Networking
Juniper Networks, the #2 manufacturer of network hardware (after Cisco) announced it would acquire NetScreen Technologies for about $3.5 billion in stock. NetScreen makes routers and network switches for virtual private networks (VPNs) and is particularly strong in security software for network firewalls. It competes in that area against Cisco and Check Point Software Technologies. NetScreen itself a few months ago acquired security software company Neoteris.
While network hardware has been slow to grow, security software has been taking off. In order to continue to compete with Cisco, analysts say, Juniper had to expand its security expertise. Juniper has until now concentrated on serving telephone companies and Internet service providers. With the NetScreen move, it will extend its reach into business customers.
All of this is part of a move to consolidate in the network business, according to a CNET news article, "Juniper aims to secure Cisco rivalry," (2/9/2004).
Security technology company Symantec bought secure networking firm SafeWeb last fall and four security companies the year before. Rival Network Associates bought two companies last year to strengthen its focus on detecting intrusions….
The buy also gives Juniper an entry into the market for products that allow secure access to corporate networks based on a widely used browser technology known as secure sockets layer encryption. NetScreen bought Neoteris, a major player in the sector, in October. Cisco entered the market in November with a new VPN product that is still being tested.
As the race for position heats up, Juniper is anxious to hold its #2 position against Cisco, and extend it as well.
