Juniper Grows Networking Business on Strong Security and Switching

Wednesday Apr 26th 2017 by Sean Michael Kerner
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Juniper's first quarter fiscal 2017 financial results show how CEO Rami Rahim's plans are working out.

Juniper Networks reported its first quarter fiscal 2017 financial results on April 25, showing continued momentum in its switching and security business units.

Net revenue for the quarter was reported at $1.22 billion, for an 11 percent year-over-year gain. Juniper reported net income of $108.8 million, a 19 percent improvement over the first quarter of fiscal 2016. Looking forward, Juniper provided second quarter fiscal 2017 guidance for revenue to be approximately $1.28 billion.

On his company's earnings call with financial analysts, Juniper CEO Rami Rahim was particularly pleased with how switching performed during the quarter.

"In switching, we saw continued data center strength with our QFX products family, which once again grew over 50 percent year-over-year and continues to increase as a percentage of our overall switching portfolio mix," Rahim said. "We are seeing continued traction in our QFX portfolio as customers across all verticals move to 100-gig, where we have industry-leading products."

Rahim said that overall he's very pleased with the performance across switching products in the first quarter. He noted that a key driver of switching product performance is in the data center and has a lot to do with the deliberate focused strategy that Juniper had on the data center. Some of that focus is directly related to Juniper's push to help enable large cloud providers.

"Pretty much every one of our customer verticals now has a set of customers that's moving towards cloud architecture," Rahim said. "The heart of that is the data center."

Beyond the data center switching business which is where the QFX products fit, Juniper also has the EX product line for the enterprise and campus. Rahim said that Juniper has an ability to leverage technologies that it has developed primarily for the data center to help campus deployments as well.

"Think of our fabric technologies in innovative ways for the campus, and that is actually starting to help us provide some differentiation to our customers for larger campus environments," Rahim said. "For that reason, we actually saw some pretty good momentum in the EX business, which helped overall switching in the Q1 timeframe."

Juniper's security business is also being leveraged to boost switching as well. At the core of the product strategy is something Juniper calls the Software Define Secure Network (SDSN), which is about using a network infrastructure to improve security.

"It's about enabling our customers to use their network infrastructure in an intelligent way to provide a secure fabric, a very secure fabric to prevent essentially their infrastructure, their data, their workloads from being compromised," Rahim said. "That is essentially enabling us to sell Security along with Routing and Switching in the data center or in the campus."

Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist.

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