Arista Networks at Deutsche Bank’s 2025 Technology Conference: Revenue Guidance Boost

On Wednesday, 27 August 2025, Arista Networks (NYSE:ANET) presented at Deutsche Bank’s 2025 Technology Conference, providing a strategic overview of its advancements in cloud networking and AI infrastructure. The company announced a significant increase in revenue guidance, while also addressing challenges in the competitive landscape and operational efficiencies. Despite a cautious approach to some technologies, Arista’s leadership expressed confidence in its growth trajectory.

Key Takeaways

• Arista Networks raised its revenue guidance by approximately $550 million, with $50 million attributed to the recent VeloCloud acquisition.
• The company is focusing on next-generation technologies like 200 gig service-based products and 1.6T, while also reducing power consumption.
• Partnerships with large customers and an emphasis on software-defined networking provide a competitive advantage.
• Arista is expanding its presence in the enterprise campus market, a $30 billion total addressable market (TAM).
• The company is cautiously evaluating co-packaged optics, driven by customer demand and operational considerations.

Financial Results

• Arista Networks raised its revenue guidance by about $550 million.
• The VeloCloud acquisition contributed at least $50 million to this increase.
• The remaining $500 million is driven by growth in general-purpose data centers, AI, and other use cases.

Operational Updates

• AI Spend: Arista plans to provide combined guidance for front-end and back-end AI networks in 2026, with a clear definition for the back-end network connecting to GPUs.
• Technology Focus: Priorities include developing 200 gig and 1.6T products, with an emphasis on reducing power consumption through technologies like LPO and NPO.
• Ethernet Dominance: Ethernet is gaining prominence in scale-out networks due to its scalability and openness, with future opportunities in scale-up networks.
• Broadcom Relationship: The Jericho 4 chip enhances Arista’s scale-out opportunities, complementing the Tomahawk chips.
• Supply Chain: Manufacturing diversity in Asia, Malaysia, Vietnam, and Mexico ensures supply chain resilience amid ongoing chip lead time challenges.

Future Outlook

• Campus Opportunity: Arista sees significant growth potential in the campus market, leveraging the VeloCloud acquisition to enhance branch solutions.
• Analyst Day Preview: Upcoming discussions will cover technology updates, differentiation, and insights into 2026, with a focus on Blue Box.

Q&A Highlights

• AI Product Margins: Margins depend more on customer volume pricing than on the product itself.
• Channel Relationships: Channel enablement for the mid-market is in its early stages, with a focus on empowering partners to target medium-sized businesses.

For a deeper understanding, readers are encouraged to refer to the full conference call transcript.

Full transcript - Deutsche Bank’s 2025 Technology Conference:

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Great. Thank you. Thanks, everybody. I’m Amy Sutter, Deutsche Bank’s TMT specialist and I’m very excited to host this discussion with Arista Networks, obviously, a company that’s at the center of cloud networking and increasingly AI infrastructure. And today, I have Mark Foss sitting next to me, who is SVP of Global Operations and Marketing and Hardev Singh, General Manager of Cloud Titans and AI Platforms, so very popular topic.

So maybe just to start to get a little from both of you, maybe if you could both just talk about some of the top priorities you’re most focused on today and where have you been spending most of your time? Know it’s

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: different. Personally?

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Yes. Personally, okay. Personally.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Yes. I wear a lot of hats at Arista, but I’m more focused on the enterprise side of things. And for us, one of our biggest growth areas is the campus market, the enterprise campus market that’s connecting to users. And we’re really focused on not only going after large enterprise customers, but one of the focuses that I am working on right now is enabling channel partners to help us on go to market for going after kind of medium sized campuses and that’s kind of a big initiative for us. That’s me in a nutshell.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: In my role, I work closely with our large customers to really understanding the requirements, their roadmaps, their challenges and then really partnering with them to align our roadmap on products kind of really be in lockstep with them to define our future products. So that’s where I spend most of my time.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Yes. And I know we’ll go into that more. So I mean on your last earnings call, you raised your revenue guidance by roughly $550,000,000 And I think investors were very excited about that. I mean how much of that revenue is attributable to these AI cloud titan customers? And maybe just help us understand like your visibility there and the deployment cycles you’re seeing?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Yes. We didn’t break out exactly what the $550,000,000 was attributed to. I think we said that 50,000,000 of at least 50,000,000 of that was kind of our VeloCloud acquisition that we just did. But the other 500,000,000 will be a combination of all of our business, be it from general purpose data center to AI to other use cases, but we didn’t exactly break that out. But momentum is pretty strong as we alluded to on our call.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Is visibility different with enterprise versus cloud titan, do you think?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: It can be. Oftentimes, it depends on visibility is oftentimes directly correlated to lead times of the product. And generally oftentimes, the cloud titans will buy our higher end products, which generally have longer lead times. So generally, get visibility as to how long your lead times are in there. So I’d say it’s more product related than company related, but because the cloud titans consume a lot of our high end products, we’re probably getting a little more visibility from them at this moment, but that can change.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay. And maybe just on the AI spend, you’ve been talking about front back end and maybe there’s like historically maybe been a one to one ratio, but it seems like the distinction is blurring somewhat. I know I talked we did an IR hosted call last week and this is something that a lot of investors were talking about. So maybe if you could talk about that from your perspective, Harv, a little bit, so help us understand when you’re working with customers, the front end versus back end?

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Yes. When we look at back end, it’s very crisp and clear. It’s the network that’s connecting to the GPUs, right. So that’s why even the guidance Jayshree or Ista is giving, like we have a clear visibility on that portion of the network that’s connecting to the GPUs. Front end, it gets a bit fuzzy and the reason is, yes, you hear of ratios like one:one, even one:two, sometimes one:three and the reason is because front end you have connectivity to the general purpose cloud, you have storage in there, you have connectivity to the WAN, you have some compute there to feed that data into the backend for training or inferencing.

So and then depending on how a vendor is counting that front end, you could have some variability there in fuzzy math. Okay. That’s why you see that the ratio kind of having this wide band. And

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: I think for 2026, I think we’ve said that we’re probably only going to give one number. We’re going to combine the two. I mean on the front end side, front end, even our customers have said, we can’t tell the difference because the same products that go into oftentimes supporting the AI cluster versus the general compute and our customers say they don’t even know the difference. So if the customers don’t know the difference, then we can’t either. So that’s why we’re just going to give kind of one guidance number for 2026.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay, great. And then maybe just we have seen large increases in CapEx, especially from Meta has been had a huge increase in CapEx. And like when you like how maybe talk a little bit about the relationship with some of your larger customers, what kind of visibility you have into their plans? And then you did, Hardik, talk about like how tight that relationship is. So maybe a little bit you can clarify a little bit like how that relationship works in terms of their planning around their CapEx spend and what visibility you have and what part role you have in terms of helping?

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: I mean, my view on the CapEx spend is that from when they announce the CapEx to when it kind of hits vendors like us, is a lag, right. Most of the CapEx is probably going into securing power, sites, construction and there is a lag there. It could take anywhere from twelve to eighteen months before you bring in the network. But working closely with them, the priorities are really around next gen 200 gig service based products, 1.6 products. The priority is around reducing power.

So what are the other technologies like LPO, NPO, So co packaged that’s where most of the engagement is with them.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: And from a close partnership standpoint, right.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: And

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: so the visibility can be year out kind of thing?

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Yes, can be because these technologies are really kind of cutting edge. Liquid cooling is another very important aspect of technology that we’re working on, right. So liquid cooling is there in compute today, right. And I think in the future with these new data centers could be 100 liquid cooled. At that point, you have to the network needs to be liquid cooled as well.

So liquid cooling, 200 gig service based next gen 1.6 product, optical interconnect with these new LPO, NPO, CPC technologies probably Great. The top three I would

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: And then maybe let’s talk a little bit about scale out versus scale up networks And can you maybe just for some investors that don’t understand the difference between scale out versus scale up networking models, could you explain the difference? And then maybe how is what’s your opportunity across both?

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Really straightforward. Scale out is the network that connects hundreds of thousands of these GPU servers or racks, right. That’s traditionally been InfiniBand. When it started heavily now Ethernet. Right.

Scale up is the network that is connecting the GPUs within a rack or a server, right. The incumbent player is NVIDIA. We have a proprietary solution, which is NVLink and NVSwitch. As the ecosystem of these accelerators increase to let’s say AMD or custom accelerators from the hyperscalers as that share kind of widens, there is a new opportunity for scale up networking for Ethernet vendors such as Arista. So it’s a new TAM that will open up, but it’s still slightly out from a horizon point of view.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Right, right. I mean, is I think, so you talk about Ethernet versus InfiniBand and the opportunity being as maybe customers are using custom ASICs or they’re using an alternative to NVIDIA, like is that the main reason then why people would be adopting more Ethernet in scale up?

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Ethernet scales. Ethernet is open. Right.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: You can dual source Ethernet too. The smartest customers

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: don’t want proprietary solutions.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Right.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: So and now we hear the AI cluster sizes from hundreds of thousands of GPUs to even a million, right? You hear some of the cloud titans talk about clusters that could potentially go to a million. At that point, Ethernet provides the scale, openness of the ecosystem and then it just gets complex, more and more complex from a software development perspective, the features around congestion management, load balancing, visibility, customers really care about that and Ethernet really has been there and continues to solve all those. Right.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Customers in general are just more familiar with Ethernet,

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: right? Right.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: They are just that’s just they know InfiniBand, they oftentimes don’t have any expertise on them, they don’t want to have the learning curve to do that. It’s also beneficial to have Ethernet everywhere as well versus having to manage an island technology. So it’s just people just prefer to have the simplicity.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: So it sounds like heterogeneous using different ASICs or alternative to NVIDIA that’s driving some adoption of Ethernet, but then also there is other things that are driving Ethernet. So we are starting to really hit that knee in the curve, I guess?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Yes. I think InfiniBand was originally NVIDIA really kind of bundled the InfiniBand oftentimes with their GPUs and that strategy worked early on, but then customers realized that they have choice and Ethernet interconnect has just the same performance and guess what I am familiar with it and I can manage it easier. So, I am with Ethernet and the really large scale, there is also a scale limitation on InfiniBand as well. If you want to go up over 50,000, 100,000 GPUs, you’re going to want Ethernet. So that was also a consideration for the large cloud guys, especially who wanted to had aspirations to go above and beyond.

They don’t want a limitation. There’s no limitation on Ethernet.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Yes. I think the debate between Ethernet and InfiniBand is over. I think Ethernet has won there for scale out. I think the next opportunity for Ethernet is to now go after scale up.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay, great. Okay. And then maybe one big question, I think that I’ve heard many times before is just the competitive environment. And the one thing you mentioned part of is like your relationship with your large customers and how you’re thinking working with them from an engineering standpoint. Maybe if we could talk a little bit about white box then versus your traditional competition with Cisco or and now HPE, how that’s been evolving?

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: I can start, Mark,

think the landscape is still the same, Amy. It’s not changed. There are roles where it’s complex from a network architecture, from a product standpoint and the large customers always want sometimes two, even three vendors, right, in a role. So the competition has always existed, whether it’s branded vendors or white box, we’ll continue to be that way and we continue to participate there, show our value and win our fair share.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Yes. Rich is primarily our primary value proposition and why our company exists to begin with and our main pillar for our growth has been our software. Arista is a software company and customers really value that. I mean we’re really the only vendor out there that has an operating system that was designed and deployed in the as a twenty first century operating system. These other operating systems from other vendors were either 80s or 1990s architectures.

So customers see a lot of value there. But as Hardev mentioned, most of these large guys want a dual source and they’ll take these other vendors as a second source, but oftentimes they want to dual source using the same chip. So they’ll use the same they’ll standardize on one Broadcom chip and then they’ll use two vendors that use that same chip, but then they’ll have different operating systems of course in different switches. But it’s hard to mention there’s not a lot of change in those strategies over the last six months

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: or so.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: With the acquisition of Juniper by HP, have you seen a lot of

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: I think what we saw when there was when they were in limbo and there was the for that year that went on where HP announced the intention to announce Juniper wasn’t actually finalized, there is a lot of uncertainty in the market there and uncertainty is not really a thing for customers. They don’t really they are kind of thinking well, are these products going be around for the long term or not. So I think now that, that’s closed, I think that will definitely help them, but for that one year period where it was in limbo, I think that created a lot of uncertainty in the market.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Great. Yes, okay. Okay, maybe to talk a little bit about Broad com and the relationship there. Just on the Jericho four chip, how does that enhance the scale out opportunity for Arista? And what advantages does that give you versus competition?

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Broadcom is a great partner. Whenever you look at a new generation of speeds to have the full kind of network portfolio, you want to have a mix of different chips, right, Tomahawk and Jericho. In the current 800 gig generation, you can think of the Tomahawk five, right, and the Jericho three. The Jericho four now complements the Tomahawk both those chips are based on 200 gig service. So when customers are going to look to build their not just AI, their classic data centers, you want to have the same service across, we will have the same kind of architecture and we build the product with the Jericho four, which will suit the AI lead, AI spine, interconnect, data center interconnect, so it kind of helps us complete that portfolio around that same speed.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay. And then with Tomahawk six, which are you seeing trials right now with that?

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Very early. The chip has just started sampling. I think the earliest we could probably foresee product, probably second half ’twenty six.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay. And then maybe just let’s talk about co packaged optics, just like what do you think about the advantages and disadvantages of that opportunity? And where does Arista stand on CPO?

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: I want to start by saying that CPU as a technology is not new. It has been there for at least two or three generations and the promise of CPO, which is same by the way for LPO is how do I bring the power and the cost down for my interconnect, right, with these AI clusters obviously now that interconnect is very large, right, you’re talking massive size clusters need thousands of these switches and then tens of thousands of these optics. That’s the promise or that’s the goal that these technologies are trying to solve. Where CPU has challenges is around serviceability and the whole operation side of things, right. Pluggable optics, you get different speeds, port fails, you replace it, you have different vendors to choose from.

CPO, your failure domain will go from one port to the whole switch, right, like 800 gig versus 51T worth of bandwidth, right. So we continue to evaluate their technology. We still feel confident that LPO or newer technologies like near packaged optics or co packaged copper are technologies out there that will help the goal, which is to reduce power and cost.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: We will continue to evaluate. And we are agnostic to what if the customer demands it, we will build it and provide it. So we are pretty much agnostic to the technology, but myself personally and a number of other executives at Arista, we went through this exercise twenty five years ago where it wasn’t clear when gigabit Ethernet was coming out and it was like is it co packaged gigabit Ethernet or is it plugable Ethernet and we didn’t know then what it was going to be. And it turned out that for gigabit Ethernet at least going on to ten, four thousand one hundred, pluggables just blew the doors off of co packaged. And we’ll see if that trend holds true in this situation here, but generally, past can oftentimes be a pretty good indicator of the future.

But again, we’re agnostic if customers want to buy co packaged stuff, we’ll provide it.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay. I mean, I guess like if, I mean, we start we’re starting to see more and more CPO products come out. Do you just think that how long will how long do you think it takes for customers to maybe look at adoption? Is this like a year?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Depends on the customer. I mean, generally, they’ll trial things for like three or six months oftentimes, it depends, but Yes.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: I think there are two aspects. One is the technology being ready in terms of product offering. And second to see once it’s deployed in some certain scale to see how the TCO performs from operations and serviceability and failures. I think there’s two step kind of phases there to kind of then come out and say, yes, this technology works and then you would probably see the takeoff of large deployment.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: And so when you start to see like successful deployments, that’s when Arista would say like, well, maybe we need this is what our customers are asking for, so we’ll?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Yes. Yes. We base everything on what customers want.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: I’d say at least a couple of years out.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay. Yes. You talked about 25 to 30 enterprise and neo cloud customers adopting AI so far. Can we talk about the ramp of those customers? What are some of the main workloads use cases that they’re going after?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: A wide variety. If I had to say a trend, a lot of these guys are providing kind of AI as a service model, they’d be like maybe a start up or someone who’s just wanting to build out an AI cluster that they could provide that they can actually charge for a service, that’s one model I am seeing. We are always seeing others as well.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Yes, GPU as a service, sometimes building capacity in certain regions for large customers, sovereign clouds, maybe government mandated to where you have a customer already for what you’re going to build, so a lot of activity there. The architecture is very similar to let’s say the large customers or the cloud titans just that the scale is smaller. We see a lot of inferencing use cases. We see diversity of GPUs. It’s a fun space and it’s exciting.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: What are some of the challenges that you see? Is it maybe because they’re not the cloud titans that are so experienced with large data centers or perhaps funding or just curious what some of the challenges that you might be seeing and does it offer opportunities to really go in there and help from an engineering standpoint that might be differentiated?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: One thing that stands out and Hardev probably has a lot more information than I do is the ability to get power. So they have there was one large one that we talked about on our conference calls previously that they were had an ability get power and they ended up getting some delayed fundings, that’s a big issue.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: There’s a lot of other Yes. And these customers also care about the performance out of their network, right? I mean, are large investments and to get the best performance out of the GPU, they really want the best of breed network. And I think they are looking at Arista to provide that that capability, that differentiation, the software stack that we have, the bunch of features we’ve developed around load balancing, telemetry and then the viewers as okay these guys are participating and running one of the largest some of the largest AI clusters and we get a fair share on the table to participate on those opportunities.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: And if there is some places you will see bundling and stuff and those opportunities we don’t participate in, but otherwise we do.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay. I was going to ask where are we in the upgrade cycle to higher speed ports like 100 gig? Or

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Yes, there is always many upgrade cycles going on. They never end, but I guess starting the lower speed, I mean the transition to gigabit to 10 gig is almost done. There is very little gigabit going on anymore. There is a transition going on from 10 to 25 currently, but it’s still 10 gig is still at least 4x the size of 25 gig, but that’s happening. Then there’s the 40 gig to 100 gig transition, which is complete.

There’s pretty much 40 gig is now pretty much dead. There’s no deployments going up for 40 gig. 200 gig is there’s primarily one customer in the world that’s deploying a lot of 200 gig. There’s not a lot of other customers beyond this one customer, which is deploying 200 gig. That’s kind a one off for 200 gig.

But then on the higher speeds, we’re definitely seeing some 400 gig, I think, is fairly close to 100 gig. There was a transition from 100 gig to 400 gig and that’s fairly close now. I think you are starting to see 100 gig peak a little bit. 400 gig is starting to, I think, have more momentum there. And then the one that’s growing the fastest right now is 800 gig.

The 800 gig has only been out shipping for like a year and pretty much all of the new AI if someone’s bidding on a new AI project, it’s always 800 gig. So 800 gig is growing the fastest, but it’s the newest and the smallest, but anyway, there’s a lot of dynamics going on there.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: And the trend I see, again, with the large customers is that all this traffic from AI is having a knock on positive effect on the classic, if you will, data center, right. So it’s forcing some of the speed upgrades to accelerate.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay. Yes. Guess also then to talk about how important your observability in Zero Trust security solutions are for customers in AI use cases? Yes.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Yes, security is very important, but observability is key. Think once going back to the same point as these cluster sizes become large, having good telemetry, good visibility into where I’m having network issues with this size of clusters, things are going to fail, right. Meta put out a paper where they like the biggest link flaps or ports coming down was due to optics failures, right, where due to HBM memory corruption errors on the GPUs. So having visibility there and then to quickly get the ports back up really reduces the overall job completion time for them, which is a direct correlation to revenue for them. So they really care about visibility, observability and that’s where with Ethernet and Arista, we have a great portfolio of features in a software stack to address those challenges.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Is it typically then and where observability always comes from the networking aspect of the

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Yes, networking plays a very key role and CloudVision, which is our management platform provides that visibility for the customers not only in the network, we go all the way down to the NIC on the GPU. Okay. So you get an end to end visibility of the AI cluster through the interconnect, through the backbone in one dashboard, which is CloudVision.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Great. Okay. So maybe let’s talk a little bit about sovereign cloud and service providers. So there was no sovereign cloud contribution expected in 2025. I mean, do we see that market developing?

And what do you think helps gain share?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Definitely, cloud opportunities out there and we’re involved in those. I think if you compare the sovereign cloud spend to what like a cloud titan were to spend on AI, it kind of dwarfs it. So I think it’s not about the number of opportunities, more of like what the scale is. Generally, I don’t think there is a sovereign cloud that I have heard of that’s planning on going over 100,000 GPUs, but there is a number of others that are doing that. So I think it’s not about the number, but it’s more about the size.

I think

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: you said no contribution from Arista from Sovereign Clouds in 2025. That’s not true. Okay. In fact, if you see when Jayshree spoke about our we started with five customers to four, we’re still very confident on our seven fifty number.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Right.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: And a lot of that is kind of coming from these 25 to 30 other customers out of the top four that we talk about and where sovereign clouds are part of that.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay. And then maybe on service providers, which parts of your product portfolio are best aligned with their needs from what you’re seeing today?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Surfer Thunder side, it’s kind of our fifth out of five verticals that we do. We generally do very well in the service provider space if they’re building kind of a data center architecture to support their infrastructure, and we do very well there. They also use us for routing use cases and oftentimes they will use us for like an MSP service, that’s where the VeloCloud stuff comes in. They will oftentimes use our WiFi sometimes for a service as well, but there is a variety of use cases in those goods.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Yes, the classic service provider in my view is slightly on the decline from a TAM perspective, but I think our portfolio of products with our 7,800 routers both fixed and chassis form factor play well into that space and we continue to compete in that market.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: How is market share for you continue to gain share like the primary share? Do we break

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: it down or talk about it?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Think it’s broken down by region or by customer type.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: And then I think are you seeing I think tariff uncertainty is kind of come and gone, but are you seeing any impact from a customer buying perspective? Is it still part of the conversation with customers?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: It can be, because it could be a very fluid situation. Obviously, there’s a lot of uncertainty six months ago, and that’s one of the reasons why we didn’t change our full year guidance last or two quarters ago versus last quarter, because we were uncertain what’s going happen in tariffs. Fortunately, we are covered under the USMCA exemption and under the communications equipment exemptions for tariffs right now. So our tariff impact has been immaterial. So we haven’t had to make any changes there, which has been good.

But as we have seen, the tariff situation can change very quickly. So we are definitely watching it closely. And customers will ask about do we see any risk there, but again we just say what I just told you, it’s very fluid and we are just we will continue to react when it happens.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: How is the supply chain? I mean, we’ve come in and out of an inventory situation also. I mean, is it pretty not having an impact in terms of delivering product to customers? Maybe it’s I think from a cloud titan perspective, you might have talked about like their power issue is like their bottleneck,

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: but

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: it doesn’t seem like there is many supply chain issues.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: The supply chain continues to get better post COVID. I think one of the big changes is that the chips that we use, those lead times have come down on that, but they haven’t come down to post to pre COVID levels yet. I think that’s kind of one aspect of the supply chain, which is still an issue for us, but supply chain is never over. There is always some kind of a shortage or there is always some kind of surplus of things and it’s always something we work on a daily basis.

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Yes, I think we are well positioned from a manufacturing supply chain in terms of diversity. We have contract manufacturing in Asia, Malaysia, Vietnam and then Mexico and then we use three or four different contract manufacturers and there is fungibility there in terms of products. So I would say we are well positioned address any kind of foreseen increases in demand.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: I want to check if there’s any questions from the audience just in case. We do have a microphone. Okay. And then maybe on the margin side, is there a big how should we think about AI product margins? Is it more dependent on the customer or the product?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Definitely the customer. Generally, we generally, ERISA does volume pricing. So the largest customers have the most spend at

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: the best

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: prices. And right now, AI is a pretty concentrated market. It’s generally the largest customers that are buying a lot of AI.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Right.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: So yes, it’s definitely customer versus product.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Okay.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: And

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: then maybe you mentioned this, we’ll talk about the campus opportunity. Yes,

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: my favorite subject.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Yes. So you’d raised your target.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Yes.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Kind of maybe talk about what’s driving that increase there?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Yes. For us, the $50,000,000 increase was really because of our VeloCloud acquisition that completed July 1. So, extra $50,000,000 was really because Velo really rounds out our branch solution. We have the PoE switches and the Wi Fi, which can go in the branch, but the WAN optimization for the branch was a piece that was really missing and Velo really fits in there and really smooth that out for us. But the campus is just I am so excited about it, because in 2025, some of the analysts were saying that data center is a $30,000,000,000 TAM, but they are also saying that campus is also a $30,000,000,000 TAM, so the same size of TAM.

However, from a market share perspective, Arista is small low single digits right now in terms of share of campus, while we are kind of 30% share in data center. So we have a bigger runway, I guess, for growth, multiyear runway for growth in terms of campus. So it’s an area which people don’t talk about a lot, but it’s an area of our biggest TAM. So when people ask about it, I get really excited about it.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: I guess like in terms of market share opportunities, how do you see that playing out? Is it a go to market as well or does VeloCloud also maybe accelerate the opportunity to gain share?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Yes. So, VeloCloud definitely helps us. I would say that but half of the TAM of the campus market is large enterprise, meaning Fortune 500, Global 2,000 and we focus on direct touch to the end customer for those opportunities, which we are really good at, because it’s the same guys that sell data center, which is great. Then on the small side of things, we don’t really focus in that market, which is maybe 20% or 25% of the market, but the other 25% of the market, which is medium business, that’s an area of focus for us as well, but we’re our go to market is more on the channel side. So one of my big jobs right now is to focus on enabling channel partners to help enable them to bring business to us, kind of on the medium business side of campus.

And that’s really big, because there’s essentially 1,000,000 campuses on planet earth. Your sales force can’t scale to have that coverage. You need channel partners in the ground to help you and that’s been a big focus of ours.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: And I guess where would you say on the relationships with the channel, like where are you kind of on a trajectory of like first inning to ninth inning in terms those relationships and seeing the benefit in market share?

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Yes. No, for channel enablement, it’s still I think it’s still fairly early. Think a big chunk of our business is the channel oftentimes plays a fulfillment role for large enterprise, but our focus is to get them to do the heavy lifting and enable them to go after the mid market and be very independent. And we are having some success there, but I think it’s still early and you could tell by our share number basis, there’s a lot of room to go and that’s a big opportunity for us. Great.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Well, you. I know we’re getting kind of close to the end, but I know you have the Analyst Day coming up. Anything you want to leave us with to entice us to be sure we’re?

Hardev Singh, General Manager of Cloud Titans and AI Platforms, Arista Networks: Well, there will definitely be some technology updates, how we differentiate in the market and then maybe some insights into next

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: year’s Yes, I think guide or probably we’ll talk about 2026. I think there’s lot of equipment, a lot of questions on Blue Box. I know for a fact that we’re going to be talking a lot about Blue Box and go in-depth on that. So that will be exciting.

Amy Sutter, Deutsche Bank’s TMT specialist, Deutsche Bank: Great. Well, thank you guys so much for participating.

Mark Foss, SVP of Global Operations and Marketing, Arista Networks: Thank Thanks for having us. Thank you.

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