Cloud, mobility will drive revenue

Juniper Networks has confirmed its long-term forecast for annual revenue growth of 20 percent or more because he met with financial analysts on Thursday, following two major product launches.

The company is exclusively on the networking focus, and believes he can continue to take market share from its competitors by the architectural transitions by the explosive growth of data traffic in enterprise networks and carriers, CEO driven Kevin Johnson said at the annual meeting of Juniper Financial Analyst San Francisco.

Juniper began the conference with the launch of PTX series packet transport line switch, a key platform provider, the packet switching and optical networking components connect to. This followed the announcement of QFabric Juniper, a new architecture was designed to reduce data center networks into a single logical switch. A simplification of the network structures in the heart of the overall strategy of the company, both at the network level and aligned to reduce costs.

Cloud Computing and mobility are key drivers of the new application networking, Johnson said. As carriers and enterprises to expand their networks, they need simpler architectures, because the current model is to deploy to multiple devices, he said. He compared it to a computing model in which each application requires its own specific server hardware.

“The legacy approach to networking is not sustainable,” said Johnson. “The industry through the complexity of the model of inheritance was overwhelmed.”

A service provider who is committed to this view, Japanese carrier NTT Communications, which has seen over the past two years, traffic is at its Internet backbone trans-Pacific from 180G bps (gigabit per second) increase to 450G bps. He expects to see growing 600G bps by the end of this year, said Fukuda Kempei, senior director of global network of NTT, who spoke on a panel at the conference in Juniper. Since the traffic load increases, competition also forced NTT to lower interest rates to sell bandwidth, said Fukuda. NTT plans to spend all his network traffic based on standard Internet router for the type of architecture in the converged platform PTX in the coming years, he said.

The analyst Mark Sue of RBC Capital Markets thinks Juniper can probably achieve their long-term growth forecasts. The company reported 23 percent revenue growth in 2010.

“The wind is always behind them,” said Sue. An important variable is the speed of Juniper can begin to recognize revenue from products and QFabric PTX, he said. It is planned to begin in the third quarter of this year and in the first quarter of next year, respectively. Expand its addressable market with new types of products are also critical, says Sue.

Johnson played the susceptibility of the shortcomings of Juniper margin, such as those recently suggested Cisco Systems because of the popularity of certain low margin on. President and CEO of Cisco, John Chambers on Tuesday from the deficit as an unpleasant surprise. Johnson said Juniper on innovative value-switch, instead of those that is more focused on price pressures.

Juniper leadership has also distanced itself from its focus on Cisco networking. In recent years, Cisco has expanded its scope to include consumer electronics and server systems and now includes. Despite claims that its new Juniper Junos Express chipset has one of the most powerful processors in the world, including processor servers, the company currently no plans to computers or storage systems sell for Pradeep Sindhu, vice president, CTO and founder. Juniper thinks he can do more to data centers with network devices with the servers, because data centers become larger, the network plays a major role in performance, said Sindhu.

To be in other parts of the data center would also raise the risk of offending partner Juniper to help, such as IBM, Dell and NetApp to sell the network equipment company, said Sue of RBC.