- Google documents Iraqi museum treasures
- EU drops Qualcomm antitrust probe
- Barnes & Noble reports 2Q loss, cuts guidance
- Nokia to ax 220 R&D jobs in Japan
- Fox CEO wants US to join France on Internet piracy
- Newspaper circulation may be worse than it looks
- GE, Vivendi talks over NBC Universal stretch on
- B&N Nook sells out, too late for holiday orders
TECHNOLOGY NEWS FROM NYTIMES.COM
MOST SHARED
- The 'Real' Jobless Rate: 17.5% Of Workers Are Unemployed
- Wednesday's Economic News Crunch Could Tilt Markets
- NBA D-League On The Rise
- The Social Media Gaming Threat
- Obama Reiterates Commitment to Boost US-India Ties
- Stifling Anger at Work Can Kill, Survey Finds
- Japan Export Rebound Eases Fear of New Recession
- Australia Wheat Exporters Face Challenges: GrainCorp
- Sales of New Homes Forecast to Rise 2%
- Americans Ditch Planes for Trains this Thanksgiving
- Half of Banks' Losses May Still Be Hidden: IMF Head
- Obama Reiterates Commitment to Boost US-India Ties
- FDIC's Bair Cautions on Risks in Bank Break-Up Plan
- Wednesday's Economic News Crunch Could Tilt Markets
- Call Me Crazy: Confessions of a Black Friday Shopper
- Starbucks Eyes China as Next Major Market
- Citi Mortgage Reveals Something the US Treasury Won't
Text Size 
Dell plans to sell Juniper's networking products to businesses in a partnership aimed at challenging industry leader Cisco Systems.
Juniper, which traditionally sells routers, switches and other network equipment to phone service providers such as AT&T [T
Loading...
()
], has been expanding partnerships with large technology vendors to step up sales to business customers.
 |
Elise Amendola / AP Dell plans to sell Juniper's networking products to businesses in a partnership aimed at challenging Cisco. |
The deal follows similar moves by Dell [DELL
Loading...
()
] and IBM to sell products of network equipment makers in an effort to become a one-stop shop for companies installing a complicated array of storage, server and networking devices in their data centers.
Under the partnership, Dell will market, resell and support Juniper's equipment to business customers, the companies said.
While well-known as a PC maker, Dell also competes with Hewlett-Packard [HPQ
Loading...
()
] and IBM [IBM
Loading...
()
] in selling servers and storage devices to businesses.
"This is an additional route to the market for us," said David Helfer, Juniper's vice president of OEM (original equipment manufacturing).
The products under the partnership include Juniper's MX series routers, EX switching products, and Juniper's "JUNOS" operating system.
Some of them compete with those that Dell already sells through a partnership with Brocade Communications Systems [BRCD
Loading...
()
]. Praveen Asthana, Dell's vice president of storage and networking, said it wants to give customers choice.
"When we talk to customers, they tell us proprietary solutions that lock them in don't work at all. They want the promise of efficiency but they also want openness and choice," Asthana said.
William Blair & Co analyst Jason Ader said the deal underscored how partnerships have become a key element of Juniper's business strategy.
"Juniper has clearly made the strategic decision that it needs to secure OEM deals with major server vendors for its enterprise networking portfolio," he said.
Analysts have said Juniper's multi-partnership approach is different from that of Cisco [CSCO
Loading...
()
], which aims to be an "end to end" provider of its own broad range of equipment.
Cisco does have some partners, but its entry into the server market earlier this year was widely seen as a challenge to its resale partners including IBM and triggered a series of competitor deals seen as retaliatory.
In July, Juniper stepped up its partnership with IBM. It also agreed to a joint venture with Nokia Siemens Networks, a 50-50 venture between Nokia [NOK
Loading...
()
] and Siemens [SI
Loading...
()
].
Cisco isn't likely to give up its leading market share to Juniper. While Juniper has emphasized partnerships and in-house development as its strategy, Cisco has been stepping up acquisitions.
More For Investors:
Many analysts say Cisco's recently announced $2.9 billion deal to buy Starent [STAR
Loading...
()
], which specializes in advanced wireless technology such as LTE, may put Juniper at a disadvantage in the wireless equipment market.
While most analysts said the deal was a good move for Juniper, its shares fell 2.14 percent to $25.66 in afternoon trade, as a decline following its quarterly earnings announcement last week continued.
The shares have fallen around 6 percent since last Thursday—even though Juniper's results and outlook exceeded Wall Street estimates—as analysts cited worries about the company's long-term strategy amid a flurry of industry M&A deals including Cisco's Starent deal.
Juniper may provide more details on its strategy later this week. The company has invited analysts and media to an event Thursday and a source familiar with the matter said it would announce a revamp of products as well as a new company logo.
- Remember when auto shows were major events where new models could generate buzz?
- CNBC’s Mike Huckman visits a cutting-edge plant to see how the flu vaccine of the future is being made.
- People who bottle up their anger at work are up to five times more likely to suffer a heart attack, a study found.
- Playboy will outsource its publishing operations in a bid to become profitable again.
- A new McDonald's in Manhattan is the nation's first to sport a sleek, chic interior imported from stores in London and Paris.
- For nearly three decades, these on-call experts have been dishing advice on how to – and not to – cook turkey.
Data is a real-time snapshot *Data is delayed at least 15 minutes