HPE is about to acquire the networking company Juniper Networks for thirteen billion dollars. The negotiations are well advanced.

The first major acquisition in the technology industry in 2024 seems to be a fact. The Wall Street Journal expects white smoke at any time for a takeover of Juniper Networks, which sells networking equipment and software and the means to secure them. HPE would be willing to put thirteen billion dollars on the table.

In the fog

It will take time to integrate Juniper Networks into the HPE ecosystem. With Aruba, HPE basically already has a network specialist in its ranks. HPE does not see Juniper Networks as a competitor to Aruba, but rather as a complement to the subsidiary’s offerings. Specifically, HPE is interested in Juniper’s Mist AI, an AI-based solution to improve access to wireless networks.

An acquisition of Juniper AI therefore fits in with HPE’s plans to strengthen its position in the lucrative AI market. HPE announced its big ambitions in this area at its Discover conference late last year. With the hybrid cloud platform GreenLake at the forefront, HPE wants to distinguish itself with a “full-stack” AI offering. A high-performance network is the connective tissue that connects all levels of the offering.

Juniper also seems to benefit from a takeover. The company has seen a decline in revenue over the past year as companies appear to be spending less on their own hardware and instead switching to cloud-hosted software. Management responded by announcing a round of layoffs that would see more than four hundred employees laid off. HPE may be able to offer them an unexpected lifeline.