) has recently secured a deal from Telefónica Spain. Telefonica
has deployed an optimized wireline IP broadband access platform,
by installing a Juniper Networks MX Series 3D Universal Edge
This project, which Telefonica is referring to as the "Next
Generation Access Center", deals with the deployment of high
speed fiber optics that can provide improved Internet service to
homes and businesses. The scalability and flexibility of
Juniper's solution a what led Telefonica to build its broadband
infrastructure on Juniper technology in an effort to serve its
Juniper needs more deals like this one to grow in what is an
increasingly difficult market, made worse by conservative
spending. Its high-performance network operating system is
currently being used for routing, switching and security. This
has also simplified the networking operations to a great extent
while reducing the cost of ownership.
We remain encouraged by the rapid deployment of Juniper's
networking products and services by organizations and government
verticals to meet growing business demand. We also appreciate
Juniper's continuous efforts to make strategic acquisitions to
enrich its product portfolio.
To strengthen its routing and switching portfolio, Juniper is
investing prudently in developing new devices. This is evident
from the fact that roughly half its engineers are engaged in
upgrading its portfolio. Hence, service providers are likely to
continue spending on its advanced routers and switches.
During the first quarter of 2013, Juniper witnessed marginal
growth in its product revenues, which was mainly due to lower
contribution from the Enterprise vertical as federal and
financial services sales were weak. Juniper also remains cautious
about enterprise spending during the second quarter.
Despite the recent upsurge in product demand and potential
business wins from
), the company's business is yet to pick up significantly.
Moreover, we believe that stiff competition from
F5 Networks Inc.
Cisco Systems Inc.
) and constricted federal spending will pressurize
Currently, Juniper has a Zacks Rank #3 (Hold).
CISCO SYSTEMS (CSCO): Free Stock Analysis
F5 NETWORKS INC (FFIV): Free Stock Analysis
JUNIPER NETWRKS (JNPR): Free Stock Analysis
AT&T INC (T): Free Stock Analysis Report
VERIZON COMM (VZ): Free Stock Analysis Report
To read this article on Zacks.com click here.