Operational Costs Compared: SG&A Analysis of Cisco Systems, Inc. and Arista Networks, Inc.

A Tale of Two Giants: SG&A Expenses in the Tech Industry

In the ever-evolving tech landscape, operational efficiency is paramount. This analysis delves into the Selling, General, and Administrative (SG&A) expenses of two industry titans: Cisco Systems, Inc. and Arista Networks, Inc., from 2014 to 2023. Over this decade, Cisco's SG&A expenses have consistently dwarfed those of Arista, reflecting its expansive global operations. In 2023, Cisco's expenses reached approximately $12.4 billion, a 10% increase from 2020, showcasing its strategic investments in innovation and market expansion. Meanwhile, Arista's expenses grew by a staggering 340% over the same period, peaking at $518 million in 2023. This rapid growth underscores Arista's aggressive market penetration and scaling efforts. Notably, data for 2024 is incomplete, highlighting the dynamic nature of financial reporting. This comparison offers a window into the strategic priorities and operational scales of these tech powerhouses.