Shifting to cloud
Juniper Networks’ (JNPR) CEO (chief executive officer) Rami Rahim has stated, “It is now more evident than ever that everything is shifting to the cloud. Enterprise IT is moving apps and data to public and hybrid clouds. Service providers are building out a distributed telco cloud to drive down operational cost, increase agility and better serve their customers.”
The cloud has required new network infrastructure build and upgrades across area networks, data centers, and branch offices. Juniper aims to help companies in their transition to cloud architectures. The company now hopes to lead in the software solutions space that simplifies the operations of the network, allowing customers across verticals to deliver real value over the networks.
Juniper’s top ten customers comprise five from the telecom space and five from the cloud segment.
Focus on software business could drive total revenues in the long term
According to Juniper, its increased focus on software business models will result in an increase in software revenue as a percentage of total revenues in the long run. The company remains positive about its routing, switching, automation software, and security segment. It spans five solution domains: data center, core, edge, campus and branch, and access and aggregation.
Juniper accounts for 3.9% of the PureFunds ISE Cyber Security ETF (HACK). The other top holdings include CyberArk Software (CYBR), FireEye (FEYE), and Fortinet (FTNT), which account for 6%, 5.2%, and 4.8%, respectively, of HACK.
Next, let’s see why cybersecurity is so important for Juniper.