Summary
1. When it comes to routers and other data communications equipment used in the federal government, Juniper has been the high flyer. 2. While Cisco Systems is not precluded from participating in any upcoming contracts, Juniper appears to remain the number one choice. 3. There should be no reasonable expectations for Juniper to make meaningful penetration into the enterprise space in this market environment.
Analysis
Juniper became the preferred supplier over Cisco with the all-encompassing Networx program. The government business anticipated this year would probably cover a host of requirements. The initial deployment will likely involve reconstructing a network that ties various agencies together which will provide a higher security level. In addition, this network will allow for quicker record sharing and shortened download times. Juniper’s anticipated win will undoubtedly give the supplier a big lift during these difficult times.
When it comes to the enterprise, Juniper appears to be “fighting an unwinnable battle.” Even if “[c]ustomers see [them] as a complete solutions provider,” why would an IT executive want to take what would be perceived to be a huge risk in this unhealthy economic environment? One is not going to get fired for sticking with Cisco. Certainly, Juniper can be used in this space to keep Cisco honest. But the cost of training alone on a new solution would probably make it prohibitive for large businesses this year.
