Juniper Networks, Inc. (JNPR - Free Report) recently strengthened its collaboration with Nutanix Inc. (NTNX - Free Report) with the announcement of new initiatives under their partnership of simplifying the transition process of enterprises to multicloud environments. Notably, both the companies will collaborate on providing seamless integration between virtual and physical networks to offer a simplified and automated network management to enterprises. This will simplify the journey of enterprises toward multicloud architectures.
The collaboration will involve the integration of Juniper’s Contrail Enterprise Multicloud with Nutanix APIs. This will help in offering improved network visibility for virtualized workloads, which in turn will facilitate automated fabric management. Also, the company’s Unified Cybersecurity Platform combined with Nutanix’s software-defined networking offering — Flow — along with AHV hypervisor will help in securing applications with microsegmentation in cloud structure of enterprises. Further, the partnership will enable enterprises to make good use of the functionality of Nutanix Flow as well as Juniper vSRX.
Existing Business Scenario
Juniper is poised to benefit from the growing demand for data center virtualization, cloud computing and mobile traffic packet/optical convergence. With the growing usage of smartphones and tablets, mobile data traffic has gone up. This has resulted in rising 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.
Moreover, the company has been successful in developing global channel partners and strategic reseller relationships with market leaders. For instance, Juniper has worked with more than 9,000 channel partners to reach customers globally. The company created the J-Partner program for its preferred reseller and alliance partners. Also, the company has worked together with VMware to offer private cloud-based solutions. These partnerships are likely to enhance its networking technology, ultimately helping companies to transfer an enormous amount of data through different networks.
However, in the past six months, shares of this Zacks Rank #3 (Hold) company have returned 11.1%, underperforming the industry’s growth of 16.8%. Also, despite having a strong security portfolio, Juniper has not been doing well in the past few quarters due to lower-than-expected demand for non-Junos-based security products.
Stocks to Consider
A couple of better-ranked stocks from the same space are Comtech Telecommunications Corp. (CMTL - Free Report) and Ubiquiti Networks, Inc. (UBNT - Free Report) . Both these companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comtech Telecommunications surpassed estimates in each of the trailing four quarters with an average positive earnings surprise of 136.02%.
Ubiquiti Networks exceeded estimates thrice in the trailing four quarters with an average positive earnings surprise of 8.96%.
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