“Ultimately cloud is not just a market segment. When people think cloud, they think AWS, Azure and Google. Certainly, these are companies that have built their entire businesses around cloud-service delivery models but I view cloud as a way of life for every customer across every vertical. CIOs of enterprises wake up in the morning and wonder how they are going to protect their companies from disruption that’s happening outside of their four walls and do so while they don’t really have unlimited budgets and most of their employees are stuck in just keeping the lights on. Up to 80, 90% of the IT of an enterprise company are just keeping status quo running. That’s not a recipe for success,” said Juniper CEO Rami Rahim.
Expansion into Cloud Majors is a priority as it’s seen as the growth driver of enterprise digitalization:
– Accelerated enterprise shift of workloads into public clouds
– Direct Cloud connectivity drives growth in MX edge routers
– Two-sided business opportunity: Cloud + Enterprise WAN
Growth driver of 400G core upgrades
– Comprehensive 400G fixed & modular platform portfolio
– Investment in custom, high-performance Triton silicon for 400Gb/sec
• >100 customers for 400Gb/sec WAN solutions
Speaking at the JP Morgan 49th Annual Global Technology, Media and Communications conference today, Rahim said that the company’s enterprise business has never been as strong as it is today and he attributes much of that strength to the company’s AI-driven enterprise strategy.
“AI-driven enterprise is not just a marketing slogan,” Rahim said. “There is technical substance. We have an AI engine that drives the solutions that we are offering customers today,” he added.
Much of the company’s AI-driven enterprise strategy is a result of its 2019 acquisition of Mist Systems, which had an AI-powered wireless platform that Juniper then used to enhance its own networking solutions.
“We’ve been taking share [from competitors] in the face of meaningful headwinds,” Rahim said. “I expect once those headwinds lessen as we emerge from Covid, we will see even more improved dynamics.”
Juniper said that it plans to extend that AI-driven focus to other areas of its business, such as SD-WAN. Juniper purchased 128 Technology last October for $450 million and is in the process of combining 128 Technology and Mist’s AI capabilities into its SD-WAN solution.
Rahim said that he believes Juniper’s IP routing and transport business will see the most opportunity because the move to 5G will mean more traffic from the radio access network (RAN) to the transport network and the cloud.
Security is also a potential area of growth from 5G investments. Rahim said that future 5G networks are going to be more prone to threats, and service providers will need to invest in more high-end security.
He also said that Juniper projects that its service provider business will grow close to 2% for the full year with the revenue increasing 17% year over year.
On the supply chain front, Juniper executives warned during the company’s first quarter earnings report last month that it could be negatively impacted by the ongoing semiconductor shortage. Those shortages are still a concern, the company said, noting that it will continue to need extended lead times for products through the rest of the year.