Juniper Looks to Security and the Cloud for 2016 Growth
Juniper ends its fiscal 2015 on a high note.
Juniper Networks reported its fourth quarter and full-year fiscal 2015 financial results in January, showing a number of positive trends.
For the quarter, Juniper reported revenue revenue of $1.3 billion for a 20 percent year-over-year gain. Net income was reported at $197.8 million, a sharp reversal from the net loss of of $769.6 million reported for the fourth quarter of 2014. Looking at the full year, Juniper reported fiscal 2015 revenue of $4.9 billion for a five percent year-over-year gain. Looking forward, Juniper provided first quarter fiscal 2016 guidance for revenue to come in at approximately $1.2 billion.
"We are living in disruptive times and we are witnessing some megatrends unfold," Juniper CEO Rami Rahim said during his company's earnings call with financial analysts.
Among the megatrends impacting Juniper is the shift to Software Defined Networking (SDN) and a move to white box switching gear. The other key trend that Rahim sees is the cloud.
"It is now more evident than ever that everything is shifting to the cloud," Rahim said. "Enterprise IT is moving apps and data to public and hybrid cloud while service providers are building out a distributed telco cloud to drive down operational costs, increase agility and better serve their customers."
Rahim commented that Juniper's customers are looking to the company to help transition to cloud architectures. One key component of that is Juniper's Contrail SDN controller, which has applicability for both telecoms and enterprises.
"The Contrail win rate that we are observing right now with six additional wins in the Q4 time frame alone is really healthy, and we definitely see Contrail pulling other products along with it," Rahim said. "I still view data center and, in particular, the move to hybrid cloud environment as a tremendous opportunity for Juniper."
Beyond the cloud, Juniper is also aiming to grow its security business in 2016. Rahim did not directly comment on the backdoor code issue that impacted Juniper's ScreenOS security issues, though he did emphasize that Juniper is committed to maintaining the integrity, security and insurance of all of its products.
"Investing in security is an imperative for our customers and Juniper strategy," Rahim said. "We believe the future of security is intimately tied to the network, and we are investing and innovating in our domain solutions with that direction in mind. "
From a product perspective, Rahim hinted at new security product innovation to come in 2016, which he referred to as a "rolling thunder of security enhancements."
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist.