Juniper Taps Riverbed for Enterprise Help

Juniper Networks Inc. (NYSE: JNPR) has licensed Riverbed Technology Inc. (Nasdaq: RVBD)'s application delivery controller (ADC) technology for $75 million, deciding to use a partnership to try to add application delivery capabilities to more of its products.

The companies announced the deal Tuesday afternoon. Juniper's Junos Pulse will become the client application for delivering Riverbed's Steelhead Mobile product. The companies will work together on getting the technologies integrated.

Why this matters
This is about Juniper's ambitions on the enterprise market. WAN optimization, or WAN acceleration, is a big deal there, but it's a market Juniper has never fully gotten a handle on.

It acquired Redline Networks and Peribit Networks in 2005, producing the DX and WX product lines, respectively. The DX was discontinued in 2008, while the WX evolved into the WXC, which is still being offered. (See Juniper Takes Two: Peribit & Redline and Juniper Flatlines Redline.)

The main point, though, is that Juniper has never gained much of a market share in WAN optimization against companies such as Riverbed, Blue Coat Systems Inc. (Nasdaq: BCSI) and Cisco Systems Inc. (Nasdaq: CSCO). Beyond the Steelhead Mobile partnership, Juniper might see ways to strengthen its standing here by adding Riverbed's technology.

WAN optimization might not be a cakewalk for Cisco, either. Cisco's 1,300 layoffs, which came to light Monday, are rumored to include its WAN optimization sales team, according to Business Insider.

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— Craig Matsumoto, Managing Editor, Light Reading