Hewlett Packard Enterprise (HPE) wants to take over Juniper for 14 billion US dollars. The acquisition of Juniper will be completed at a price of USD 40 per share, resulting in a total price of USD 14 billion. The transaction is expected to be completed by the end of 2024 or early 2025 at the latest. This significant move in the networking industry will have a number of implications for the IT market. HPE's goal is to strengthen its networking business and integrate artificial intelligence (AI).
Find out more about the acquisition and its impact on companies in this blog post.
HPE (Hewlett Packard Enterprise) is a global edge-to-cloud company that aims to empower businesses through transformation. The company plays an important role in networking, securing, analyzing and using data and applications, regardless of the user's location. HPE offers a wide range of different products, including switches, access points, hotspots and wireless controllers.
In 2015, HPE acquired the company “Aruba Networks” for 3 billion dollars. After 4 years, in 2019, the acquisition of “Cray”, a supercomputing company, followed for 1.5 billion dollars. This strengthened HPE's business in the area of High Performance Computing (HPC). In March 2023, HPE acquired the Israeli cloud security provider “Axis Security”, which shows that HPE wants to continuously develop further. This is still noticeable today due to the planned acquisition of Juniper.
Juniper Networks offers high-performance network devices that are designed to create a responsive and trusted environment. This is designed to enable the rapid delivery of services and applications over a unified network. The Junos operating system (Junos OS) forms the basis for these high-performance networks. Juniper is also the third largest provider of routers and switches. We also offer a large selection of routers and switches.
However, Juniper has recently been confronted with challenges. Low demand from mobile operators and cable companies affected by inflation and tough competition from companies such as Cisco Systems and Nvidia in the networking sector have put Juniper under pressure.
The combination of HPE and Juniper is expected to double the growth of the dynamic network business.
HPE's goals:
HPE is particularly ambitious in the area of Open RAN, a technology concept for 5G mobile communications. Open RAN introduces additional and open interfaces for previously proprietary components of the Radio Access Network (RAN).
The main reason for the merger of the two companies is the boom in artificial intelligence (AI). This has prompted HPE to invest in the development of new products. According to HPE, the rapid growth of AI and hybrid cloud-based businesses is driving demand for solutions that enable the connection of enterprise data from endpoints to the cloud.
The changes in the corporate landscape are multifaceted. The merger marks a significant turning point in the industry that will have a lasting impact on the dynamics of the networking market. HPE plans to double its networking business through this move, followed by the development of a comprehensive networking portfolio. The combination of HPE's and Juniper's complementary portfolios is expected to strengthen HPE's edge-to-cloud strategy. Both companies intend to jointly capitalize on the AI technology excitement, especially as Juniper has already integrated significant AI capabilities into its portfolio.
In addition, Juniper CEO Rami Rahim will lead the combined HPE networking business, reporting directly to HPE President and CEO Antonio Neri.
The merger gives HPE access to a wide range of network components, including routers, switches, security products such as firewalls and artificial intelligence from Juniper. Together, the two companies form a robust unit that can hold its own against rival "Cisco", thus helping to intensify competition. In addition, HPE is striving to position itself against competitors such as "Huawei", which has had a comprehensive offering in this area for years. Cisco rival "Arista Networks" is also seen as growing competition for HPE and Juniper in the future. This is due to the fact that Artisa Networks occupies a similar position to Cisco and its portfolio includes a wide range of products, including data centers, for example.
At IT-Planet, you will also find an extensive range of IT products. We will be happy to help you make the right choice, for example when deciding which switch is the right one for your requirements.
C.R. Howdyshell, CEO of Advizex, expressed his great surprise at the transaction, commenting that it was a "bold bet", particularly with the aim of competing directly with Cisco. Advizex is a Fulcrum IT Partners company and a leading partner of HPE and Aruba.
Cisco, on the other hand, had no reaction to the merger for the time being and refrained from commenting.
The next phase of collaboration between the companies will be driven by accelerated and more efficient processes, resulting in improved performance. The targeted improvements for customers and users include:
Customers are concerned that the merger of the two companies will be disadvantageous for Juniper customers. Many Juniper supporters fear that other features and products they consider superior will not survive the acquisition. This concern may go beyond the imminent end of Juniper's independence. In addition, there is a perception among customers that HPE may not get the most out of the acquisition.
However, you can be reassured about our portfolio. We continue to carry all products from brands such as HPE, Aruba Networks, Juniper, Cisco and others in our online store, including end-of-life (EOL) equipment. The combination of HPE and Juniper does not affect our product range.
In conclusion, the acquisition of Juniper by HPE will have a far-reaching impact on the networking industry. With this acquisition, HPE is placing a clear focus on strengthening its networking business and integrating artificial intelligence.
Reactions from the industry show the interest and momentum of this significant merger. Despite the positive aspects, there are concerns among Juniper customers who worry about potential downsides. These customer opinions reflect the uncertainty as to whether HPE will realize the full range of opportunities from the acquisition.
The next steps will be crucial in determining whether the targeted improvements will be implemented effectively. The industry will be watching closely to see how HPE and Juniper jointly develop their networking solutions and overcome the challenges.
