Jayshree Ullal: Yes. No, I think the InfiniBand TAM today has a very €“ we use HPC $1 billion to $1.5 billion TAM. And it didn’t address AI workloads. I think the advent of this new application is going to open up the whole AI, networking and fabric TAM to much greater than InfiniBand. So not only do we have an opportunity to replace InfiniBand, but we have a greenfield opportunity for new AI fabrics and clusters. So it’s both, not just a legacy InfiniBand opportunity.
Fahad Najam: So roughly how big do you think the opportunity is?
Jayshree Ullal: I don’t think €“ there have been some market studies on this. Some people say $2 billion a year, some people say $4 billion, some say it’s going to $8 billion. So I think it’s still too early to call. It depends on how quickly the adoption of AI fabric happens in all of our large customers.
Fahad Najam: Thank you. Appreciate the answers.
Jayshree Ullal: Thanks, Fahad.
Operator: Our next question comes from the line of Pierre Ferragu with New Street Research. Please go ahead. Your line is open.
Pierre Ferragu: Thank you. Good evening. I wanted to catch up on what you said, Jayshree, about like routing €“ edge routing and gearing. And this opportunity still comes back as an interesting and intriguing area. And so my question would be, anything you can give us in terms of sizing, how significant it is today? And then beyond that, could you give us a sense of how you understand like the long-term market dynamics in there? So it’s a market where all the legacy routing players are very strong, have like a very strong existing ecosystem. And I’m still not exactly clear on what market dynamics create the opportunity for Arista and how we should think about it in the long run. Like is there an opportunity to replace incumbents in peering €“ in large peering markets?
And if that’s the case, how does that work? Is that like operators buying from you? Is that coming from other types of clients, like cloud players? So what €“ how does the opportunity shape up over time?
Jayshree Ullal: Yes. Anshul, I’d love your perspective on it. Let me kick it off. We think the router market is much bigger than the routing market. The router market is the more legacy market that’s being served by a number of traditional industry experts for 20 years and mostly servicing the service provider market. And that’s a very traditional market that Arista has been participating some in, but we don’t expect to be a major player in traditional service providers. However, we’ve added so much routing features. Routing is now part of our switching system. It’s sometimes hard to separate it. It’s the same hardware, different software. If you just look at the last year, we’ve added Ethernet OEM capability, VPLS, timing with SyncE, EVPN, MPLS gateway and multi-cap VPN, edge services, routing scale, you heard Anshul talk about, that can go over 4 million routes.
So our portfolio is really transitioning to supporting 400-gig deployments, and routing in the cloud scale is something we are very successful in. So on one hand, we’re not super successful in the traditional service providers. On the other hand, we are hugely successful in the cloud. And then in between, we are finding ourselves moderately successful in a lot of the enterprise and specialty cloud providers. Anshul, you want to add a few words?
Anshul Sadana: Sure. Period of another angle here, if you look at how we started to enter this market through some of the CDN companies like Netflix and Spotify, these companies have an SDN approach to edge. It’s a scale-out architecture. You can take a simple router from Arista and scale it out, and the automation and the SDK we provide allows our customers to do that, which is why we do very well in these use cases versus the legacy full-feature traditional router. And our cloud customers, the titan, the Tier 2 cloud, the providers, all like these architectures.
