Juniper’s QI increases on strong cloud earnings

Juniper Networks, a specialist in networking products, announced the first quarter results of 2017. It reported a revenue of $1.2 billion, which is a 11 percent increase year-on-year. The non-GAAP net income was $1.78 billion and this represents an almost 25 percent increase year-on-year.

Juniper’s business is divided into three main divisions, namely, telecom and cable, cloud and enterprise. Out of these three, cloud grew the most for the company and helped it to surpass the expectations of analysts. This led to the company’s earnings per share to be $0.46, almost four cents more than what the analysts had been expecting.

Going back to the segments, cloud grew the highest at the rate of 25 percent, while telecom and cable grew at 10 percent and strategic enterprise at two percent respectively. In fact, the telecom and cable business sagged a bit over the last quarter when compared to the year before, and this was compensated by a buoyant growth in its cloud segment.

Still, routing remains the staple of Juniper Networks, as it accounts for more than 43 percent of its revenue. However, that business grew only by three percent when compared to the last year.

This revenue clearly shows that cloud is the future for Juniper Networks as the revenue and growth are clearly better than the other sectors. The CEO of Juniper, Rami Rahim even said that cloud is one of the biggest strategies that’s driving the industry today. He said that companies across all verticals are adopting the cloud, thereby opening the cloud industry in many ways. This industry is no longer the exclusive idea of a handful of companies and that’s because cloud is way more than mere infrastructure and storage.

In other words, what this essentially means is cloud adoption is increasing the chances for  many tech companies to make it a primary revenue generator, and Juniper is likely to be one of them soon. This has also opened many opportunities for Juniper to expand within its own strength. Already, many telecom and cable operators are changing their architecture to include cloud services, and Juniper is poised to  handle this transition for them.

Already, Juniper has an interesting list of clients, with the top names being Microsoft, Oracle, IBM and Facebook. It is also looking to expand its cloud offerings to traditional telecom providers located within and outside the U.S, as every company is looking to leverage the power of cloud.

Besides cloud, Juniper is also looking to strengthen its security business. The report shows that there’s been a small increase in the sale of security products, and the company is confident that it can do better in the coming months. Of special mention is Juniper’s SRX security portfolio that the CEO believes is gaining traction among its clients. We can expect better results from this product in the upcoming quarters.

With such an impressive result and an optimistic roadmap for the future, Juniper’s investors are sure a happy bunch. The stock price shot by six percent during aftermarket trading on Wednesday.

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Lavanya
Lavanya Rathnam is a professional writer of tech and financial blogs. Creative thinker, out of the boxer, content builder and tenacious researcher who specializes in explaining complex ideas to different audiences.
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