Cisco Systems is likely to face serious competition following networking rival Juniper’s announcement of its intention to acquire Netscreen Technologies, a network security vendor, in a deal worth nearly $4bn. The acquisition, which is expected to be finalised by the second quarter of this year, has been highlighted by analysts as a new threat to Cisco Systems, particularly in the area of security.
Juniper competes with Cisco Systems’ in high-end routers and switches. The merger with Netscreen, well-known for high end firewall appliances, antivirus and intrusion detection and prevention, is hoped will make the firm a force to be reckoned with in network security. Worldwide, Netscreen is considered one of the top three network security firms, after Cisco and Checkpoint.
Speaking to Channels, Peter Crowcombe, EMEA marketing director for Netscreen, said Juniper was an initial investor in Netscreen when the security firm was established in 1998. The two companies had worked closely together in adjacent markets and had very similar philosophies, making the decision to merge a straightforward one, he said. ‘The merger is a positive move for the industry – together the two companies will offer much stronger competition to Cisco.’
Similarly, Juniper revenues are traditionally derived from the service provider market, while Netscreen has a foothold in the commercial enterprise space, so the combination of markets offers new opportunities for the merged firm, said Crowcombe.
He says Cisco is ‘weak’ on intrusion protection and prevention despite its acquisition five years ago of PIX, a security firm specialising in firewall products. Instead, they’ve focused on other areas such as VoIP, to the neglect of security.
Netscreen have also moved into the VPN arena with its recent $245m acquisition of Neoteris last year, a leading SSL VPN systems provider. Although Neoteris products have been rebranded Netscreen, the Netscreen brand is likely to survive the merger with Juniper, according to Crowcombe.
Netscreen, a 100 per cent indirect channel player whose products are distributed in Ireland by NOXS, has recently embarked on a drive to target the medium enterprise market, which it defines as companies with between 100 and 1,000 employees. The drive includes new channel programmes that include education, training and tools to help partners build sales momentum in this area.
Crowcombe said that Netscreen has some direct sales teams in some European markets but none in Ireland, thanks to strong links with partners. ‘We find strong relationships with local companies and resellers, therefore Ireland is reasonably easy territory to cover from the UK.’
28/06/04
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