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From: "Nick Lippis" <customerservice2@exgenex.com>
To: chien@munged.ext
Subject: The Lippis Report Volume 49: Can Juniper Be A Factor In Trusted Networks?
Date: Tue, 16 Aug 2005 13:37:01 -0400
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<p align="center"><b><font color="#526B83" face="Arial" size="2">The
Lippis Report Volume 49: <br>
Can Juniper Be A Factor In Trusted Networks?</font></b></p>
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implementing IP telephony. There will be product and
service announcements, keynotes by industry thought
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Over the next several months, we?ll keep you updated on
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<p><font size="2" color="#000032"><b>
<span style="font-family: Arial">The Lippis Report
Volume 49: Can Juniper Be A Factor In Trusted Networks?<br>
</span></b></font>
<br>
Over the past several columns I?ve talked about the
broad and deep changes Trusted Networking is having on
corporate networks. As a reminder, Trusted Networking is
restructuring the IT security and networking industries
as they embed access control, threat defense and
containment, plus risk mitigation deeply into the
network fabric. This restructuring has been taking place
for some years but is now entering an accelerated pace
as the rate of partnerships and acquisition activities
increase. All the major enterprise players such as
Cisco, HP, Nortel, Extreme, Foundry, 3Com, Enterasys, et
al., have security programs as top corporate strategic
initiatives and priorities. In addition to the large
enterprise players, there are hundreds of security
appliance companies focused on their niche in the
Trusted Networks market such as Lockdown Networks,
Crossbeam Systems etc. Traditional players such as
Checkpoint, Symantec, Trend Micro, McAfee, CA and many
others are aligned and partnered with one or many of the
large enterprise players. All of the major service
providers now offer managed firewall, VPN and IDS/IPS
services. But for one company in particular ? Juniper
Networks ? it is hard to tell if it will indeed be a
factor in Trusted Enterprise networking. <br>
<br>
Scott Kriens, chairman and CEO of Juniper Networks, has
increased his focus on the enterprise market in both his
speeches and acquisitions. Juniper just closed its
acquisition of Peribit and Redline and inked a new
partnership with Avaya in the fast growing IP telephony
space. Redline is nicely positioned in the red hot web
application acceleration market. Its 2004 $4+ Billion
acquisition of NetScreen gave it a foot hold in the
enterprise market as well and ?market permission? to
talk about network security. And talk about network
security Juniper sure does under the ?secure and assured
networking? banner. Juniper is clearly on a roll; its
last quarter net revenues were $493 million, compared to
$306.9 million for the same period last year, an
increase of 61%. They are nowhere near the $22 billion
that Cisco made last year, but they are growing
significantly in the service provider market.<br>
<br>
So with all this going for them -- acquisitions, growth,
being in the right markets, having good partners, etc.,
-- why would I question whether Juniper could be a
factor in the Trusted Networks market? There are a few
issues that give me pause when I consider Juniper?s
potential corporate network success. <br>
<br>
Pause 1: Lack of direct enterprise relationships.
Netscreen?s products were distributed to the enterprise
market mostly through service providers. While this
allowed Netscreen to grow at low cost, it didn?t capture
the enterprise relationship in most cases. Juniper?s
Netscreen acquisition gave it another set of products to
sell to service providers, rather than build and enhance
enterprise relationships. <br>
<br>
Pause 2: Product strategy. Juniper?s Redline acquisition
is layer 4 through 7 appliances. Juniper does not own
any layer 2, i.e., Ethernet switching and WLAN products.
You can make the argument that this is smart as Ethernet
switching and WLANs are a commodity and there are many,
maybe too many, players, offering similar products. But
layer 2 is also becoming a platform in which Trusted
Network services are hosted. Just look at Cisco?s
catalyst switches and Network Admission Control (NAC),
Nortel?s Ethernet Routing Switch Portfolio with Threat
Protection System (TPS), ProCurve Networking by HP?s
Interconnect switches with Virus Throttle, Extreme?s
switches with its Clear-Flow security technology and
Foundry?s switches with its IronShield Security
technology. All of these product families will deliver
some form of network access control to stop the
propagation of exploits before they enter the network.
This hole in Juniper?s product strategy relegates it to
an appliance-based security approach. Doing network
access control in appliances will not be an effective
mitigation strategy as a session has to flow through the
network to reach the appliance, leaving that network
path open to exploit propagation.<br>
<br>
Pause 3: Sales and marketing. Juniper is a company that
sells to service providers. Its sales, distribution and
marketing are all geared toward that customer or market
segment. While it may be building a sales and marketing
channel to reach the enterprise market, it?s not there
yet.<br>
<br>
Pause 4: Making the jump. No company in a post-1984
divestiture world has been able to start as a service
provider equipment manufacturer and leap into the
enterprise market successfully. Yes, you can look at
IBM, Microsoft, HP, Cisco, et al., as serving both
markets successfully, but they all started in the
enterprise market. Lucent sold off Avaya to focus on the
service provider market because it couldn?t serve both.
Nortel purchased Bay to enter the enterprise market, but
enterprise revenues are far below its service providers.
You can make the same observations about Alcatel, Nokia,
Ericsson, Marconi and Siemens. The door just does not
seem to swing both ways. Could it be the competencies
gained from serving the enterprise market of a faster
product development pace, quicker market and sales
cycles and deep distribution allows a company to enter
the service provider door from the enterprise side?
Possibly, but there aren?t any examples that show the
door opening the other way. <br>
<br>
Perhaps Juniper is the exception. And maybe the world of
convergence is the special hinge that allows the door to
swing both ways. Or maybe analyst expectations are too
high on Juniper and Juniper would be satisfied being a
leader in one or two enterprise segments that are
closely aligned to the service provider market? They can
talk network security to build enterprise relationships,
moving product deeper into the enterprise. For sure,
they are on a roll and have market attention. But the
real question remains: will Juniper be a niche Trusted
Networks player or a major influence and force? <br>
<br>
Your comments and questions are always welcome; please
send them to <a href="mailto:info@lippis.com">
info@lippis.com</a> </p>
<p>
<span style="font-size: 12.0pt; font-family: Times New Roman">
Nick</span><br>
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Lippis Report is written by Nick Lippis, a
world-renowned authority on corporate IP Communications
and consultant to CxOs of Global 2000 companies.</font><o:p></p>
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