Arista Networks Inc (ANET) 2015 Q4 法說會逐字稿

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

歡迎參加 Arista Networks 2015 年第四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 of the Arista website following this call. I will now 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透過 Arista 網站的投資者關係部分重播。我現在將電話轉接給投資者關係總監 Chuck Elliott 先生。先生，您可以開始了。

Thank you, operator. Good afternoon, everyone, and thank you for joining us.

謝謝你，接線生。大家下午好，感謝您加入我們。

With me on today's call are Jayshree Ullal, Arista Networks President and Chief Executive Officer; and Ita Brennan, Arista's Chief Financial Officer. This afternoon, Arista Networks issued a press release announcing the results for its fiscal fourth quarter and year ended December 31, 2015. If you would like a copy of the release you can access it online at the Company's website.

參加今天電話會議的有 Arista Networks 總裁兼執行長 Jayshree Ullal；以及 Arista 財務長 Ita Brennan。今天下午，Arista Networks 發布了一份新聞稿，公佈了截至 2015 年 12 月 31 日的第四財季和年度業績。如果您需要該新聞稿的副本，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 relating to our financial outlook for the first quarter of FY16, industry innovation, our market opportunity, and the impact of litigation, which are subject to the risks and uncertainties that we discuss in detail in our documents filed with the SEC, specifically in our most recent Form 10-Q and Form 10-K, and which could cause actual results to differ materially from those anticipated by these statements.

在本次電話會議期間，Arista Networks Management 將做出前瞻性聲明，包括與我們 2016 財年第一季的財務前景、行業創新、我們的市場機會以及訴訟的影響相關的聲明，這些聲明取決於我們在向SEC 提交的文件中詳細討論了風險和不確定性，特別是在我們最新的10-Q 表格和10-K 表格中，這些風險和不確定性可能導致實際結果與這些聲明中預期的結果存在重大差異。

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.

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 on 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.

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原則的基礎上表示的，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。

With that, I will turn the call over to Jayshree.

這樣，我會將電話轉給 Jayshree。

Thank you, Chuck. Thank you, everyone for joining us this afternoon, for our 2015 and Q4 earnings call. I am pleased to report that we had a spectacular year, with a strong finish.

謝謝你，查克。感謝大家今天下午參加我們的 2015 年和第四季財報電話會議。我很高興地向大家報告，我們度過了精彩的一年，並取得了出色的成績。

End year revenue grew 43.4% year-over-year to a record $837.6 million, while earnings per share increased 52.8% to $2.44. This was driven by our innovative platforms, differentiated EOS stack and CloudVision orchestration. Services contributed 11.1% of overall sales, as cloud demand fueled growth across our top verticals, especially the cloud titans.

年終營收年增 43.4%，達到創紀錄的 8.376 億美元，每股收益成長 52.8%，達到 2.44 美元。這是由我們的創新平台、差異化的 EOS 堆疊和 CloudVision 編排所推動的。服務貢獻了整體銷售額的 11.1%，因為雲端需求推動了我們頂級垂直產業（尤其是雲端巨頭）的成長。

From a geographic perspective, our customers in the Americas contributed 76.8% of total revenue in 2015, as our international theaters progressed steadily. We delivered non-GAAP gross margins of 65.3% for the year, as we grew profitably in a highly dynamic and competitive industry.

從地理來看，美洲客戶貢獻了2015年總營收的76.8%，國際戲院穩步推進。由於我們在一個充滿活力和競爭激烈的行業中實現了獲利成長，因此我們今年的非 GAAP 毛利率為 65.3%。

We are now in excess of 3,700 cumulative customers including new customer uptick and expansion from our existing customer base. Microsoft was 12% of our 2015 revenue, symbolic of the continued shift we see from on-premise enterprise to workloads in the public cloud. We remain fully committed to significant R&D and customer support investments, often in conjunction with our key technology, partners to bring open industry-wide cloud conversion.

目前，我們的累計客戶數量已超過 3,700 家，包括新客戶的增加和現有客戶群的擴大。 Microsoft 占我們 2015 年營收的 12%，象徵著我們從本地企業向公有雲的工作負載持續轉變。我們仍然完全致力於重大研發和客戶支援投資，通常與我們的關鍵技術、合作夥伴結合，以實現開放的全產業雲端轉換。

Let me quickly recap some of our 2015 highlights. Early in the year, we announced 26 new Leaf and Spline platforms for 10-, 25-, 40-, 50- and 100-gigabit ethernet, all based on our single binary image EOS philosophy, utilizing diverse silicon architectures.

讓我快速回顧一下 2015 年的一些亮點。今年年初，我們發布了 26 個適用於 10、25、40、50 和 100 吉比特乙太網路的新 Leaf 和 Spline 平台，所有這些平台均基於我們的單一二進位影像 EOS 理念，利用不同的矽架構。

In May 2015 we achieved the coveted leaders quadrant with one another vendor in Gartner's Magic Quadrant for data center networking, out of the 11 vendors mentioned. We forged a key agreement with HP for converged infrastructure of compute and storage, integrated by HP OneView and Arista EOS. We introduced a revolutionary platform, CloudVision for workload provisioning and workflow automation, offering interoperability across overlays like VMware's NSX, as well as integration into Dell, HP and OpenStack frameworks.

2015 年 5 月，我們與另一家供應商一起在 Gartner 資料中心網路魔力像限中（從提到的 11 家供應商中脫穎而出）獲得了令人垂涎的領導者象限。我們與 HP 就運算和儲存融合基礎架構達成了一項重要協議，由 HP OneView 和 Arista EOS 整合。我們推出了一個革命性的平台 CloudVision，用於工作負載配置和工作流程自動化，提供跨 VMware NSX 等覆蓋層的互通性，以及與 Dell、HP 和 OpenStack 框架的整合。

Later in the summer, we extended CloudVision to security with macro segmentation services, or MSS for short. Holistic security is a top of mind customer mandate, and we are working well with security visionaries like Palo Alto Networks, Check Point, F5, Fortinet and VMware, to realize this. In fall of 2015, we launched our media and entertainment initiative with industry leaders, transforming the once-analog world to a highly digitized software-defined and IP one.

今年夏天晚些時候，我們透過宏分段服務（簡稱 MSS）將 CloudVision 擴展到安全領域。整體安全是客戶最關心的任務，我們正在與 Palo Alto Networks、Check Point、F5、Fortinet 和 VMware 等安全遠見者密切合作，以實現這一目標。 2015 年秋季，我們與行業領導者共同發起了媒體和娛樂計劃，將曾經的模擬世界轉變為高度數位化的軟體定義和 IP 世界。

In November of last year, we delivered our first Spline Internetworking solutions, connecting between data centers, with layer one, layer two and layer three options, endorsed by our leading customers Box, Equinix, and Netflix. Earlier this year, in January of 2016, we announced a foundational Arista EOS infrastructure, with NetDB, a network-wide state-oriented database. NetDB builds upon our core state architecture by adding network-wide actions including state-sharing mechanisms for control, replication, rollback, and streaming analytics. We also announced use cases for hybrid cloud, Docker container support and more programmability models with open, config, and go.

去年11 月，我們交付了第一個Spline 互聯解決方案，在資料中心之間進行連接，具有第一層、第二層和第三層選項，得到了我們的主要客戶Box、Equinix 和Netflix 的認可。今年早些時候，即 2016 年 1 月，我們宣布了基礎 Arista EOS 基礎設施，其中包括 NetDB（一種面向網路的狀態資料庫）。 NetDB 透過新增網路範圍的操作（包括用於控制、複製、回滾和流分析的狀態共享機制）建構在我們的核心狀態架構之上。我們還宣布了混合雲、Docker 容器支援以及更多具有 open、config 和 go 的可編程性模型的用例。

All of these are compelling examples and alternatives to the traditional world we all live in. Demonstrably, we've had a busy year, growing our employee strength to over 1200 with worldwide investments across 70 countries and 120 support depots. And as we enter the new FY16, we believe we are gaining market share and increased relevance in the cloud networking segment. We are the only authentic state-based cloud stack, differentiated from mega scale networking. Others may mimic us with marketing, buzzwords and architectures, we simply execute and deliver it.

所有這些都是令人信服的例子，也是我們所處的傳統世界的替代方案。顯然，我們度過了忙碌的一年，透過在70 個國家和120 個支援站的全球投資，將我們的員工人數增加到1200 多人。隨著我們進入新的 2016 財年，我們相信我們正在獲得市場份額並提高雲端網路領域的相關性。我們是唯一真正的基於狀態的雲端堆疊，與大規模網路不同。其他人可能會透過行銷、流行語和架構來模仿我們，我們只是執行和交付它。

We believe our publish-subscribe-notify is simply several years ahead of the industry, and I couldn't be more proud of our customers' steadfast acceptance of Arista, as well as our team's results. Now, I will turn it over to Ita for Q4 and 2015 financial details.

我們相信我們的發布-訂閱-通知僅領先行業幾年，我為我們的客戶對 Arista 的堅定接受以及我們團隊的成果感到無比自豪。現在，我將把它交給 Ita，以了解第四季和 2015 年的財務細節。

Thanks, Jayshree, and good afternoon.

謝謝，Jayshree，下午好。

(technical issue) Legal costs associated with the ongoing lawsuits and the release of a tax GAAP reserve described in the prior quarter. A full reconciliation of our selective GAAP to non-GAAP results is provided in our earnings release.

（技術問題）與正在進行的訴訟相關的法律費用以及上一季所述的公認會計原則稅收儲備金的釋放。我們的收益報告中提供了我們選擇性 GAAP 與非 GAAP 績效的全面對帳。

Total GAAP revenues in Q4 were $254.4 million, up 41% year-over-year, and above our guidance of $238 million to $242 million. Revenues for the year came in at $837.6 million, up 43% from the prior-year. As anticipated, our cloud titan vertical demonstrated particular strength in the fourth quarter, combined with solid contributions from the other key verticals. Service revenues continued to grow, reaching 11.5% of revenue for the quarter, up from 11.1% in Q3.

第四季 GAAP 總營收為 2.544 億美元，年增 41%，高於我們 2.38 億美元至 2.42 億美元的指引值。全年營收為 8.376 億美元，比上年增長 43%。正如預期的那樣，我們的雲端巨頭垂直領域在第四季度展現了特殊的實力，再加上其他關鍵垂直領域的堅實貢獻。服務收入持續成長，佔本季營收的 11.5%，高於第三季的 11.1%。

International revenues came in at $47 million, or 19% of total revenue, down from 22% last quarter. We experienced continued growth in EMEA, offset by some lumpiness in APAC. Overall gross margin in Q4 was 64%, in line with our guidance of 62% to 65%, and reflecting an anticipated shift in revenue mix toward the cloud titans in the quarter.

國際營收為 4,700 萬美元，佔總營收的 19%，低於上季的 22%。我們在歐洲、中東和非洲地區經歷了持續成長，但被亞太地區的一些不穩定性所抵消。第四季的整體毛利率為 64%，與我們 62% 至 65% 的指引一致，反映了本季營收結構向雲端巨頭的預期轉變。

Operating expenses for the quarter came in at $85.7 million, up from $83.1 million last quarter. Total spending grew 3% on a quarter-over-quarter basis, considerably slower than our 13% top line growth.

本季營運費用為 8,570 萬美元，高於上季的 8,310 萬美元。總支出較上季成長 3%，遠低於我們 13% 的營收成長。

R&D spending decreased by $1.5 million with a lower than anticipated variable and prototype spending. Sales and marketing expense increased to 11.4% of revenue in the quarter, reflecting additional headcount and highly variable compensation expenses in the period. Our operating income for the quarter was $71.3 million or 29% of revenue. Other expense for the quarter was $0.9 million, and our effective tax rate was 18.5%, resulting in net income for the quarter of $57.5 million or 23.4%.

研發支出減少 150 萬美元，變數和原型支出低於預期。本季銷售和行銷費用佔收入的 11.4%，反映了該期間員工數量的增加和薪酬費用的高度變動。我們本季的營業收入為 7,130 萬美元，佔營收的 29%。本季的其他費用為 90 萬美元，有效稅率為 18.5%，因此本季的淨利潤為 5,750 萬美元，即 23.4%。

This effective tax rate of 18.5% reflects the full benefit of the renewal of the research and development tax credit for 2015. Excluding this effect, our non-GAAP effective tax rate for the quarter would have been 30.4% resulting in non-GAAP net income of $49.1 million or 20%. Our diluted share number for the quarter was 72.1 million shares, resulting in a diluted earnings-per-share number of $0.80, up from $0.59 in the prior quarter and up 50% from the prior year. This earnings-per-share number includes a $0.12 benefit for the renewal of the research and development tax credit for 2015.

18.5% 的有效稅率反映了 2015 年更新研發稅收抵免的全部好處。排除此影響，我們本季的非 GAAP 有效稅率將為 30.4%，從而產生非 GAAP 淨利潤4910 萬美元或 20%。我們本季的稀釋後股票數量為 7,210 萬股，稀釋後每股收益為 0.80 美元，高於上一季的 0.59 美元，比上年增長 50%。此每股盈餘數字包括 2015 年研發稅收抵免更新帶來的 0.12 美元收益。

Legal expenses associated with the ongoing lawsuits come in at $9 million for the quarter, slightly below our outlook of $10 million on the last earnings call. As a reminder, these businesses are excluded from the non-GAAP results discussed above.

本季與正在進行的訴訟相關的法律費用為 900 萬美元，略低於我們上次財報電話會議上 1000 萬美元的預期。提醒一下，這些業務被排除在上述非公認會計準則績效之外。

Now turning to the balance sheet. Cash, cash equivalents and investments ended the quarter at $687.3 million. We generated $117 million of cash from operations in the December quarter, up from $10.6 million in the prior period.

現在轉向資產負債表。本季末現金、現金等價物及投資為 6.873 億美元。我們在 12 月季度的營運中產生了 1.17 億美元的現金，高於上一季的 1,060 萬美元。

DSOs came in at 54 days, down from 68 days in Q3, and 57 in Q2. We have made significant process improvement in this area during the quarter, and are pleased to see this reflected in the reduced DSO metrics.

DSO 的天數為 54 天，低於第三季的 68 天和第二季的 57 天。本季度我們在該領域取得了重大流程改進，並很高興看到這一點反映在減少的 DSO 指標中。

Inventory turns were 3.2 times, up from 2.6 in Q3. Inventory decreased to $92.1 million in the quarter, down from $110 million in the prior period. This reduction is the result of increased focus on inventory management and supply-demand planning over the last number of quarters.

庫存週轉率為 3.2 倍，高於第三季的 2.6 倍。本季庫存減少至 9,210 萬美元，低於上一季的 1.1 億美元。這一減少是由於過去幾季更加重視庫存管理和供需規劃的結果。

Our deferred revenue balance was $197 million, up from $191 million in Q3. This balance continues to be largely made up of short and long-term service contracts, with some product deferrals related to acceptance terms and future deliverables.

我們的遞延收入餘額為 1.97 億美元，高於第三季的 1.91 億美元。這種餘額仍然主要由短期和長期服務合約組成，一些產品延期與驗收條款和未來可交付成果有關。

Accounts payable days were 45 days, up from 38 days in Q2, reflecting the timing of inventory receipts and payments. Capital expenditure for the quarter were $5.3 million.

應付帳款天數為 45 天，高於第二季的 38 天，反映了庫存收付的時間。該季度的資本支出為 530 萬美元。

Now turning to our outlook for the first quarter, we are pleased with our 2015 financial performance, with revenues up 43% and earnings per share up 58% on a year-over-year basis. As we look forward to 2016, we believe that the fundamentals of our business remains strong. Workloads continue to march towards the cloud, benefiting our key customers, who continue to deploy our differentiated product set across their data centers.

現在轉向我們對第一季的展望，我們對 2015 年的財務表現感到滿意，營收年增 43%，每股盈餘較去年同期成長 58%。展望 2016 年，我們相信我們業務的基本面依然強勁。工作負載繼續向雲端邁進，這使我們的主要客戶受益，他們繼續在其資料中心部署我們的差異化產品集。

It is typical for Arista to see activity in the first quarter as somewhat muted, as customers complete their budgeting and planning processes. Based on our current visibility, we expect revenue for the first quarter of 2016 to be the range of $232 million to $240 million, representing a slight reduction from Q4 2015 levels, but still showing growth on year-over-year basis of 30% to 34%. Our revenue mix is expected to continue to be more heavily weighted towards our cloud titan customers, and on that basis, we expect gross margins in the 62% to 65% range.

對於 Arista 來說，隨著客戶完成預算和規劃流程，第一季的活動通常會有些平靜。根據我們目前的預測，我們預計 2016 年第一季的營收將在 2.32 億美元至 2.4 億美元之間，較 2015 年第四季的水準略有下降，但仍同比增長 30% 至 20%。34 %。我們的收入組合預計將繼續更加偏重於我們的雲端巨頭客戶，在此基礎上，我們預計毛利率將在 62% 至 65% 範圍內。

With this as backdrop, our guidance for the first quarter, which is based on non-GAAP results and excludes any non-cash stock-based compensation expenses, and any legal expenses associated with ongoing lawsuits, is as follows: Revenues of approximately $232 million to $240 million.

在此背景下，我們對第一季的指導（基於非 GAAP 業績，不包括任何非現金股票補償費用以及與正在進行的訴訟相關的任何法律費用）如下： 收入約為 2.32 億美元至2.4 億美元。

Gross margin of approximately 62% to 65%, and operating margin of approximately 26%. Our effective tax rate is expected to be 28% to 30%, with diluted shares of approximately 72.5 million. Please note that based on our current understanding, we expect costs associated with the lawsuits to approximate $9 million for the quarter.

毛利率約62%至65%，營業利益率約26%。我們的有效稅率預計為28%至30%，稀釋後股份約為7,250萬股。請注意，根據我們目前的了解，我們預計本季與訴訟相關的成本約為 900 萬美元。

With that, I will turn the call back to Chuck. Chuck?

說完，我會把電話轉回給查克。查克？

Thank you, Ita. We are now going to go to the Q&A portion of the Arista earnings call. Due to time constraints, I would like to request that everyone please limit themselves to a single question. Thanks, all.

謝謝你，伊塔。我們現在將進入 Arista 財報電話會議的問答部分。由於時間有限，我想請大家只回答一個問題。謝謝大家。

(Operator Instructions)

（操作員說明）

Brent Bracelin, Pacific Crest Securities.

布倫特·布雷斯林（Brent Bracelin），太平洋頂峰證券公司。

Jayshree, I wanted to start out with the cloud vertical. Obviously you had a strong showing here in Q4 with the cloud titans, you are guiding to another strong quarter in Q1. We've seen other companies on the enterprise side, specifically Cisco and NetApp start to see a little slowdown in the enterprise side.

Jayshree，我想從雲端垂直領域開始。顯然，您在第四季度與雲端巨頭一起表現出色，您正在引領第一季的另一個強勁季度。我們看到企業端的其他公司，特別是思科和 NetApp 開始看到企業端的速度略有放緩。

So one, what is your view on the strength and the visibility and continued strength in cloud this year? And can you offer any sort of visibility, what you are seeing on the enterprise side as well? Thanks.

那麼，您對今年雲端運算的實力、知名度和持續實力有何看法？您能否提供任何形式的可見性，在企業方面也看到了什麼？謝謝。

Thank you, Brent. I'm no macro economy expert, so I will leave that to the pundits.

謝謝你，布倫特。我不是宏觀經濟專家，所以我會把這個問題留給專家們。

But in our micro cloud world at Arista, we continue to see strength in the marketplace. Cloud titans had a strong quarter in Q4 and we expect to see that in Q1 and beyond, as well. I'm especially encouraged by the rapid shift we are witnessing of enterprise workloads to private, public or hybrid cloud.

但在 Arista 的微雲世界中，我們繼續看到市場的力量。雲端巨頭在第四季表現強勁，我們預計在第一季及以後也能看到這一點。我特別感到鼓舞的是，我們目睹了企業工作負載向私有雲、公有雲或混合雲的快速轉變。

So I think the cloud economy trend is pretty inevitable to me. And I see that in two forms. I see that as hybrid cloud implementations in the enterprise, and obviously public cloud implementations where Arista provides product today to our cloud titans. All four verticals did well, but clearly the cloud titans did better, but I would say the other three were strong and grew well, too.

所以我認為雲端經濟趨勢對我來說是不可避免的。我認為這有兩種形式。我認為這是企業中的混合雲實施，顯然是公有雲實施，Arista 今天向我們的雲端巨頭提供產品。所有四個垂直領域都表現出色，但顯然雲巨頭做得更好，但我想說其他三個領域也很強大並且成長良好。

Thank you.

謝謝。

Stanley Kovler, Citi.

史丹利‧科夫勒，花旗銀行。

Thanks very much. I just wanted to ask specifically about Microsoft, if it managed to hit 10% of revenue for 2015? And if so, if the math was right, it was down a few million in line with the guidance you gave -- flat to down at Microsoft.

非常感謝。我只是想具體問問微軟，2015年它的營收是否達到10%了？如果是這樣，如果計算正確的話，按照你給的指導，微軟的股價下跌了幾百萬美元。

What's the outlook specifically for Microsoft for 2016? Should we expect it to be 10% or more of your revenue into 2016? Thank you.

微軟 2016 年的具體前景如何？我們是否應該預期它會佔您 2016 年收入的 10% 或更多？謝謝。

Thank you, Stan. First, a little quick review on history.

謝謝你，斯坦。首先，快速回顧一下歷史。

Microsoft has always been our top customer, with greater than 10% concentration. I believe in 2013, it was in the 20%s, and 2014 it went down to the teens, and in 2015 we are now 12%. So as a percentage of total revenue, it's steadily going down.

微軟一直是我們的頭號客戶，集中度超過10%。我相信2013年這個比例是20%左右，2014年這個比例下降到了十幾歲，2015年我們現在是12%。因此，它佔總收入的百分比正在穩定下降。

As actual numbers, it continues to be important, and is actually steadily going flat to up. We fully expect 2016 to be an important spend year for Microsoft. I think it will continue to trend down in percentage, but remain relevant in actual revenue contribution.

作為實際數字，它仍然很重要，並且實際上正在穩步上升。我們完全預期 2016 年將成為微軟重要的支出年。我認為它的百分比將繼續下降，但在實際收入貢獻中仍然具有相關性。

Mark Moskowitz, Barclays.

馬克·莫斯科維茨，巴克萊銀行。

Yes, thank you. Good afternoon.

是的，謝謝。午安.

Just want to get a sense here if you could talk a little more about the cloud penetration with respect to the cloud titans in terms of not only the cloud providers but also those who are doing their own private or hybrid cloud on their own. If you could talk about how the penetration runway looks there.

只是想在這裡了解您是否可以更多地談論雲端巨頭的雲端滲透率，不僅包括雲端供應商，還包括那些自己做私有雲或混合雲的人。如果你能談談那裡的滲透跑道是什麼樣子的。

And then bigger picture, your numbers obviously speak for themselves in terms of the strength you are seeing, but investors are going to start to think about what's next. And so how should investors start thinking about Arista in terms of moving to routing over the next few years, and what that revenue contribution could look like over time? Thank you.

從更大的角度來看，你的數字顯然足以說明你所看到的實力，但投資人將開始考慮接下來會發生什麼。那麼，投資者應該如何開始考慮 Arista 在未來幾年轉向路由的問題，以及隨著時間的推移，收入貢獻會是什麼樣子？謝謝。

Yes, thank you. I think Mark, the way to think of this is, our cloud penetration has still just begun. We may not be in the first innings, but we are definitely still only in the second or third innings. There's plenty here, but everybody's infrastructure is just starting to build out. Most of them started in the last couple of years, so plenty of room for growth.

是的，謝謝。我認為馬克，思考這個問題的方式是，我們的雲端滲透仍然剛剛開始。我們可能不在第一局，但我們肯定只在第二局或第三局。這裡有很多，但每個人的基礎設施才剛開始建造。其中大多數是在過去幾年開始的，因此有很大的成長空間。

At the same time, there is plenty of room for all of these cloud titans to experiment. We worked with Facebook and Wedge and OCB designs. We work with Microsoft's OpenSwitch architecture. We have worked in the past with other cloud titans, who actually developed switches even before Arista was founded.

同時，所有這些雲端巨頭都有足夠的實驗空間。我們與 Facebook、Wedge 和 OCB 設計合作。我們使用 Microsoft 的 OpenSwitch 架構。我們過去曾與其他雲端巨頭合作，他們甚至在 Arista 成立之前就開發了交換器。

So we believe these can mutually coexist and the TAM is so large that you are always going to have a permutation and combination of Leafs and Spines. Arista's increasing focus will be to work more and more closely in building the world-class universal spine and sometimes we may work with Arista Leafs, and other times we may work with other leafs in the network. So we believe our penetration still has a lot of room for growth, and we can coexist very much with internal development.

因此，我們相信它們可以相互共存，並且 TAM 如此之大，以至於您總是會遇到 Leaf 和 Spines 的排列和組合。 Arista 越來越關注的重點將是越來越緊密地合作，建立世界一流的通用主幹，有時我們可能與 Arista Leaf 合作，有時我們可能與網路中的其他 leaf 合作。所以我們相信我們的滲透率還有很大的成長空間，我們可以和內部發展很好地共存。

In terms of what's next, first I think it's most important to know our primary market is the data center, is the cloud. This is a tremendously large TAM, as you know. I think the total available market in 2015 is still in the $8 billion range, and here we are reporting $837 million, so lots of headroom there. Don't want anyone to forget it.

就下一步而言，首先我認為最重要的是要知道我們的主要市場是資料中心，是雲端。如您所知，這是一個非常大的 TAM。我認為 2015 年可用市場總額仍處於 80 億美元範圍內，而我們報告的市場規模為 8.37 億美元，因此還有很大的發展空間。不想讓任何人忘記它。

And as for routing, routing is not new to us. We've been doing layer three routing for some time, and we fully expect to build our BGP scale our Internet table routes, and continue to penetrate. We are very hopeful, that -- how do I say -- that the old core routing will become the new spine and more of these functions will be naturally features on our spine. I think that's a tremendous opportunity for service providers to consolidate their CapEx, and for Arista to provide more OpEx savings as well.

至於路由，路由對我們來說並不陌生。我們做第三層路由已經有一段時間了，我們完全期望建立我們的 BGP 來擴展我們的互聯網表路由，並繼續滲透。我們非常希望 - 我怎麼說 - 舊的核心路由將成為新的主幹，並且更多這些功能將自然成為我們主幹上的功能。我認為這對服務提供者來說是一個整合資本支出的巨大機會，對於 Arista 來說也是一個節省更多營運支出的絕佳機會。

Steve Milunovich, UBS.

史蒂夫·米盧諾維奇，瑞銀集團。

Thank you. Do you have any comment on the case with Cisco, and specifically, since the ITC judge's initial determination came out just a few weeks ago, if the tone of conversation with your client has changed at all? Are they at all more cautious?

謝謝。您對思科的案件有什麼評論嗎？具體來說，自從 ITC 法官幾週前做出初步裁決以來，與您客戶的對話語氣是否發生了任何變化？他們更加謹慎了嗎？

I will take a bit of it and then I will love to have our expert and GC, Marc Taxay, my good friend, comment more.

我會接受一些，然後我很樂意讓我們的專家和 GC、我的好朋友 Marc Taxay 發表更多評論。

First of all, Arista's always happy to address specifics in the courtroom, not in sensational blog rooms. But having said that, our primary focus as you rightly point out, Steve, has been our customers, and their support to us has been unwavering. Our goal has been to offer them appropriate design workarounds with non-intrusive upgrades, and they are very comparable with our plans, and they are very supportive of what we are doing, and how we are working with them.

首先，Arista 總是樂於在法庭上而不是在聳人聽聞的部落格室中解決具體問題。但話雖如此，正如你正確指出的那樣，史蒂夫，我們的主要關注點一直是我們的客戶，他們對我們的支持一直堅定不移。我們的目標是為他們提供適當的設計解決方案和非侵入式升級，它們與我們的計劃非常相似，並且他們非常支持我們正在做的事情以及我們如何與他們合作。

Marc, do you want to add some more?

馬克，你還想補充一點嗎？

Sure, Jayshree. So just to briefly update everyone on the status of the investigation.

當然，傑什裡。我只是向大家簡單介紹一下調查的進展。

As you point out, starting with the 944 investigation, the administrative law judge did issue an initial determination in that case, on February 2. As a reminder, that case originally had six patents in it. One was dropped, so there were five remaining. Of the five remaining patents, three of them, the judge found that we infringed, in two, he found that we did not.

正如你所指出的，從944調查開始，行政法法官確實在2月2日對該案做出了初步裁決。需要提醒的是，該案最初涉及六項專利。一顆被掉了，所以還剩下五顆。在剩下的五項專利中，法官發現我們侵犯了其中三項專利，他發現我們沒有侵犯兩項專利。

It is important to note that of the three patents that were in question, they actually relate to only two features. The first addresses the manner in which our agents communicate state to SysDB, and the second relates to our implementation of private VLANs.

值得注意的是，在所涉及的三項專利中，它們實際上只涉及兩個功能。第一個涉及我們的代理向 SysDB 傳達狀態的方式，第二個涉及我們私有 VLAN 的實作。

We have said this before, and I will repeat it here, Cisco has not asserted and the judge didn't find this case that EOS contains any Cisco code. It is also important to note that PVLANs is a common feature that's offered by nearly all network switch vendors today.

我們之前已經說過，這裡我再重複一遍，思科沒有斷言，法官也沒有發現本案EOS包含任何思科程式碼。另外需要注意的是，PVLAN 是當今幾乎所有網路交換器供應商都提供的常見功能。

Going forward, we are seeking commission review of the infringement findings in the initial determination. The ITC will consider our arguments, as well as Cisco's, and issue its final determination on June 2. If the ITC finds a violation and issues remedial orders, that then goes to the US Trade Representative, who will consider whether to veto of those orders during the 60 Presidential review period. That period will end on August 2.

展望未來，我們正在尋求委員會對初步裁定中的侵權結果進行審查。 ITC 將考慮我們以及思科的論點，並於 6 月 2 日發布最終決定。如果 ITC 發現違規行為並發布補救令，則該決定將提交給美國貿易代表，後者將考慮是否否決這些命令在第60屆總統審查期間。該期限將於 8 月 2 日結束。

We are going to continue to make our case to the ITC of course, and as a mitigation strategy, we're also going to be on the process of developing technical workarounds for this patents, as Jayshree mentioned. We're very confident in those workarounds, and if the ITC does issue an exclusion order as part of this process, we will seek to obtain Customs approval that the workarounds are outside the scope of the orders, in order for us to continue the uninterrupted importation of products. This will be a time-critical exercise needing strong execution.

當然，我們將繼續向 ITC 提出申訴，作為緩解策略，我們也將致力於為該專利開發技術解決方法，正如 Jayshree 所提到的。我們對這些變通辦法非常有信心，如果 ITC 確實在此流程中發布排除令，我們將尋求海關批准這些變通辦法超出了命令的範圍，以便我們能夠繼續不間斷地開展工作。產品進口。這將是一項時間緊迫的工作，需要強而有力的執行力。

Of course Arista will respect the final determination of the ITC. If the final determination is adverse, we will work in good faith to implement the workarounds, so that to the best of our knowledge, all products supplied to customers will be non-infringing.

當然Arista會尊重ITC的最終決定。如果最終裁決不利，我們將真誠地實施變通辦法，以便據我們所知，向客戶提供的所有產品均不侵權。

With respect to the 945 investigation, that's still under review by the ALJ. The administrative law judge will issue her initial determination on April 26. That decision will be subject to review by the Commission, and we expect for them to issue a final determination in any remedial orders for that case on August 26, that then goes to the Presidential review for the 945, and it would end on October 26.

關於 945 調查，行政法官仍在審查中。行政法法官將於 4 月 26 日發布初步裁決。該裁決將接受委員會的審查，我們預計他們會在 8 月 26 日對該案的任何補救令作出最終裁決，然後將其提交給行政法院。945的總統審查將於10 月26 日結束。

I feel like I have a PhD in ITC.

我覺得我擁有 ITC 博士學位。

Alex Henderson, Needham.

亞歷克斯·亨德森，李約瑟。

(Operator Instructions)

（操作員說明）

Jess Lubert, Wells Fargo Securities.

傑西·盧伯特，富國銀行證券。

Thanks for taking my question and congrats on another nice quarter here. I wanted to squeeze two in. Maybe just first, you can comment on where you are in the development of the workaround, and your confidence in your ability to get those built and approved by the end of Q2?

感謝您提出我的問題，並祝賀又一個美好的季度。我想擠進兩個。也許首先，您可以評論一下您在解決方案開發中的進展情況，以及您對在第二季度末之前構建和批准這些解決方案的能力的信心嗎？

Then for Ita, I was hoping to touch upon margins as expenses came in quite a bit lower than we expected, and you are guiding operating margins to higher levels than we've seen you guide for the last several quarters, even though there hasn't really been a change to the gross margin forecast. So I was hoping to understand if you feel like 26% or better is likely to be a sustainable operating margin level going forward?

然後，對於 Ita，我希望談談利潤率，因為費用比我們預期的要低得多，而且您將營業利潤率指導到比我們過去幾個季度指導的更高的水平，儘管沒有’毛利率預測確實發生了變化。因此，我希望了解您是否認為 26% 或更高的營業利潤率可能是未來可持續的營業利潤率水平？

If you think you can make all the needed investments to support your growth at those levels? Or if we should expect operating margins to dip, as we look out towards Q2 and the second half of 2016? Thanks.

您是否認為您可以進行所有必要的投資來支持您在這些水準上的成長？或者，當我們展望 2016 年第二季和下半年時，我們是否預期營業利潤率會下降？謝謝。

I think if you look at the approximately 26% operating margin guidance, it is pretty consistent with last quarter as well, right? And I think the way to think about that is, as we ramp spending and make the investments that we need to make, we're doing everything that we need to do from an investment perspective, but revenues are growing at a pretty fair clip.

我認為，如果您查看大約 26% 的營業利潤率指導，您會發現它也與上季度非常一致，對吧？我認為思考這個問題的方法是，當我們增加支出並進行我們需要的投資時，我們正在從投資的角度做我們需要做的一切，但收入正在以相當公平的速度增長。

And we are being very judicious in how we spend money, and sometimes the revenue is going to grow faster, and that will result in some upside to that. I think our guidance takes the view of here is the possible things that we need to go do in the quarter, and that's reflected in that 26%.

我們在花錢方面非常明智，有時收入會成長得更快，這會帶來一些好處。我認為我們的指導意見考慮的是我們在本季可能需要做的事情，這反映在 26% 中。

In terms of a long-term model, we've talked about maybe a 25% operating margin being a reasonable way to think about, and that gives us scope to grow sales and marketing expense as a percentage of revenue a little bit, and maintain our investments in R&D. I think that's how to think about it. I don't know that 26% is anything new necessarily, and probably long-term, it's like a 25% operating margin model.

就長期模型而言，我們討論過 25% 的營業利潤率可能是一個合理的考慮方式，這使我們有空間稍微增加銷售和行銷費用佔收入的百分比，並維持我們對研發的投資。我想這就是思考的方式。我不知道 26% 一定是什麼新東西，而且可能從長遠來看，它就像 25% 的營業利潤率模型。

Thanks, Jess. I think we have been planning and working on what are the scenarios and cases, while we don't believe we infringed these patents, you always have to plan, and we have the planning over the last year. Our engineers have been hard at work, so we feel very comfortable that in the case of 944, the majority of the workaround will be available -- are being worked around right now, and will be available in Q2. Marc, do you want to add anything more to that?

謝謝，傑西。我認為我們一直在計劃和研究哪些場景和案例，雖然我們不認為我們侵犯了這些專利，但你總是必須計劃，我們在去年就已經進行了計劃。我們的工程師一直在努力工作，因此我們感到非常放心，就 944 而言，大部分解決方法都將可用——現在正在解決，並將在第二季度提供。馬克，你還想補充什麼嗎？

I think that's right. Our team has been hard at work, we're continuing to evaluate everything of course, and we are in the process of issuing out a new -- releasing out a new version of the software, which will come out in Q2.

我認為這是對的。我們的團隊一直在努力工作，我們當然會繼續評估一切，並且我們正在發布新版本的軟體，該版本將在第二季發布。

Ryan Hutchinson, Guggenheim.

瑞安·哈欽森，古根漢。

Great. Two quick questions, here just to round out that conversation on the legal.

偉大的。兩個簡單的問題，只是為了完善有關法律的對話。

Ita, did you factor any -- did you change the methodology as it relates to guidance, to factor any disruption as it relates to legal? So that's more of a clarification.

Ita，您是否考慮了任何因素 - 您是否改變了與指導相關的方法，以考慮與法律相關的任何干擾？所以這更多的是一個澄清。

And the question really is on another one of your top cloud titan customers, Facebook. They've been pretty vocal about their intentions to build out EU2 at 100% powered by OpenCompute. What role, if any, will Arista play? And more broadly, how does the relationship potentially change over the course of time? Thanks.

問題其實出在另一個頂級雲端巨頭客戶 Facebook 身上。他們一直直言不諱地表示他們打算建立 100% 由 OpenCompute 提供支援的 EU2。 Arista 將扮演什麼角色（如果有的話）？更廣泛地說，隨著時間的推移，這種關係可能會發生怎樣的變化？謝謝。

I'll take the first part of that question. The guidance for Q1 is business as normal, with support of our customers, and not really assuming any disruption from a legal perspective.

我將回答這個問題的第一部分。第一季的指導是在我們客戶的支持下一切正常，並且從法律角度來看並沒有真正假設任何干擾。

That's correct. That's exactly right.

這是正確的。完全正確。

Your second question on Facebook, as Ryan, we have said a number of times, we fully expect our cloud titans to also do engineering. It is not the sole responsibility of Arista.

你在 Facebook 上的第二個問題，正如 Ryan 所說，我們已經說過很多次了，我們完全希望我們的雲端巨頭也能做工程。這不是 Arista 的唯一責任。

But in many cases, this is co-development, and in many cases, it's complementary. So I do think Facebook will use a lot of their capabilities, but it is core versus context. It is clearly core to Arista, and we provide a lot of capability, and then we work closely with Facebook's application to give them the right control. I'm very comfortable that there's room and opportunity for both.

但在很多情況下，這是共同開發，而且在很多情況下，這是互補的。所以我確實認為 Facebook 會使用他們的許多功能，但這是核心與上下文的區別。它顯然是 Arista 的核心，我們提供了很多功能，然後我們與 Facebook 的應用程式密切合作，為他們提供正確的控制權。我很高興兩者都有空間和機會。

Sanjiv Wadhwani, Stifel.

桑吉夫·瓦德瓦尼，斯蒂菲爾。

Thanks and I'm going to try to sneak in two.

謝謝，我會嘗試偷偷溜進去兩個。

The first question, Jayshree, on Tomahawk-enabled switches, just curious to see if those are ramping in line or better or maybe even worse than expectations.

第一個問題，Jayshree，關於支援戰斧的交換機，只是想看看這些交換機是否如預期成長，或比預期更好，甚至更差。

And then the second question is really on the legal side. Any update on the antitrust claim that you filed against Cisco, and do you see that impacting the ITC or the District Court lawsuits in any shape or form? Thanks.

第二個問題其實是在法律方面。您針對思科提出的反壟斷索賠有任何更新嗎？您認為這是否會以任何形式影響 ITC 或地方法院的訴訟？謝謝。

Okay, so I'm looking at the Tomahawk data. Good acceptance of the products in general. Especially the cloud titan tend to be the earliest adopters of this type of technology.

好的，我正在查看戰斧數據。整體對產品的接受度良好。尤其是雲端巨頭往往是此類技術的最早採用者。

I would say this is a key year for Tomahawk, meaning good acceptance of 10-gig, 40-gig and 100-gig. We still haven't seen 25 and 50 really take off the way we'd want to. So a lot has been written about it last year, but I think the year of 25- and 50-gig will really be this year. So that's critical.

我想說，今年對 Tomahawk 來說是關鍵的一年，這意味著 10 場、40 場和 100 場都得到了很好的接受。我們仍然沒有看到 25 和 50 真正按照我們想要的方式起飛。去年已經有很多關於它的文章，但我認為今年將真正成為 25 場和 50 場演出的一年。所以這很關鍵。

Regarding the lawsuit, once again, I'm going to let Marc talk about this. The only comment I want to make is, we are -- when a monopolist asserts ownership of open standards, I believe it not only harms Arista, but it harms an entire ecosystem, and brings innovation to a standstill. We really want to innovate, we don't want to litigate, and we thought long and hard about this, and Marc, maybe you want to comment on why we did it?

關於訴訟，我將再次讓馬克談談這一點。我唯一想說的是，當壟斷者聲稱擁有開放標準時，我相信這不僅損害了 Arista，而且損害了整個生態系統，並使創新陷入停滯。我們真的想要創新，我們不想提起訴訟，我們對此進行了長時間的思考，馬克，也許你想評論一下我們為什麼這樣做？

Sure, I think that's right. I think we evaluated the situation, and we felt that based upon what we had seen that Cisco was engaging in a series of anti-competitive behaviors, and we initiated the action really to level the playing field, so we can win in the marketplace, based on the merits of our products.

當然，我認為這是對的。我認為我們評估了情況，我們認為根據我們所看到的情況，思科正在從事一系列反競爭行為，我們發起這一行動確實是為了創造公平的競爭環境，以便我們能夠在市場上獲勝，基於我們產品的優點。

We did initiate the filing. We filed in the copyright case in District Court, a motion for leave to amend our answer to the complaint that was originally filed, to include the two counterclaims.

我們確實啟動了備案。我們在地方法院的版權案件中提出了一項動議，要求修改我們對最初提出的投訴的答复，以包括兩項反訴。

The first claim alleges that Cisco is engaged in a legal bait and switch with the industry and its customers, to protect its monopoly position in switching and routing. We asserted in that, that Cisco has aggressively promoted CLI as the industry standard, to encourage customers to adopt and heavily invest in CLI, without having to worry about vendor lock-in, or having to invest in training and scripting, for alternative CLI commands.

第一項指控稱，思科正在與業界及其客戶進行合法的誘餌和交換，以保護其在交換和路由領域的壟斷地位。我們斷言，思科已積極將 CLI 推廣為行業標準，以鼓勵客戶採用並大力投資 CLI，而不必擔心供應商鎖定，或必須投資於培訓和腳本編寫，以獲取替代 CLI 命令。

Our claims allege that when Arista achieved success in the marketplace that threatened Cisco's position, Cisco reversed course and now essentially is using those customers' investments against them to achieve vendor lock-in and protect its dominant market share by seeking to preclude competitors for using its industry-standard CLI commands, contrary to its past representations.

我們的主張稱，當Arista 在市場上取得成功並威脅到思科的地位時，思科改變了方向，現在實質上是利用這些客戶的投資來對抗他們，以實現供應商鎖定並通過阻止競爭對手使用其優勢來保護其主導市場份額。行業標準 CLI 命令，與其過去的表述相反。

The second claim alleges that Cisco uses its market position in switching to punish its customers for buying competing products by prohibitively increasing the prices it charges for servicing Cisco switches, where the customer has indicated they plan to buy switches from Cisco's competitors.

第二項指控稱，思科利用其在交換器領域的市場地位，透過大幅提高思科交換器的維修價格來懲罰購買競爭產品的客戶，而客戶已表示他們計劃從思科競爭對手那裡購買交換器。

What we have done is we have filed the amended complaint, that's being evaluated by the court now. The court will make a decision as to whether or not we can include this as part of the existing action, or whether or not should be filing a separate action. We will find out on that shortly.

我們所做的是提交了修改後的申訴，目前法院正在對其進行評估。法院將決定我們是否可以將此作為現有訴訟的一部分，或者是否應該提起單獨的訴訟。我們很快就會知道這一點。

Thank you, Marc.

謝謝你，馬克。

Alex Kurtz, Sterne CRT.

亞歷克斯·庫爾茨 (Alex Kurtz)，斯特恩 CRT。

Thanks, everyone and Marc, we're going to keep going at this.

謝謝大家和馬克，我們將繼續努力。

In your prepared remarks, there were a couple of really important sentences that I heard about the timing of the workaround. And it sounded like there were some request for an exclusion of the workarounds, as far as how the products could be continued to be delivered to customers, until the workarounds were assessed by the court. Something along those lines. Could you clarify that and maybe go through that again, and what that means for revenue as we go through Q2, Q3 and Q4?

在您準備好的發言中，我聽到了一些關於解決方法的時間安排的非常重要的句子。聽起來好像有人要求排除變通辦法，就如何繼續向客戶交付產品而言，直到法院評估變通辦法為止。沿著這些思路。您能否澄清這一點，也許再講一遍，以及當我們經歷第二季、第三季和第四季時，這對收入意味著什麼？

I don't think we mentioned anything on our prepared remarks. Can you clarify what you are asking?

我認為我們在準備好的發言中沒有提到任何內容。你能澄清一下你在問什麼嗎？

Marc went into some detail in his prepared remarks Jayshree, about the process of the workarounds as they go through the court. And I just wanted him to expand on that a little bit, as far as the timing and what the gates you had to go through to get that approved.

Marc 在 Jayshree 準備好的演講中詳細介紹了法庭上變通辦法的流程。我只是想讓他詳細說明一下這一點，包括時間安排以及獲得批准必須經過哪些關卡。

Sure.

當然。

Sure. So as we said, we have been developing design-arounds. We are in the process of releasing a new version of EOS, that will include that.

當然。正如我們所說，我們一直在開發設計方案。我們正在發布 EOS 的新版本，其中將包括該內容。

The process for us would include seeking approval from Customs, in order for Customs to ensure that we can import those products into the US. A non-infringing version of those products into the US. And so we'll initiate a process once the final determination from ITC comes in.

我們的流程包括尋求海關批准，以便海關確保我們可以將這些產品進口到美國。這些產品的非侵權版本進入美國。因此，一旦 ITC 做出最終決定，我們將啟動一個流程。

It's our view of course now, we are still fighting this case, we are going to continue to fight it, and we submitted our briefs over to the full Commission. Then once the Commission -- if the Commission issues an adverse ruling at that stage, we will work with Customs to try to go through the process.

當然，這是我們現在的觀點，我們仍在與此案作鬥爭，我們將繼續與之作鬥爭，並且我們向整個委員會提交了我們的簡報。一旦委員會在該階段做出不利裁決，我們將與海關合作，嘗試完成整個程序。

Just to be clear, we won't know anything about this until June 2, as Marc said.

需要澄清的是，正如 Marc 所說，直到 6 月 2 日我們才會知道這件事。

Okay, thank you.

好的謝謝。

Rajesh Ghai, Macquarie.

拉傑什·蓋伊，麥格理。

Yes, thanks. I had a question for Ita, and one for Jayshree.

對了謝謝。我有一個問題想問 Ita，也有一個問題想問 Jayshree。

Ita, can you talk about the deferred revenue, the number that did not go up as fast this quarter?

Ita，您能談談遞延收入嗎？本季成長不那麼快的數字？

And question for Jayshree, that the software-only SKU has been out for some time now. Can you talk about what you are seeing in terms of demand for that software-only SKU? Are you seeing any increase in interest from the cloud titans or the regular customers?

Jayshree 的問題是，純軟體 SKU 已經發布了一段時間了。您能否談談您對純軟體 SKU 的需求情況？您是否發現雲端巨頭或一般客戶的興趣增加？

Yes, to take the deferred revenue question. The deferred revenue balance is going to move around quarter-over-quarter. Our service renewals are for different time periods, large customers, smaller customers and so on.

是的，回答遞延收入問題。遞延收入餘額將按季度變動。我們的服務續約是針對不同的時段，大客戶，小客戶等等。

And then even on the product side, it is all about the timing of shipments. So if you are shipping stuff at the end of the quarter to a certain customer, and it is going to be higher if we ship it the first day of the following quarter, it will be lower. So it is not a metric that you going to see follows the traditional what you typically see as a very predictable cycle.

即使在產品方面，這也與發貨時間有關。因此，如果您在季度末向某個客戶發貨，如果我們在下個季度的第一天發貨，價格會更高，那麼價格會更低。因此，您將看到的指標並不遵循您通常認為非常可預測的周期的傳統指標。

I think it is also fair to say it could stay flat, it can go down, it can go up. I wouldn't read too much into that metric.

我認為說它可以持平、可以下跌、可以上漲也是公平的。我不會過度解讀這個指標。

Right, it's not per customer.

是的，這不是針對每個客戶的。

Rajesh, regarding your question on software SKUs, we've offered a lot and talked about it a lot. But at the end of the day, we have seen that more of our customers want to know we have it, but prefer to use our hardware and software together.

Rajesh，關於您關於軟體 SKU 的問題，我們已經提供了很多並且討論了很多。但歸根結底，我們發現更多的客戶想知道我們擁有它，但更喜歡同時使用我們的硬體和軟體。

So the actual success and implementation and deployment of this has been small. The discussion of it has been large. It's a disproportionate difference between implementation and discussion.

所以實際的成功以及實施和部署的規模很小。對此的討論很大。實施和討論之間存在不成比例的差異。

Okay, thank you.

好的謝謝。

James Faucette, Morgan Stanley.

詹姆斯‧福賽特，摩根士丹利。

Just a question talking about geographies, et cetera. You mentioned that Asia saw some lumpiness, and I'm just wondering if you could talk about how we should expect that and those other international geographies to develop?

只是一個關於地理等的問題。您提到亞洲出現了一些波動，我只是想知道您是否可以談談我們應該如何預期亞洲和其他國際地區的發展？

I guess I'm looking at it from the context of, the feedback that we've received from a lot of channel in international is that it seems like Arista's having a hard time completely satisfying the demand in some of those newer geographies. So can you just talk about how we should expect these international geographies to develop and what your sense is as to underlying demand trends, et cetera? Thank you.

我想我是從這樣的背景來看這個問題的，我們從許多國際管道收到的回饋是，Arista 似乎很難完全​​滿足一些較新地區的需求。那麼您能否談談我們應該如何預期這些國際地區的發展以及您對潛在需求趨勢的看法等等？謝謝。

James, I think we are doing very well internationally, but it is hidden by the fact that we are doing very well in the United States. I want to make that point.

詹姆斯，我認為我們在國際上做得很好，但它被我們在美國做得很好的事實所掩蓋。我想強調這一點。

I'm especially encouraged by our success in Europe. We just brought in a very strong leader with 25, 30 years experience in networking, and we are doing very strong in the especially developed countries, Nordics, Netherlands, Germany and UK.

我對我們在歐洲的成功感到特別鼓舞。我們剛剛引進了一位在網路領域擁有 25 年、30 年經驗的非常強大的領導者，我們在北歐、荷蘭、德國和英國等特別發達國家做得非常出色。

In Asia, what happens is, Asia is not one country, it is really Australia, Korea, Japan and Southeast Asia, including India, where our greatest focus is. So first of all, we are reasonably low in China, and so our numbers tend to jump around quarter by quarter, depending on the deal size, and what we win. We had some fairly large customer wins in Q2 and Q3 than we did in Q4.

在亞洲，情況是，亞洲不是一個國家，實際上是澳洲、韓國、日本和東南亞，包括印度，這是我們最關注的焦點。首先，我們在中國的市佔率相當低，因此我們的數字往往會逐季跳躍，這取決於交易規模和我們贏得的內容。與第四季度相比，我們在第二季和第三季贏得了一些相當大的客戶。

In terms of the difficulty we are having, I think we are still in the very early stages. I don't see difficulty, I just say we started later.

就我們遇到的困難而言，我認為我們仍處於非常早期的階段。我不認為有什麼困難，我只是說我們開始得晚一點。

Our real first year of international focus I would say is 2015, and I am fully expecting to see -- one of the great statistics for me of success in our market is new customers. We are seeing more new customer acceptance in international than we even are in the United States. Which to me suggests that the next few years will be very promising internationally.

我想說，我們真正關注國際的第一年是 2015 年，我完全期待看到——對我來說，我們市場成功的重要統計數據之一就是新客戶。我們看到國際上的新客戶接受度甚至比美國還要多。對我來說，這表明未來幾年在國際上將非常有前途。

Kulbinder Garcha, Credit Suisse.

Kulbinder Garcha，瑞士信貸。

Thank you. Jayshree, can you just clarify the comments you made around the Tomahawk linked products. How you are expecting them to ramp the success so far, at least on my side, when you responding. That's my first clarification.

謝謝。 Jayshree，您能澄清一下您對戰斧關聯產品的評論嗎？當你回應時，你期望他們到目前為止如何取得成功，至少在我這邊。這是我的第一個澄清。

The second was in terms of verticals, if I think about financials -- big seven cloud, big cloud titans, other service providers, EDR, I don't know how you want to split up the verticals now versus how you previously talked about it, but is it still quite balanced when you look at the 2015 numbers for revenues? Thanks.

第二個是垂直領域，如果我考慮財務方面——七大雲、大型雲端巨頭、其他服務供應商、EDR，我不知道你現在想如何分割垂直領域，而不是你之前談論的方式，但當你看看2015年的收入數據時，它仍然相當平衡嗎？謝謝。

Yes. I think I understood your Tomahawk question but I will try again, and Kulbinder, hopefully if I don't answer it we will chat more on the call back.

是的。我想我理解了你的戰斧問題，但我會再試一次，Kulbinder，希望如果我不回答，我們會在回電時進行更多交談。

But we are pleased with the transition on Tomahawk. We have not seen it become mainstream yet. Trident is still the main technology, Trident I, Trident II, et cetera.

但我們對戰斧上的過渡感到滿意。我們還沒有看到它成為主流。三叉戟仍然是主要技術，三叉戟I、三叉戟II等等。

And you have to understand we really only had one quarter of Tomahawk. We introduced the products but actual codification and production and installation has been one quarter. So I see this year as the real indicator.

你必須明白我們其實只有四分之一的戰斧。我們介紹了產品，但實際編碼和生產安裝已經是四分之一了。所以我認為今年才是真正的指標。

The other reason I think we haven't seen an immediate pick-up is customers are happy with our 10-, 40-, 100-gig current offerings, they're meeting their features, they're meeting their price points. So the reason to switch to Tomahawk would be specifically more need for 25- and 50-gig which requires more of an ecosystem, you need the host adapters, you need the NICs, you need the compute, you need the storage, you need everyone to come together. So I think this will be a more crucial year for Tomahawk than last year was.

我認為我們沒有看到立即回升的另一個原因是客戶對我們的 10、40、100g 當前產品感到滿意，他們滿足了他們的功能，他們滿足了他們的價格點。因此，切換到 Tomahawk 的原因是更需要 25 和 50 GB，這需要更多的生態系統，您需要主機適配器，您需要 NIC，您需要計算，您需要存儲，您需要每個人走到一起。所以我認為對戰斧來說，今年會是比去年更關鍵的一年。

And you are second question was on --

你的第二個問題是──

Revenue breakdown vertical for 2015.

2015 年垂直收入細分。

Verticals haven't changed. We continue to enforce our top four verticals.

垂直方向沒有改變。我們繼續加強我們的四大垂直領域。

What I can tell you, looking at our 2015 order or priority, or success of the verticals, if you will, it is number one was clearly cloud titans. Number two was service providers and Tier 2 cloud providers. Financial services and high-tech enterprise were tied for third place

我可以告訴你的是，看看我們 2015 年的順序或優先事項，或者垂直行業的成功，如果你願意的話，排名第一的顯然是雲端巨頭。位居第二的是服務提供者和二級雲端提供者。金融服務及高新科技企業並列第三位

Great, thank you.

太好了謝謝。

Erik Suppiger, JMP.

埃里克·蘇皮格，JMP。

Yes, want to just get a sense for your plans on the growing sales organization. Where are you in terms of sales force expansion at this point?

是的，只是想了解一下您對不斷發展的銷售組織的計劃。目前您在銷售團隊擴張方面處於什麼階段？

We are doing well. We could always be doing better.

我們做得很好。我們總是可以做得更好。

I think one of our sales models if you look at it, which is different from others, is Mark Smith and Anshul and Mark Foss, they are not focused on coverage. They are focused on our four verticals, and what we call the Arista 100. We are looking to make an engagement that is both long-term and impactful and strategic where they really want to transform the data center.

我認為我們的銷售模式之一是馬克史密斯（Mark Smith）、安舒爾（Anshul）和馬克福斯（Mark Foss），如果你看一下的話，這與其他人不同，他們並不專注於覆蓋範圍。他們專注於我們的四個垂直領域，以及我們所謂的 Arista 100。我們希望在他們真正想要改造資料中心的領域進行長期、有影響力和策略性的合作。

So for the regular enterprise IT customer, they are probably less interested in Arista because they will just keep buying what they are and it will be hard to change old habits. So our sales model is very much targeted on go deep, rather than go wide. And really focused in a few good geographies, and obviously the top four verticals than everywhere.

因此，對於普通企業 IT 客戶來說，他們可能對 Arista 不太感興趣，因為他們只會繼續購買現有的產品，並且很難改變舊習慣。所以我們的銷售模式非常注重深入，而不是廣泛。並且真正專注於一些好的地區，顯然是前四個垂直領域而不是所有地方。

We are doing very well there. We've hired well, both in sales and technical SEs.

我們在那裡做得很好。我們在銷售和技術 SE 方面都招募了很好的人。

Can you give us a breakout on your size of sales organization?

能為我們介紹一下您的銷售組織規模嗎？

I don't think we've done that historically but if I look from year-over-year, we have definitely increased by double-digit percentages.

我認為我們歷史上沒有這樣做過，但如果我逐年觀察，我們肯定增加了兩位數的百分比。

Very good, thank you.

非常感謝。

Jeff Kvaal, Nomura.

傑夫·科瓦爾，野村證券。

I have a question I'm returning to, it seemed that you just hit upon, Jayshree, which new customers. Can you help us maybe think through how much of your business each quarter or each year is driven by repeat orders, and how much by new customers?

我有一個問題要回問，Jayshree，您似乎剛剛偶然發現了哪些新客戶。您能否幫助我們思考一下您每季或每年的業務有多少是由重複訂單驅動的，有多少是由新客戶驅動的？

Then the second part of that is, are there particular new customers or suites of larger new customers that you are excited about for 2016? Thanks.

那麼第二部分是，2016 年是否有讓您感到興奮的特定新客戶或較大的新客戶群？謝謝。

Yes, those are both very good questions, Jeff. New customers is something I personally measured a lot, not because they're the biggest contributor to core quarterly revenue, but it is basically a definition of seeds you sow for the future.

是的，這些都是非常好的問題，傑夫。新客戶是我個人經常衡量的指標，並不是因為他們是核心季度收入的最大貢獻者，而是它基本上是您為未來播下的種子的定義。

In terms of actual contribution of revenue, they tend to be, I don't know, single, double digit percentages, they are not big. And the reason I say that is because the new customer orders aren't big.

就實際收入貢獻而言，我不知道，它們往往是個位數、兩位數百分比，並不大。我之所以這麼說，是因為新客戶訂單並不大。

You have to understand that if you look at a typical Arista sales cycle, our first order is our XDN Starter kit or a particular project that could be $50,000 or $100,000. Simply, we have lots of new customers it doesn't add up to a lot of millions of revenue.

您必須了解，如果您查看典型的 Arista 銷售週期，我們的第一個訂單是我們的 XDN 入門套件或特定項目，可能價值 50,000 美元或 100,000 美元。簡而言之，我們有很多新客戶，但加起來的收入並沒有數百萬美元。

But what you have to look at is not what the first customer is, but what happens 6 months to 12 months and 18 months later. That's when we really get them to be, and this is addressing your second question, you get them to be a relevant big million or multi-million dollar customer.

但你要關注的不是第一個客戶是什麼，而是 6 個月到 12 個月、18 個月後發生了什麼事。那是我們真正讓他們成為的時候，這正在解決你的第二個問題，你讓他們成為相關的百萬或數百萬美元的大客戶。

So that's the pattern we see. We see a new logo in a small project, if you will, and then within 12 months to 18 months, a more substantial win.

這就是我們看到的模式。如果您願意的話，我們會在一個小專案中看到一個新徽標，然後在 12 個月到 18 個月內取得更實質的勝利。

Alex Henderson, Needham

亞歷克斯·亨德森，李約瑟

So I've got two questions both on the chip side of things. First off, has there been some delay in the timing of getting the Broadwell chip out from Intel, and has that slipped your timeline for the full architecture of 25-gig stack rolling out a little bit in terms of timing into the back half?

所以我有兩個關於晶片方面的問題。首先，從英特爾獲得 Broadwell 晶片的時間是否有一些延遲，這是否使您在後半部分推出 25 GB 堆疊的完整架構的時間稍微推遲了一些？

And then the second one, along the same lines, can you give us an up date on what you are thinking about the Jericho product coming out, and when that might impact the router market? That's an $8.6 billion TAM that will roll into the switch market at some point, when that gets going. Can you just give us an update on those two?

第二個問題，同樣，您能否向我們介紹您對 Jericho 產品推出的最新想法，以及該產品何時可能影響路由器市場？當這一切開始時，價值 86 億美元的 TAM 將在某個時候進入交換器市場。能為我們介紹一下這兩個人的最新情況嗎？

Thanks Alex, they are both good questions.

謝謝亞歷克斯，他們都是很好的問題。

I think you are absolutely right to point out that the 25- and 50-gig NIC, and it's not just Intel, it's Intel, Broadcom, I think Mellanox plays in there, and then there's a lot of on-board, NAND-on-motherboard type activities. All of that has not happened in 2015, and we fully expect them to happen in 2016, and I think one of the biggest drivers will actually be storage. As you move to more scale out flash-based storage, it will be less and less fiber channel SAMs and more and more Tier 2 IP storage SAMs. And we think 25- and 50-gig is a pivotal performance to hit while 1 and 10-gig may be more for compute. You are right to point out that hasn't happened as fully and well, and will in 2016.

我認為你指出 25 和 50 G NIC 是絕對正確的，而且不僅僅是英特爾，還有英特爾、Broadcom，我認為 Mellanox 也參與其中，而且還有很多板載、NAND-on -主機板類型的活動。所有這些在 2015 年都沒有發生，我們完全預計它們會在 2016 年發生，而且我認為最大的驅動因素之一實際上是儲存。隨著您轉向更橫向擴展的基於快閃記憶體的存儲，光纖通道 SAM 將會越來越少，而第 2 層 IP 儲存 SAM 將會越來越多。我們認為 25 和 50 G 是需要達到的關鍵效能，而 1 和 10 G 可能更適合計算。您正確地指出，這種情況尚未完全、順利地發生，但 2016 年將會發生。

In terms of Jericho, the one thing I will just say in general about the silicon industry since I came from this industry 30 years ago, is we always tend to overestimate the availability of a chip as opposed to that the availability of a system. I think Jericho was announced by Broadcom a year ago and we are very impressed with the table sizes and capacity and buffering and capabilities, but announcing a chip is very different than vendors announcing systems.

就 Jericho 而言，自從 30 年前我來自這個行業以來，關於矽行業，我要概括地說的一件事是，我們總是傾向於高估晶片的可用性，而不是系統的可用性。我認為 Jericho 是博通一年前發布的，我們對錶的大小、容量、緩衝和功能印象深刻，但發布晶片與供應商發布系統有很大不同。

I fully expect that systems will come into play in the summer of 2016, and the qualification of those systems because it is routing and spine can take longer. So I think 2016 will be a year of trials for Jericho and core routing, and then the multi-billion dollar market you talk about will really be a multi-year execution.

我完全預計系統將在 2016 年夏天投入使用，而這些系統的資格認證（因為它是路由和主幹）可能需要更長的時間。所以我認為2016年將是Jericho和核心路由的試驗年，然後你所說的數十億美元的市場將真正是一個多年的執行。

Hendi Susanto, Gabelli & Company.

亨迪‧蘇珊托 (Hendi Susanto)，加貝利公司 (Gabelli & Company)。

First for Jayshree, what is our grand vision on Arista products and solutions in the security space after the new release of the CloudVision? And second question will be for Ita, how much CapEx should we expect in 2016?

首先對於 Jayshree 來說，在新版本的 CloudVision 之後，我們對 Arista 產品和解決方案在安全領域的宏偉願景是什麼？第二個問題是 Ita，我們預期 2016 年的資本支出是多少？

I will take the first question, Ita. Security is definitely a top of mind initiative for a lot of our customers, both in the cloud and in the standard enterprise network.

我將回答第一個問題，伊塔。對於我們的許多客戶來說，安全無疑是首要考慮的問題，無論是在雲端還是在標準企業網路中。

Arista does not fancy ourselves as the security expert. We think that's a market in itself and it changes every time there's a new threat vector.

Arista 不認為自己是安全專家。我們認為這本身就是一個市場，每次出現新的威脅向量時它都會改變。

So what we want to do is work the industry-leading pioneers and visionaries there. One of our closest partners is Palo Alto Networks, we are also working with Check Point and F5, Fortinet, VMware. And what we see is it is one thing to actually say I detect a threat, which our security partners do, it is another thing to say I avoid permeating a threat, and this is really where Arista comes in.

因此，我們想要做的是與行業領先的先驅者和有遠見的人合作。 Palo Alto Networks 是我們最親密的合作夥伴之一，我們也與 Check Point 和 F5、Fortinet、VMware 合作。我們看到的是，實際上說我偵測到威脅是一回事，我們的安全夥伴確實這麼做了，而說我避免滲透威脅則是另一回事，而這正是Arista 的用武之地。

With CloudVision, what we are doing is truly establishing how you can maintain firewalls and rules and policies with our security partners. But really map this from physical to virtual to advanced telemetry and orchestrate to the entire way, so you are not just catching one silo threat but making sure you can mitigate this across an entire network. So if you will, somebody catches the disease and we make sure it doesn't spread.

借助 CloudVision，我們正在做的是真正確定您如何與我們的安全合作夥伴一起維護防火牆、規則和策略。但真正將其從實體到虛擬到高級遙測和編排映射到整個方式，這樣您不僅可以捕獲孤島威脅，還可以確保可以在整個網路中緩解這種威脅。因此，如果你願意的話，有人會感染這種疾病，我們會確保它不會傳播。

Just on the CapEx, we've been averaging $5 million a quarter, could you see that spike a little bit, a couple million here and there if we add some capacity and stuff? Maybe, but it should stay roughly in that range.

僅就資本支出而言，我們每季平均為 500 萬美元，如果我們增加一些容量和其他東西，您是否會看到這個峰值，到處是幾百萬美元？也許吧，但它應該大致保持在這個範圍內。

Tal Liani, Bank of America.

塔爾·利亞尼，美國銀行。

Have a question on the 100-gig market. Is there any delay to the deployment of 100-gig because of the 25-, 50-gig issues you discussed here? I understand that the technology also reduces the price for 100-gig. The question is if we should model slower ramp for 100-G as a result of what you are discussing? Thanks.

對 100 兆市場有疑問。由於您在此討論的 25、50 G 問題，100 G 部署是否會出現延遲？據我所知，該技術還降低了 100 Gb 的價格。問題是我們是否應該根據您所討論的內容對 100G 的較慢斜坡進行建模？謝謝。

Thanks, Tal. No, I don't think so. I think the feeling of 100-gig especially in the spine is driven by aggregate of 10-gig, 40-gig today and we will only get more at 25- and 50-gig. So what we see in our customer base is everybody's preparing for 100-gig spines, independent of whether they are leafs of 40- or 50- or 25- or 10-gig.

謝謝，塔爾。不，我不這麼認為。我認為 100 場演出的感覺，特別是在脊柱方面，是由今天 10 場演出、40 場演出的總和驅動的，我們只會在 25 場和 50 場演出時獲得更多。因此，我們在客戶群中看到的是，每個人都在為 100g 的脊椎做準備，無論他們是 40g、50g、25g 或 10g 的葉子。

And the real obviously 100-gig in ports is much smaller than 40- or 10- or 1-gig right now, but the real issue for 100-gig for us to solve and the industry to solve is making sure we can deliver incredible scale capacity density, but also at the right price points, particularly on the optic side. So I think the embedded optics and the cost of that is a bigger issue than the 25- and 50-gig.

顯然，目前端口中真正的 100G 比 40 或 10 或 1G 要小得多，但我們和整個行業要解決的 100G 真正問題是確保我們能夠提供令人難以置信的規模容量密度，而且價格合適，特別是在光學方面。因此，我認為嵌入式光學器件及其成本是比 25 和 50 G 更大的問題。

Is your comment on margins, if I rewind back a few quarters ago, you guided that gross margin will decline in almost every quarter, I think you even said 100 basis points every quarter for four quarters or something. And now we are seeing better margins. So is your comment on margins related to the delay or to the slower ramp of 25- and 50-G?

您對利潤率的評論是，如果我倒回幾個季度前，您指導毛利率幾乎每個季度都會下降，我想您甚至說過四個季度每個季度都會下降100 個基點之類的。現在我們看到了更好的利潤率。那麼，您對利潤率的評論是否與延遲或 25- 和 50-G 的較慢斜坡有關？

No, not at all. I will say Tal, our margins, we did drop to 64% in Q4, and it is much more tied to mix -- customer mix and product mix. But we feel pretty good about the acceptance of both 40-gig and 100-gig last year and we feel quite optimistic on the additional acceptance of all this, this year.

一點都不。我想說的是，我們的利潤率在第四季度確實下降到了 64%，而且它與組合——客戶組合和產品組合——的關係更大。但我們對去年 40 場和 100 場的接受度感到非常滿意，並且對今年所有這些的接受度感到非常樂觀。

Rohit Chopra, Buckingham Research.

羅希特喬普拉，白金漢研究中心。

A couple of quick questions. Just Jayshree on the competitive front, have been any changes in the posture of incumbents, as they continue to experience share losses?

幾個簡單的問題。就 Jayshree 而言，在競爭方面，現有企業的姿態是否發生了任何變化，因為他們繼續遭受份額損失？

And then secondarily, have buyers changed any of their buying patterns? Are there larger or smaller deals as we close the quarter? Are sales cycles any longer? Have you have seen any changes on the buyer front?

其次，買家是否改變了他們的購買模式？本季結束時是否有更大或更小的交易？銷售週期是否較長？您看到買家方面有什麼改變嗎？

That's a good question. Have there been any aggressive competitive changes, I think it is the same as always. When it comes to Arista, we do see that we receive our lion's share, or fair share of aggressive competition. So it continues to be heightened.

這是個好問題。是否有任何激進的競爭變化，我認為與往常一樣。當談到 Arista 時，我們確實看到我們獲得了最大份額，或者說公平份額的激烈競爭。所以它還在繼續升高。

But I would not say there's any change. I would say it is always been high-end and it continues to be so.

但我不會說有任何改變。我想說它一直都是高端的，而且仍然如此。

Have we seen any shift in behavior? Not yet, no. We are seeing strength in the cloud.

我們是否看到了行為上的任何轉變？還沒有，沒有。我們看到了雲的力量。

We are not the expert on enterprise, but the enterprises we serve tend to be extremely knowledgeable and capable, and maybe therefore are a smaller percentage of a broader enterprise market. But in our narrow world -- in our micro Arista world, we have not seen any dramatic changes.

我們不是企業方面的專家，但我們服務的企業往往知識淵博、能力出眾，因此在更廣闊的企業市場中所佔的比例可能較小。但在我們狹小的世界裡——在我們的微觀Arista世界裡，我們沒有看到任何戲劇性的變化。

Thanks, Jayshree.

謝謝，傑什裡。

Vijay Bhagavath, Deutsche Bank.

維傑‧巴加瓦斯 (Vijay Bhagavath)，德意志銀行。

My question is around the weakness we and others are noting in enterprise IT spending in particular. So this is a bigger picture question, which is, would you anticipate the big banks, the high-tech customers to sell into, asking for hyperscale price points that currently a Google or an Amazon would demand from their vendors? And if so, how would you manage margins in this more compressed ASP scenario, where enterprise is asking for hyperscale price points?

我的問題是圍繞著我們和其他人特別注意到的企業 IT 支出方面的弱點。所以這是一個更大的問題，也就是說，你會預期大型銀行、高科技客戶會向他們的供應商提出當前谷歌或亞馬遜要求的超大規模價格點嗎？如果是這樣，在這種更壓縮的 ASP 場景中，企業要求超大規模的價格點，您將如何管理利潤？

Vijay, that's a great question, and my answer to pricing is always the same, whether it is the customer or you, which is if you show me the volume, I will show you the pricing. So if we have large enterprise customers who can drive hyperscale volume, we would love to achieve those price points because a gives us chance to drive cost reductions and therefore price reductions.

Vijay，這是一個很好的問題，我對定價的回答總是相同的，無論是客戶還是你，那就是如果你向我展示數量，我就會向你展示定價。因此，如果我們擁有能夠推動超大規模銷售的大型企業客戶，我們很樂意實現這些價格點，因為這使我們有機會推動成本降低，從而降低價格。

So there are some enterprises who can do that, and there are many who can't. So I think it depends on the sector. Ita, do you want to add anything more than that?

所以有的企業能做到，有的企業做不到。所以我認為這取決於行業。 Ita，您還想補充什麼嗎？

Yes, I think that's exactly it. It's very much a volume-based pricing model for us, right? So if there's volume there, we can drive the pricing and the cost.

是的，我想就是這樣。對我們來說，這很大程度上是一種基於數量的定價模式，對吧？因此，如果那裡有銷量，我們可以推動定價和成本。

Excellent and a quick follow-up if I may, which is do not want to beat down the Tomahawk thread here, but my question is really around should we view 100-gig Tomahawk switching as really a second-half weighted opportunity because some of the checks we have been getting is mostly early volumes, small volume, top-of-rack upgrades going all at some web scale data centers. The spine 100-gig refresh is really back half.

如果可以的話，這是一個非常好的和快速的後續行動，我不想在這裡擊敗戰斧線程，但我的問題實際上是我們是否應該將100-gig 戰斧切換視為真正的下半年加權機會，因為一些我們得到的檢查主要是一些網路規模資料中心進行的早期批量、小批量、架頂式升級。書脊 100g 刷新實際上是後半部。

How should we think about a second-half weighted versus an equal weight of 100-gig Tomahawk refresh? Thanks.

我們該如何看待下半年加權與同等重量的 100 吉戰斧刷新？謝謝。

I think your thought process on this is very good, Vijay. But I think the only thing I would add to what you just said, and I agree with it, is I think the first half will be heavily weighted to planning 100-gig spine, and deploying as many leafs, whether they're 10-, 40-, 25-, 50-gig. People don't think as hard about the deployment of leaves because they view them as disposable items. They have shorter depreciation cycles.

我認為你對此的思考過程非常好，維傑。但我認為我唯一要補充的一點是，我同意你剛才所說的，我認為上半年將重點關注規劃 100 場主幹，並部署盡可能多的葉子，無論它們是 10- 、40、25、50演出。人們不會認真考慮樹葉的部署，因為他們將它們視為一次性物品。它們的折舊週期較短。

So I see that the 100-gig spine has definitely started already and will continue to increase in the summer and second-half. But I don't necessarily see that as Tomahawk, I also see that as spines based on our rod technology, leading to Jericho in the future.

所以我認為 100 場演出的主線肯定已經開始，並將在夏季和下半年繼續增加。但我不一定將其視為戰斧，我也將其視為基於我們的桿技術的脊柱，通往未來的傑里科。

Simon Leopold, Raymond James.

西蒙·利奧波德，雷蒙德·詹姆斯。

Great, thank you. First a quick clarification, if I might.

太好了謝謝。如果可以的話，先快速澄清一下。

The R&D, pro forma R&D in December was a little bit lower than what we were modeling in the prior quarter. Just want to find out if there was anything one time or timing nature that may be showing up in the March quarter, how to think about R&D?

12 月的研發、預估研發略低於我們上一季建模的數據。只是想知道是否有任何一次性或時間性的事情可能會在三月的季度中出現，如何考慮研發？

The question I wanted to get an update on is any kind of quantification we can get to help assess progress on your partnerships? You talked today, reminding us on the converged partnership with HP and in past you've talked about VMware. I would like to try to get some way we can assess progress or maybe outlook on partnerships? Thanks.

我想了解最新情況的問題是，我們可以獲得任何類型的量化來幫助評估你們的合作關係的進展嗎？您今天的演講提醒我們與 HP 的融合合作關係，過去您也談到 VMware。我想嘗試找到一些方法來評估合作關係的進展或前景？謝謝。

Just to take the R&D question, that does move around a little bit just based on variable spending. Prototypes, NRE, that type of stuff, so there is nothing unusual happening there. It just really timing of those two activities.

就研發問題而言，這確實會根據可變支出而發生一些變化。原型、NRE 之類的東西，所以沒有什麼不尋常的事情發生。這只是這兩項活動的真正時機。

Simon, this is question I would like to answer better in forthcoming quarters. I believe HP, VMware and Palo Alto Networks, and also the Docker container partnership, are all examples today really technology marketing, and how we work to sell together, and if you will, move from old-school networking to new, converged or cloud networking.

西蒙，我想在接下來的幾個季度更好地回答這個問題。我相信 HP、VMware 和 Palo Alto Networks，以及 Docker 容器合作夥伴關係，都是當今真正的技術行銷的例子，以及我們如何一起銷售，如果你願意的話，從老式網路轉向新的融合或雲端聯網。

We haven't done a good job, and I think we owe that to you all, on successes and metrics we've had there, because I think we have been more in the business development and marketing phase We have won customers clearly, I'm particularly pleased with the successful combination we are seeing of NSS and Arista. We are seeing more of that now than we did a year ago, but let's say, let's take a rain check on that question when I can give you more concrete answers.

我們做得不好，我認為我們應該把這歸功於你們所有人，根據我們在那裡取得的成功和指標，因為我認為我們更多地處於業務開發和營銷階段，我們顯然贏得了客戶，我我們對NSS 和Arista 的成功結合感到特別滿意。我們現在看到的這種情況比一年前要多，但我們可以說，等我能給你更具體的答案時，我們再對這個問題進行一次檢查。

Okay, you know I will hold you to it, too.

好吧，你知道我也會堅持你的。

No, I'm afraid of that. I owe you.

不，我害怕這個。我欠你。

Paul Silverstein, Cowen and Company.

保羅·西爾弗斯坦，考恩公司。

Jayshree, I have two or three related questions that are truly related.

Jayshree，我有兩三個真正相關的相關問題。

First off, I know you are reluctant to give, which is to say you are not giving a more precise breakout in terms of the cloud titans versus the other verticals. But given your business model and how important the issue is from all perspectives, I'm hoping that you will give more granularity rather than that you're largest, which is to say, can you at least tell us, if you are not willing to give us the exact number, can you at least tell us are the closer to 50% of revenue than 1/3 of revenue?

首先，我知道你不願意給出，也就是說，你沒有給出雲巨頭與其他垂直領域的更精確的突破。但考慮到你的商業模式以及這個問題從各個角度來看有多重要，我希望你能給出更細的粒度，而不是你最大的，也就是說，你至少可以告訴我們，如果你不願意的話為了給我們確切的數字，您至少能告訴我們是更接近收入的 50% 還是更接近收入的 1/3？

None of our four verticals, Paul, are anywhere close to 50% of our revenue. They average in the teens to the 25% -- that's the averages.

Paul，我們的四個垂直領域中沒有一個接近我們收入的 50%。他們的平均水平在十幾歲到 25% 之間——這就是平均值。

So -- all right.

那麼——好吧。

I answered your question --.

我回答了你的問題——。

You obviously have to have vertical that's greater than 25%, right? Unless they're all 25%.

顯然垂直度必須大於 25%，對吧？除非他們都是25%。

No, that's not always true. You can have one of them peak over 25% in a given quarter, but over a year and I want to be clear when I say this, just because we have four verticals doesn't mean we don't have anything beyond the four verticals either, right?

不，這並不總是正確的。其中一個可以在給定季度內達到超過25% 的峰值，但在一年多的時間裡，當我這麼說時，我想明確一點，僅僅因為我們有四個垂直領域，並不意味著我們沒有超越這四個垂直領域的任何內容要么，對吧？

I'm clearly talking in the context of the way you break out revenue when you talk about four verticals, in that context.

當你在這種背景下談論四個垂直領域時，我顯然是在談論你打破收入的方式。

I think I've done my best to help you out by saying while we do not want to get in the practice of breaking verticals out, none of them -- or any of them, are anywhere close to approaching 50%.

我想我已經盡力幫助你們了，雖然我們不想進行突破垂直領域的實踐，但它們中的任何一個——或任何一個——都沒有接近 50%。

All right, I appreciate that. So you're telling us cloud at most is 25% or thereabouts. All right. Let me move on.

好吧，我很感激。所以你告訴我們雲端最多是 25% 左右。好的。讓我繼續前進。

I'm not sure if you've done it recently, but you used to tell us your 10 largest customers on an annual basis back in 2013, and if I have the numbers correct, it was 43%. Can you give us an update on that? And then I've got a pricing question.

我不確定您最近是否這樣做過，但您曾在 2013 年告訴我們您每年的 10 個最大客戶，如果我的數字正確的話，它是 43%。能為我們介紹一下最新情況嗎？然後我有一個定價問題。

No, I think the only 10% concentration customer we reported in 2014 and --

不，我認為我們在 2014 年報告的唯一 10% 集中度客戶——

I'm not asking 10% customers. I'm asking what are your 10 largest customers as a percentage of total revenue.

我不會問 10% 的顧客。我問的是你們的 10 個最大客戶佔總收入的百分比是多少。

I see. Ita, you want to take that one?

我懂了。伊塔，你想拿那個嗎？

Yes, I think what I would say is it is been pretty stable actually, and it is a significant part of the business. There's no doubt, I don't know that we've given the exact percentage but it is a significant part of the business, and it is been pretty stable. And by the look at it over the last two, three years, it has not changed as a percentage of the business. The players inside the top 10 move around, and in the ranking moves around, but they actual percentages have been pretty consistent.

是的，我想我想說的是它實際上非常穩定，並且是業務的重要組成部分。毫無疑問，我不知道我們是否給出了確切的百分比，但它是業務的重要組成部分，而且非常穩定。從過去兩三年來看，它在業務中所佔的比例沒有改變。前十名中的球員在變動，排名也在變動，但他們的實際百分比相當一致。

All right, one last question on pricing. I may have these numbers wrong, I apologize if I do, but I think I recall per-port pricing declined for you by 15% in 2014 and 10% in 2013. Can you give us an update on that for 2015? What average --

好吧，最後一個關於定價的問題。我可能弄錯了這些數字，如果弄錯了，我很抱歉，但我記得2014 年每個端口的定價下降了15%，2013 年下降了10%。您能給我們介紹一下2015 年的最新情況嗎？平均水平是多少——

We will take the question off-line. We don't have that level of detail on past years versus now. Can we go to the next question, since we are running out of time here?

我們將把這個問題離線。我們沒有過去幾年與現在的詳細程度。我們可以進入下一個問題嗎，因為我們的時間已經不多了？

George Notter, Jefferies.

喬治諾特，傑弗里斯。

I guess I wanted to go back to the international business. If I look at it in absolute dollar terms, I think it has been roughly flat for about three quarters, and obviously it is a big percentage of the addressable market. Can you walk through what you are doing sales and marketing wise to get that business going again? And is there some intuitive reason why it has been flat this last couple quarters, despite the larger business really growing? Thanks.

我想我想回到國際業務。如果我以絕對美元計算，我認為它在大約三個季度內基本上持平，顯然它在潛在市場中佔有很大比例。您能否詳細介紹您正在做的銷售和行銷工作，以使該業務再次開展？儘管規模較大的業務確實在成長，但過去幾季業績表現持平，是否有一些直觀的原因？謝謝。

I think to clarify the numbers George, I think EMEA has actually been growing quite healthily for us, and it is been keeping pace actually with the overall business. APAC, I think to Jayshree's point, it's still at this stage where if we win a big opportunity in a particular country, it is going to change that dynamic a lot.

我想澄清一下這些數字，喬治，我認為歐洲、中東和非洲地區實際上對我們來說一直在相當健康地增長，並且實際上與整體業務保持同步。亞太地區，我認為就 Jayshree 的觀點而言，目前仍處於這個階段，如果我們在某個特定國家贏得了巨大的機會，那麼這種動態將會發生很大的變化。

So I think about it in two phases. EMEA is more developed, and it is more consistent. And we are seeing success there, and then APAC is a little bit more opportunistic and we've got more work to do there.

所以我分兩個階段來思考。 EMEA 較發達，也較一致。我們在那裡看到了成功，然後亞太地區更加機會主義，我們在那裡還有更多工作要做。

I think it was well said, Ita. I think we have got a lot more volatility in APAC, and we've got more work to do there.

我覺得伊塔說得好。我認為亞太地區的波動性更大，我們在那裡還有更多的工作要做。

In EMEA, I think our numbers have been steadily going. Sometimes our numbers look higher, if the placement of our cloud titans is in a particular geography in Europe, which is not really organic growth, but it reflects in our numbers. But I think in general, US and EMEA have been growing, and APAC has been volatile and lumpy.

在歐洲、中東和非洲地區，我認為我們的數字一直在穩步增長。有時，如果我們的雲端巨頭位於歐洲的特定地理位置，我們的數字看起來會更高，這並不是真正的有機成長，但它反映在我們的數字中。但我認為總體而言，美國和歐洲、中東和非洲地區一直在成長，而亞太地區則一直不穩定且不穩定。

Thanks.

謝謝。

Simona Jankowski, Goldman Sachs

西蒙娜·揚科斯基，高盛

I wanted to follow-up on the earlier discussion around Facebook and Microsoft, recognizing that there's some internal projects, but that you still continue to sell to them. In aggregate, would you expect your business with them to be up or down this year, to the extent you have visibility? And then related to that, would you expect any other customers outside of Microsoft to trough the 10% mark this year?

我想跟進之前圍繞 Facebook 和微軟的討論，認識到有一些內部項目，但你仍然繼續向他們銷售產品。總的來說，您預計今年與他們的業務會上升還是下降，以您的可見度為限？與此相關的是，您是否預期 Microsoft 以外的其他客戶今年會跌破 10% 大關？

I will take your first question, which is no, I don't expect any customer in the top 10% this year, but I expect them all to be big customers. Specific to Facebook and Microsoft, your question was?

我回答你的第一個問題，我不希望今年有任何客戶進入前 10%，但我希望他們都是大客戶。具體到 Facebook 和微軟，你的問題是？

Up or down this year.

今年有漲有跌。

It is too early to call. We don't get that kind of visibility for the entire year. Generally, as I've told you, our visibility is greater in one or two quarters than the entire year. We feel good about the one or two quarters.

現在打電話還為時過早。我們全年都無法獲得這種可見度。一般來說，正如我告訴過你的，我們的一兩個季度的可見度比全年都要高。我們對一兩個季度感覺良好。

Sure, thanks very much.

當然，非常感謝。

This concludes the Arista Q4 2015 earnings call. I also want to mention that we have posted a presentation which provides additional perspective on our FY15 results, which you can access on the investor section of our website. Thank you to everyone for joining us today.

Arista 2015 年第四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，為我們 2015 財年的業績提供了更多視角，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。