Arista Networks, Inc.

Arista Networks builds high‑performance networking systems and software for cloud, data‑center and campus environments. Its core model combines merchant‑silicon switches and routers with the Linux‑based Extensible Operating System (EOS) and recurring post‑contract support (PCS) to generate hardware sales, software licenses and services revenue sold through direct and channel routes.^[1]

Business Segments

• Data‑center and cloud networking hardware (switches, routers): primary product revenue; accounted for ~84.8% of revenue.^[2]
• Services and support (post‑contract support, maintenance, professional services): recurring revenue stream; ~15.2% of revenue.^[2]
• Geographic mix: majority of revenue from the Americas (~79%), with EMEA and Asia‑Pacific the smaller regional contributions.^[2]

Competitive Position

• Strong software‑led differentiation: EOS (a single, modular Linux‑based NOS) and ecosystem integrations create operational consistency and automation advantages versus many competitors.^[3]
• Hyperscaler and enterprise customer base: scale relationships with large cloud providers and institutions drive volume and referenceability, supporting premium positioning in high‑performance segments.^[3]

Investment Considerations

• Opportunity — software and recurring revenue leverage: shifting mix toward software, network applications and PCS can boost margin stability and increase lifetime value per customer.^[2]
• Opportunity — structural demand from cloud and AI infrastructure: large‑scale compute clusters are bandwidth‑intensive, favoring vendors with high‑performance switching and systems integration capabilities.^[3]
• Risk — customer concentration and order timing: sizeable purchases from a limited set of large customers can cause revenue volatility if purchase timing shifts or concentrations decline.^[2]
• Risk — competitive and pricing pressure: entrenched incumbents, white‑box alternatives and rapid technology cycles can compress switching margins and require continued R&D investment.^[2]