Juniper’s Mobile Security Continues (CSCO) (HPQ) (JNPR)

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Juniper Networks Inc. (JNPR) recently announced that it will offer Junos Pulse Mobile Security Suite to Canadian telecom company, TELUS. Financial details of the deal were not divulged.

Use of personal devices in the workplace and access to corporate networks is common these days. This prompted TELUS to secure not only its employees’ mobile phones but also its network resources.

Launched in June 2010, the Junos Pulse software is specially designed to maintain the same standard of security across a network, even when some of the connected devices, such as cell phones, or other mobile Internet devices are outside the control of a network administrator. The Junos Pulse Mobile Security Suite, launched in October 2010, is part of the Junos Pulse platform and provides secure connectivity to all mobile devices.

With the increased adoption of new technologies across mobile devices, creation of malicious codes has become commonplace, increasing security threats. Hence, we expect Juniper to target major service providers in the wireless industry.

Last week, India-based multinational conglomerate Essar Group selected the Junos Pulse Mobile Security Suite for providing better protection to its employees’ smartphones, tablets and other mobile devices running on most major mobile operating systems from viruses, malware, loss or theft, physical compromise and other exploits and threats.

In May 2011 KT Corp., a South Korean telecom service provider, agreed to promote and sell Juniper’s Junos Pulse software and the Junos Pulse Mobile Security Suite to its service holders. Through this service, KT intends to secure the mobile devices of corporate clients.

We remain encouraged by the rate at which Juniper’s products and services are being deployed by organizations and government customers across the world. We also appreciate Juniper’s continuous efforts to make strategic acquisitions, which enrich its product portfolio.

Despite Juniper’s strong product line-up, we are a bit cautious about its third quarter results, which missed the Zacks Consensus Estimate. Moreover, stiff competition from industry stalwarts such as Cisco Systems Inc. (CSCO) and Hewlett-Packard Company (HPQ), as well as Juniper’s European exposure could weigh on the stock.

Juniper has a Zacks #4 Rank, implying a short-term Sell rating.

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