Juniper's Return to Relevance

                        Juniper's Return to Relevance

  PR Newswire

  NEW YORK, January 17, 2013

NEW YORK, January 17, 2013 /PRNewswire/ --

As industry shifts force leading rival Cisco to start diversifying, Juniper
looks to follow suit with red-hot software defined networks.

At a company event in Las Vegas, networking equipment manufacturer Juniper
Networks (NYSE: JNPR) [ Full Research Report ] ^[ ^1 ^] announced that they
will be rolling out a new strategy revolving around software defined networks
(SDN) in a few months. This comes after their $176 million acquisition of
little-known software networking start-up Contrail Systems in December, who
was set to develop SDN prior to the acquisition.

A Whole New Ballgame

The move is seen to help Juniper recover from a dismal year, after only raking
in $4.4 billion in its previous fiscal year, very small in comparison to
direct rival Cisco's $36.3 billion that same period. The latter had previously
diversified its offerings, including video, telephony, and computer switching
products, while the former specialized in switching gear to telephone
companies and ISPs.

The SDN market is seen to balloon from only about $360 million this year to an
estimated $3.7 billion by 2016, according to market intelligence firm IDC.
However a Techworld report warns that it could become something "like the
world cloud, which arguably has come to mean everything and nothing."

Industry Shifts to New Paradigm

Software defined networks will revolutionize computer networking as you know
it, by separating the data and control functions in routers and other
networking infrastructure, simplifying the adjustments of network
infrastructure when adding dozens or even hundreds of virtual machines to
enterprise data centers.

Most of networking's tedious chores, like security, can now be done on cheaper
servers and remotely programmed for different types of workload. Other
processes like delivering Internet addresses and balancing workloads around
the network can be done more easily as well.

"If you don't embrace the SDN model, you'll be in trouble," Juniper EVP Bob
Muglia told New York Times. He adds that their custom-built hardware would
still be attractive because they "make a network run faster than it could" on
commodity machines, countering popular belief that the new product could wipe
out Juniper's hardware business.

Juniper plans to sell the software based on usage, i.e. the amount of packets
going through a system and a number of people using the network, unlike its
core products that are being sold by the box. "We wanted something closer to
enterprise software licensing," Muglia told New York Times. "Network hardware
has no concept of perpetual usage."

Reference Links:

^[ ^1 ^] ^ The Full Research Report on Juniper Networks - including full
detailed breakdown, analyst ratings and price targets - is available to
download free of charge at: [ ]

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