Juniper Acquisition Set to Transform the Networking Landscape with HPE

HPE’s $14 billion acquisition of Juniper Networks is transforming the company into a networking powerhouse broadening the revenue base and entering into stiff competition with Cisco in the market.

Hewlett Packard Enterprise CEO Antonio Neri said HPE, which is wrapping up the $14 billion Juniper Networks acquisition, will instead be concentrating on networking. Neri said the acquisition, in keeping with the company's strategy, will help drive revenues and profits, contributing $11 billion or a third of overall revenue.

“We are becoming a networking company at the core,” Neri said, indicating that the positioning HPE is taking is to eat a chunk of the market share from competitor Cisco Systems Inc. Also, he pointed out that the merger creates a perfect chance of provision of a socially contemporary, artificial intelligence powered networking.

Neri reassured the shareholders that HPE and Juniper do not have “any overlap” in terms of products, which he thinks will make it easier to market their own products without the fear of interfacing with Cisco. He added that while they are highly complementary of HPE, he notes that Juniper has a presence in many areas such as service provider routing and campus solutions, where HPE has been less aggressive.

The channel partners should be ready to stock and make available, more products aimed at more customers from telecom services to enterprises. Huan, like Paul Shaffer of Redapt, regarded the move as a high-stakes gamble that could reinforce HPE’s foothold in the market as a result of the acquisition.

“It is such an acquisition that will help HPE to remain relevant and competitive in this rapidly-changing technological environment” Shaffer added. Neri was optimistic that HPE and Juniper coming together will bring edge-to-cloud networking solutions like never seen before.