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Submission: On January 10 via manual from US — Scanned from DE
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Sign in Join * * My account * Sign out * You are currently accessing Channelweb via your Enterprise account. If you already have an account please use the link below to sign in. If you have any problems with your access or would like to request an individual access account please contact our customer service team. Phone: +44 (0) 1858 438800 Email: customerservices@incisivemedia.com * Sign in * Search Channel Web Search * News * Topics CHOOSE A TOPIC FROM THE LIST BELOW * Reseller * Distributor * Vendor * Finance and M&A * People moves * Cloud * Technology & trends * Women in channel * Sustainability in Tech * Top VARs * Events * Whitepapers * More MOST POPULAR CONTENT * A-list * Top VARs * Reseller * Vendor * Distributor * Hardware * Financial and reporting * Cloud Computing FEATURED CONTENT * Tech Impact hub * Unified Communications Hub * Dell Technologies consumption-based infrastructure hub AUTHORS * Kelsey Rees * Andrea Gaini * Sara Yirrell (Consulting Editor) * Search Search Channel Web Search * Join Sign in * * My account * Sign out * You are currently accessing Channelweb via your Enterprise account. If you already have an account please use the link below to sign in. If you have any problems with your access or would like to request an individual access account please contact our customer service team. Phone: +44 (0) 1858 438800 Email: customerservices@incisivemedia.com * Sign in * Sign in * HPE BUYS JUNIPER NETWORKS IN $14BN BLOCKBUSTER DEAL THAT SETS UP AI NETWORKING BATTLE WITH CISCO HPE SAID THE DEAL PROVIDES ADDITIONAL AI NETWORKING MUSCLE AND EFFECTIVELY DOUBLES ITS NETWORKING BUSINESS Steven Burke 10 January 2024 • 3 min read SHARE * * * * * Hewlett Packard Enterprise (HPE) is acquiring Juniper Networks in a $14bn (£11bn) deal that sets up a battle for network supremacy in the AI era between HPE Aruba Networking and market leader Cisco Systems. HPE said on Tuesday the deal to buy California-based Juniper provides it with additional AI networking muscle and effectively doubles its networking business, creating what it called in a statement a "new networking leader with a comprehensive portfolio that presents customers and partners with a compelling new choice to drive business value." HPE is paying $40 per share in an all-cash deal that it expects to be accretive to non-GAAP EPS and free cash flow in the first year after the close of the deal. On a pro forma basis, the new networking segment will increase from approximately 18 per cent of total HPE revenue as of fiscal year 2023 to approximately 31 per cent and contribute more than 56 per cent of HPE's total operating income. "Wow. This is a bold $14bn bet to take the networking leader crown away from Cisco," said C.R. Howdyshell, CEO of Advizex, a Fulcrum IT Partners company and a top HPE and Aruba partner that has invested heavily in networking as a service. "It sets up a battle of networking titans, with HPE going head-to-head with Cisco for dominance in the AI networking era." Cisco declined to comment on the acquisition. Howdyshell characterised HPE's move as "a bit of a surprise," noting that it "really shows HPE's commitment to dominate the networking market." "Both companies are channel focused," Howdysell said of Texas-based HPE and California-based Cisco. "It's going to come down to who is better at focusing on networking and executing a business plan working hand in hand with the channel." By leveraging industry-leading AI, the combined company is expected to create what HPE called "better user and operator experiences, benefitting customers' high-performance networks and cloud data centres." As a result of the deal, networking will become the new core business and architecture foundation for HPE's hybrid cloud and AI solutions delivered through HPE GreenLake hybrid cloud platform, according to the statement. HPE said the combined company will offer "secure, end-to-end AI-native solutions that are built on the foundation of cloud, high performance, and experience-first, and will also have the ability to collect, analyse and act on aggregated telemetry" across a broader installed base. HPE CEO Antonio Neri said in the statement that the deal represents an "important inflection point in the industry and will change the dynamics in the networking market" by providing customers and partners with a "new alternative" that meets their toughest demands. "This transaction will strengthen HPE's position at the nexus of accelerating macro-AI trends, expand our total addressable market, and drive further innovation for customers as we help bridge the AI-native and cloud-native worlds, while also generating significant value for shareholders," said Neri. "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 within the industry." Upon completion of the transaction, Juniper CEO Rami Rahim will lead the combined HPE networking business, reporting to Neri. "Our multi-year focus on innovative, secure AI-native solutions has driven Juniper Networks' outstanding performance," said Rahim in the statement. "We have successfully delivered exceptional user experiences and simplified operations, and by joining HPE, I believe we can accelerate the next phase of our journey." The HPE-Juniper combination is expected to achieve operating efficiencies and run-rate annual cost synergies of $450m within 36 months post close. The deal - which is expected to close in late calendar year 2024 or early 2025 - will be funded based on financing commitments for $14bn in term loans. That financing, HPE said, will ultimately be replaced, in part, with a combination of new debt, mandatory convertible preferred securities and cash on the balance sheet. SHARE * * * * * RELATED TOPICS * Vendor * Finance and M&A * HPE * Juniper Networks * M&A * acquisition PREVIOUS ARTICLE Four things we learned from TD SYNNEX's fiscal FY23 results NEXT ARTICLE CRN Fight Night 2024: DEADLINE FRIDAY You may also like VENDOR HPE IN 'ADVANCED' TALKS TO BUY JUNIPER NETWORKS FOR $13BN: REPORT 09 January 2024 • 1 min read RESELLER XPERIENCE GROUP ACQUIRES GCC TO PROPEL SME BASE AND ENTRY INTO LONDON Solutions provider is back on the acquisition trail with GCC deal 08 January 2024 • 2 min read VENDOR SCARED, ANGRY AND TERMINATED, VMWARE PARTNERS UNLOAD ON BROADCOM 'I’m optimistic that we will meet the revenue criteria and continue to be partners, but I’m scared [expletive]-less about what is going on inside VMware,' a longtime partner tells CRN. 05 January 2024 • 10 min read Upcoming events 06 Feb 09:30AM Conference BREAKING BARRIERS; DRIVING CHANGE TOGETHER Register now 08 Feb 09:00AM Conference SUSTAINABILITY SUMMIT 2024 Register now 08 Feb 06:00PM Award SUSTAINABILITY AWARDS 2024 Register now SIGN UP TO OUR NEWSLETTER The best news, stories, features and photos from the day in one perfectly formed email. Get the newsletter MORE ON VENDOR Vendor INTEL NAMES TREVOR VICKERS GLOBAL CHANNEL CHIEF, MOVES JOHN KALVIN TO NEW SALES LEADER ROLE Major revamp at semiconductor giant sees Trevor Vickers as general manager of its global partners and support organisation and John Kalvin as general manager of the go to market operations Dylan Martin 10 January 2024 • 3 min read Vendor HPE IN 'ADVANCED' TALKS TO BUY JUNIPER NETWORKS FOR $13BN: REPORT Gina Narcisi 09 January 2024 • 1 min read Vendor ACRONIS EMEA VP: VENDOR WILL TARGET LARGER MSPS AND EMPHASISE PARTNERSHIPS IN 2024 The Swiss vendor is shifting focus on large MSPs and prioritising partnerships under new expansion strategy in 2024 Andrea Gaini 09 January 2024 • 4 min read HIGHLIGHTS Careers and Skills STAFF & SALARIES 2022 A snapshot of pay and headcount trends in the UK channel Doug Woodburn 09 March 2022 • 1 min read Distributor MIDWICH CEO ON NIMANS ACQUISITION, 2021 RESULTS AND RETURN TO PRE-PANDEMIC LEVELS Stephen Fenby talks to CRN after Midwich’s 2021 results in which profitability exceeded pre-pandemic levels Josh Budd 08 March 2022 • 3 min read Vendor 4 MORE VENDORS SUSPEND SALES IN RUSSIA FOLLOWING UKRAINE INVASION IBM and Microsoft are among a number of vendors which have also announced that they will halt sales in Russia following the invasion of Ukraine. 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