Big Switch Networks
2020
Outcome
Integrated into Arista CloudVision, creating the CloudVision DANZ (Data Analyzer) observability and telemetry suite.
Arista Networks
Acquisitions
Arista Networks Acquisitions
3
Major Deals Covered
What are Arista Networks's biggest acquisitions?
This page covers 3 major deals from 2018 to 2020, each with its price where disclosed and the reason behind it.
- Major deals covered
- 3
- First deal
- 2018
- Most recent
- 2020
| Company | Year | Price | Purpose |
|---|---|---|---|
| Big Switch Networks | 2020 | Undisclosed | Acquired pioneer in software-defined networking (SDN) and network packet brokers to enhance network observability. |
| Awake Security | 2020 | Undisclosed | Acquired AI-driven network detection and response (NDR) cybersecurity platform to detect autonomous insider threats. |
| Mojo Networks | 2018 | Undisclosed | Acquired pioneer in cognitive cloud Wi-Fi to enter enterprise campus and wireless local area networking. |
- What companies has Arista Networks bought?
- Major acquisitions by Arista Networks documented here include Big Switch Networks (2020), Awake Security (2020) and Mojo Networks (2018).
- What is Arista Networks's most recent acquisition?
- The most recent Arista Networks acquisition documented here is Big Switch Networks, in 2020.
Awake Security
2020
Outcome
Formed Arista's autonomous security division, providing zero-trust threat monitoring across campus and cloud networks.
Mojo Networks
2018
Outcome
Enabled Arista to expand beyond datacenter core switching into enterprise campus Wi-Fi and edge access points.
Arista Networks's Growth & Acquisition Strategy
Arista Networks's forward growth strategy centers on three extensive expansion vectors: AI Datacenter Networking (AI Spine), Enterprise Campus switching expansion, and Zero-Trust cloud security. In AI networking, Arista is deploying its Etherlink 800G portfolio, designed specifically to connect clusters of up to 100,000 GPUs with optimized packet delivery that rivals or exceeds Nvidia InfiniBand performance at substantially lower total cost of ownership. In the enterprise campus, Arista is taking significant market share from Cisco, targeting Fortune 500 campus networks and healthcare systems with CloudVision automated management. Concurrently, Arista is integrating AI-driven network observability to detect cyber threats and network bottlenecks autonomously.
How Arista Networks Makes Money
Arista Networks generates revenue through the sale of high-performance networking switching and routing hardware, recurring software licenses, and cloud management software subscriptions. Product sales account for approximately 85% of total revenue, driven by volume deployments of 100G, 400G, and 800G switches to "Cloud Titans" (such as Microsoft and Meta, which together account for a significant share of revenue) and enterprise financial institutions. Software and service subscriptions represent the remaining 15%, generating high-margin recurring income from CloudVision automation software, EOS feature licenses, and multi-year customer technical support contracts. By utilizing merchant silicon (from Broadcom) rather than designing expensive proprietary custom ASICs, Arista captures high software margins while rapidly adopting each next-generation silicon networking node.
Arista Networks Acquisitions FAQ
Does Arista Networks acquire other companies?
Yes, Arista Networks executes targeted acquisitions to integrate complementary technologies, expand intellectual property, and enter new market verticals.
What is Arista Networks's acquisition strategy?
Arista Networks focuses on bolt-on acquisitions that can be rapidly integrated into its core technology architecture and commercial distribution channels.
How does Arista Networks fund its acquisitions?
Acquisitions are typically funded through cash from operations, revolving credit facilities, and strategic equity considerations.
What was one of Arista Networks's notable acquisitions?
Arista Networks has acquired specialized technology assets that enhance its core platform capabilities and expand its addressable customer base.
How does Arista Networks handle post-merger integration?
By migrating acquired codebases into its unified cloud infrastructure and retaining key engineering talent within specialized innovation pods.
Are acquisitions a primary or secondary growth driver?
Inorganic growth is secondary to robust organic product development, serving as a tactical accelerator for specific strategic capabilities.
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