Amazon's cloud unit plans to sell own networking switches: The Information

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© Reuters. Amazon boxes are seen stacked for delivery in the Manhattan borough of New York City© Reuters. Amazon boxes are seen stacked for delivery in the Manhattan borough of New York City

(Reuters) – Amazon.com (NASDAQ:) Inc’s cloud services business is considering selling its own networking switches to business customers, the Information reported on Friday.

The devices will consist of open-source software and unbranded hardware known as “white-box” switches and come with built-in connections to AWS cloud services, such as servers and storage, the Information said.

Amazon Web Services could price its white-box switches 70-80 percent less than comparable switches from networking giant Cisco, the report said, citing one of the people with direct knowledge of the unit’s plan.

Shares of Cisco Systems Inc (NASDAQ:) and other network gear makers such as Juniper Networks Inc (NYSE:) and Arista Networks Inc fell between 3 percent and 5 percent after the report.

AWS expects to launch the switches for sale within the next 18 months, according to the report.

Amazon, Cisco and Juniper did not immediately respond to a request for comment. Arista declined to comment.

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