來一直向其銷售的許多雲端供應商首先在美國開始部署，現在在第二年和第三年正在增加國際擴張。我相信，這對本季度做出了貢獻，也可以對後續幾季做出貢獻，因為他們在美國取得的越來越多的成功將要求他們考慮如何在美國以外的地區做到這一點，因為他們中的許多人都是全球性組織。這就是為什麼從衡量的角度來看，我想確保 Arista 衡量有機和無機的國際成功。因此，我認為這是雲端運算的成功，而不是國際上的成功，這一點非常明確。

Got it. And on the bright box, Jayshree?

知道了。那麼在明亮的盒子上，Jayshree？

On the bright box, I have to tell you, Sanjiv, the discussion on it is far greater in the news and press and print than it is with our customers. Our customers are really not looking to be switch developers. They want a high-quality switch where they can reduce their CapEx and OpEx and to the extent our software and our technology can tune the both of those, there's not that many questions on how to build a white box. There are many more questions on how we can make SDN and cloud technologies work for them to reduce their OpEx.

關於明亮的盒子，我必須告訴你，Sanjiv，新聞、媒體和印刷品中對此的討論遠多於我們客戶的討論。我們的客戶確實不想成為交換器開發商。他們想要一個高品質的交換機，可以減少他們的資本支出和營運支出，並且在我們的軟體和技術可以調整這兩者的範圍內，關於如何建立白盒子的問題並不多。關於我們如何讓 SDN 和雲端技術為他們服務以降低他們的營運支出，還有很多問題。

Thanks. That's helpful.

謝謝。這很有幫助。

This concludes the Arista Q1 2015 earnings call. Actually, hold on. We have got one more question that just popped in. Alex.

Arista 2015 年第一季財報電話會議到此結束。其實，堅持一下。我們剛剛又提出了一個問題。亞歷克斯。

Alex Henderson from Needham.

來自尼達姆的亞歷克斯·亨德森。

Jay, I was wondering if you could tell us a little bit about what the rate of new feature additions on your software platform looks like versus what you see from Cisco versus what you see from the white box competitors? What's the weighted velocity that you're seeing in new feature sets?

Jay，我想知道您是否可以告訴我們一些關於您的軟體平台上新功能添加率的情況，以及您從思科看到的與從白盒競爭對手看到的情況？您在新功能集中看到的加權速度是多少？

Very high. I think that's the beauty of our software architecture. Everything from the published subscribe model to the high availability. We are able to check in code, we are able to test code, we are able to do automation and diagnostics, and we are able to define a feature, implement a feature, and get a feature to a customer in three months to six months that could otherwise take two to three years in classic, traditional software releases.

很高。我認為這就是我們軟體架構的美妙之處。從發布的訂閱模型到高可用性的一切。我們能夠簽入程式碼，我們能夠測試程式碼，我們能夠進行自動化和診斷，我們能夠定義一個功能，實現一個功能，並在三個月到六個月內向客戶提供一個功能否則，在經典的傳統軟體發布中可能需要兩到三年的時間。

We see that as a two-part advantage. One is in our approach to how we write code. The other is the underlying architecture. It's so programmable that we can compile and test and put it out very, very quickly and with very, very high quality and with very, very little effect on the other software agents because they're so isolated from software containment and software (inaudible) at that point of view.

我們認為這是一個由兩部分組成的優勢。其中之一就是我們編寫程式碼的方法。另一個是底層架構。它是如此的可編程，以至於我們可以非常非常快速地編譯、測試並發布它，並且質量非常非常高，並且對其他軟體代理的影響非常非常小，因為它們與軟體遏制和軟體隔離（聽不見清）從那個角度來看。

This is really our hallmark and this is why when you see the rate at which we have features it's faster by three to five X more than other vendors and participants there. This is because the company -- 2004 to basically 2008, four or five years building the software architecture. It's a hallmark of the company and one we're proud of.

這確實是我們的標誌，這就是為什麼當您看到我們擁有功能的速度時，它比那裡的其他供應商和參與者快三到五倍。這是因為公司－2004年到2008年基本上花了四、五年時間建構了軟體架構。這是公司的標誌，也是我們引以為傲的標誌。

Do you see, do you track the actual number of feature sets that are added?

您是否看到，您是否追蹤了新增的功能集的實際數量？

Like I said, we did 120 features in our last release. If I were to compare this to traditional companies, it would be half that or a quarter of that or sometimes even one-tenth that.

正如我所說，我們在上一個版本中添加了 120 個功能。如果我將其與傳統公司進行比較，它將是傳統公司的一半或四分之一，有時甚至是十分之一。

How about versus [cumulus]?

與[積雲]相比怎麼樣？

It's difficult to answer that question to a specific vendor, so I won't try.

很難向特定供應商回答這個問題，所以我不會嘗試。

Okay. And then second question. Do think you have a time-to-market advantage as a result of the hypervisor on your switch when the next generation 25 gig chip comes out from Broadcom?

好的。然後是第二個問題。當 Broadcom 推出新一代 25 GB 晶片時，您是否認為交換器上的虛擬機器管理程式具有上市時間優勢？

One of the things -- I'm actually going to go back to your question on white box features, I was able to get an answer. Thank you, Mark. Generally, white boxes add X features, legacy adds 2X and Arista adds 5X. That's a good range of contrast. Going back to your question, now.

其中一件事——我實際上要回到你關於白盒功能的問題，我能夠得到答案。謝謝你，馬克。一般來說，白盒子增加 X 個功能，傳統添加 2X，Arista 添加 5X。這是一個很好的對比度範圍。現在回到你的問題。

Time-to-market. Let me answer that. The key -- one of the key attributes we have at the company is a single image EOS across all of our platforms. It really includes of course the next generation chip sets as well, which means that customers who receive the next generation chip technology will be able to run exactly the same familiar and fully proven EOS release that they are running today. So we don't expect any hiccup or any other delays in rolling out the next silicon because again the software is exactly the same as they are shipping today.

上市時間。讓我來回答一下。關鍵——我們公司的關鍵屬性之一是跨我們所有平台的單一圖像 EOS。當然，它確實還包括下一代晶片組，這意味著獲得下一代晶片技術的客戶將能夠運行與他們今天運行的完全相同的熟悉且經過充分驗證的 EOS 版本。因此，我們預計推出下一款晶片時不會出現任何問題或任何其他延遲，因為該軟體與今天發布的軟體完全相同。

Thank you, Alex.

謝謝你，亞歷克斯。

Okay. This time this does conclude the Arista Q1 2015 earnings call. I also want to mention that we have posted a presentation which provides additional perspective on our Q1 2015 fiscal results which you can access on the investor section of our website. Thank you to everyone for joining us today.

好的。這次 Arista 2015 年第一季財報電話會議到此結束。我還想提一下，我們已經發布了一份演示文稿，其中提供了有關我們 2015 年第一季度財務業績的更多觀點，您可以在我們網站的投資者部分訪問該演示文稿。感謝大家今天加入我們。

Thank you for joining, ladies and gentlemen. This concludes today's call. You may now disconnect.

女士們、先生們，感謝您的加入。今天的電話會議到此結束。您現在可以斷開連線。