Juniper Networks Aids Telef??nica Spain

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Juniper Networks (JNPR) has recently secured a deal from Telefónica Spain. Telefonica has deployed an optimized wireline IP broadband access platform, by installing a Juniper Networks MX Series 3D Universal Edge Router.

This project, which Telefonica is referring to as the “Next Generation Access Center”, deals with the deployment of high speed fiber optics that can provide improved Internet service to homes and businesses. The scalability and flexibility of Juniper’s solution a what led Telefonica to build its broadband infrastructure on Juniper technology in an effort to serve its customers better.

Juniper needs more deals like this one to grow in what is an increasingly difficult market, made worse by conservative spending. Its high-performance network operating system is currently being used for routing, switching and security. This has also simplified the networking operations to a great extent while reducing the cost of ownership.

We remain encouraged by the rapid deployment of Juniper’s networking products and services by organizations and government verticals to meet growing business demand. We also appreciate Juniper’s continuous efforts to make strategic acquisitions to enrich its product portfolio.

To strengthen its routing and switching portfolio, Juniper is investing prudently in developing new devices. This is evident from the fact that roughly half its engineers are engaged in upgrading its portfolio. Hence, service providers are likely to continue spending on its advanced routers and switches.

During the first quarter of 2013, Juniper witnessed marginal growth in its product revenues, which was mainly due to lower contribution from the Enterprise vertical as federal and financial services sales were weak. Juniper also remains cautious about enterprise spending during the second quarter.

Despite the recent upsurge in product demand and potential business wins from AT&T (T) and Verizon Inc. (VZ), the company’s business is yet to pick up significantly. Moreover, we believe that stiff competition from F5 Networks Inc. (FFIV), Cisco Systems Inc. (CSCO) and constricted federal spending will pressurize fundamentals.

Currently, Juniper has a Zacks Rank #3 (Hold).

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