Arista Networks: A Hidden Gem in the Cloud Business

By now, it should be apparent that the world is moving towards cloud-based systems and investors are well-versed in companies specializing in cloud infrastructure such as Amazon, Microsoft, and Google. Likewise, data center real estate has been highly prized by investors.

Cloud infrastructure entails more than just software and services. Often overlooked are the hardware components necessary to operate a cloud environment. In addition to servers and chips, routers and switches are essential for network management.

Arista (ANET) is a company that specializes in providing premium-grade switches, routers, and systems to manage the hardware components of cloud infrastructure.

To better understand the role of these devices, let's use an analogy.

Think of a network as a city with roads, and the data flowing through them as vehicles. To keep traffic flowing smoothly, traffic lights regulate the flow of cars, while in a network, switches perform a similar function by controlling the flow of data packets between devices.

Drivers rely on GPS to find the best route to their destination, and similarly, routers determine the optimal path for data packets to travel from one network to another.

Lastly, authorities in a city require a central control system to manage traffic and monitor the working conditions of traffic lights. In a network, a Software Defined Networking (SDN) solution serves as a central control system, allowing network administrators to manage network congestion and allocate network resources as needed.

In essence, Arista is a premier provider of traffic lights (switches), GPS systems (routers), and a traffic control system module (SDN) for a city (data center). Its customers include both large technology companies and small to medium-sized enterprises that operate their own networks.