(Reuters) – Amazon.com 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 and other network gear makers such as Juniper Networks Inc 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.
Reporting by Arjun Panchadar in Bengaluru; Editing by Arun Koyyur