One of the leading providers of networking solutions and communications devices, Juniper Networks ( JNPR ) recently announced that it has extended its partnership with VMware ( VMW ) to offer solutions for connecting virtual and physical networks within a virtual data center. VMware is an industry-leading virtualization software company.
The partnership involves Juniper's VMware NSX L2 Gateway integration and VXLAN routing products that enable connection within a data center and between data centers and speed up the transition to software-defined networking (SDN). Considering VMware's market position and customer clout, the partnership should help Juniper Networks expand its customer base.
The increasing complexity in cloud infrastructure has led to growing demand for SDN solutions. These solutions increase the flexibility of the infrastructure and reduce costs for companies. It is expected that the lower cost proposition will lead to quicker adoption of SDN technology, which bodes well for suppliers such as Juniper.
Juniper's second-quarter 2013 revenues moved up 7.2% to $1.15 billion from the year-ago quarter and 8.6% sequentially. It is witnessing strong revenue growth in some of its key business markets and is gaining traction in its routing and switching portfolio. The company's new products, cost reduction initiatives and improving execution are expected to remain the positives, going forward.
Juniper Networks Inc. is a leading provider of networking solutions and communications devices. The company develops, designs and sells products that help to build network infrastructure, which are used for services and applications based on single Internet protocol networks worldwide.
However, the pending outcome of the SEC investigation, competition from Alcatel-Lucent, S.A. ( ALU ) and Cisco Systems, Inc. ( CSCO ), still-sluggish federal spending and unfavorable macroeconomic conditions remain near-term headwinds.
Currently, Juniper has a Zacks Rank #2 (Buy).