Tuesday, January 9, 2024

HPE + Juniper merger targets AI-native networking

Citing higher growth and higher margin opportunities for modernized networking optimized for hybrid cloud and AI, Hewlett Packard Enterprise (HPE) confirmed plans to acquire Juniper Networks for $40.00 per share in cash, representing an equity value of approximately $14 billion and a 32% premium over the unaffected closing price of Juniper’s common stock on January 8, 2024.

HPE saysJuniper’s complementary portfolios supercharges its own edge-to-cloud strategy with an ability to lead in an AI-native environment based on a foundational cloud-native architecture. 

The combined company will target next-generation AI-native networking and enable new digital experiences through secure, intelligent connectivity. Networking will become the new core business and architecture foundation for HPE’s Hybrid Cloud and AI solutions delivered through our HPE GreenLake hybrid cloud platform. 

“HPE’s acquisition of Juniper represents an important inflection point in the industry and will change the dynamics in the networking market and provide customers and partners with a new alternative that meets their toughest demands,” said Antonio Neri, CEO of HPE. “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. 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.”

“Our multi-year focus on innovative, secure AI-native solutions has driven Juniper Networks’ outstanding performance,” said Rami Rahim, CEO of Juniper Networks. “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. In addition, this combination maximizes value for our shareholders through a meaningful all-cash premium. We look forward to working with the talented HPE team to drive innovation for enterprise, service provider and cloud customers across all domains, including campus, branch, data center and the wide area network.”

Some highlights:

  • Juniper CEO Rami Rahim will lead the combined HPE networking business, reporting to HPE President and CEO Antonio Neri.
  • On a pro forma basis, the new networking segment will increase from approximately 18% of total HPE revenue as of fiscal year 2023 to approximately 31%[1] and contribute more than 56%1,[2] of HPE’s total operating income.
  • The transaction is expected to be funded based on financing commitments for $14 billion in term loans, which will ultimately be replaced, in part, with a combination of new debt, mandatory convertible preferred securities, and cash on the balance sheet. 
  • The combined company is expected to achieve operating efficiencies and run-rate annual cost synergies of $450 million within 36 months post close. 
  • The acquisition is currently expected to close in late calendar year 2024 or early calendar year 2025.


From HPE's Q4 2023 financial presentation

From Juniper's Q3 2023 financial presentation

HPE Aruba Networking Predictions 2024: Private 5G, AI & Zero Trust

Check out all 2024 Predictions from Industry Thought Leaders: https://ngi.fyi/predictions24yt

Phil Mottram, EVP and GM from HPE Aruba Networking, predicts:

- Private 5G will become Enterprise ready. Private 5G will coexist with Wi-Fi, particularly benefiting outdoor spaces and areas where speed is crucial.

- AI becomes more mainstream in networking. Network managers will become more efficient, focusing more on strategy rather than individual network issues. 

- Zero trust will be a significant element of security deployments. Zero trust will bridge the gap between network and security departments, providing users with necessary application access while maintaining an organization's security posture. 


Want to be involved our video series? Contact info@nextgeninfra.io

Juniper Predictions 2024: Sustainability & 800G Networking Shape Future

 How will sustainability, 800G, and AI operations will shape the future of network infrastructure? Sally Bament, VP of Cloud & Service Provider Marketing from Juniper, explains:

- The importance of sustainability in network infrastructure purchasing decisions: Suppliers who can't demonstrate that their products are energy-efficient and recyclable will be at a significant disadvantage. The term "green networking" will become ubiquitous, and businesses will be held accountable to benchmarks aligned with scientific understanding to ensure real contributions to global sustainability efforts.

- The emergence of 800G networking as a hero technology: With the continued growth of data-heavy applications and services demanding ultra-fast experiences, 800G networking will emerge, led by cloud providers, telecom operators, and data center operators. This technology will enable performance without compromise and equip operators to navigate sustainable growth while balancing capacity needs, space efficiencies, and cost management.

- The adoption of on-prem automation and cloud-based AI Ops by operators: Operators will begin experimenting with cloud-based AI operations, influenced by security compliance and data sovereignty needs. By adopting a nuanced strategy, operators will proactively reduce customer-detected issues and improve customer retention to support their broader business goals. Automation will shift focus from cost reduction to enhancing operational efficiencies and user experience. 


Join Sally as she shares her insightful predictions for 2024 in the world of network infrastructure.

Want to be involved our video series? Contact info@nextgeninfra.io

Juniper Predictions 2024: Shift to On-Premises AI Data Centers

Wondering about the future of AI data centers and how they will evolve in 2024? Ben Baker, Senior Director of Cloud/SP Marketing from Juniper, provides insightful predictions:

- The Shift from Public to Private: Baker discusses the trend of companies moving away from public cloud due to its complexity and cost. He predicts a rise in on-prem AI data centers for better control, tighter security, and lower costs.

- The Importance of Renewable Energy: With data center racks consuming more power, Baker emphasizes the increasing importance of renewable energy. He foresees a rise in 100% renewable powered data centers and innovative cooling methods to minimize power consumption.

- The Role of AI in Network Management: Baker highlights the growing role of AI in network management. He predicts AI Ops will be used for predictive maintenance and troubleshooting, reducing repair time and improving system navigation.


Join us as we delve into these predictions and more, exploring the future landscape of AI data centers.

Want to be involved our video series? Contact info@nextgeninfra.io

 Check out all 2024 Predictions from Industry Thought Leaders: https://ngi.fyi/predictions24yt

Juniper Predictions 2024: AI & IoT for Network Security & Scalability

What's next for enterprise networking in 2024? Christian Gilby, Sr. Director of Product Marketing from Juniper, predicts:

- The importance of transitioning to the cloud for integrated network security and management, and how network access control will make a significant comeback in 2024, synergizing with AI Ops and aligning more cohesively with cloud applications.

- How IoT will witness deeper integration into access points and gateways within network infrastructure in 2024, enhancing scalability and making IoT integrations fundamental in leveraging the network to boost outcomes.

- The evolution of client user experience learning in networking, facilitating cross-domain troubleshooting and application integrations, enhancing the overall network application performance and delivering amazing user experiences.


Stay ahead of the curve and learn how to harness AI Ops to simplify and optimize Wi-Fi networks, take advantage of the expansion to the 6 GHz Spectrum with Wi-Fi 6E, and prepare for the emergence of Wi-Fi 7. 

Want to be involved our video series? Contact info@nextgeninfra.io

 Check out all 2024 Predictions from Industry Thought Leaders: https://ngi.fyi/predictions24yt

DigitalBridge and Silver Lake invest $6.4B in Vantage Data Centers

Vantage Data Centers announced a $6.4 billion equity investment led by investment vehicles managed by DigitalBridge Group and Silver Lake.

The investment, across North America and EMEA, is incremental to the recently announced €1.5 billion to be invested by AustralianSuper in Vantage EMEA and includes expected investment from DigitalBridge and Silver Lake co-investors. These investments accelerate and extend Vantage’s strategic capabilities across North America and EMEA to partner with global hyperscalers in meeting unprecedented cloud and AI demand.

Vantage owns or controls 25 sites in North America and EMEA totaling more than three gigawatts of expected capacity. As part of the company’s investment plan, Vantage’s strategic land bank is expected to drive an estimated $30 billion of additional development, extending Vantage's track record of bringing market leading capacity and innovative solutions to customers around the world. 

“We are delighted that Silver Lake is joining DigitalBridge to support Vantage’s continued expansion across North America and EMEA,” said Sureel Choksi, president and CEO of Vantage. “Cloud computing, AI and related technologies are driving unprecedented demand for digital infrastructure. The market opportunity in front of us is extraordinary, and we are excited to chart our next phase of growth with two premier investors who have been great partners to us and have an unmatched understanding of our global technology customers and their infrastructure needs.”

“We are excited about supporting the next chapter of Vantage’s growth in partnership with Silver Lake,” said Jon Mauck, senior managing director at DigitalBridge, who leads the company’s data center investment strategy. “We believe the combination of DigitalBridge’s unparalleled insight into the digital infrastructure landscape and Silver Lake’s technology focus creates a unique partnership to further enable Vantage’s strategic expansion and long-term growth plan. Vantage is a critical partner to the leading cloud and technology platforms globally and is well positioned to continue to support accelerating adoption of cloud- and AI-based technologies.”


  • Silver Lake launched Vantage in 2010 as a single data center campus in Santa Clara, California, recruited the management team that continues to lead Vantage today, and grew the company to have the then-largest wholesale data center footprint in Silicon Valley focused on serving sophisticated technology companies. 
  • A DigitalBridge-managed vehicle acquired Vantage in 2017 and has been the key strategic partner for nearly seven years, further emphasizing the company’s strategy to support cloud and now AI adoption and scaling Vantage into a global market leader with 32 operational or developing hyperscale data center campuses across five continents.


Open XR Optics Forum validates intelligent coherent transceivers

The Open XR Optics Forum recently showcased the effectiveness of their Management Architecture Specification through a demonstration. This initiative, led by Liberty Global, successfully integrated smart transceivers into various network systems and routers. A wide range of currently deployed network configurations was tested using line systems from multiple vendors in point-to-point and point-to-multipoint applications."

Key benefits of Open XR optics include simplification of network architecture enabled by coherent point-to-multipoint connectivity, intergenerational compatibility of high-speed and low-speed transceivers, and software-configurable bandwidth. Realization of these benefits in legacy networks requires compatibility with a diversity of routers and transport host devices as well as coexistence of XR signals in a variety of brownfield DWDM and PON line systems. In many cases, seamless integration with existing network management methods is also needed. Open XR optics advanced management features enable a dual management paradigm that preserves host-independent management of optical functions to maintain the delineation between the IP layer and optical layer management present in many optical transport networks today.

This trial successfully demonstrated the extreme versatility of Open XR transceivers and management methods by operating in 400G routers on 400G line systems in point-to-point connections, 400G to 4 x 100G point-to-multipoint configurations, and 2 x 100G transmission over a 50 GHz line system optimized for only 10G transmission. The trial also demonstrated the ability to transmit 100G full-duplex optical signals over a single-fiber PON infrastructure coexisting with the 10G XGS-PON signal. This PON overlay technique highlights how network operators can leverage XR signals over existing PON infrastructure to deliver new high-speed business services with minimal incremental investment.

Open XR Optics Forum members DriveNets, Infinera, Juniper Networks, Liberty Global, and UfiSpace all participated in this interoperability demonstration. 

The details and results of this demonstration were reported at the European Conference on Optical Communications held in Glasgow, Scotland in October and are now available in the full Open XR Optics Forum report, Dual Management of Open XR pluggable modules in P2MP Applications Hosted in Various Routers with Transmission over Multiple Line Systems Proof of Concept Demonstration. 

Boingo Wireless launches first Wi-Fi 7 Public Venue

Boingo Wireless activated the first Wi-Fi 7 network at a public venue. The network is live at the Las Vegas Monorail Boingo Station at the Las Vegas Convention Center and will be on display during CES at the Boingo Innovation Center.

AI-driven RUCKUS R770 enterprise-class Wi-Fi 7 access points (APs) were utilized for Boingo’s deployment.

“Boingo is proud to lead the charge in launching the world’s first Wi-Fi 7 network at a public venue, unlocking a new era of reliable, secure Wi-Fi connectivity for high-trafficked, diverse enterprise environments including airports, transit stations, hotels, casinos, stadiums, hospitals and military bases,” said Boingo CEO Mike Finley. “CES and Las Vegas have been home to groundbreaking technology unveilings, and Boingo is excited to contribute to that list with this inaugural Wi-Fi 7 deployment.”

Boingo’s Wi-Fi 7 deployment adds to its wireless firsts, including launching the first commercial DAS network, first Passpoint network, first CBRS airport private network and first Wi-Fi 6 network at an airport.

Intel to acquire Silicon Mobility SAS

Intel agreed to acquire Silicon Mobility, a fabless silicon and software company that specializes in SoCs for intelligent electric vehicle (EV) energy management. Financial terms were not dislosed.

 Silicon Mobility’s SoCs feature acceleratorsfor energy delivery and co-designed with highly advanced software algorithms for significant gains in vehicle energy efficiency. The company is headquartered in Sophia Antipolis, France, and has expanded its presence with offices in Silicon Valley, Munich, Japan, and China. Silicon Mobility's technologies focus on controlling key elements of electric powertrains, such as electric motors, battery charging, and power conversion systems, contributing to increased EV range, reduced emissions in hybrid cars, and enhanced passenger safety.

Intel also announced: a new family of AI-enhanced software-defined vehicle system-on-chips (SoCs).

“Intel is taking a ‘whole vehicle’ approach to solving the industry’s biggest challenges. Driving innovative AI solutions across the vehicle platform will help the industry navigate the transformation to EVs,” said Jack Weast, vice president and general manager of Intel Automotive. “The acquisition of Silicon Mobility aligns with our sustainability goals while addressing a critical energy management need for the industry.”