Juniper (JNPR) Boosts Raizen's Network Competencies in Brazil
Juniper Networks, Inc. JNPR recently inked an agreement with Raizen for an undisclosed amount to augment the latter’s Wi-Fi network capabilities in its headquarters and various offices in Brazil. The improvement in infrastructure facilities is expected to reduce the complexity of the network while increasing operational flexibility and efficiency with a better economy of scale.
With more than 40,000 employees, Raizen operates as one of the largest private business groups in the Latin American country. This provider of bio-energy solutions offers end-to-end services from the production and sale of renewable energy and sugar from sugarcane to the delivery of this energy to different parts of the world. Consequently, it requires a cost-effective network ecosystem to streamline operations and minimize downtime risks.
This is where Juniper routing solutions come to the fore by effectively helping Raizen to replace its legacy Wi-Fi network with a state-of-the-art LAN infrastructure. The Mist-AI-driven platform offers automated real-time data insights of the network and helps to take a pro-active approach to identify and resolve any error. It also features a virtual network assistant that provides a conversational AI interface, known as Marvis, to better address troubleshooting workflows and answer product or feature-specific questions and provide network-related information.
The simplified network traffic management from Juniper and its global partner NEC eradicates the complexity associated with multiple networks and delivers optimal bandwidth utilization. With the latest routing platforms, the company aims to significantly improve the network for more agile service delivery and better security features for enhanced visibility and customer data protection. This is expected to provide shorter time-to-market for new services while ensuring regulatory compliance and data security.
Segment routing simplifies operations and reduces resource requirements in the network by removing network state information from intermediate routers and placing path information into packet headers at the ingress node. This improves operational flexibility and agility for cost-effective user experiences as fewer network elements are involved, avoiding slow response to sudden network changes.
Juniper is set to capitalize on the growing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. The company is offering new suites of products, such as the T4000 core router, QFX data center platform, ACX and PTX packet/optical solution, among others. With the growing use of smartphones and tablets, mobile data traffic has gone up. This has resulted in higher demand for advanced networking architecture, leading service providers to spend more on routers and switches. Juniper is expected to benefit from the higher spending pattern among carriers to upgrade their networks for supporting the incremental growth in data traffic.
Despite short-term challenges, particularly within the cloud and service provider verticals, Juniper expects healthy progress in most areas of its business, which augurs well for its long-term growth. The company has made significant changes to its go-to-market structure to better align its sales strategies with each of its core customer verticals. Moreover, several new products are in the pipeline, which are expected to further strengthen its competitive position across service provider, cloud and enterprise markets.
The stock has gained 39.6% over the past year compared with the industry’s rally of 5.6%.
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Juniper currently has a Zacks Rank #3 (Hold).
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