In a probably transformative deal for the tech business, Hewlett Packard Enterprise (HPE) is in discussions to buy Juniper Networks for $13 billion, based on Reuters.
This acquisition may very well be strategically essential for HPE because it seeks to develop its attain within the AI and associated markets which can be changing into more and more aggressive.
“HPE is experiencing a plateau in development inside its established market segments,” mentioned Sanchit Vir Gogia, chief analyst and CEO at Greyhound Analysis. “To catalyze development, aligning with Juniper may very well be strategic. HPE’s networking subsidiary, Aruba Networks, would complement Juniper’s strong SD-WAN, cloud, and AI companies, probably enhancing HPE’s market providing and aggressive edge in networking.”
Countering competitors and arming for the AI drive
This deal presents a number of benefits for HPE. First, the corporate’s networking portfolio, which presently falls quick in comparison with that of Cisco, will probably be considerably strengthened by means of this acquisition, positioning it as a formidable competitor.
“Juniper is a prime vendor within the world networking gear market, trailing behind Cisco, with an estimated annual networking income at $2.6 Billion in 2023, excluding safety options, software program subscriptions, {and professional} companies revenues,” mentioned Gina Luk, observe head at TechInsights Telecom Methods. “The acquisition might increase HPE’s market share, probably making it a stronger competitor in opposition to Cisco and Excessive Networks within the high-growth areas of 5G and cloud networking.”
Maybe extra considerably, the inclusion of Juniper’s AI pursuits, significantly its Mist AI, is of strategic significance to HPE. This is because of HPE’s shift in computing technique, which is more and more targeted on enabling a broad spectrum of AI purposes.
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