A new marketing alliance between enterprise IT leader Hewlett Packard Enterprise Co. (HPE) and cloud-based networking company Arista Networks Inc. (ANET) could seriously hinder industry leader Cisco Systems Inc. (CSCO), a major competitor to both firms.

The news comes as Santa Clara, Calif.-based Arista, formed by a team of former Cisco executives, continues its multi-year legal battle with the San Jose, Calif.-based market leader. While Cisco has seen its core routing and switching segments decline, Arista has posted data center switching gains, with recent data from Dell’Oro Group indicating it grew its market share from 7.9% one year ago to 9.5% in the December quarter. (See also: Behind the Cisco-Arista Battle.)

Barclays Hike Arista’s Price Target

On Wednesday, Analysts at Barclays investment bank upped Arista’s price target from $125 to $148, indicating the firm is “leveraging its partnership with HPE for greater telco service provider exposure.” After meeting with HPE management at the recent Mobile World Congress in Barcelona, Spain, Barclay’s Mark Moskowitz says he foresees the technology partnership resulting in “meaningful revenue generation this year.”

“The HP Enterprise partnership is more than just window dressing,” said Moskowitz. “Our conversations with industry participants suggest there is real muscle behind this budding partnership.”

Various reports over the recent period have indicated HPE could look to strengthen its alliance with Cisco’s up-and-coming competitor by an outright acquisition of Arista. Coming in hot to 2017 with a buyout spree targeting hybrid IT companies in growth industries, such as hyperconverged infrastructure and the cloud, the deal could make sense for the old-guard tech company HPE as it continues with its transformation plan. (See also: Cisco Rival Arista Stock Climbs on Q4 Beat.)

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