Cloud, mobility will drive revenue, Juniper says

Juniper Networks has reaffirmed its long-term forecast for annual revenue growth of 20 percent or more, and he met with financial analysts on Thursday after two great product line introductions.

The company continues to focus solely on networking and believes it can continue to take market share from its competitors by seizing architectural transitions driven by the explosive growth of data traffic in enterprise networks and carrier, CEO Kevin Johnson, said at the annual meeting of financial analysts meeting in San Francisco Juniper.

Juniper started the conference by introducing the PTX series of transport packets Switch line, a base platform providers that combines packet switching and optical networking components. This followed the announcement of QFabric of Juniper, a new architecture designed to reduce data center networks to a logical switch. Simplification of networks is in the center of the company’s global strategy, aimed at both the network expansion and cost reduction.

Cloud computing and mobility are the main drivers of the new demand for networking, “said Johnson. As carriers and enterprises seeking to expand their networks, which require simpler architectures, as the current model involves the deployment of multiple devices, he said. He compared it to a computer model in which each type of application requires its own dedicated server Juniper hardware.

“The legacy network approach is not sustainable,” said Johnson. “The industry is being overwhelmed by the complexity of this model of legacy.”

A service provider who subscribes to this view is Japan’s NTT Communications, which in the past two years has seen traffic on its Internet backbone network across the Pacific will increase from 180 g bps (gigabits per second) of 450G bps . Expect to see that grow to 600G basis points later this year, said Kempei Fukuda, senior director of NTT’s global network, who spoke on a panel at the conference of Juniper. As traffic load grows, competition is also forcing NTT to sell bandwidth at lower prices, said Fukuda. NTT plans to move all your network traffic basic standard Internet routers for the type of converged architecture in the PTX platform in the coming years, he said.

The analyst Mark Sue of RBC Capital Markets believes Juniper likely to reach its forecast for revenue growth long term. The company reported revenue growth of 23 percent in 2010.

“The tail wind is behind them,” said Sue. A key variable is the speed with Juniper can begin to recognize revenue from products and PTX QFabric said. Is expected to start shipping in the third quarter and first quarter of next year, respectively. Expanding its target market with new types of products will also be crucial, “said Sue.

Johnson downplayed the vulnerability of the deficit Juniper margin products such as those recently hit Cisco Systems, due to the popularity of some lower-margin switches. President and CEO of Cisco, John Chambers, on Tuesday characterized the deficit as an unpleasant surprise. Johnson said that Juniper is focused on innovative value-added switches instead of those who are more subject to price pressures.

Juniper’s leadership also distanced himself from Cisco, emphasizing its focus on networking. In recent years, Cisco has expanded its scope to include consumer electronics and server systems. Despite claims that its new Juniper JUNOS Express chipset is one of the world’s most powerful processors, including CPU servers, the company has no plans to sell computer systems and storage, according to Pradeep Sindhu, vice president, director technical and founder. Juniper believes he can do more for the data center networking gear with the servers, because, as data centers become larger, the network plays a major role in performance, Sindhu said.

To enter other parts of central data also raises the risk of offending members of Juniper, such as IBM, Dell and NetApp, which are helping to sell computer networking company, Sue of RBC said.