Hewlett Packard Enterprise has acquired Juniper Networks, a renowned network equipment manufacturer known for its AI-native networking solutions.
According to Security Week, the $14bn acquisition is set to double HPE’s networking business, significantly shifting its portfolio towards a more dynamic, high-margin networking sector. This strategic move aims to meet the growing demand for secure, unified technology solutions from edge to cloud, driven by the surge in AI and hybrid cloud business.
HPE specializes in delivering comprehensive edge-to-cloud solutions that empower data-driven transformation. On the other hand, Juniper Networks excels in cloud-delivered networking solutions, software, and services, including the Mist AI and Cloud platform, which complements HPE’s Aruba Networking.
The acquisition highlights the synergy between Juniper’s expertise in AI-native networking and HPE’s strategic direction. Juniper’s success is evident in its revenue growth, almost doubling year-over-year due to its AI-driven products. This integration is expected to enhance HPE’s networking business significantly.
Juniper CEO Rami Rahim is set to lead the combined HPE networking business post-acquisition. The deal, funded by $14bn in term loans, is anticipated to close between late 2024 and early 2025, following regulatory and shareholder approvals. HPE projects $450m in operating efficiencies and cost savings within three years of completing the acquisition.
“Juniper Networks CEO Rami Rahim said, “With leading AIOps, we reduced manual work, sped deployments and crushed time-consuming trouble tickets for our customers. We have shifted the perception of what a network can and should be – and have seen great success.
“In fact, revenue from our products that leverage this AI have grown nearly 100% year-over-year for the last two reported quarters. And we’re starting to see early momentum from our investments in enabling and automating AI data centers, including those handling emerging AI training and inference models.”
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