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About Juniper Networks, Inc.

Juniper Networks helps its customers branch out and up, all the way to the cloud. The company makes infrastructure hardware and software for large-scale networks for cloud-computing providers (including data centers), telecommunications companies, and large organizations in business, government, and education. Its routers and switches move traffic around networks and its software helps manage networks. Juniper also develops security products for cyber attack detection and protection. Juniper sells directly and through resellers and distributors including Ingram Micro and Hitachi. About half of the company's sales are made to customers based in the US.

Operations

Juniper gets about 70% of its revenue from its networking equipment products and the rest from services. Routing products such as the ACX, MX, PTX, and Cloud Customer Platform series, generate about 40% of revenue. Services, which include support, professional, and educational services, account for about a third of revenue with switching products – the EX and QFX series – providing about 20%, and security products, the SRX series among others, about 5%.

Juniper relies on contract manufacturers – Celestica, Flex Ltd., Accton Technology, and Alpha Networks – to make its products.

Geographic Reach

Juniper Networks, based in Sunnyvale, California, does business in some 150 countries. While the US is its largest market, accounting for more than half of sales, Juniper has significant sales in the Europe, the Middle East, and Africa region, about 30% of sales, and Asia/Pacific, more than 15% of sales.

Sales and Marketing

Juniper sells its products directly and through distributors, resellers, and original equipment manufacturers (OEMs). About 45% of revenue comes from service providers, while enterprise customers account for about 33% and cloud supplies more than 20%. Juniper has resale agreements with Ericsson, Dimension Data, NEC Corp., and IBM.

Financial Performance

Juniper's three years of incremental revenue increases were interrupted in 2018, but its net income jumped year-to-year.

In 2018, revenue fell about 7% to $4.6 billion, about $400 million less than the 2017 revenue figure. Product sales dropped in 2018 from 2017 due to decreases in cloud and service provider revenue. Lower routing and switching revenue in the Americas was caused technology transitions at some large cloud customers and a decline in service provider business. Juniper's security products gained about 13% in sales in 2018 and its enterprise sales rose across all technologies and geographies.

Juniper's profit jumped to $566.9 million in 2018 from $366 million in 2017 because of the US Tax Cuts and Jobs Act of 2017. 

The company had cash and equivalents of $2.5 billion in 2018, about $500 million more than in 2017. Operations generated $861 million and investing activities provided $565 million, while investing activities used $968 million.

Strategy

Juniper is looking for product launches to spur growth in the service provider, cloud, and enterprise markets in 2019. The new products include offerings for carrier 5G initiatives; a new 400 GB platform meant to improve the company's position in the data center market; and improvements to its Contrail Enterprise Multicloud platform.

The company intends to wring more money from its software products by switching more customers to recurring licenses for its more software intensive products. Juniper believes that subscriptions would create new revenue and improve customer retention.

Further, Juniper has reorganized its go-to-market structure to better align its sales strategy to its customer verticals. Changes include streamlining sales operations with savings in that area going to put more quota-based sales reps in the field.

Juniper's market is composed of big companies, but consolidation is reducing the number of potential customers. The consolidation has occurred as telecom companies acquire other telecom companies and they acquire media companies, further reducing the number of customers in the market.

Juniper faces competition on all sides as its tries to generate revenue from cloud computing. Competitors include industry giants such as Huawei, Cisco Systems, and Nokia as well as smaller companies like Arista Networks and Brocade Communications Systems, which was acquired by Broadcom. Other competitors are Hewlett Packard Enterprise and Dell Technologies (because of its acquisition of EMC).

Mergers and Acquisitions

Juniper Networks' recent acquisitions were made to bolster its network, security and software offerings.

In 2019 Juniper agreed to acquire Mist Systems, which develops technology for using artificial intelligence to manage cloud-based wireless networks, for $405 million. Mist's technologies are used to make Wi-Fi more predictable, reliable, and measurable. The company also developed an AI-driven virtual assistant, Marvis, which helps wireless troubleshooting. Juniper says the addition of Mist would bolster its enterprise networking portfolio. The deal was expected to close in the second quarter of 2019.

In 2018 Juniper agreed to acquire HTBASE, a developer of a software-defined enterprise multicloud platform. The deal would add multicloud storage to Juniper's Contrail Enterprise Multicloud product. 

The 2017 deal for Cyphort Inc., a provider of security analytics for advanced threat defense, added to the capabilities of Juniper's Sky Advanced Threat Protection by increasing efficiency and performance.

Company Background

Pradeep Sindhu founded Juniper Networks in 1996 to develop high-performance routers. The company's first product, the M40, became Juniper's calling card and established the company as a player in the hardware market.

Juniper Networks, Inc.

1133 INNOVATION WAY
Sunnyvale, CA 94089-1228
Phone: 1 (408) 745-2000

Stats

Employer Type: Publicly Owned
Stock Symbol: JNPR
Stock Exchange: , NYSE
Principal Engineer: Pramodh Dsouza
Chairman: Scott G. Kriens
CEO: Rami Rahim
Employees (This Location): 300
Employees (All Locations): 9,283

Major Office Locations

Sunnyvale, CA

Other Locations

Goleta, CA
Sacramento, CA
Sunnyvale, CA
Alpharetta, GA
Chicago, IL
Westford, MA
Saint Louis, MO
Raleigh, NC
Bridgewater, NJ
New York, NY
Rochester, NY
Dublin, OH
Tulsa, OK
Herndon, VA
Sterling, VA
Virginia Beach, VA
Osaka, Japan
Rio De Janeiro, Brazil
Kanata, Canada
Mississauga, Canada
Vancouver, Canada
Paris, France