Where Will the DX Go?

By Paula Musich  |  Posted 2008-01-25 Print this article Print

"We are committed to working with our customers and plan to re-allocate investments and resources to continue innovation on our existing and future product lines, including WAN acceleration, security and routing technologies within our high-performance network infrastructure," said the spokesperson, adding that Juniper employees displaced by the DX products' phase-out will get a chance to apply for 400 positions that are open in other parts of the company.

Juniper's decision to discontinue the DX product line raises questions about Juniper's commitment to the application acceleration market, although it is still marketing the application acceleration technology it acquired with Peribit Networks.

"There seems to be some evolution in their application delivery strategy," said Abner Germanow, analyst with IDC in Framingham, Mass. "Where did the DX go? Are they going to get out of that business?"

Furthermore, several sources close to Juniper said its new LAN switching initiative is long on vision and short on near-term deliverables. And by addressing a mature market dominated by Cisco Systems, Juniper will have an uphill battle to gain market share.

Still, there are growth opportunities, believes Cindy Borovick, vice president at IDC.

"I think that Juniper has made it clear that enterprise networking is important to them and that they do very well with [service providers], but they need an enterprise strategy as well, Borovick said. "They are growing in the enterprise space overall, but the question is what markets will grow the fastest in networking and where can they gain market share fastest."

Cisco's dominance in broader enterprise LANs may not translate into a stranglehold in the data center, Borovick added.

"In the data center the customer is willing to evaluate a different vendor or take a risk on a new platform if it's perceived as best of breed," she said.

Industry observers expect Juniper to launch its LAN switching initiative Jan 20 at its Global Enterprise Event in New York.


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