* Dell to sell Juniper MX routers, EX switches, JUNOS
* Deal helps Juniper expand sales, Dell broaden products
(Adds byline, analyst comments, details on Thursday event)
By Ritsuko Ando
NEW YORK, Oct 27 Dell Inc DELL.O plans to
sell Juniper Networks Inc's JNPR.O networking products to
businesses in a partnership aimed at challenging industry
leader Cisco Systems Inc (CSCO.O).
Juniper, which traditionally sells routers, switches and
other network equipment to phone service providers such as AT&T
Inc (T.N), has been expanding partnerships with large
technology vendors to step up sales to business customers.
The deal follows similar moves by Dell 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 Co (HPQ.N) and International Business Machines
Corp (IBM.N) in selling servers and storage devices to
"This is an additional route to the market for us," said
David Helfer, Juniper's vice president of OEM (original
The products under the partnership include Juniper's MX
series routers, EX switching products, and Juniper's "JUNOS"
Some of them compete with those that Dell already sells
through a partnership with Brocade Communications Systems Inc
(BRCD.O). 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,"
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, 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 NOK1V.HE and Siemens (SIEGn.DE).
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
Many analysts say Cisco's recently announced $2.9 billion
deal to buy Starent, 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 on
Thursday and a source familiar with the matter said it would
announce a revamp of products as well as a new company logo.
Dell shares eased 0.33 percent to $15.32. Brocade fell 0.91
percent to $8.73 while Cisco fell 0.84 percent to $23.50.
(Reporting by Ritsuko Ando; Editing by Derek Caney and Steve