As global tech companies obsess about artificial intelligence (AI), Hewlett Packard Enterprise’s (HPE) proposed acquisition of Juniper Networks for $14 billion will give HPE a respected AI platform for infrastructure, more security capabilities and a stronger stake in the telecom equipment market, says GlobalData, a leading data and analytics company.
Steven Schuchart, Principal Analyst, Enterprise Technology and Services at GlobalData, comments: “The combination of HPE and Juniper will create a compelling end-to-end offer comprising server, storage, cloud, networking and high-performance computing all in the context of Juniper’s advanced AI.
“Customers are looking for security and operational efficiency, in that order. Juniper brings more security to HPE, and AI-driven automation using its Mist AI. The combined companies will be of a size and capability to challenge Cisco and Huawei internationally.”
Emir Halilovic, Research Director, Telecom Technology & Software at GlobalData, observes: “The proposed acquisition will significantly boost HPE’s presence in the telecom network equipment provider ecosystem. On the other hand, it completes a successful transformation of Juniper into technology provider to cloud service providers, telcos, and enterprises – with telco likely playing a secondary role for HPE networking business going forward.”
The proposed transaction is expected to close in late calendar year 2024 or early calendar year 2025, subject to regulatory approvals.
Schuchart concludes: “The addition of Juniper makes HPE a stronger competitor for enterprise and telco customers alike and both companies have similar engineer-driven cultures.”
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About GlobalData
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