Compcom gives thumbs up to HPE's acquisition of Juniper Networks
HPE’s acquisition of Juniper Networks aligns with the company's broader strategy to strengthen its position in the rapidly evolving networking sector.
“It's a very compelling value proposition,” said HPE regional MD Matt Harris at the 2024 Partner Festival in Cape Town.
“When you bring the two together, we will have the size, the scope and the IP that Cisco will be fearful of.”
By bringing Juniper Networks’ high-performance AI-native networking solutions into its fold, HPE is set to enhance its existing portfolio, particularly in the data centre, cloud, and service provider segments.
Double capacity
This acquisition will also complement HPE’s Aruba Networking portfolio, which has established itself as a leader in campus and branch networking solutions.
The addition of Juniper's AI capabilities is expected to significantly boost HPE’s prospects in managing complex, secure, and AI-native network environments.
This fits into HPE's long-term goal of becoming a leader in edge computing, AI, and hybrid cloud infrastructure, demonstrated in the August acquisition of Morpheus Data, a multicloud management platform, which is now part of HPE GreenLake hybrid cloud offering.
When the Juniper Networks deal closes, it double HPE’s networking business, positioning it as a dominant player in the AI-native networking space.
Cloud dominance
Antonio Neri, CEO of HPE, said that the deal has the potential to “bridge AI-native and cloud-native environments, offering customers cutting-edge networking solutions that simplify connectivity in increasingly complex digital ecosystems”.
The Competition Commission’s approval highlights the local regulatory body’s confidence in the benefits this deal will bring to the region.
Globally, combination of HPE and Juniper Networks creates a formidable force in the networking sector, one that will keep Cisco executives up at night.
The deal is also expected to deliver significant financial returns, with HPE projecting an additional $450m in annual cost synergies within the first three years post-acquisition.
As businesses increasingly move towards AI-native infrastructures, the combined strengths of HPE and Juniper Networks are set to provide customers with comprehensive solutions for their networking needs.
