Hewlett Packard Enterprise (HPE) has acquired Juniper Networks for $14 billion to strengthen its networking business.
The move is aimed at doubling the size of HPE’s high-margin networking business, positioning the combined entity as a major force in enterprise and datacentre networking.
The acquisition is viewed as a strategic response to the increasing demands of AI and hybrid cloud-driven businesses, which require secure and unified technology capable of connecting, protecting, and analyzing data from edge to cloud.
HPE and Juniper Networks have complementary product portfolios, which are expected to supercharge HPE’s edge-to-cloud strategy, enabling the combined entity to lead in a cloud-native architecture. The integration of Juniper’s Mist AI and Cloud platform with HPE Aruba Networking and its AI interconnect fabric is seen as an opportunity to modernize and optimize networking for hybrid cloud and AI. Networking will become the new core business and architecture foundation for HPE’s Hybrid Cloud and AI products, which are delivered through HPE GreenLake.
The acquisition also presents an opportunity for HPE to address new business opportunities in datacentre networking, firewalls, and routers, while enabling Juniper Networks to expand its footprint among datacentres and cloud providers. Upon completion of the transaction, Juniper CEO Rami Rahim will lead the combined HPE networking business, reporting to HPE president and CEO Antonio Neri.
Both Neri and Rahim are excited about the acquisition, which they believe represents an important inflection point in the industry and will change the dynamics in the networking market, providing customers and partners with a new alternative that meets their toughest demands. Rahim also shared his optimism about the acquisition, emphasizing the potential to accelerate the next phase of their journey and drive innovation for enterprises, service providers, and cloud customers across various domains.
The acquisition of Juniper Networks by HPE marks a significant development in the networking industry, with both companies aiming to leverage their complementary strengths to drive innovation and provide enhanced networking solutions for their customers.
