Juniper Grows Switching Business as CEO Exits

After five years at the helm of Juniper Networks, CEO Kevin Johnson is calling it a day. Johnson announced his pending exit during Juniper’s second quarter 2013 earnings call.

Johnson joined Juniper in July of 2008, replacing Scott Kriens, who had served as the company’s CEO for 12 years.

“After 32 years in a line operating role, with the past 5 years here at Juniper, my family and I have decided it was time to take a break,” Johnson said during Juniper’s earnings call. “The company is healthy and growing and we have a strong management team and world-class talent in the domain of networking.”

Juniper reported $1.15 billion in revenue for the second quarter, a 7 percent year-over-year gain. Looking forward, Juniper provided third quarter guidance for revenue to range from $1.14 billion to $1.18 billion.

From a business perspective, Juniper reported $726 million in service provider revenue, up 7 percent year-over-year. Enterprise revenue was $425 million, up 8 percent year-over-year.

The company’s switching portfolio showed solid growth for Juniper’s enterprise business. Switching revenue hit a record $160 million, for a 15 percent year-over-year gain.

“We had a very strong quarter on switching and I think a part of that was the introduction of the EX9200, which replaced our EX8200 switch,” Johnson said. “The difference in the EX9200 is the programmability that that switch enables.”

Juniper announced the EX9200, powered by the programmable Juniper One ASIC, in April of this year. The top end of the EX9200 family is the the EX9214, a fourteen-slot, 16U chassis that supports a grand total of 320x10GbE ports.

“It is a great switch both for data centers and we see some customers even using it for campus because of the programmability,” Johnson said. “So I think the product transition from the 8200 to the 9200 was one contributor to the strong performance in switching.”


In contrast with switching, Juniper’s security business struggled in the second quarter, with a 20 percent year-over-year revenue decline.

“For Campus and Branch, we continue to see the impact of the product transition from our older ScreenOS product line to the current SRX products, ” Bob Muglia, executive vice president, Software Solutions Division at Juniper, said during the call. “Our ScreenOS products continued to decline, but we have seen good year-over-year growth in our branch SRX products. “


Muglia is also leading Juniper’s SDN effort, which involves the JunosV Contrail controller.

The JunosV Contrail controller is currently in beta with general availability expected before the end of the year.

“While we don’t expect to see material SDN revenue in 2013, we are well positioned to benefit from the growth in this area in 2014 and beyond,” Muglia said.

Sean Michael Kerner is a senior editor at Enterprise Networking Planet and Follow him on Twitter @TechJournalist.

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