Arista Networks Inc (ANET) 2018 Q4 法說會逐字稿

Welcome to the Fourth Quarter 2018 Arista Networks Financial Results Earnings Conference Call. (Operator Instructions) 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.

歡迎參加 Arista Networks 2018 年第四季財務業績電話會議。 （操作員說明）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。

I will now turn the call over to Mr. Chuck Elliott, Director of Business and Investor Development. Sir, you may begin.

我現在將把電話轉給業務和投資者發展總監 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 Networks President and Chief Executive Officer; and Ita Brennan, Arista's 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 Networks 總裁兼執行長 Jayshree Ullal；以及 Arista 財務長 Ita Brennan。

This afternoon, Arista Networks issued a press release announcing the results for its fiscal fourth quarter and year ended December 31, 2018. 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 2018 年 12 月 31 日的第四財季和年度業績。如果您想要該新聞稿的副本，可以在該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 fourth quarter of] 2018 fiscal year; industry innovation; our market opportunity; the benefits of recent acquisitions; 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 管理層將做出前瞻性聲明，包括與我們 2018 財年[第四季]財務前景相關的聲明；產業創新；我們的市場機會；最近收購的好處；以及訴訟的影響，這些風險和不確定性受到我們在向SEC 提交的文件中詳細討論的風險和不確定性，特別是在我們最新的表格10-Q 和表格10-K 中，並且可能導致實際結果存在重大差異這些陳述所預期的。

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. 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.

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。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. Happy Valentine's Day, everyone, and welcome to our fourth quarter 2018 earnings call. In terms of Q4 specifics, our profitability growth combination was once again demonstrated with our non-GAAP revenue of $595.7 million, while our non-GAAP earnings per share grew to a record $2.25.

謝謝你，查克。祝大家情人節快樂，歡迎參加我們的 2018 年第四季財報電話會議。就第四季的具體情況而言，我們的獲利能力成長組合再次得到證明，我們的非 GAAP 收入為 5.957 億美元，而我們的非 GAAP 每股收益增長至創紀錄的 2.25 美元。

Services contributed approximately 15.5% of revenue, consistent with it being typically higher as a percentage of overall revenue towards the Q4 end of the year. Our margins in a non-GAAP basis was 64.1%, influenced strongly by our performance from our cloud titan vertical. Overall, 2018 gross margins came in at 64.4%. In terms of customer trends, we registered a record number of million-dollar customers in Q4, symptomatic of our enterprise vertical momentum. By the end of 2018, we had acquired a cumulative of approximately 5,600 customers, with Microsoft at 27% of total revenue.

服務貢獻了約 15.5% 的收入，與今年第四季末其佔總收入的百分比通常較高一致。我們的非 GAAP 利潤率為 64.1%，很大程度上受到我們雲端巨頭垂直領域業績的影響。整體而言，2018 年毛利率為 64.4%。在客戶趨勢方面，我們在第四季度註冊了創紀錄的百萬美元客戶數量，這反映了我們企業垂直發展的勢頭。截至2018年底，我們累計獲得約5,600家客戶，其中微軟佔總營收的27%。

The combination of an unprecedented year with multiple design wins coupled with the release of deferred revenue due to legal certifications made 2018 a unique one-of-a-kind year at Microsoft. Our use cases are very diverse there. They transcend classical data center use cases to regional [spine] routing and DCI networking. So this often makes it difficult to directly correlate network spend to CapEx of server and storage spend. Without these collective onetime factors, Microsoft would have likely been more in the normal band of teens of revenue like they have been in prior years.

史無前例​​的一年與多項設計勝利，再加上法律認證帶來的遞延收入的釋放，使 2018 年成為 Microsoft 獨一無二的一年。我們的用例非常多樣化。它們超越了傳統資料中心用例，擴展到區域[主幹]路由和 DCI 網路。因此，這通常使得很難將網路支出與伺服器和儲存支出的資本支出直接關聯起來。如果沒有這些集體一次性因素，微軟的收入可能會像前幾年一樣處於正常的青少年範圍內。

In terms of verticals, Q4 2018 and in fact throughout 2018, cloud titans represented our largest and strongest vertical. They were represented by our top five cloud titan customers. The modern high-tech enterprise segment is now our second-fastest growing and our second-largest segment followed by the Tier 2 specialized cloud provider in third place and the financials and service providers tied for fourth place. Consistent with industry's trends, service providers have been somewhat of a low point for us, with negative annual growth after a very strong 2017. That said, we are pleased with our increased acceptance of our FlexRoute software licenses, growing 50% from 200 customers in 2017, to 300 customers in 2018.

就垂直產業而言，2018 年第四季乃至整個 2018 年，雲端巨頭代表了我們最大、最強的垂直產業。他們由我們的前五大雲端巨頭客戶代表。現代高科技企業細分市場目前是我們成長第二快和第二大的細分市場，其次是排名第三的二級專業雲端供應商，以及並列第四位的金融和服務供應商。與行業趨勢一致，服務提供者對我們來說一直處於低谷，在經歷了非常強勁的2017 年後，每年出現負增長。也就是說，我們對FlexRoute 軟體許可證的接受度不斷提高感到高興，200 年的200 家客戶成長了50%。2017年 客戶數量增至2018年300家。

Looking at the 2018 year in entirety, the 2018 international contribution was 28%, with the Americas coming in at 72%, not too different from prior years. In terms of new products, Arista delivered a banner year of disruptive products, redefining networking with highly differentiated EOS stack, CloudVision management software and flagship platforms. The 7280 and 7500 series have become the gold standard in 100-gigabit Ethernet cloud networking.

綜觀2018年全年，2018年國際貢獻率為28%，美洲地區貢獻率為72%，與往年相差不大。在新產品方面，Arista 帶來了顛覆性產品的標誌性一年，透過高度差異化的 EOS 堆疊、CloudVision 管理軟體和旗艦平台重新定義了網路。 7280 和 7500 系列已成為 100 Gb 乙太網路雲端網路的黃金標準。

In 2018, we also introduced substantial software innovations. These included containerization, tracers and analyzers. In particular, we have doubled our CloudVision management customers and our Any Cloud segmentation security software with APIs for AWS, Azure and GCP have indeed been transformational. Undoubtedly, 2018 has been a significant year for Arista, with revenue of $2.15 billion and an annual growth of over 30%, with substantial contribution from our cloud vertical.

2018 年，我們也推出了實質的軟體創新。其中包括容器化、追蹤器和分析器。特別是，我們的 CloudVision 管理客戶數量增加了一倍，而我們的 Any Cloud 分段安全軟體以及適用於 AWS、Azure 和 GCP 的 API 確實實現了轉型。毫無疑問，2018 年對 Arista 來說是重要的一年，營收達到 21.5 億美元，年增長率超過 30%，其中雲垂直領域做出了巨大貢獻。

At this time, I'd like to invite Anshul Sadana to recap our cloud titan strategy and really highlight our success here. Anshul?

這次，我想邀請 Anshul Sadana 回顧我們的雲端巨頭策略，並真正強調我們在這裡的成功。安舒爾？

Thank you, Jayshree. While we pioneered our cloud networking mission with 2 tier leaf/spine designs, our customers are now using Arista products in a multitude of roles, both within and outside the traditional data center boundaries, which we term as PICs or places in the cloud. We are now successfully deployed in many PIC roles: leaf, spine, bare metals, cluster interconnect, regional spine, DCI, metro interconnect, peering spine, private backbone and extended long-haul use cases. Wire speed 256-bit MACsec encryption have secured all traffic that leaves the data center facility of our customers.

謝謝你，傑什裡。雖然我們透過 2 層葉/主幹設計開創了雲端網路使命，但我們的客戶現在在傳統資料中心邊界（我們稱之為 PIC 或雲端位置）內外的多種角色中使用 Arista 產品。我們現在已成功部署在許多 PIC 角色中：葉子、主幹、裸機、叢集互連、區域主幹、DCI、城域互連、對等主幹、專用主幹和擴展的長途用例。線速 256 位元 MACsec 加密保護了離開客戶資料中心設施的所有流量。

In addition to [present] speeds, Arista U.S. is strongly preferred for the cloud's mission -- for the cloud mission-critical use cases due to superior quality, programmability via robust APIs and our [U.S.] SDK. Our estate-phased real-time telemetry delivers world-class analytics, monitoring and traffic engineering of these networks. All of these compelling advantages have created a collaborative partnership with our cloud customers as a build for next-generation architectures with ever increasing workloads. Back to you, Jayshree.

除了[目前]的速度之外，Arista U.S. 還因其卓越的品質、透過強大的 API 和我們的 [美國] SDK 實現的可編程性而成為雲端任務的強烈首選 - 對於雲​​端任務關鍵型用例。我們的分階段即時遙測技術可為這些網路提供世界一流的分析、監控和流量工程。所有這些引人注目的優勢都與我們的雲端客戶建立了協作夥伴關係，作為工作負載不斷增加的下一代架構的建構。回到你身邊，傑什裡。

Thank you, Anshul. Effective March 2019, I'm really pleased to announce the promotion of Anshul Sadana to Chief Operating Officer. In this expanded role, Anshul augments his present worldwide product management and customer-facing functions with platform engineering, manufacturing and operations. Anshul, as many of you may know, has been a key pillar and contributor at Arista for over 11 years, demonstrating that keen and unique sense of product depth, driving our consistent differentiation in a typical Arista way. Please do join me in congratulating Anshul on his very well-deserved promotion.

謝謝你，安舒爾。我非常高興地宣布，自 2019 年 3 月起，Anshul Sadana 晉升為營運長。在這一擴展的角色中，Anshul 透過平台工程、製造和營運增強了他目前的全球產品管理和麵向客戶的職能。正如你們許多人可能知道的那樣，Anshul 11​​ 年來一直是 Arista 的關鍵支柱和貢獻者，展示了敏銳而獨特的產品深度意識，以典型的 Arista 方式推動我們始終如一的差異化。請和我一起祝賀安舒爾當之無愧的晉升。

Arista continues to drive cloud area networking where the future of networking is not siloed to a switch or router box alone but in fact, [as] software-driven places in the cloud. As we exit 2018, we believe we hold the #1 market spot in 100-gigabit Ethernet switching share imports for the high-speed data center segment. As I have mentioned last year, scaling the company and the team with a stated goal. We accomplished this many ways, including the addition of two senior officers to our executive leadership team, John McCool, our Chief Platform Officer; and Manny Rivelo, our newly appointed Chief Customer Officer.

Arista 繼續推動雲端區域網路的發展，其中網路的未來不僅限於交換器或路由器盒，而是實際上作為雲端中軟體驅動的位置。 2018 年即將結束時，我們相信我們在高速資料中心領域的 100 Gb 乙太網路交換進口份額中佔據第一的市場地位。正如我去年提到的，以既定目標擴展公司和團隊。我們透過多種方式實現了這一目標，包括在我們的執行領導團隊中增加兩位高級官員：我們的首席平台長 John McCool；以及我們新任命的首席客戶長 Manny Rivelo。

We also successfully integrated our first two M&A transactions this year -- last year, Mojo Networks for cognitive Wi-Fi in the campus and MetaMako for ultralow latency networking. Our employee bench strength increased to 2,300 in 2018 from 1,700 in 2017, while maintaining our very high bar for top-notch talent. What is increasingly clear to me is that Arista is gaining strategic relevance and has exceeded the table with enterprises seeking next-generation cloud area networking as a compelling alternative.

我們今年也成功整合了前兩筆併購交易——去年，Mojo Networks 用於校園認知 Wi-Fi，MetaMako 用於超低延遲網路。我們的後備員工人數從 2017 年的 1,700 人增加到 2018 年的 2,300 人，同時保持對頂尖人才的極高標準。我越來越清楚的是，Arista 正在獲得策略相關性，並且已經超越了尋求下一代雲端區域網路作為引人注目的替代方案的企業。

And with that, I'd like to turn it over to Ita for more financial specifics.

因此，我想將其轉交給 Ita 以了解更多財務細節。

Thanks, Jayshree, and good afternoon. This analysis of our Q4 and full year 2018 results and our guidance for Q1 '19 is based on non-GAAP and excludes our noncash stock-based compensation impacts; losses related to our private company investments; charges associated with our recent acquisitions; and other nonrecurring items. A full reconciliation of our selected GAAP to non-GAAP results is provided in our earnings release.

謝謝，Jayshree，下午好。我們對 2018 年第四季和全年業績的分析以及我們對 19 年第一季的指導基於非公認會計準則，不包括基於非現金股票的薪酬影響；與我們的私人公司投資相關的損失；與我們最近收購相關的費用；和其他非經常性項目。我們的收益報告中提供了我們選擇的 GAAP 與非 GAAP 績效的全面對帳。

Total revenues in Q4 was $595.7 million, up 27% year-over-year and above our guidance of $582 million to $594 million. We experienced good overall demand in the quarter, with ongoing strength across the business. Service revenues represented approximately 15.5% of revenue, up from 13.8% last quarter, reflecting a seasonally higher level of renewals in the period. International revenues for the quarter came in at $144.9 million or 24% of total revenue, down from 28% in the prior quarter.

第四季總營收為 5.957 億美元，年增 27%，高於我們 5.82 億美元至 5.94 億美元的指導值。本季我們經歷了良好的整體需求，整個業務持續強勁。服務收入約佔總收入的 15.5%，高於上季的 13.8%，反映了該期間續約量的季節性較高水準。該季度的國際營收為 1.449 億美元，佔總營收的 24%，低於上一季的 28%。

Looking at the year, international mix remained consistent on a year-over-year basis at approximately 28% of total revenue. This reflected strong growth in our international and region businesses, offset by a higher mix of U.S. deployments from our cloud titan vertical. Overall, gross margin in Q4 was 64.1%, just above the midpoint of our guidance of 63% to 65% and down from 64.6% last quarter. This reflected a healthy mix of cloud titan revenues in the period, and as expected, some incremental costs related to the previously announced trade tariffs.

回顧這一年，國際業務組合與去年同期相比保持穩定，約佔總收入的 28%。這反映出我們的國際和地區業務的強勁成長，但被我們的雲端巨頭垂直領域在美國的部署比例增加所抵消。整體而言，第四季的毛利率為 64.1%，略高於我們指引的 63% 至 65% 的中點，低於上季的 64.6%。這反映了雲端巨頭在此期間收入的健康組合，並且正如預期的那樣，也反映了與先前宣布的貿易關稅相關的一些增量成本。

While the operations team are making good progress toward mitigating these tariff-related costs, we expect to see some continued impact through the remainder of 2019.

雖然營運團隊在降低這些與關稅相關的成本方面取得了良好進展，但我們預計在 2019 年剩餘時間內仍會看到一些持續影響。

In the interim, we will continue to pass a portion of these cost to our customers pending completion of the required supply chain changes. Operating expenses for the quarter were $160.1 million, up from $155.1 million last quarter. R&D spending came in at $104.9 million or 17.6% of revenue, mostly flat to last quarter on an absolute dollar basis. This reflected heavier NRE and prototype spending in the third quarter, offset by ongoing headcount growth in Q4.

在此期間，我們將繼續將部分成本轉嫁給客戶，等待完成所需的供應鏈變更。本季營運費用為 1.601 億美元，高於上季的 1.551 億美元。研發支出為 1.049 億美元，佔營收的 17.6%，以絕對美元計算基本上與上季持平。這反映出第三季 NRE 和原型支出增加，但被第四季員工人數持續成長所抵銷。

Sales and marketing expense was $43.8 million or 7.4% of revenue, up from $41 million last quarter, with increased headcount and related sales costs. Our G&A costs remained consistent at approximately 1.9% of revenue. Our operating income for the quarter was $222.1 million or 37.3% of revenue. Other income expense for the quarter was a favorable $9.5 million, and our effective tax rate was consistent at 21.4%. This resulted in net income for the quarter of $182.2 million or 30.6%.

由於員工人數和相關銷售成本的增加，銷售和行銷費用為 4,380 萬美元，佔收入的 7.4%，高於上季的 4,100 萬美元。我們的一般管理費用維持在收入的 1.9% 左右。我們本季的營業收入為 2.221 億美元，佔營收的 37.3%。本季的其他收入支出為 950 萬美元，有效稅率穩定在 21.4%。這使得該季度的淨利潤達到 1.822 億美元，即 30.6%。

Our diluted share number for the quarter was 80.93 million shares, resulting in a diluted earnings per share number for the quarter of $2.25, up 31.5% from last year.

我們本季的稀釋後股票數量為 8,093 萬股，稀釋後每股收益為 2.25 美元，比去年增長 31.5%。

Now turning to the balance sheet. Cash, cash equivalents and investments ended the quarter at approximately $2 billion. We generated $296 million of cash from operations in the quarter, reflecting strong net income performance combined with improvements in supply chain-related working capital and increased deferred revenue amounts. Overall, we generated $503 million of cash from operations for the year, which included the payment of the Cisco settlement of $400 million in the third quarter. DSOs came in at 51 days, down from 53 days in Q3, reflecting the timing of billings in the quarter.

現在轉向資產負債表。本季末現金、現金等價物和投資約 20 億美元。本季我們從營運中產生了 2.96 億美元的現金，反映出強勁的淨利潤表現、供應鏈相關營運資金的改善以及遞延收入金額的增加。總體而言，我們全年營運現金為 5.03 億美元，其中包括第三季向思科支付的 4 億美元和解金。 DSO 的周期為 51 天，低於第三季的 53 天，反映了本季的計費時間。

Inventory turns were 3.3x, up slightly from 3.2 last quarter. Inventory increased to $264.6 million in the quarter, up from $216.3 million in the prior period. This primarily reflects increases in raw materials and finished goods as we ramp the supply chain for new products.

庫存週轉率為 3.3 倍，略高於上季的 3.2 倍。本季庫存增加至 2.646 億美元，高於上一季的 2.163 億美元。這主要反映了隨著我們加強新產品供應鏈，原材料和製成品的增加。

In addition, consistent with last quarter, we maintained a further $14.6 million of inventory deposits, [recording] other assets at the end of the quarter. Our total deferred revenue balance was $587.2 million, up from $529.9 million in Q3. Our product deferred revenue balance increased by approximately $18 million in the quarter, reflecting customer acceptance requirements on new products. The 2018 closing product deferred revenue balance was, again, essentially flat to the prior year and not a meaningful contributor to revenues for the year.

此外，與上季一致，我們還維持了 1,460 萬美元的庫存存款，[記錄]本季末的其他資產。我們的遞延收入餘額總額為 5.872 億美元，高於第三季的 5.299 億美元。本季我們的產品遞延收入餘額增加了約 1,800 萬美元，反映了客戶對新產品的接受要求。 2018 年期末產品遞延收入餘額再次與前一年基本持平，對當年的收入貢獻不大。

The well-calibered shift in the customer make-up of the product deferred was Microsoft redesigned qualifications representing a significant portion of the 2017 balance as compared to a negligible amount of Microsoft product deferred at the end of 2018. Accounts payable were 40 days, up 39 days in Q3, reflecting the timing of inventory receipts and payments. Capital expenditures for the quarter were $6.2 million.

延遲產品的客戶組成發生了精心調整，這是微軟重新設計的資格，佔2017 年餘額的很大一部分，而2018 年底推遲的微軟產品的數量微乎其微。應付帳款為40 天，同比增長了40 天。第三季為 39 天，反映庫存收付時間。該季度的資本支出為 620 萬美元。

Now turning to our outlook for the first quarter and beyond. We are pleased with our strong 2018 financial performance, with 31% revenue growth and 42% growth in earnings per share on a year-over-year basis. As we look forward, we believe we are well positioned with our key cloud customers and remain focused on expanding our presence across all other verticals.

現在轉向我們對第一季及以後的展望。我們對 2018 年強勁的財務表現感到滿意，營收年增 31%，每股盈餘較去年同期成長 42%。展望未來，我們相信我們在主要雲端客戶中處於有利地位，並將繼續專注於擴大我們在所有其他垂直領域的業務。

Our revenue guidance for the first quarter of $588 million to $598 million represents 25% year-over-year growth at the midpoint. On the gross margin front, we would reiterate our gross margin outlook of 63% to 65%, with customer mix being the key driver of where we operate within this range. While we remain cautious in relation to our spending ramp, we should expect to see us make the investments necessary to support the expansion of the business. We believe, given some reasonable top line growth, this can be accomplished while maintaining operating margin in the previously discussed approximately 35% range. While this as a backdrop, our guidance for the first quarter, which is based on non-GAAP results and excludes any noncash stock-based compensation impacts and other nonrecurring items is as follows: revenues of approximately $588 million to $598 million; gross margin of approximately 63% to 65%; and operating margin of approximately 35%. Our effective tax rate is expected to be approximately 21.5%, with diluted shares of approximately 81.4 million.

我們對第一季的營收指引為 5.88 億美元至 5.98 億美元，相當於中點年增 25%。在毛利率方面，我們重申我們的毛利率前景為 63% 至 65%，客戶組合是我們在此範圍內營運的關鍵驅動因素。雖然我們對支出成長保持謹慎態度，但我們應該期望看到我們進行必要的投資來支持業務擴張。我們相信，考慮到一些合理的收入成長，這可以在將營業利潤率保持在先前討論的約 35% 範圍內的同時實現。在此背景下，我們對第一季的指導（基於非公認會計原則業績，不包括任何非現金股票薪酬影響和其他非經常性項目）如下： 收入約為 5.88 億至 5.98 億美元；毛利率約63%至65%；營業利益率約35%。我們的有效稅率預計約為21.5%，稀釋後股份約為8,140萬股。

I will now turn the call back to Chuck. Chuck?

我現在將電話轉回給查克。查克？

Thank you, Ita. We're now going to move to the Q&A portion of the Arista earnings. (Operator Instructions)

謝謝你，伊塔。我們現在將進入 Arista 收益的問答部分。 （操作員說明）

(Operator Instructions) Your first question comes from the line of Jason Ader with William Blair.

（操作員說明）您的第一個問題來自 Jason Ader 和 William Blair 的線路。

Jayshree, I don't know if you guys -- I'm sure you debated this, but have you thought at all about providing some full year guidance for 2019 in terms of revenue?

Jayshree，我不知道你們是否 - 我相信你們對此進行了辯論，但你們有沒有想過為 2019 年的收入提供一些全年指導？

Yes, Jason. You can well imagine, not only have we debated it, I think you all have debated it. If you look back at our 5-year short history since IPO, we have never provided annual guidance. I think we made an exception once when we felt the consensus was significantly different than our guidance. And therefore, we took exception to that and wanted to course correct and let you know that it was way off our guidance. So I think you can safely assume that since we're not doing that, that we want to go back to our normal mode of quarterly guidance, and we're comfortable with the occurrent consensus estimates.

是的，傑森。你可以想像，不只我們爭論過，我想你們也爭論過。如果你回顧一下我們自 IPO 以來的 5 年短暫歷史，我們從未提供過年度指導。我認為，當我們認為共識與我們的指導意見有很大不同時，我們就破例了。因此，我們對此表示反對，並希望糾正方向，並讓您知道這與我們的指導相去甚遠。因此，我認為您可以放心地假設，由於我們沒有這樣做，因此我們希望回到正常的季度指導模式，並且我們對當前的共識估計感到滿意。

Your next question comes from Alex Kurtz with KeyBanc Capital Markets.

您的下一個問題來自 KeyBanc Capital Markets 的 Alex Kurtz。

Just to Jayshree, need to hear on this Microsoft contribution for 2018. Obviously, that's well above what a lot of us were thinking might happen. And maybe you could frame for us how cloud titans finished out for '18? Seems like maybe it was pushing 40% of revenue. I would like to have you comment on that. And how should we think about cloud titan growth and contribution for the year? I know you're not giving guidance but just help us frame that because that's a significant upside for Microsoft and sort of our modeling of that?

Jayshree 需要了解 Microsoft 2018 年的貢獻。顯然，這遠遠超出了我們許多人想像的可能發生的情況。也許您可以為我們描述一下雲端巨頭 18 年的結局如何？看起來它可能推動了 40% 的收入。我想請你對此發表評論。我們該如何看待雲巨頭今年的成長和貢獻？我知道你不是在提供指導，只是幫助我們制定框架，因為這對微軟來說是一個重大的優勢，我們對此進行了建模？

Yes. So thanks, Alex. And what I would say in general is, this is truly an unprecedented one of -- once-in-a-lifetime or one-of-a-kind year with Microsoft. We don't expect that to repeat. We'd love for that to repeat, but we don't expect that. And we believe they will continue to be a 10% concentration customer in 2019, but we'll go back to a more normal percentage of our revenue. I think cloud titan as a category did extremely well for us, all 5 major cloud titans that typically contribute to Arista as part of the top 10 customers continued to make important contributions in 2018. We expect there to always to be some shift in balance between the 5, and 2019 will likely be different in the contribution off the cloud titan. But I think you're right in assuming that as a category, we still expect them to be about 1/3 of our revenue in 2019. And they were higher due to the Microsoft concentration in 2018.

是的。所以謝謝，亞歷克斯。我想說的是，對微軟來說，這確實是史無前例的──千載難逢或獨一無二的一年。我們預計這種情況不會重演。我們希望這種情況能夠重演，但我們不希望這樣。我們相信他們在 2019 年將繼續成為 10% 的集中客戶，但我們將恢復到收入的更正常百分比。我認為雲端巨頭作為一個類別對我們來說表現得非常好，作為前10 名客戶的一部分，通常為​​Arista 做出貢獻的所有5 個主要雲巨頭在2018 年繼續做出重要貢獻。我們預計之間的平衡總是會發生一些轉變5、2019 年雲泰坦的貢獻可能會有所不同。但我認為你的假設是正確的，作為一個類別，我們仍然預期它們將占我們 2019 年收入的 1/3 左右。而且由於 2018 年微軟的集中度，它們的比例更高。

Your next question comes from Samik Chatterjee with JP Morgan.

您的下一個問題來自摩根大通的 Samik Chatterjee。

I just had a question primarily on kind of the prepared remarks that Anshul had about you're seeing additional users of Arista's product in parts of the data center and outside the data center with cloud customers that obviously has driven some of the strength here. How broad based is that? Do you see more room with some of the cloud titans as well as the Tier 2 cloud providers to see that expand more and probably you -- that helps you outperform the overall spend on networking, even in 2019? Can you help us think about that?

我只是有一個問題，主要是關於 Anshul 準備好的評論，即您在資料中心的部分地區以及資料中心外的雲端客戶中看到了 Arista 產品的更多用戶，這顯然推動了這裡的一些實力。這有多麼廣泛的基礎？您是否認為一些雲端巨頭以及二級雲端供應商有更多的空間來進行更多的擴展，也許您也可以——這可以幫助您超越網路的整體支出，即使是在 2019 年？你能幫我們想一下嗎？

Certainly. Samik, you're right. There are many of the expanded use cases that we've been growing into. But as a result of us doing routing, encryption, some of the DWDM products that we have just for emitting color of wavelength, we are now able to participate in an increasing TAM. And in the past, you always considered it just as a switch, but we are now able to take on these [high alert]. But in addition to that, it's not just the one-for-one displacement, these are new architectures that are significantly more resilient. The goal of many of the cloud titans have and even the smaller cloud companies just at a smaller scale, they did not focus on one network that is this mythical [site 9] but the networks that are parallel architectures that are highly resilient and be able to do that with our lead spine architectures and some of the new use cases whether it's appearing or DCI or regional [projects, regional spine]. And same of the same approach but expanding to much wider area within a metro 100-kilometer plus.

當然。薩米克，你是對的。我們一直在發展許多擴展的用例。但由於我們進行了路由、加密以及一些僅用於發射波長顏色的 DWDM 產品，我們現在能夠參與不斷增加的 TAM。過去，你總是認為它只是一個開關，但我們現在能夠承擔這些[高度戒備]。但除此之外，這不僅僅是一對一的置換，這些都是更具彈性的新架構。許多雲端巨頭的目標是，甚至是規模較小的小型雲端公司，他們並不關注這種神話般的網路[網站 9]，而是專注於具有高度彈性和能夠進行並行架構的網路。透過我們的主要主幹架構和一些新用例（無論是出現的、DCI 或區域性的[專案、區域主幹]）來做到這一點。同樣的方法，但擴展到地鐵 100 公里以上的更廣泛區域。

Your next question comes from Jim Suva with Citi.

您的下一個問題來自花旗銀行的吉姆·蘇瓦。

On the tariffs that you made comments on during your prepared comments and your outlook, did you mean to say that you're building in the tariffs for your revenue outlook? And was it the 10% rate or the potential 25% rate? And is that across all products or just those coming for China because I'm sure a lot of products that may be assembled in Guadalajara or Florida could actually contains China parts? So can you just help us understand how you're navigating through the tariff situation?

關於您在準備好的評論和展望中對關稅發表的評論，您的意思是說您正在根據收入前景制定關稅嗎？是 10% 的稅率還是潛在的 25% 的稅率？是所有產品都如此，還是只是那些銷往中國的產品，因為我確信在瓜達拉哈拉或佛羅裡達州組裝的許多產品實際上可能包含中國零件？那麼您能否幫助我們了解您如何應對關稅狀況？

Yes. Let me clarify, and I'll pass it over to Ita, Jim. What we said in Q3, and we continue to reiterate in Q4 is the impact of tariffs is still very much there in our cost because many of these components come from China. So even as you move to different contract manufacturers, you can have second derivative effects if you will. Arista's response to that was to absorb some of the cost but also have a 3.3% tariff fee assuming that 10% tariffs increase. We have made no assumptions on the 25% increase since there's still a lot of speculation there. Ita, you want to add to that on the impact of that?

是的。讓我澄清一下，然後我會將其轉交給伊塔，吉姆。我們在第三季說過，並且在第四季繼續重申，關稅的影響在我們的成本中仍然很大，因為許多零件來自中國。因此，即使您轉向不同的合約製造商，如果您願意，也可能會產生二階導數效應。 Arista 對此的回應是吸收部分成本，但假設關稅增加 10%，則也要收取 3.3% 的關稅費用。我們沒有對 25% 的增幅做出任何假設，因為仍有許多猜測。 Ita，你想補充它的影響嗎？

Yes. I think it applies to products that have components that are actually tariffed, right? It doesn't apply to software and optics and some other stuff. And again, we're making plans. We have plans for how we start to remediate this with the supply chain. It just takes time to execute on those plans. You don't move. It takes time to affect the supply chain movements, but we're working on that. We'll share more...

是的。我認為它適用於含有實際關稅成分的產品，對吧？它不適用於軟體和光學以及其他一些東西。再說一遍，我們正在製定計劃。我們已經計劃如何開始透過供應鏈來解決這個問題。執行這些計劃只是需要時間。你不動。影響供應鏈運動需要時間，但我們正在努力。我們將分享更多...

So 25% would be the same methodology as what you did in 10%, I would assume?

那麼我認為 25% 與您在 10% 中所做的方法相同？

Yes. We haven't really thought it through or formulated a plan. We're hoping it never happens, but yes, we would apply something similar.

是的。我們還沒有真正考慮清楚或製定計劃。我們希望它永遠不會發生，但是，是的，我們會應用類似的東西。

Your next question comes from Ittai Kidron with Oppenheimer.

您的下一個問題來自 Ittai Kidron 和奧本海默。

I guess I want to go back to where we started again, which is the cloud. I just want to make sure I understand your comments because with Microsoft being 27% on the year, I think you made a comment to the effect that the more normal run rate was the percentage of Microsoft was last year, which was 16%. And so that implies at about 10% is through product [deferrals] and delayed certifications and all of that. And since Microsoft is little to no presence in your product deferred right here, right now, stripping that out, your core growth in '18 was only 20%, really, outside with the deferred. And I guess I'm trying to think -- help me think about the Titan vertical in general. Is that a vertical that grows below corporate average, do you think, for the year? Are there big parts in your footprint that you feel would be more competitive on the year? And how do you feel about your ability to protect them when, clearly -- when 400 comes along, there are a lot of -- vendors are making a lot of claims. And you seem to be at the top of the hill. So clearly, you're right at the -- right on the target.

我想我想再次回到我們開始的地方，那就是雲端。我只是想確保我理解您的評論，因為微軟今年的佔比為 27%，我認為您的評論大意是，更正常的運行率是微軟去年的百分比，即 16%。因此，這意味著大約 10% 是通過產品[延期]和延遲認證等等。由於微軟在你的延期產品中幾乎沒有存在，現在，剔除這一點，你在 18 年的核心增長實際上只有 20%，實際上，在延期之外。我想我正在嘗試思考——幫助我思考泰坦垂直領域的整體情況。您認為今年這個垂直產業的成長是否低於企業平均？您認為今年您的足跡中是否有哪些部分會更具競爭力？顯然，當 400 出現時，有很多供應商提出了很多要求，您對保護它們的能力有何看法。而你似乎就在山頂。很明顯，您正處於目標之上。

Well, that was a loaded question. Ita, you want to start by...

嗯，這是一個有內涵的問題。伊塔，你想從...開始

Yes. I tried to put 3 in there. Yes.

是的。我試著把3個放進去。是的。

Yes. You have succeeded. Thank you for the good wishes. Let me have Ita clarify some of the...

是的。你已經成功了。謝謝你的美好祝福。讓我讓 Ita 澄清一些...

Yes. Maybe let's just talk about the deferred piece just to make sure we're thinking about that the same way. And at the end of the day, deferred revenue -- product deferred revenue did not contribute to revenue for the year, right? So if Microsoft -- the mix of Microsoft changed and obviously that resulted in Microsoft having a higher percentage of revenue, right but also the deferred was backfilled with some other activities. So when I think about on an activity basis, Microsoft activity in the period was significantly below the 27%, not back to the teens because we had some good use cases, et cetera but significantly below that 27%, just to be clear. So when you think about transactional activity in the period, the deferred kind of comes out of that. And we did backfill that deferred amount with some other customers, right.

是的。也許我們只是討論一下推遲的部分，以確保我們以同樣的方式思考這一點。歸根結底，遞延收入——產品遞延收入並沒有對今年的收入做出貢獻，對吧？因此，如果微軟——微軟的組合發生變化，顯然這會導致微軟的收入比例更高，對吧，但遞延的收入也會被其他一些活動所填補。因此，當我考慮活動的基礎時，微軟在此期間的活動明顯低於27%，而不是回到青少年，因為我們有一些很好的用例，等等，但要明確的是，明顯低於27 %。因此，當您考慮該期間的交易活動時，就會出現延期的情況。我們確實與其他一些客戶一起回填了延期金額，對吧。

And to answer your question on growth, we obviously don't expect Microsoft to have the same amazing growth in 2018 and 2019 that we had in 2018. But we fully accept -- expect the cloud titan category to grow well, if that makes sense. So I think there will be puts and takes and other contributors and other customers, be it cloud titans or even some of the Tier 2 cloud providers are going to greatly contribute to our cloud growth.

為了回答您關於成長的問題，我們顯然不期望微軟在 2018 年和 2019 年實現與 2018 年相同的驚人成長。但我們完全接受——如果有意義的話，預計雲端巨頭類別將成長良好。因此，我認為將會有一些貢獻者和其他客戶，無論是雲端巨頭還是一些二級雲端供應商都將為我們的雲端成長做出巨大貢獻。

Your next question comes from Jeff Kvaal with Nomura.

您的下一個問題來自野村證券的 Jeff Kvaal。

I'm hoping perhaps to get -- ask the question that may be on many of our minds about web-scale CapEx, and I know you've touched on it a little bit today and certainly in the past. But look, the numbers do seem to be decelerating a decent amount, and I'm wondering if you could help us explain why there is a decent disparity between what the spenders are up to and your revenues?

我希望也許能夠提出我們許多人可能想到的有關網路規模資本支出的問題，我知道您今天和過去肯定已經觸及過這個問題。但是看，這些數字似乎確實在大幅下降，我想知道您是否可以幫助我們解釋為什麼消費者的行為與您的收入之間存在相當大的差異？

Sure, Jeff. I'll take a part of the question, and I'd like my expert here, our new COO, to take the other half. As we tried to explain, we're not able to directly correlate service spend with Arista or networking CapEx spend. And the reason is, obviously, a service spend connects to the first point of a network attach, which is typically a leaf switch. But what they're finding is many tiers of leafs and many tiers of spines. And Anshul gave you some examples of regional spine, a core routing spine, a WAN spine, a data center interconnect spine, all of those examples and especially the MACsec security, none of them -- and peering. None of them have a direct correlation to the first use case we just talked about, which is the server and first top of rack switch spend. So the one-to-one correlation is difficult. However, I think you can make a correlation if the overall spend is declining, then obviously we'll also feel the impact of that. But it's hard to pinpoint and say, if server spend is declining, network spend is declining. It's not one-to-one. Anshul?

當然，傑夫。我將回答問題的一部分，我希望我的專家、我們的新營運長回答另一半問題。正如我們試圖解釋的那樣，我們無法將服務支出與 Arista 或網路資本支出直接關聯起來。顯然，原因是服務支出連接到網路連接的第一個點，該點通常是葉子交換器。但他們發現的是多層葉子和多層刺。 Anshul 為您提供了一些區域主幹、核心路由主幹、WAN 主幹、資料中心互連主幹的範例，所有這些範例，尤其是 MACsec 安全性（沒有一個）以及對等互連。它們都與我們剛才討論的第一個用例沒有直接關聯，即伺服器和第一個架頂交換器支出。所以一對一的關聯是很困難的。然而，我認為如果整體支出下降，你可以建立相關性，那麼顯然我們也會感受到它的影響。但很難準確地說，如果伺服器支出正在下降，那麼網路支出也在下降。這不是一對一的。安舒爾？

Just a lot of few things here. #1, last year or the last few quarters, there's been significant volatility in memory prices for servers. And that resulted in increased CapEx for many of the cloud titans and also result in a reduction in cloud CapEx for many of the titans. That has no impact on networking. So as a result, they're not correlated there. And second, when you look at very last build-outs of regions, data centers, facilities, all of that often gets counted as CapEx, but obviously, we are just focused on how much networking interconnection made at different layers, different architectures. And hence, you will see less correlation the short term, as Jayshree mentioned. A very long [run these things can tie back]. But they are not even associated within that one year and hence the data. But otherwise, we've done well technically with the cloud titans, and we are happy to compete going forward as well.

這裡只有很多東西。 #1，去年或最近幾個季度，伺服器記憶體價格出現了大幅波動。這導致許多雲端巨頭的資本支出增加，也導致許多雲端巨頭的雲端資本支出減少。這對網路沒有影響。因此，它們在那裡不相關。其次，當你查看區域、資料中心、設施的最後擴建時，所有這些通常都被算作資本支出，但顯然，我們只關注在不同層、不同架構上進行了多少網路互連。因此，正如 Jayshree 所提到的，短期內你會發現相關性較小。很長一段時間[跑這些東西可以綁回來]。但它們甚至在那一年內沒有關聯，因此數據也沒有關聯。但除此之外，我們在技術上與雲端巨頭的合作已經做得很好，我們也很高興能夠繼續競爭。

Anshul, do you think that networking is gaining share inside of the overall web-scale CapEx?

Anshul，您認為網路在整個網路規模資本支出中的份額是否正在增加？

I would say networking, from our standpoint, not so. I think it's very, very similar to some previous years. However, optics is a different ballgame. And as you very well know, 400-gig optics are slightly more expensive on a per gigabit basis compared to 100-gig but not where they purport. And I think that will change some of the equation what [if it is being allocated] networking. But I don't think our correlations get to change that way.

我想說，從我們的角度來看，網路並非如此。我認為這與前幾年非常非常相似。然而，光學卻是另一回事。如您所知，與 100 GB 相比，400 GB 光學元件的每 GB 價格稍高，但事實並非如此。我認為這將改變網絡[如果被分配]的一些方程式。但我認為我們的相關性不會以這種方式改變。

Your next question comes from James Faucette with Morgan Stanley.

您的下一個問題來自摩根士丹利的詹姆斯·福賽特。

I wanted to follow up on your mention of 400-gig and that coming to market and implementation later this year and through 2020 and beyond. And as you're looking at that, what do you think the appetite is from your customers to mix and match 400-gig with existing 100-gig plan? And I guess I'm wondering how much opportunity do you see for footprint share, shift among in your customers for that? And secondly, maybe as you're talking about that, maybe you can also talk through kind of what the use cases are for 400-gig that you think will at least start things going?

我想跟進您提到的 400 場演出，以及今年晚些時候、2020 年及以後上市和實施的情況。當您看到這一點時，您認為您的客戶對將 400 演出與現有 100 演出計劃混合搭配的興趣是什麼？我想我想知道您認為足跡共享和客戶之間轉移的機會有多少？其次，也許在您談論這個問題時，也許您還可以談談 400 場演出的用例是什麼，您認為至少會開始工作？

James, I'm going to kick it off and then Anshul will get into detail. I think one of the things we have said consistently is that 100- and 400-gig mix and match is going to happen frequently. And in fact, with the exception of the cloud titans that are going to push us more on 400-gig, the mainstream use cases we see in 2019 are still heavily favored by 100-gig. And even as we go into 2020, when the optics become more available, I think you're going to see much more of a combination. And that's going to favor Arista because of our incumbency and leadership position in 100-gig. Anshul?

詹姆斯，我要開始了，然後安舒爾會詳細介紹。我認為我們一直在說的一件事是，100 場和 400 場演出的混搭將會頻繁發生。事實上，除了雲端巨頭將在 400G 上推動我們更多的發展之外，我們在 2019 年看到的主流用例仍然受到 100G 的青睞。即使進入 2020 年，當光學元件變得更加可用時，我認為您也會看到更多的組合。這將有利於 Arista，因為我們在 100 場演出中佔據主導地位。安舒爾？

Absolutely. Thanks, Jayshree. So just adding on to what you just heard, in networking, you do not introduce a new speed that's not backwards compatible with the existing install base. Otherwise, you will just never get it to work, which is how IPV5 died.

絕對地。謝謝，傑什裡。因此，只需添加您剛剛聽到的內容，在網路中，您不會引入與現有安裝基礎不向後相容的新速度。否則，你將永遠無法讓它工作，這就是 IPV5 消亡的原因。

What is IPV5?

什麼是IPV5？

But if you look at 400-gig in the cloud data centers and the way the architectures are going on, the hyperscalers are hyperactive with the next-gen design. And they all have their own problems to solve for different use cases, whether it's public cloud or storage or video or caching and so on. You can't just touch one intermediate layer and say, "I'm done with my 400-gig upgrade." You have to upgrade end-to-end. So there's slow transition and [hence, interop] is important. I would say, interop of a 400-gig optic back into a DR1 QSFP28 is going to be very important, even for cloud customers. That's the only way you can [effectively] install base. But because now you're [able to] touch multiple layers, it takes a long time, several quarters to several years to actually get that upgrade done.

但如果你看看雲端資料中心的 400 千兆位元以及架構的運作方式，就會發現超大規模企業對下一代設計非常活躍。對於不同的用例，它們都有自己的問題需要解決，無論是公有雲、儲存、視訊還是快取等等。您不能只觸及一個中間層並說：“我已經完成了 400 GB 的升級。”您必須端對端升級。因此，過渡緩慢，[因此，互通]很重要。我想說，即使對於雲端客戶來說，400G 光纖回到 DR1 QSFP28 的互通性也將非常重要。這是您可以[有效地]安裝基礎的唯一方法。但因為現在你[能夠]接觸多個層，所以需要很長時間，幾個季度到幾年才能真正完成升級。

Your next question comes from Rod Hall with Goldman Sachs.

你的下一個問題來自高盛的羅德·霍爾。

I wanted to start off, I guess and just since we've talked a lot about data center, just ask about campus and see if there's any update on that, if you guys have any milestones that you might be able to give us in terms of trials, things like that, how it's going? And then secondly, Ita, I just wanted to clarify your comments on seasonality around services, that was quite a higher than we anticipated. And I'm wondering are you saying that that's more of a normal seasonal progression of services looking forward? Or is that an abnormal quarter that we're looking at here?

我想我想開始，因為我們已經談論了很多關於資料中心的事情，所以就詢問園區的情況，看看是否有任何更新，如果你們有任何里程碑，您可以向我們提供一些關於資料中心的資訊。諸如此類的考驗，進展如何？其次，Ita，我只是想澄清您對服務季節性的評論，這比我們的預期要高得多。我想知道您是否說這更像是未來服務的正常季節性進展？或者我們在這裡看到的是一個不正常的季度？

Yes. Let me take that one first. I mean, I think the 15.5 is probably high, right. It's a -- Q4 tends to be a strong renewal quarter, and there's some recognition of revenue that comes along with that. So I think back in the 14%, maybe 14 and change is kind of probably a better average for the year, is how you should be think about it.

是的。讓我先拿那個。我的意思是，我認為 15.5 可能很高，對吧。第四季往往是一個強勁的續訂季度，隨之而來的是對收入的一些認可。所以我認為回到 14%，也許是 14%，變化可能是今年更好的平均水平，這就是你應該如何考慮的。

And Rod, to answer your campus question, it's too early for revenue. I think it will be more material in the second half. But we've seen an extremely strong desire to have a viable alternative to the incumbents, in quality, in simplicity, in cognitive capabilities and automation. And I'm going to let our new Chief Customer Officer, Manuel Rivelo, speak to it some. Manny?

羅德，回答你的校園問題，對於收入來說現在還為時過早。我認為下半年會更充實。但我們已經看到了一種極其強烈的願望，希望在品質、簡單性、認知能力和自動化方面有一個可行的替代品來取代現有的產品。我將讓我們的新任首席客戶長 Manuel Rivelo 對此發表一些看法。曼尼？

Thanks, Jayshree. Rod, good to talk to you. So Jayshree classified it correctly. It is early days, and we see this being material in the second half of 2019. But the initial acceptance has been really well received by the customers. And I think there's two categories you could put customers in. The first is our existing installed base. And that installed base is looking to extend EOS across their infrastructure into the campus, driving one management plane, cognitive management plane, one set of telemetry, one EOS. And they're really looking to -- for simplicity, they're looking for agility, they're looking for scale, and they're looking for quality. The second type of customer we're running into are customers you haven't done business with that know we're approaching the campus space. And those customers are really looking at us as an alternative because of fatigue. They're seeing in the market segment, basically, 30 years of lack of innovation, 30 years of stagnant architectures and more and more boxes being pushed out instead of unified architecture, so we're seeing great traction with those customers early days. But like I said, it's early days, we got around with the portfolio and bring that to the customer base, but there's a lot of excitement there also. And then just to give you examples of wins, I mean, we had various wins throughout the quarter in the campus. One was a million dollar account, which is a multinational beverage company where we basically were driving our campus solutions into that and drove great success into that, and we expect to see expansion going on there. And we've also had lots of wins where we began to integrate our Spline architecture inside those use cases and again, for the same reasons, scale, quality, fatigue, et cetera.

謝謝，傑什裡。羅德，很高興與你交談。所以 Jayshree 的分類是正確的。現在還為時過早，我們認為這將在 2019 年下半年實現。但最初的接受確實受到了客戶的好評。我認為您可以將客戶分為兩類。第一類是我們現有的安裝基礎。這個安裝基礎正在尋求將 EOS 跨基礎設施擴展到園區，驅動一個管理平面、認知管理平面、一組遙測、一個 EOS。他們確實在尋求——簡單來說，他們正在尋求敏捷性、他們正在尋求規模、他們正在尋求品質。我們遇到的第二類客戶是那些您尚未與之開展業務的客戶，他們知道我們正在接近校園空間。這些客戶確實因為疲勞而將我們視為替代方案。他們在細分市場中看到，基本上，30 年缺乏創新，30 年停滯不前的架構，越來越多的盒子被推出而不是統一架構，所以我們看到早期對這些客戶的巨大吸引力。但就像我說的，現在還處於早期階段，我們已經開始研究產品組合併帶給客戶群，但也有很多令人興奮的事情。然後只是為了給你們一些勝利的例子，我的意思是，我們整個季度在校園裡取得了各種勝利。其中一個是價值百萬美元的帳戶，這是一家跨國飲料公司，我們基本上將我們的園區解決方案推向該公司，並取得了巨大的成功，我們預計會在那裡進行擴張。我們也取得了許多勝利，我們開始將樣條架構整合到這些用例中，並且出於同樣的原因，規模、品質、疲勞等等。

Your next question comes from Paul Silverstein with Cowen and Company.

您的下一個問題來自 Cowen and Company 的 Paul Silverstein。

So for the first quarter and the 25% or thereabout year-over-year guidance that you gave, how do you get there? Could you help break it down by customer -- I'm not asking by individual customers, but in terms of customer verticals, what drives that growth? And then I have a follow-up question. I appreciate it.

那麼，對於第一季以及您給出的 25% 左右的同比指導，您是如何實現這一目標的呢？您能否幫助按客戶進行細分——我不是按單一客戶來問，而是從客戶垂直領域的角度來問，是什麼推動了這種成長？然後我有一個後續問題。我很感激。

I think -- I expect to see a more normal concentration of customer verticals. I think all 5 will be represented in double digits. Cloud titans will, I think, continue to be one. If I had to guess, I would say enterprise will continue to be 2 again. And then it's hard to forecast between 3, 4 and 5.

我認為－我預期客戶垂直領域會更加集中。我認為所有 5 個都將以兩位數表示。我認為，雲端巨頭將繼續成為其中之一。如果非要我猜的話，我會說 Enterprise 將繼續保持 2 的狀態。然後很難預測 3、4 和 5 之間的情況。

I guess...

我猜...

Does that make you happy?

這讓你高興嗎？

No, not exactly. What I'm trying to get at is, I trust it goes without saying or maybe it doesn't, that the customer verticals 2 through 5, your cloud specialist, especially your enterprise service [buyers], et cetera, that collectively you're expecting the growth rate from that group of customers, i.e. the customers other than cloud titans, to increase, and you're expecting growth from cloud titans to moderate. Is that a fair assumption?

不，不完全是。我想表達的是，我相信這是不言而喻的，也可能不是，客戶垂直行業2 到5、您的雲端專家，尤其是您的企業服務[買家] 等等，都是您的總稱。您預計該客戶群（即雲端巨頭以外的客戶）的成長率將會增加，並且您預計雲端巨頭的成長率將放緩。這是一個公平的假設嗎？

Yes and no. I'm expecting growth from Microsoft to moderate, but I haven't said I'm expecting growth from the cloud titan vertical to moderate.

是和不是。我預計微軟的成長將放緩，但我並沒有說過我預計垂直雲端巨頭的成長將放緩。

So you're not expecting growth from your other cloud titans to moderate and from the cloud titan verticals collectively...

因此，您不會期望其他雲端巨頭的成長會放緩，也不會期望雲端巨頭垂直行業的整體成長...

I didn't say that, no. But I think it's fair to say, it will moderate with Microsoft, given the once-in-a-lifetime unique year we had here in 2018.

我沒這麼說，沒有。但我認為公平地說，鑑於 2018 年是我們一生一次的獨特年份，它將與微軟一起緩和。

All right. My follow-up question -- Go ahead...

好的。我的後續問題——繼續…

With the exception of Microsoft, we feel very comfortable of our growth in all five verticals. I think that's why. And Paul, we can chat about this more, but we should probably allow the next question.

除了微軟外，我們對所有五個垂直領域的成長感到非常滿意。我想這就是原因。保羅，我們可以更多地討論這個問題，但我們可能應該允許下一個問題。

Can I just quickly ask you as a follow-up, is there anything unique about the first quarter relative to the rest of the year?

作為後續問題，我可以快速問一下您，相對於今年剩餘時間，第一季有什麼獨特之處嗎？

No more than the normal seasonality, right? I think it's always a quarter that tends to be flattish off of Q4. I don't know if there's anything else particularly unique about Q1.

不超過正常的季節性，對吧？我認為總是有一個季度與第四季持平。我不知道Q1還有什麼特別獨特的地方嗎？

I think there's most -- I think there's more similarities to Q1 with prior Q1 than uniqueness.

我認為第一季與之前的第一季的相似之處多於獨特性。

Your next question comes from Sami Badri with Crédit Suisse.

您的下一個問題來自瑞士信貸銀行的薩米·巴德里（Sami Badri）。

Could we just take a few moments maybe just to discuss what you're seeing with service provider because the one thing the entire sector seems to be very hyped up about is 5G. And you're seeing it on the RAM side, but there seems to be a big disconnect when we get into the equipment side of the spectrum. Could you just walk us through when you think SP spending towards equipment will start to ramp back up? And is this a back-half '19 event? Or is this a 2020 event based on your purview at this juncture?

我們能否花一點時間與服務提供者討論您所看到的情況，因為整個行業似乎都在大肆宣傳的一件事是 5G。您可以在 RAM 方面看到它，但是當我們進入該範圍的設備方面時，似乎存在很大的脫節。當您認為 SP 在設備上的支出將開始回升時，您能否向我們介紹一下？這是 19 年下半年的活動嗎？或者，根據您目前的職權範圍，這是 2020 年的活動嗎？

Okay. Sami, I'll take a crack at it, and I think Manny and Anshul may help me as well. Look, I think given our very small presence in service provider, we don't believe we're affected by macro trends. And in our view, at least the influence of Arista gear is not 5G-dependent, because we're really a backhaul for IP routing and ring switching and routing together and providing the scale of routes and IP tables and ACLs that no one does. That said, I don't think we think 5G is really a mover. If 400 gig is 2020, I think we think 5G is 2021. So from our perspective, we've got upside in service provider because we had a very strong 2017. We're disappointed with 2018, and that gives us a chance to grow faster in 2019. We're seeing tremendous activity both in the U.S., and we have put more emphasis in international theaters. Manny, maybe you want to speak to that?

好的。薩米，我會嘗試一下，我想曼尼和安舒爾也可能會幫助我。看，我認為鑑於我們在服務提供者中的影響力很小，我們認為我們不會受到宏觀趨勢的影響。在我們看來，至少 Arista 設備的影響不依賴 5G，因為我們實際上是 IP 路由、環交換和路由的回程，並提供無人提供的路由、IP 表和 ACL 規模。也就是說，我認為我們認為 5G 並不是真正的推動者。如果2020 年是400 場演出，我認為5G 是2021 年。因此，從我們的角度來看，我們在服務提供者方面有優勢，因為我們在2017 年表現非常強勁。我們對2018 年感到失望，但這給了我們成長的機會2019 年會更快。我們在美國看到了巨大的活動，並且我們更加重視國際劇院。曼尼，也許你想談談這個？

Yes, no, I think -- just to add to that. In the use cases that we play in service provider, whether it'd be Telco cloud, NFVI or peering, we're doing quite well in executing across the globe in various Tier 1 and Tier 2 operators. In other use cases, the portfolio continues to run itself out. It's additional features to cover those use cases. But as Jayshree pointed out, we've also made investments in 2018 for better coverage, both on the account manager side and on the SE side to represent those Tier 1 operators who are getting more at that as it pertains to our pieceand proof of concept. So we think that, that will go well, as we enter 2019 and beyond.

是的，不，我想──只是補充一下。在我們在服務供應商中發揮的用例中，無論是電信雲端、NFVI 還是對等互連，我們在全球各個 1 級和 2 級營運商中的執行情況都非常好。在其他用例中，該產品組合會繼續耗盡。它是覆蓋這些用例的附加功能。但正如Jayshree 指出的那樣，我們還在2018 年進行了投資，以獲得更好的覆蓋範圍，無論是在客戶經理方面還是在SE 方面，以代表那些在這方面做得更多的一級運營商，因為這與我們的作品和概念驗證有關。因此，我們認為，隨著我們進入 2019 年及以後，一切都會順利進行。

Your next question comes from Alex Henderson with Needham & Company.

您的下一個問題來自 Needham & Company 的 Alex Henderson。

I wanted to ask a question relative to two dynamics and see if you could play them off against each other. So we're definitely hearing a lot of conversations about slowdown in server investments based off of product cycles at Intel as well as some of the other cycles that are going on. That suggest a slowdown in cloud in the first half of the year and a reacceleration in the back half of the year. So part of the question is, are you seeing that kind of dynamic as well? And then the other side of it, there's a countervailing force, which we're hearing that spending on 100-gig is expected to double year-over-year in terms of port sales. So to the extent that we're seeing a doubling of 100-gig, are you gaining enough share in 100-gig as a result of your dominance in that space, which I think is 2x the share of the overall -- your overall market share? And does that offset the [divot] in demand in the first half in Web 2.0 due to those product cycles?

我想問一個與兩種動態相關的問題，看看你是否可以將它們相互競爭。因此，我們肯定會聽到很多關於基於英特爾產品週期以及正在發生的其他一些週期的伺服器投資放緩的討論。這顯示雲端運算在今年上半年放緩，並在下半年重新加速。所以問題的一部分是，你是否也看到了這種動態？另一方面，還有一股抵消力量，我們聽說，就港口銷售而言，100 場演出的支出預計將比去年同期翻倍。因此，就我們看到 100 千兆位元翻倍而言，由於您在該領域的主導地位，您是否在 100 千兆位元中獲得了足夠的份額，我認為這是整體市場份額的 2 倍分享？這是否抵消了 Web 2.0 上半年由於這些產品週期而產生的需求[草率]？

Sure. Absolutely. Alex, great questions. And in terms of CapEx for the large cloud titans, we certainly don't have visibility yet into second half. We would love them to forecast accurately as you very well know. On the first half because we're in so many diverse use cases, we are getting a little bit decoupled in the short term from their exact server spend. They might be buying fewer racks now, but they're still doing DCI but also [other things and so on]. But the same time, obviously, if they spend more in the long run, we could benefit. Now to your point on 100-gig spending or 100-gig ports are doubling, and I would emphasize, actually, 100-gig ports that are doubling, not just spend, is because some of the next-generation technology is now starting to show up in the market, including some of our products which are really being used not as 400-gig, but more cost-effective, 4 by 100-gig, and that allows customers to get many more ports than what they used to get in the past, but that doesn't change the revenue dynamic significantly. It just lowers the ASP and increase the port count.

當然。絕對地。亞歷克斯，很好的問題。就大型雲端巨頭的資本支出而言，我們當然還看不到下半年的情況。正如您所知，我們希望他們能夠準確預測。上半年，因為我們處於如此多不同的用例中，所以我們在短期內與他們的確切伺服器支出有點脫鉤。他們現在可能購買的機架減少了，但他們仍然在做 DCI，但也在做[其他事情等等]。但同時，顯然，如果他們從長遠來看花更多的錢，我們就能受益。現在，關於 100 吉比特支出或 100 吉比特端口翻倍的觀點，我要強調的是，實際上，100 吉比特端口翻倍，而不僅僅是支出，是因為一些下一代技術現在開始展示市場上的一些產品，包括我們的一些產品，它們實際上不是用作400-gig，而是更具成本效益，4 x 100-gig，這使客戶能夠獲得比他們以前在市場上獲得的端口更多的端口。過去，但這並沒有顯著改變收入動態。它只是降低了 ASP 並增加了連接埠數。

But does it change share, is the question.

但問題是它是否會改變份額。

That will depend on our execution, Alex. We've held on to the #1 position for 2 years in a row. Hopefully, this year will be our third.

這將取決於我們的執行力，亞歷克斯。我們已經連續兩年保持第一的位置。希望今年將是我們的第三年。

Your next question comes from Aaron Rakers with Wells Fargo.

您的下一個問題來自富國銀行的 Aaron Rakers。

I want to go back to the router market. You mentioned in the prepared remarks you've gone from 200 to 300 FlexRoute customers. It sounds like one of your major silicon providers does a major release, starting to ship in volume in Jericho2, looking towards the mid-part of the year, which is very focused on the service provider market. So I'm curious as we look out over the next 12-plus months, is there a natural expansion story in the router functionality that expands your opportunity set in that incremental growth driver going forward?

我想回到路由器市場。您在準備好的評論中提到，您的 FlexRoute 客戶數量已從 200 名增加到 300 名。聽起來你們的一家主要晶片提供商正在發布一個重大版本，開始在 Jericho2 中批量發貨，預計今年中期非常關注服務提供商市場。因此，我很好奇，當我們展望未來 12 個多月時，路由器功能中是否存在自然擴展故事，可以擴展您在未來增量成長驅動力中的機會集？

Thanks, Aaron. I think it's a really good question. I believe we have a natural expansion even before Jericho2, which has had to do with a lot of our FlexRoute features and the 50% growth of our customers from 200 to 300. So at least in 2019, I see that more immediate success will be not necessarily waiting for the next generation of silicon but really going into these 200 to 300 customers and enabling greater success, many of who are service providers. Now add to that the Jericho2 cycle, which really hits in the second half of the year, Anshul is confirming, I think we can have a multiyear success in routing in 2020 and beyond with Jericho2.

謝謝，亞倫。我認為這是一個非常好的問題。我相信我們甚至在 Jericho2 之前就已經實現了自然擴張，這與我們的許多 FlexRoute 功能以及我們的客戶數量從 200 增長到 300 50% 有關。因此，至少在 2019 年，我認為更直接的成功將是不一定要等待下一代晶片，而是真正深入這200 到300 個客戶並取得更大的成功，其中許多是服務提供者。現在，再加上 Jericho2 週期，該週期將在今年下半年真正到來，Anshul 確認，我認為我們可以透過 Jericho2 在 2020 年及以後的路由方面取得多年的成功。

And I'm just kind of curious, how much -- how big do you view that total addressable router market today? And how much do you think is that going to expand?

我只是有點好奇，您認為當今的可尋址路由器市場總量有多大？您認為這種情況會擴大多少？

It's a tough one to answer. The total market is $8 billion. But I think our TAM is more like 2 to 3. It's a good guess. But some of them end up being very specific, traditional, legacy MPLS traffic engineering boxes. Arista doesn't play in that. But as they look to come in, as Manny was describing, into the spine peering and interconnect and NFV and Telco cloud, Arista is a national player to combine the Universal Spine's switching and routing.

這是一個很難回答的問題。總市場規模為80億美元。但我認為我們的 TAM 更像是 2 到 3。這是一個很好的猜測。但其中一些最終成為非常具體的、傳統的、遺留的 MPLS 流量工程盒。阿里斯塔不玩那個。但正如 Manny 所描述的那樣，當他們希望進入主幹對等和互連以及 NFV 和電信雲時，Arista 是一家將通用主幹的交換和路由結合起來的全國性參與者。

Your next question comes from Simon Leopold with Raymond James.

您的下一個問題來自西蒙·利奧波德和雷蒙德·詹姆斯。

I wanted to see if we could maybe take a look at getting some thoughts on 2020 in particular. If I characterize your base business as put to side and thinking about three growth engines, campus switching, routing and 400-gig switching as the incremental parts, how do you see those three in terms of rank-order contributors in 2020?

我想看看我們是否可以特別針對 2020 年提出一些想法。如果我將您的基礎業務放在一邊，並將園區交換、路由和 400G 交換這三個成長引擎視為增量部分，那麼您如何看待這三個引擎在 2020 年的排名貢獻者？

Wow. You get the prize for the tough question so far, right up there with Paul. So Simon...

哇。到目前為止，你已經獲得了這個棘手問題的獎品，就像保羅一樣。那麼西蒙...

I'm honored.

我很榮幸。

We'll give it our best, but this is purely a forecast. I think if you look at TAM, the largest TAM of these three, campus, routing and 400-gig, is campus. And it's also the most underserved by any alternative competitor because it's so deeply embedded by incumbency. So we believe our largest strength and opportunity is campus, and our largest pressure to execute is also campus, if I put that in that way. And then I think if I had to split the 2, I would say, routing second and 400-gig third because I think routing really doesn't come in -- 400-gig doesn't really come into play in a huge way until 2020.

我們會盡力而為，但這純粹是預測。我想如果你看看 TAM，校園、路由和 400 吉這三個 TAM 中最大的就是校園。而且它也是所有其他競爭對手中服務最不足的，因為它深深嵌入了現有企業的手中。因此，我們相信我們最大的優勢和機會是校園，我們最大的執行壓力也是校園，如果我這麼說的話。然後我想，如果我必須將兩者分開，我會說，路由第二，400-gig 第三，因為我認為路由真的不會起作用——400-gig 不會真正發揮巨大作用，直到2020 .

Your next question comes from Erik Suppiger with JMP Securities.

您的下一個問題來自 JMP 證券的 Erik Suppiger。

This is Michael Berg on for Erik Suppiger. I just wanted to do a quick question on international. Could you provide any color around what may have caused the weakness there? I mean, was it around international cloud spending or enterprise spending? What do you think around international in the quarter?

我是麥可‧伯格 (Michael Berg)，代表艾瑞克‧蘇皮格 (Erik Suppiger)。我只是想問一個關於國際的簡單問題。您能否提供有關可能導致該弱點的原因的任何顏色？我的意思是，是圍繞國際雲端支出還是企業支出？您對本季的國際市場有何看法？

Yes. I mean, the mix between international and U.S. in any given quarter is going to be pretty volatile, right? And the -- if you look at it for the year, which I think is kind of more interesting, and you peel it back, you've got good growth in the in-region businesses and then just a heavier deployment of cloud in the U.S. than what we saw last year, right? We've seen some pretty heavy international cloud activity last year. This year, it's been more U.S-focused, right? So I think that's probably the biggest driver. If I strip all that out and look at the growth in the region, those businesses are growing faster than the corporate average. I think, Manny, if you want to chime in as well...

是的。我的意思是，在任何特定季度，國際和美國之間的混合都會相當不穩定，對吧？如果你看一下今年的情況，我認為這更有趣，然後你把它剝離出來，你會發現區內業務取得了良好的增長，然後在雲中部署了更重的雲。美國比我們去年看到的要好，對嗎？去年我們看到了一些相當活躍的國際雲端活動。今年，它更加關注美國，對嗎？所以我認為這可能是最大的驅動因素。如果我剔除所有這些因素並觀察該地區的成長，就會發現這些企業的成長速度高於企業平均值。我想，曼尼，如果你也想插話的話…

Yes, I think what I'll add on top of that, and I think Jayshree said -- and Ita said as well, is we are actually seeing great -- and we're making a significant investment in our international markets from a headcount perspective. So we're balancing that out fairly nicely, approximately 40% is going to international headcount, that's a little higher than what you're seeing from a percentage of business. But what's more interesting is the net new logos, where we are seeing a lot of new wins there, approximately half of our net new logos are coming out of the international market. So we're having great traction there, great acceptance of technology. You could argue in some of the international markets, they're a little behind in the adoption of spine-leaf architectures, but they're coming along quite nicely, and we think that's a growth engine also for the future.

是的，我認為除此之外我還要補充一點，我認為 Jayshree 說過——Ita 也說過，我們實際上看到了很棒的情況——我們正在從員工數量上對國際市場進行重大投資看法。因此，我們很好地平衡了這一點，大約 40% 將用於國際員工，這比您從業務中看到的百分比略高。但更有趣的是淨新標誌，我們在那裡看到了許多新的勝利，大約一半的淨新標誌來自國際市場。所以我們在那裡有很大的吸引力，對科技的接受度很高。你可能會說，在一些國際市場，他們在採用脊葉架構方面有點落後，但他們進展得相當不錯，我們認為這也是未來的成長引擎。

Okay, great. And then a quick follow-up on the Microsoft piece. I know you mentioned that if you normalize it, it's closer to the 16%. But if I'm thinking about the deferred revenue piece being a big contributor, wouldn't that needed to be closer to 18%, 20%? Or how can I think about how deferred contributed to Microsoft in the year?

好的，太好了。然後是對 Microsoft 文章的快速後續。我知道你提到過，如果你將其標準化，它會更接近 16%。但如果我考慮遞延收入部分是一個很大的貢獻者，那不是需要接近 18%、20% 嗎？或者說我該如何看待Deferred這一年對微軟的貢獻有多大？

Yes, I mean, I don't know they're going to put specific numbers on it, but I think it was a good strong Microsoft year just from an organic business perspective, and it would have been ahead of the 16% in any case. But again, a chunk of what the 27% came from the deferred.

是的，我的意思是，我不知道他們會給出具體的數字，但我認為，從有機業務的角度來看，這是微軟強勁的一年，而且它會領先於任何其他領域的16% 。案件。但同樣，27% 的大部分來自延期。

And I think the other way to think of this is that in many ways, we did get 6 quarters of business in 4 quarters, right because of the deferred and because of the legal certifications. So it was unusual in every manner, right, not just the deferred but the legal certifications, the new roles and the time at which you could recognize it, even though the activity began much before.

我認為另一種思考方式是，在很多方面，我們確實在 4 個季度內獲得了 6 個季度的業務，這是因為延期和法律認證。因此，這在各個方面都是不尋常的，對吧，不僅是推遲，還有法律認證、新角色以及你可以認識到它的時間，儘管活動很早就開始了。

Okay. And then I think someone asked this before, but is it fair to assume that the cloud titans vertical was closer to 40 or even higher percentage of total revenue for the year, given the high Microsoft contribution?

好的。我想以前有人問過這個問題，但考慮到微軟的高貢獻，假設雲端巨頭垂直領域佔今年總收入的比例接近 40 甚至更高，是否公平？

I think around there is a fair guess.

我認為這是一個合理的猜測。

Your next question comes from Steve Milunovich with Wolfe Research.

您的下一個問題來自沃爾夫研究中心的史蒂夫·米盧諾維奇。

Could you comment a bit about expenses going forward? You had a year-over-year acceleration in marketing, a deceleration in R&D, which you talked about a little bit. What sorts of growth rates or percentages of revenue can we look forward to? And your longer-term target of 32% operating margin, what's the time frame for that? Is it going to be within my lifetime?

您能否對未來的支出發表一些評論？您談到了行銷方面的逐年加速，研發方面的減速。我們可以期待什麼樣的成長率或收入百分比？你們的長期目標是 32% 的營業利益率，而達成這個目標的時間範圍是多少？它會在我的有生之年嗎？

It depends how long you live. Yes.

這取決於你能活多久。是的。

Yes. Surely, it's been a while since we updated the long-term model, and we'll take the opportunity to do that at some point here. I mean, I think what we're seeing is in the near-term time frame, the plus or minus 35% operating margin is a good way to think about it, and that allows us to see some movement of gross margin quarter-over-quarter and does itmake the investments that we want to make, right. I mean, if we're -- yes, we're still in a situation where we're growing the top line at the rate that we're growing the top line at. It's letting us do -- make the investments that we need to make. It's letting Manny do what he needs to do in the sales and marketing side. And I think you will see that kind of be maybe more of a percentage of revenue than it has been. And maybe we get a little bit of leverage on the R&D, but that's not going to be the same every quarter, that's not significant, right. I think -- think about the 35% plus or minus.

是的。當然，我們已經有一段時間沒有更新長期模型了，我們將藉此機會在某個時候進行更新。我的意思是，我認為我們在短期內看到的是，正負 35% 的營業利潤率是一個很好的思考方式，這使我們能夠看到毛利率環比的一些變化-季度，它是否進行了我們想要進行的投資，對嗎？我的意思是，如果我們——是的，我們仍然處於這樣一種情況：我們的收入成長速度與我們的收入成長速度相同。它讓我們能夠進行我們需要進行的投資。它讓曼尼在銷售和行銷方面做他需要做的事情。我認為你會看到這種收入在收入中所佔的比例可能比以前更高。也許我們在研發方面獲得了一點影響力，但這不會每個季度都一樣，這並不重要，對吧。我想——想想 35% 的正負。

Your next question comes from Srini Pajjuri with Macquarie Securities.

您的下一個問題來自麥格理證券的 Srini Pajjuri。

Just one clarification maybe for Ita. Would it be possible to give us what Microsoft was in Q4 or even second half versus first half as a percent of sales?

也許只是對 Ita 做一個澄清。是否可以提供我們微軟第四季甚至下半年與上半年的銷售額百分比？

Yes. I don't think we're going to do that, right. I mean, it's -- it moved around. It's -- Yes, it's not really helpful to start to try and do that on a quarterly basis. I think the annual number is really the way to think about it and then take some off the top for the deferred, for the release of the legal-related clarification stuff at the beginning of last year. And so think about 16% was our norm over the last couple of years. And it was a good strong year for Microsoft on top of that just from a transactional business perspective.

是的。我認為我們不會那樣做，對吧。我的意思是，它四處移動。是的，開始嘗試按季度這樣做並沒有多大幫助。我認為年度數字確實是一種思考方式，然後從頂部剔除一些用於推遲的內容，用於去年年初發布與法律相關的澄清內容。所以想想 16% 是我們過去幾年的常態。僅從交易業務的角度來看，這對微軟來說是強勁的一年。

Okay. Then maybe a follow-up, I guess, on 400-gig, Jayshree, I think Cisco yesterday said they're expecting volume deployment sometime middle of this year. And you seem to think it's more likely in 2020. I just want to understand why you think it's little later than Cisco? I know Juniper said it's also 2020. But I'm wondering why there will be a difference between their timing and your timing?

好的。然後也許是後續行動，我猜，400g，Jayshree，我想思科昨天表示他們預計在今年年中的某個時候進行大量部署。而且您似乎認為2020年更有可能。我只是想了解為什麼您認為它比思科晚一點？我知道Juniper說也是2020年。但我想知道為什麼他們的時間和你們的時間會有差異？

Well, I think we actually, Srini, sell to some of the world's leading early adopters of 400-gig. And where Anshul and the team are seeing traction is in the cloud titan vertical. We work with a multitude of optics vendors, and we see that as the longest pole in the tent. So while we absolutely expect to see early trials in second half, we would be responsible to tell you we're going to see large market in the second half. So I guess you could chalk it down to our responsibility.

嗯，我認為，Srini，我們實際上向一些世界領先的 400-gig 早期採用者出售產品。 Anshul 和團隊在雲端巨頭垂直領域看到了吸引力。我們與眾多光學供應商合作，我們認為這是帳篷中最長的桿子。因此，雖然我們絕對希望在下半年看到早期試驗，但我們有責任告訴您，我們將在下半年看到龐大的市場。所以我想你可以將其歸結為我們的責任。

Maybe if I can add something here. We should not confuse product availability versus high-volume deployment. These are 2 different things.

也許我可以在這裡添加一些東西。我們不應該混淆產品可用性和大批量部署。這是兩件事。

Very good point. And our products have been available since the beginning of the year.

非常好的一點。我們的產品從今年年初就已經上市。

Your next question comes from James Fish with Piper Jaffray.

您的下一個問題來自 James Fish 和 Piper Jaffray。

I guess a lot of questions have been asked already but maybe asking it in a different way, what are you hearing from hyperscalers on the 400G optics and potential mix between the OSFP and the QSFP? And secondly, on 400G, competitively, do you fear kind of the white box offering more? Or do you fear like the Ciscos and Junipers of the world?

我想已經有人問了很多問題，但也許可以用不同的方式來問，您從超大規模廠商那裡聽到了關於 400G 光學器件以及 OSFP 和 QSFP 之間潛在混合的信息？其次，在 400G 方面，從競爭角度來看，您是否擔心白盒提供更多功能？還是你像世界上的思科和杜鬆一樣害怕？

Wow. That is 2 unique questions.

哇。這是兩個獨特的問題。

So James, in terms of first optics on 400-gig OSFP versus DD, in the cloud titans, there is a lot of interest in moving the world forward. And planning it out many, many years in advance, so that you can actually move to the next generation. So in fact, it's the hyperscalers where there's a lot of interest in OSFP. At the same time, we're cognizant that some other customers need DD-based products, so we'll build those as well. But as you may recognize, DD has a short life cycle because after the 50, 30 cycle, it can't really work. So then the world has to move forward. So we'll do both. We believe there will be a very healthy mix and a good attach rate of OSFP here. With respect to the white boxes, we've touched on this many, many times. We are very competitive in this market. And as we mentioned before, we're not really -- customers are not looking to just buy a cheap white box and then do something cool with it. They want to solve real-world problems. So they are co-developing with us and partnering with us to solve these problems, taking parts or all of EOS and building on top of that. And as you can see, our business is very healthy with them. And despite all the noise, we feel good about our position there.

因此，James，就 400-g OSFP 與 DD 上的第一個光學元件而言，在雲端巨頭中，人們對推動世界前進非常感興趣。並提前很多很多年做好計劃，這樣你就可以真正過渡到下一代。事實上，超大規模企業對 OSFP 很感興趣。同時，我們認識到其他一些客戶需要基於 DD 的產品，因此我們也會建立這些產品。但正如您可能認識到的那樣，DD 的生命週期很短，因為在 50、30 個週期之後，它就無法真正發揮作用。所以世界必須向前發展。所以我們兩者都會做。我們相信這裡將會有一個非常健康的組合和良好的 OSFP 附加率。關於白盒，我們已經討論過很多很多次了。我們在這個市場上非常有競爭力。正如我們之前提到的，我們並不是真的——客戶不只是想買一個便宜的白盒子，然後用它做一些很酷的事情。他們想要解決現實世界的問題。因此，他們正在與我們共同開發並與我們合作解決這些問題，採用部分或全部 EOS 並在此基礎上進行構建。正如您所看到的，我們的業務與他們的合作非常健康。儘管有這麼多的噪音，我們對我們在那裡的位置感到滿意。

And I think the noise, in general, has reduced a lot. We haven't -- we don't hear white box from our customers very much anymore. So to answer your question more directly, it's usually a competitive position against the specific vendor like Cisco rather than the description or discussion of a white box.

我認為噪音總體上減少了很多。我們還沒有——我們不再從客戶那裡聽到太多白盒問題。因此，為了更直接地回答您的問題，通常是針對思科等特定供應商的競爭地位，而不是白盒的描述或討論。

Your next question comes from Hendi Susanto with Gabelli.

您的下一個問題來自 Hendi Susanto 和 Gabelli。

Jayshree and Anshul, how should we think about market opportunity and dynamics in 2019, like first specifically about macroeconomic uncertainties? Cisco stated there was no change in demand and no impact from macro uncertainties in their last quarter. I'm wondering like how similar your experience was in Q4? And then second, how do you characterize market opportunity in 2019 versus 2018? Are there more similarities? Or are there more new opportunities versus 2018 that investor and analyst should think about?

Jayshree 和 Anshul，我們該如何思考 2019 年的市場機會和動態，例如先具體考慮宏觀經濟的不確定性？思科表示，上一季需求沒有變化，也沒有受到宏觀不確定性的影響。我想知道您在第四季的經歷有多相似？其次，與 2018 年相比，您如何看待 2019 年的市場機會？還有更多相似之處嗎？或者說，與 2018 年相比，投資人和分析師是否應該考慮更多新的機會？

Okay. Thanks, Hendi. Well, I would say Arista has not seen any macroeconomic uncertainty either in Q4. I think, obviously, we're not a bellwether here. But as far as our customers -- have been signaling to us, our enterprise momentum hasn't been stronger. And we continue to see strength there in Q4, and we look forward to that strength continuing in 2019. I'm going to let Anshul answer the 2019 trends.

好的。謝謝，亨迪。嗯，我想說，Arista 在第四季也沒有看到任何宏觀經濟不確定性。我認為，顯然我們不是這裡的領頭羊。但就我們的客戶向我們發出的信號而言，我們的企業動力並沒有更強勁。我們在第四季繼續看到強勁的勢頭，我們期待這種強勁勢頭在 2019 年繼續下去。我將讓 Anshul 回答 2019 年的趨勢。

Sure. Absolutely. Thanks, Hendi. We haven't seen much of a big change in terms of perception. I think people are certainly worried that if there's a slowdown, there will be a correction. Our customers do talk about it, but nothing material has happened so far. I think everyone's watching these trends very carefully. Beyond that, the actual opportunity hasn't changed for us. It's a very large TAM we are catering to. And when you look at enterprises, there's still a very, very healthy opportunity ahead of us. The same is true in the Tier 2 and the speciality cloud providers as well as financials and even more expansion possible for us in the future in ASPs. So we still feel very good about the opportunity. We believe the market has multiple players, but we are a very, very strong competitor in this space and hence, the opportunity to grow.

當然。絕對地。謝謝，亨迪。我們在觀念方面還沒有看到太大的變化。我認為人們肯定擔心如果經濟放緩，就會出現調整。我們的客戶確實在談論此事，但到目前為止還沒有發生任何實質的事情。我認為每個人都在非常仔細地觀察這些趨勢。除此之外，我們的實際機會並沒有改變。我們服務的 TAM 規模非常大。當你觀察企業時，我們仍然有一個非常非常健康的機會。二級和專業雲端提供者以及財務方面也是如此，我們未來在 ASP 方面甚至可能進行更多擴展。所以我們仍然對這個機會感到非常高興。我們相信市場有多個參與者，但我們是這個領域非常非常強大的競爭對手，因此有成長的機會。

Your next question comes from John Marchetti with Stifel.

您的下一個問題來自 Stifel 的 John Marchetti。

Jayshree, I was wondering if you could just spend a little bit of time here on the enterprise market. We spend a lot of time on where the cloud titans are in terms of their 100-gig adoption and maybe their shift to four. I was wondering if maybe you could spend just a minute or 2 discussing sort of how you're expecting that enterprise market to kind of follow sooner and where you think that market is kind of overall with its adoption of 100-gig?

Jayshree，我想知道您是否可以在企業市場上花一點時間。我們花了很多時間研究雲端巨頭的 100 兆採用情況，甚至可能轉向 4 兆。我想知道您是否可以花一兩分鐘的時間討論一下您期望企業市場如何更快地跟進，以及您認為隨著 100 千兆位元的採用，市場的整體情況如何？

Well, thanks, John. I'm actually glad you asked this question because, yes, we tend to focus on cloud titans a lot. But one of the things we're seeing, it is one of our second largest and fastest-growing vertical. And there's a very strong interest in bringing those same cloud principles into the data center in the enterprise. And it really comes in three flavors: first, how to build a private cloud with leaf-spine architectures and scale out the same way, albeit in smaller scale; the second is to bring -- to mimic some of the cloud management principles with CloudVision, bringing change control, automation, network-wide analytics, et cetera; and the third is the hybrid cloud. No company is a better position than Arista as we have deployed in both the public and the enterprise in bringing those 2 together from a workload point of view. So the combination of our vEOS Router with the right APIs to multiple public cloud vendors has been very transformational and well received. And finally, of course, the fourth, which I don't want to overtalk, but will really come to play in the second half of this year is the campus. So when you look at our whole PINs to PICs transformation, there' at least four different use cases in the enterprise that are exciting.

嗯，謝謝，約翰。我實際上很高興你問這個問題，因為，是的，我們往往非常關注雲端巨頭。但我們看到的一件事是，它是我們第二大、成長最快的垂直產業之一。人們非常有興趣將這些相同的雲端原則引入企業的資料中心。它實際上分為三種風格：第一，如何建立具有葉脊架構的私有雲，並以相同的方式橫向擴展，儘管規模較小；第二個是透過 CloudVision 模仿一些雲端管理原則，帶來變更控制、自動化、全網路分析等；第三是混合雲。沒有一家公司比 Arista 處於更好的位置，因為我們在公眾和企業中都進行了部署，從工作負載的角度將這兩者結合在一起。因此，我們的 vEOS 路由器與多個公有雲供應商的正確 API 相結合，帶來了巨大的變革並廣受好評。最後，當然，第四個，我不想過多談論，但將在今年下半年真正發揮作用的是校園。因此，當您查看我們從 PIN 到 PIC 的整個轉換時，您會發現企業中至少有四種令人興奮的不同用例。

So maybe just as a quick follow-up there. Given that they're looking at a lot of these different applications or use cases for the first time, does that lend itself to maybe some additional service sales or almost from a consulting type of standpoint as you look to help them migrate to these types of solutions?

所以也許只是作為一個快速跟進。鑑於他們是第一次查看許多不同的應用程式或用例，這是否有助於一些額外的服務銷售或幾乎從諮詢類型的角度來看，當您希望幫助他們遷移到這些類型的解決方案？

I think we -- definitely, Arista has looked at a -- in a -- to be more of a consultative approach, provide the right training. And the professional services varies, we often partner with someone, or they look for us to come in. And Manny, I don't know if you have more to add to that. We don't see a pattern here.

我認為我們——當然，Arista 已經考慮——以一種更多的諮詢方式，提供正確的培訓。專業服務各不相同，我們經常與某人合作，或者他們找我們進來。曼尼，我不知道你是否還有更多要補充的。我們在這裡沒有看到任何模式。

No. I mean, in general, it's an education for the customer base, as they transform their infrastructures into a much more digital framework, they're going to need these modern data centers, no different than the cloud providers. So those solutions are proven and tested, and we can deliver those. Then the delivery of that solution to the customer either comes through development effort, education, training that we can provide and/or through our professional services and/or our partner network that could offer those services. So we have a lot of flexibility there. And we're seeing that being pretty well accepted across all three of those spectrums.

不。我的意思是，總的來說，這是對客戶群的教育，當他們將基礎設施轉變為更數位化的框架時，他們將需要這些現代化的資料中心，與雲端供應商沒有什麼不同。因此，這些解決方案已經過驗證和測試，我們可以提供這些解決方案。然後，向客戶交付該解決方案要么透過我們可以提供的開發工作、教育、培訓和/或透過我們的專業服務和/或可以提供這些服務的合作夥伴網路。所以我們在那裡有很大的靈活性。我們發現這在所有三個領域都得到了很好的接受。

This concludes the Arista Q4 2018 Earnings Call. Thank you for all the good questions and for the opportunity to highlight our financial results and corporate achievements for you. I also want to mention that we have posted a presentation which provides additional information on our fiscal results, which you can access on the Investors section of our website. We look forward to continuing the conversation with you during the quarter.

Arista 2018 年第四季財報電話會議到此結束。感謝您提出所有好問題，也感謝您有機會向您介紹我們的財務表現和企業成就。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財務業績的更多信息，您可以在我們網站的投資者部分訪問該演示文稿。我們期待在本季繼續與您對話。

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。