The paperwork isn’t finalized yet, but that won’t stop HPE from openly showcasing Juniper Networks during Discover in Barcelona. A networking giant is about to be born.

HPE will be in Barcelona again this year for the European edition of its annual Discover trade fair. There was no talk of a Spanish siesta when CEO Antonio Neri took the stage shortly after the lunch break. The room is disturbed by noisy fans of the local football club who storm in dressed in T-shirts and scarves. A scarf is placed on each chair and the audience is soon enticed to wave along rhythmically. For a moment we imagine ourselves at Camp Noú El Clasicobut we are actually at an HPE event. Neri also appears at the age of 57^ste still have a refined pedaling technique.

The biggest surprise of the keynote, however, comes at the end. Rami Rahim, CEO of Juniper Networks, takes the stage. The CEOs shower each other with compliments. This is not surprising as HPE has been working to complete its acquisition of Juniper for almost a year. During Discover in Barcelona, ​​Juniper will be physically present at an HPE event for the first time.

If the deal goes through, the networking industry will be shaken. Why is HPE after Juniper? HPE isn’t revealing its trump card yet, but is showing some of its cards on Discover.

The last hurdle

The ball started rolling in January. HPE announced that it would take over the American network specialist Juniper Networks for a whopping $14 billion. The EU and the UK have now given their blessing to the upcoming marriage. The red carpet seems to have been rolled out.

Neri has to be careful not to speak out of turn. The takeover is in its final phase, but in principle the American government can still stop it. When speaking to the press, Neri leaves no doubt as to whether it will work.

“We have always said that we want to complete the deal by the beginning of 2025 at the latest. I don’t see any reason to worry that this won’t work. “We are on schedule, even if it takes a few weeks longer,” says the CEO confidently.

Network as a binding agent

You don’t just pay fourteen billion dollars for a company. HPE has bought a lot in recent years. Neri proudly reports that HPE has completed 35 acquisitions since he took over as CEO in 2018. Not because Neri is suffering from an uncontrollable spending spree: there is an idea behind every takeover. “You can buy something, but if you don’t integrate it, you don’t create value with it,” says Fidelma Russo, CTO at HPE.

With Juniper Networks, HPE is not breaking new ground. Through its subsidiary Aruba, which has been part of HPE since 2015, the company has a strong foothold in the networking industry. The network plays an invisible but important role in HPE’s hybrid cloud strategy.

“Companies today no longer want to keep all their data in the same place, but instead want to keep data locally where it offers added value. Data patterns are changing in hybrid IT environments. The network is then that Material that connects everything,” says David Hughes, Chief Product Officer in Aruba.

Hughes isn’t afraid of Juniper becoming HPE’s favorite subsidiary. “At the highest level, HPE’s networking business will potentially double. There is overlap, but Juniper also operates in domains other than Aruba. If we come together, we can move faster and offer a broader portfolio.”

AI before network, network before AI

Neri sees Juniper Networks as the next piece of the puzzle in his strategy. “Our portfolio consists of three layers: network, hybrid cloud and AI. Under the influence of AI, data processing is changing faster than ever before. The network must evolve to connect all your data from the edge to the cloud. AI can only work with a network that is ready for this task, but traditional management methods cannot follow this,” says the CEO.

Juniper fits in thanks to its focus AI native Networking fully corresponds to this philosophy, something we firmly believe at HPE. “AI and the network influence each other in two directions,” explains Hughes. “The network is traditionally the backbone of the data center. But AI also increases the value of data outside the data center. This changes the way a network is deployed.”

“As a network manufacturer, we naturally want to produce good network devices. But to truly stand out in the market, you have to go beyond individual devices and look at overall network management. This is where you can make a big difference with automation and AI,” continues Hughes.

AI can only work if the network is up to the task.

Antonio Neri, CEO HPE

Network giant

No acquisition is a guarantee of success. No matter how confident HPE sounds about its prospects for success, its acquisition of Juniper Networks is a billion-dollar gamble. HPE wants to distinguish itself more explicitly in the AI ​​race with Juniper. HPE doesn’t want to be seen as a follower. The company is convinced that it can play a pioneering role with its hybrid strategy. Neri agrees: “AI is hybrid par excellence, network is the foundation. We will own the entire stack.”

However, it will primarily be the network industry that will be shaken to its foundations. The merger of HPE and Juniper creates a network giant. The network division will then account for a third of HPE’s total sales. Then it can be said without exaggeration that HPE is retraining itself to become a network company. The established names in the industry, especially Cisco, will follow developments with some concern.

HPE and Juniper are on the home stretch, but there is still a hurdle before the finish. Is a networking giant born? In either scenario, HPE intends to send shockwaves through the networking industry.