Juniper: Getting a Move On?

4:25 PM -- It's been more than a year since Juniper Networks Inc. (NYSE: JNPR) got into enterprise Ethernet with its EX line. (See Juniper Storms Into Ethernet Switching.) The next step might be the wireless network, according to analyst Mark Sue of RBC Capital Markets .

"We believe Juniper is planning a big push into the mobility market and is currently looking to add a Head of Mobility Engineering," Sue writes in a report this morning." (Juniper didn't immediately return a request for comment.)

It would be the sequel to the J20, a GPRS gateway service node (GGSN) that Juniper developed with Ericsson AB (Nasdaq: ERIC). Juniper launched the product in 2002 and gave up on it in 2005. (See Juniper's GGSN Gamble?, Juniper's J20 Is Jumping, and Juniper Jumps Off J20.) "In conjunction with the wireless backhaul products currently being developed, a new family of wireless packet core products may further expand Juniper's addressable market," Sue writes.

Separately, Sue thinks "the worst is over" when it comes to telecom earnings, although real improvement might have to wait until the end of the year.

— Craig Matsumoto, West Coast Editor, Light Reading

Gibran 12/5/2012 | 4:00:38 PM
re: Juniper: Getting a Move On? Although its a logical and interesting adjacent market for Juniper to go after, it looks like they are just getting ready to prepare to start development to join this party. Its a very late start, if they are just hiring initial relevant engineering expertise. It certainly won't be sequel to J20, as that GGSN was not really developed by Juniper. Ericsson developed and owned the IP rights. Today, Juniper does not have the expertise to organically build this kind of product this late in the game and still hope for a market leading position. They do have deep pockets though, so they can possibly ramp inorganically to get to a market leading position. It will be interesting to see how they play this strategic market opportunity to win.
openminder 12/5/2012 | 3:58:18 PM
re: Juniper: Getting a Move On?

Juniper is living proof that organic development works.  Let's remember how they came into existence...  How many "market leaders" wish they could approach technology in the manner that Juniper approaches their initiatives... "GREENFIELD"  How many times have you even asked yourself, "If I knew then what I know now how would I have done it differently>"  This is the key to Juniper's success. 

Besides, the wireless market is one arena that Juniper is definitely not late to...  There is too much extra equipment related to wireless networking today.  Additionally, there is the argument of intelligent access points/dumb access points.  And lastly, do we all really believe 802.11n is the last ratified standard for wireless.  Trust me, the wireless arena is prepared to reinvent itself again, and this time my bet is on Juniper executing a strategy that is fresh, and reduces the complexity of today's solutions.

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