Amazon would enter the business of selling network equipment

AMAZON .- Shares of Cisco Systems Inc. and other network equipment makers dropped on Friday after a report that Amazon.com's cloud computing services are considering selling their own switches ( "switches") to business customers at much lower prices.

Cisco shares fell 4.3%, wiping out nearly $ 10 billion of market value. Those of Juniper Networks Inc. and Arista Networks Inc. decreased by 2.4% and 4.6% respectively.

The report arrives a few days after Amazon shocked the pharmaceutical distribution sector in deciding to buy the small pharmacy Line PillPack

devices will consist of open source software and unbranded material known as the "white box" switch and will have connections to Amazon Web Services (AWS) cloud services, such as AWS could encrypt these switches 70-80% less than comparable Cisco ones, according to the report, citing a person with direct knowledge of the plans.

AWS plans to release the switches for sale in the next 18 months, according to the report.

Amazon and Juniper had no representatives available to comment. Cisco and Arista declined the request for comment.