Juniper CEO: The strategy driving Juniper's general direction is cloud

Juniper announced its first quarter 2017 revenue on Tuesday, and the company said that its net income for the first quarter of 2017 was $1.2 billion, an increase of 11% year-on-year. Non-GAAP net income was $1.78 billion, an increase of 25% year-on-year, and earnings per share for the first quarter were $0.46.

The company said it will no longer continue to strengthen its business depth in the service provider and enterprise markets. Instead, it will now adjust its strategy and focus on three key areas: cloud computing, telecommunications and cable, and enterprise strategy.

"We believe that the biggest trend driving our development in the industry is our company's strategy," said Juniper CEO Rami Rahim. "As the industry evolves, cloud computing architecture is no longer the exclusive domain of cloud service providers, and users in all verticals are developing strategies to shift to cloud service delivery models.

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Juniper's revenue from cloud service providers grew 25% year-on-year, telecom cable business grew 10% year-on-year, and enterprise strategy grew 2% year-on-year. He added that the cloud business involves Juniper's other businesses. The most vertical area of ​​the cloud business is cloud computing, where telecom operators and cable operators are restructuring their networks to provide cloud services. Rami Rahim said: "Enterprises have seen the value of migrating workloads and applications to the cloud."

Routing and switching services

Due to the growth of sales of PTX and MX series products to telecommunications/cable and cloud users, the revenue of routing products increased by 3% year-on-year, and the revenue of switch products increased by 38% year-on-year, among which the QFX series switches used in data centers and the EX series switches used in campus networks grew the most. Rahim said: "In the field of switching, Juniper is very satisfied with the performance of the first quarter. The biggest driving force for this situation is that Juniper's strategy is focused on the data center. These strategies are applicable to large cloud service providers and other vertical industries." Security

Juniper is also seeking to transform its security business to new software-based products. Rahim said Juniper is working to restore and stabilize its security business. He said that sales of new security products have increased. He said: "Security products only offset the decline in old security products. This step alone is not enough. We expect to see growth in Juniper's security product sales in the second half of the year. Our focus now is to rebuild confidence and rebuild the channel." Rahim said Juniper's vSRX security product portfolio has gained a lot of momentum, and he believes that vSRX will be able to seize market opportunities. But analysts Dmitry Netis and Steven Sarver from William Blair Company have made more assessments of Juniper's security plans. They wrote: "Juniper's management hopes that the security business will return to growth in 2017, but we are not very optimistic about this due to its changes in its security product portfolio."