The announcement of the binding agreement stipulated by is at the beginning of January 2024 Hewlett Packard Enterprise (HPE) for the acquisition of Juniper Networks. The well-known global “edge-to-cloud company” has committed to buying the company specializing in network technologies at a price of 40 dollars per share, for a total value of approximately 14 billion dollars. This way it will strengthen its portfolio with higher growth solutions.
A new player in the world of AI-based networks and hybrid cloud
The acquisition aims to double HPE’s networking business, creating a new player with a competitive offering aimed at customers and partners. The operation responds to the growing demand for technological solutions based onArtificial Intelligence (AI) It is on cloud ibrido. In both cases, the focus is on their ability to connect, protect and analyze organizations’ data. A trend in which the network represents a critical connection component. In essence, the combination of HPE and Juniper’s complementary portfolios will provide customers of all sizes with a set of value-added services. Within these there will obviously be a network architecture necessary to manage and simplify their ever-expanding connectivity needs.
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Currently, thearchitettura cloud a microservizi Juniper Mist Cloud enables businesses to securely and efficiently access the critical cloud infrastructure that forms the foundation of digital and AI strategies. Combining with HPE Aruba Networking and interconnecting with HPE AI will enable native cloud and AI management and control as an industry leading player that accelerates innovation for modern networks optimized for hybrid cloud and Artificial Intelligence.
HPE and Juniper together, the statements of the protagonists of the agreement
“HPE’s acquisition of Juniper,” he said Antonio Neri, President and CEO of HPE – represents a major game changer in the industry and will change the dynamics in the networking market, offering customers and partners a new alternative that meets their most challenging needs. The transaction will strengthen HPE’s position at the center of rapidly accelerating macro-AI trends, expand our market potential, and spur further customer innovation, helping us bridge the gap between the AI-native world and the cloud-native world, while generating significant value for shareholders. I am excited to welcome Juniper’s talented employees to our team as we bring together two companies with complementary portfolios and proven track records of driving innovation in the industry.”
“Our multi-year focus on innovative, safe and native AI solutions – he said for his part Rami Rahim, CEO of Juniper Networks – led to outstanding performance for Juniper Networks. We have successfully delivered exceptional user experiences and simplified operations. By joining HPE, I believe we can accelerate the next phase of our journey. Furthermore, this combination maximizes value for our shareholders through a significant cash premium. We look forward to working with HPE’s talented team to drive innovation for enterprises, service providers and cloud customers across all industries, including campuses, branch offices, data centers and wide area networks.”
The network becomes the new core business of Hewlett Packard Enterprise
The new network segment will grow from approximately 18% of HPE’s total revenue in fiscal 2023 to approximately 31%1. Which will help drive more than 56%1.2 of HPE’s total operating income. The network will therefore become a true core business, as well as the architectural basis for HPE’s hybrid cloud and AI solutions. Currently, these are solutions offered via the HPE platform GreenLake hybrid cloud. The transaction is expected to close in late 2024 or early 2025, subject to receipt of regulatory approvals, approval by Juniper shareholders and the satisfaction of certain conditions. Upon completion of the transaction, Juniper’s CEO will lead HPE’s combined networking business, reporting to HPE’s President and CEO.
In the intentions of the Texan giant, Juniper should scale from day one to offer services internationally through the HPE channel. Furthermore, it should be able to leverage GreenLake as a service and its strong market presence. On paper, there are many potential synergies, but there is the risk of overlap between the two companies. The months needed to close the agreement will be used to rationalize the product lines and plan channel strategies suitable for enhancing the respective identities of the two players.
Article originally published on 18 Jan 2024