Juniper Products Reach Saudi - Analyst Blog

Juniper Networks Inc. (JNPR), one of the leading providers of networking infrastructure products and services, announced that its entire suite of network infrastructure (switching, routing and security solutions) products is being used by the Kingdom of Saudi Arabia's Ministry of Communications and Information Technology (MCIT). Financial terms of the deal have not been disclosed.

With the help of Juniper's networking products, MCIT is setting up an improved networking system and data center infrastructure. The development is a part of the country-wide e-Government project, "Yesser,” which will facilitate governance.

Juniper's networking architecture runs on the Junos operating software, which simplifies networking operations and reduces the cost of ownership. Moreover, the platform provides enough room for enhancement of capabilities without additional capital outlay. These factors primarily led to MCIT's selection of the Juniper offering.

We remain encouraged by the rapid deployment of Juniper's networking products and services by organizations and government verticals to meet the increasing business demand. We also appreciate Juniper's continuous efforts to make strategic acquisitions, which enrich its product portfolio.

Recently, Juniper acquired the advanced video delivery technology from Blackwave, a pioneer in online video storage and delivery infrastructure. Moreover, Juniper expanded its networking portfolio with Trapeze Networks' WLAN solutions.

Apart from Juniper's acquisition strategy, its decent third quarter results backed by a substantial increase in revenues inspire our optimism. We believe encouraging guidance, strong bookings and significant growth in backlog should attract investors.

However, stiff competition from market leader Cisco Systems Inc. (CSCO) and upcoming networking company Hewlett-Packard Company (HPQ) as well as Juniper's European exposure are likely to weigh on the stock.

Currently, Juniper has a Zacks # 3 Rank, implying a short-term Hold recommendation.

 
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