2018 Pica8 Inc. All Rights Reserved. Data Center, $10,3 Enterpri se, $8,2 Carrier, $2,8 SMB, $3,2 NETWORK EQUIPMENT MARKET CAP ($B) BY DELL'ORO GROUP NOS Market TAM § TAM of Enterprise NOS is $4.1B • Enterprise NOS is around 50% of equipment cost • The hardware platform takes the other $4.1B § Competition • Cisco dominated 80% of the Enterprise switch market • HP was a distant #2, around 10% of market share § Why cannot Juniper, Arista, Brocade, or Extreme compete with Cisco? • High software barrier – many have tried and failed • None are “open.” Same lock-in/costs as Cisco, so no incentive for customers to change • Difficult to build brand names on both high software quality and a scalable hardware supply chain 6