Juniper Networks Inc. (JNPR), one of the leading providers of networking infrastructure products and services, recently teamed with technology major International Business Machines (IBM) to bag a multi-million dollar contract from global energy company Hess Corporation (HES).
Both the tech giants together will provide energy-efficient networking services to Hess by creating a simplified, automated and secure environment. Hess currently intends to upgrade its worldwide network keeping in mind the future requirements and space restrictions.
Thus the company seeks to deploy an energy-efficient solution that could help simplify and enhance its operations, thereby fulfilling its business requirements and enabling it to deliver quality solutions.
This solution will combine products and services from Juniper and IBM. As per the specifications provided by the solution providers, the solution will be implemented by IBM Implementation Services, using its expertise and experienced project management resources, which will reduce the risk of business disruption and will also, provide a better return on investment (ROI).
Moreover, the solution would also utilize Juniper Networks’ EX Series Ethernet Switches, SRX Series Services Gateways and SA Series SSL VPN Appliances, which will provide a user-friendly and cost-effective solution to the customer.
Apart from this, Juniper alsoannounced that its routers and operating system will be deployed by the National Institute of Informatics (NII) of Japan for its Science Information Network 4 (SINET4).
Juniper’s networking products and services are slowly gaining popularity amongst organizations and government verticals that are trying to meet the growing business demand. Juniper is also making accretive acquisitions, thereby enriching its product portfolio.
On the other hand, Juniper’s management believes that the overall switching market declined during the first quarter due to typical seasonality and robust SRX line purchases by service providers over the last year. Juniper’s federal business is primarily focused on the defense segment and has limited exposure to the state and local government verticals, which are subject to budget cuts and delays.
We believe that the continued launch of new products and entry into new markets will keep Juniper ahead of its networking peers. However, stiff competition from market leader Cisco Systems Inc. (CSCO) and the upcoming networking company Hewlett-Packard Company (HPQ) coupled with Juniper’s European exposure will likely put the company on the back foot.
Currently, Juniper has a Zacks #4 Rank, implying a short-term Sell recommendation.
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