Juniper Continues to Grow Cloud Business

3Q16 Revenue reported at $1.29B as cloud and SDN efforts lead the way forward.

By Sean Michael Kerner | Posted Oct 27, 2016
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Juniper Networks announced its third quarter fiscal 2016 earning on October 26, showing the impact of some of the company's strategic initiatives.

For the quarter, Juniper reported net revenues of $1.29 billion, which is a three percent year-over-year increase. Net Income was reported at $172.4 million, for a 13 percent year-over-year decline. Looking forward, Juniper provided fourth quarter fiscal 2014 guidance for revenue to come in at approximately $1.35 billion.

"Our deliberate focus on the cloud opportunity has resulted in a fast-growing data center switching portfolio over the past three years, and I believe we now have a complete portfolio that is going to help us continue to grow our Switching business in the future," Juniper CEO Rami Rahim said on his company's earnings call.

Rahim is very optimistic that opportunities in the cloud will be robust for some time to come. In his view, cloud providers recognize that their wide area networks and data center networks are essential for delivering the kinds of experience that their customers demand.

Among the core elements of Juniper's cloud strategy is the Contrail Software Defined Networking (SDN) controller. Rahim said that Contrail continues to experience increasing levels of interest and adoption with OpenStack. Contrail is also being used together with Kubernetes container-type solutions as well.

"I think it's fair to say that the adoption rate of Contrail is tracking really well," Rahim said. "We're seeing especially good strength with the telcos as they undertake this cloud transformation within their own networks, and I expect there to be more success going forward."

Also of note is that Juniper is getting a sales pull-through thanks to Contrail, where the company is able to bundle switching, routing and security solutions in addition to Contrail

"I think the most important thing you need to understand as you look at the switching and the cloud opportunity is that we're playing an offensive game," Rahim said. "We are out to take share in switching, in data center with a new end-to-end portfolio that is very competitive."

Sean Michael Kerner is a senior editor at EnterpriseNetworkingPlanet and InternetNews.com. Follow him on Twitter @TechJournalist

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