Why Microsoft Is Crucial for Arista Networks

Arista Networks (NYSE: ANET) has been growing its core cloud networking business over the last several years, partly thanks to the phenomenal success of its largest customer Microsoft (NASDAQ: MSFT) with its cloud offering Azure. Despite Arista's efforts to diversify its portfolio, investors should realize the tech giant will remain a critical customer for Arista in the foreseeable future. Here's why.

Cloud computing has revolutionized data centers' networking infrastructures. Entrenched with decades of enterprise legacy solutions, the networking specialists Cisco Systems and Juniper Networks were slow to update their offerings to meet cloud customers' requirements in terms of speed, scale, flexibility, and pricing.

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Source Fool.com