Juniper Networks, Inc. (NYSE:JNPR) is one of the many companies that is seeking to revamp its business in an effort to embrace its core switching and routing business fully. This comes at a time when the tech industry is striving to adapt to changes, which are expected to meet both individual and corporate needs. However, the networking giant is in the hands of its CEO Rami Rahim who has witnessed its highs and lows for close to 20 years.
Without necessarily having a major reorganization, Rahim is trying to retool Juniper’s business, his primary concentration being on innovation. The company’s business has been impacted by the rise of cloud computing, and the same has hit the likes of Cisco Systems, Inc. (NASDAQ:CSCO) and Hewlett-Packard Enterprise Co (NYSE:HPE).
The cloud is the biggest trend affecting the industry
Business models are evolving, and in as much as Juniper could be doing well, Rahim says that a lot still needs to be done. With cloud computing becoming the in-thing, the cloud providers are rushing to tap into the avid appetite from their customers. Thus they are quickly setting up data centers from where they will offer the cloud services.
This may not have a significant impact on Juniper because the market for white-box switches is relatively small. On the other hand, the company is working towards diversification across technological areas. In any case, a majority of the big cloud providers are the company’s customers.
Focus and innovation is the best recipe for success
Rahim, who took over the top job from Shaygan Kheradpir asserts that Juniper has a vision towards telecommunications, cable, and financial services companies. He says they seek to provide flexible and scalable “cloud-based service delivery architectures. He is no stranger to innovation, and the focus is now on the execution of a strategy that will deliver efficient services.
It has not been all easy for Juniper however. Says the CEO, “Now, the focus is on execution of that strategy and on growth of our top line. The work we did last year, although it was tough, it was very important, and it was very beneficial to us as a company. We’re looking forward.”
While at this, Performance and cost efficiency matters and Rahim confirms that he will ensure that he doesn’t lose focus of the competitive industry. Meanwhile, Juniper’s stock closed at $26.83 a decrease of $0.15 or 0.56%.