In his research note to yours truly today, RBC Capital Markets Managing Director - Mark Sue states:
"Juniper's analyst day was constructive as the company highlighted specific plans to reduce costs during a period of reduced visibility. Despite the management's comments of increasing R&D spend this year by as much as 15%, the company articulated cuts in other areas such as S&M and G&A, and supply chain improvements, potentially helping save $100-$250M this year. For CY09E we are assuming total opex of $1.61B vs. $1.56B in CY08.
"Considering the current environment, it's highly unlikely that Juniper will be able grow revenues this year. If anything management's tone seems to indicate that demand has softened in recent weeks. For 1Q09, RBC remains street low at $797M, representing a sequential decline of 14% compared to the consensus of $808M. Certain carrier customers are now budgeting one quarter at a time and a higher level of fluctuations are expected in terms of order linearity. It is a very back end loaded quarter for most equipment vendors, Juniper no exception."
Sue added, "For 2009, we're estimating revenues to contract by -8%, implying limited incentive bonuses within Juniper, which will further drive cost savings. Gross margins may improve longer term from the current range of 65% to 67%. Juniper reiterated its share repurchase program, having already repurchased $116M to date with $670M remaining in the current plan. Juniper has $2.3B in cash or $4.37 per share and is generating healthy cash from operations.
"Juniper is expanding its product set and introduced its new SRX 3400 and 3600 and a high density switch, EX8216. Though no specific details were provided Juniper is also targeting cloud computing via a new fabric, "Stratus," along with an expanded partnership with IBM. Also, though still small, Juniper is making headway in the enterprise market as it works to reduce the cost of going to market in this segment."
Sue concluded, "So better opex visibility despite limited top line visibility is how we would characterize the outlook, implying no rush to own the name. Having said that, the product portfolio is strengthening, channel efforts are improving and cost discipline is permeating the organization."
Sincerely,
BradReese.Com Cisco Refurbished
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Juniper joins Top of Rack Fray
Shouldn't the headline read "Juniper today announced it was reselling the Blade Network Technologies (BNT) 8xxx switches for TOR?"
Please ask Juniper to confirm whether this is a true Juniper-developed product using Juniper ASICs or just a re-badged BNT box.
How will this affect Juniper's "One OS" story, or is BNT now running JunOS? Ask Juniper if it runs the same code-base as all their other switches.
Juniper criticised Cisco for having NXOS for the Nexus in the datacenter and it now appears they've now gone out and done the same thing.
Honestly, is this really news-worthy?
Sounds spot on BNT G8124 = Juniper EX2500
After reading the data sheet for the BNT G8124 this could be a OEM program for Juniper. Both switches have 480Gbps forwarding capacity which eludes to a single Fulcrum Asic supporting the 24 ports. Both have 700nsec latency as well. Power and cooling also have same messaging with redundancy and adaptive fan speeds. If this is the case I wonder if Juniper will be able to sell their product since the BNT is much cheaper.
Executive Leadership Catchup
I hope the industry sees through all this marketing. The EX8200 that just came out looks like a switch from that could have been a good contender back in the 90s. Nothing too exciting about a plain old vanilla Ethernet switch. And now this EX2500 which sounds exactly like the BNT product. I can imagine a line of Juniper products that will be coming out this year and all look like the RackSwitch products if this is true. I suppose in this economy "doing more with less" is important especially when partner companies have products and technologies to sell together.
Clouded Brand Identity
stra⋅tus
/ˈstreɪtəs, ˈstrætəs/ Show Spelled Pronunciation [strey-tuhs, strat-uhs] Show IPA
–noun, plural stra⋅ti /ˈstreɪtaɪ, ˈstrætaɪ/ Show Spelled Pronunciation [strey-tahy, strat-ahy] Show IPA .
a cloud of a class characterized by a gray, horizontal layer with a uniform base, found at a lower altitude than altostratus, usually below 8000 feet (2400 m).
Is the gray horizontal layer of fog with a uniform base similar to new logos on products sold under one company's name?
Accept its actually a contender now and its a great switch...
Accept its actually a contender now and its a great switch. Bigot.
I suppose it is a contender
I suppose it is a contender for people who don't take managing and designing their enterprise class networks seriously. Last I heard commodity products are treated like disposable products. Might as well go hook up your server farms to an SMC switch, maybe D-link, Linksys? Network outage? Hey Joe, run down to BestBuy and pickup a new access switch!
Right. Juniper is d-link.
Right. Juniper is d-link. Is it difficult to breathe when you are drowning in the kool-aid?
Oh my gosh you people are so
Oh my gosh you people are so ignorant. Rant and rave about the latest and greatest technology. I'd be surprised to not find some D-link or Linksys gear in any bigots closet whom is complaining about alleged re-branding of Junipers products. If you really can't stand another new product from a great development company, and wish to keep drowning on the Cisco Kool-Aid, be my guess. But please don't dirty a companies name because of your own ignorance.
Oh by the way, Juniper is pioneering network virtualization in the Data Center! Complaining of Juniper re-branding their products? Why not face the facts of what Cisco Nexus really is? A company they put millions into to assist with R&D, then decide to purchase to make it their next great platform. All in all this is the problem with the 100 pound gorilla, no real innovation. Pay for what another company innovates and put a new sticker on it. Nexus's technology is not even close to cutting edge, and Cisco touting FCOE is a farse since the results of a standard are still years away.
Stupid Juniper Math
With 24 ports you can't get 480 Gbps Full duplex. You either state 480 Gbps or you say 240 Gbps Full duplex, but you can't say both.
Its still better than Cisco math...
Its still better than Cisco math. Cisco just makes numbers up whole cloth, and then NetworkWorld gives their products 5-star ratings for features and capabilities that don't even exist yet. Sure. 15 terabits per second... just as soon as you figure it out.
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