Revenue fell 26.0% YoY in 2016
In the first nine months of fiscal 2016, Juniper Networks’ (JNPR) Network Security segment revenue fell 26.0% YoY (year-over-year) to approximately $240.0 million. That compares to $310.0 million in the first nine months of fiscal 2015.
In 3Q16, Juniper Networks (JNPR) generated revenues of $86.0 million from its Security segment. That’s a fall of 29.0% YoY (year-over-year) but a rise of 9.0% quarter-over-quarter.
The YoY fall was primarily due to a weakness in its Enterprise, Cloud, and Telecom businesses. The quarter-over-quarter rise was driven by Cloud Providers and National Government, partially offset by a fall in the Financial Services vertical.
Network security remains a competitive market
The changing face of the enterprise security space has prompted companies to acquire smaller companies and startups with disruptive technologies in order to gain a competitive edge over their peers. By purchasing a smaller company that has a novel approach to network security, the acquiring company can offer an exhaustive suite of offerings to its customers.
Last year, Symantec acquired Blue Coat Systems. The acquisition enabled Symantec to offer a comprehensive enterprise suite of offerings for email, cloud, endpoint, and network security.
Juniper faces competition from several players, including Cisco Systems (CSCO), Fortinet (FTNT), and Palo Alto Networks (PANW). Cisco Systems continued to dominate the security appliance market in 2Q16 with a 16.3% share.
Other top players in this space include Check Point Software Technologies (CHKP), Palo Alto Networks, Fortinet, and Blue Coat, with market shares of 13.0%, 12.1%, 9.8%, and 4.2%, respectively, at the end of 2Q16.