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Can Juniper Networks Improve Its Market Share in Switching and Routing?

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Competition with heavyweights

Juniper (JNPR) has been struggling to gain penetration in the hardware infrastructure space due to competition from the tech giants. In the switching market, Juniper competes with Cisco Systems, (CSCO) which has a market share of more than 50%, according to research firm IDC.

China’s (FXI) Huawei is one of the fastest-growing firms in this segment and saw its revenue rise 40% YoY in the switching and routing space in 2Q17.

Huawei’s market share positions in the switching and routing markets stood at 8.5% and 25.2%, respectively, at the end of 2Q17. Cisco Systems leads the routing market with a share of 41.2%.

Arista and Hewlett Packard Enterprise (HPE) are other major players in the switching market with shares of 5.6% and 5.5%, respectively. Comparatively, Juniper Network’s shares in switching and routing were 4.3% and 14.6% respectively at the end of 2Q17.

Revenue decline in 3Q17

Juniper Networks’ switching revenues declined 4% YoY (year-over-year) to $213 million in 3Q17. Although Juniper’s QFX portfolio of products rose YoY, it fell sequentially due to the timing of deployments. Cisco Systems attributed this revenue decline to spending delays.

As customers transition from 10 GB (gigabyte) to 40 GB and 100 GB, Cisco Systems expects the QFX products to drive revenues across the public and private cloud segments.

Routing product revenues also fell 6% YoY to $586 million. Cisco’s PTX products posted record revenues in 3Q17, while its MX product revenues fell YoY last quarter.

Driven by the success of its PTX product line, Juniper Networks was ranked first in North America’s core routing market, according to a report from IHS.

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