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Juniper Launches Cost-Effective Contrail Edge Cloud Solution

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Juniper Networks, Inc. (JNPR - Free Report) recently announced that it has launched a cost-effective cloud solution for service providers. Dubbed the Contrail Edge Cloud, the product offers a full-fledged secure cloud experience to the space- and power-constrained edge network, which includes base stations, hub sites and switching sites.

The Contrail Edge Cloud solution provides automation, security and analytics features to facilitate service providers in deploying dynamic consumer and enterprise services in a cost and resource efficient manner. It offers low-latency, simple, automated delivery without sacrificing the rich functionality of a multitenant secure cloud and enables service providers to create, manage and monetize new services in preparation for 5G.

Juniper’s networking architecture runs on a single open source operating software named Junos. A common platform spanning across all the routing, switching and security areas reduces complexity in increasingly complex data centers. Juniper also offers a Software Development Kit to its partners and customers to allow additional customization. These factors are deemed to be real differentiators for the company, giving it a competitive advantage.  

Moving forward, Juniper is set to capitalize on the growing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. The company is offering new suites of products such as the T4000 core router, QFX data center platform, ACX and PTX packet/optical solution among others. With the growing usage of smartphones and tablets, mobile data traffic has gone up. This has resulted in demand for advanced networking architecture, in turn, leading service providers to spend more on routers and switches. Juniper is expected to benefit from the higher spending pattern among carriers to upgrade their networks to support the incremental growth in data traffic.

In the past year, Juniper has gained 1.1%, underperforming the industry’s growth of 28.3%. Whether such innovative products can boost the company’s shares in the future remain to be seen.



Juniper currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Ribbon Communications Inc. (RBBN - Free Report) , sporting a Zacks Rank #1 (Strong Buy) and Clearfield, Inc. (CLFD - Free Report) and QUALCOMM Incorporated (QCOM - Free Report) , both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ribbon Communications has a long-term earnings growth expectation of 12%. It delivered an average positive earnings surprise of 168.1% in the trailing four quarters.

Clearfield delivered an average positive earnings surprise of 52.8% in the trailing four quarters.

QUALCOMM has a long-term earnings growth expectation of 10.9%. It delivered an average positive earnings surprise of 19.8% in the trailing four quarters.

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