Zacks_Analysts' Blog : Juniper Serves Japanese Researchers - Analyst Blog

Juniper Networks Inc. (JNPR), one of the leading providers of networking infrastructure products and services, announced that its routers and operating system will be deployed by the National Institute of Informatics (NII) of Japan for its Science Information Network 4 (SINET4). Financial terms of the deal were not disclosed.

SINET is a nationwide information and communication network joining more than 700 universities and research institutions through various connection points or nodes across Japan. To meet the increasing demand for fast Internet services by research institutions, SINET4 will now use Juniper’s MX Series 3D Universal Edge Routers, Junos operating system and Junos Software Development Kit (SDK).

Leveraging Juniper’s network architecture, SINET4 will be able to deliver larger bandwidth, speeding up the information transmission process.

Juniper’s networking architecture runs on the Junos operating software, which simplifies networking operations and reduces the cost of ownership. Moreover, the platform provides room for enhancement of capabilities without additional capital outlay. These factors primarily led to NII’s selection of the Juniper offering.

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

We think that the continued launch of new products and entry into new markets will keep Juniper ahead of its networking peers. However, stiff competition from market leader Cisco Systems Inc. (CSCO) and the upcoming networking company Hewlett-Packard Company (HPQ), as well as Juniper’s European exposure are likely to weigh on the shares.

Currently, Juniper has a Zacks #3 Rank, implying a short-term Hold recommendation.