Juniper Dives into Switching

| Feb 5, 2008 | Enterprise Network Systems | Competitive Intelligence Report

| Analyst: Steven Schuchart

Current Perspective: Positive
Vendor Importance: Very High
Market Impact: Very High

Event Summary

January 29, 2008 - Juniper Networks has introduced the EX-series of Ethernet switches. These switches run on Juniper’s JUNOS software, a single-source network operating system. The EX-series will deliver the operational simplicity, carrier-class reliability, and infrastructure consolidation and integration. The products announced include the EX 3200 Series of pileable fixed switches, the EX 4200 Series stackable fixed configuration switches, and the EX 8200 Series of modular switches.

Analytical Summary

• Current Perspective: Positive on Juniper’s release of the new EX Series of fixed and modular switches because these products show that Juniper understands the needs of the enterprise data center and is capable of creating switching products that customers will be able to use in their network deployments.

• Vendor Importance: Very high to Juniper, because in order for the company to continue to expand its business at a high rate it needed to be a more complete player in terms of the product lines it could offer enterprises. By adding the EX Series of Ethernet switches, Juniper is giving current customers as well as prospective customers an attractive switch offering and greatly expanding the number of customers they can address.

• Market Impact: Very high on the entire Ethernet switching market, because Juniper is already a respected name for its routers and security devices with a strong customer list. Its release of a line of Ethernet switches for the enterprise increases competition in an already intensely competitive switching market.

Recommended Competitor Actions

• The easiest argument against Juniper’s new EX product line is Juniper’s lack of experience in the switching market. Competitors should use leverage Juniper’s inexperience in switching to get customers to discard the EX series as a viable option.

• Competitors should use the fullness of their own product lines as a tactic against Juniper in a competitive selling situation. Juniper has done a decent job of filling out its switching product lines, but still lacks essentials such as a full WLAN solution or VoIP solution. Competitors should point out their own complete product lines as a defense.

• Competitors should take full advantage of the fact that Juniper’s EX 8200 series will not be available until later in the year. In the mean time, all salespeople and channel partners should be fully informed on the specifics of what Juniper is offering. Competitors that take advantage of the lag between announcement and release will be better prepared to compete when the EX 8200 series does finally ship.

• Cisco in particular should respond strongly to Juniper’s entrance into the switching market. The argument can be made that Cisco legitimizes Juniper by acknowledging the EX Series announcement, but the truth is that Juniper is a viable competitor that already competes with Cisco in the routing market. Cisco is well positioned in every sense to compete with Juniper and should do so with vim and vigor.

• Competitors on the rise such as ProCurve by Hewlett-Packard and Foundry should start by attacking Juniper’s pileable and stackable product lines and then move on to the 8200 Series when it comes available. In specific, they should compete on price, warranty and overall port diversity.

• Competitors should steer away from discussions of switch operating system stability, considering the use of JUNOS on Juniper’s switching line. However, it should discuss with customers on frank terms about Juniper’s JUNOS CLI which differs significantly from the industry standard CLI. CLI issues and retraining can be a significant point in a competitive selling situation.

Recommended End User / Customer Actions

• Juniper’s current router customers should evaluate the new EX switching line for use in their particular enterprise. Current Juniper customers will already be familiar with JUNOS and therefore have a drastically reduced learning curve when compared to customers used to the IOS-style industry standard CLI.

• Enterprises that are looking at evaluating new switches should include Juniper in the overall process. Juniper has proven its commitment to the enterprise market and its new switching products are worth the look, especially considering the educational options that Juniper is making available to customers to ease the transition to JUNOS.

• Customers that are satisfied with their current Ethernet switch provider should at consider evaluating Juniper’s new line of switches as a second-source supplier. Juniper is clearly making a concerted play for the enterprise market and enterprises can use the threat of Juniper to gain more leverage with their primary supplier.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

Recommended Vendor Actions

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