Switching revenues rose 38% in 1Q17
Juniper Networks’ (JNPR) Switching revenues rose 38% YoY (year-over-year) in fiscal 1Q17 to $242.0 million, up from ~$175.4 million in fiscal 1Q16. Its revenues rose 7% YoY in fiscal 2015 and 12% YoY in fiscal 2016. Switching revenues in 1Q17 were primarily driven by cloud providers and partially by a rise in the enterprise space.
In 1Q17, Juniper Networks’ QFX product grew 50% YoY. In 1Q16, the company introduced the QFX 10008 spine switch and stated that customers would get a “complete and compelling solution for the cloud.”
Juniper Networks’ QFX portfolio includes several products that give the company increased traction in the industry. Juniper Networks’ revenue growth of 19% in its Switching segment outpaced industry growth of 3.5% in 4Q16.
Major players in the switching market
Juniper Networks (JNPR) faces competition from tech (QQQ) heavyweights in the switching space. According to market research firm IDC (International Data Corporation), Cisco Systems’ (CSCO) revenues in the Ethernet switching market fell 2.8% YoY in 4Q16. Its market share was 55.6%, compared to 57.0% in 3Q16 and 59.1% in 4Q15.
Although Cisco Systems has a majority share in this segment, China’s Huawei is quickly capturing share and an increasing presence in the global switching space. Huawei’s revenues rose 67.8% YoY in 4Q16 with a market share of 9.9%. Juniper’s Switching revenues rose 2.9% YoY.
Hewlett Packard Enterprise’s (HPE) Ethernet switch revenues fell 2.2% YoY in 4Q16. The company has a market share of 5.0% compared to 5.5% in 3Q16. According to IDC, the worldwide Ethernet switch market rose 3.5% YoY in 4Q16 to $6.7 billion.