TECHNOLOGY companies Juniper Networks Inc. and Dell Inc. announced the rollout of products and services in a bid to expand their sales in the enterprise segment lorded by old but still-functioning legacy systems.
“The old ways won’t work anymore as ARPU [average revenue per user] goes lower while capital spending on infrastructure increases,” Juniper Asean region channels director Sanjiv Verma told the BusinessMirror after a press briefing on Thursday.
Verma explained that the explosion of mobile devices was not foreseen by companies relying on such products and services for revenue, like telecommunications.
“With the proliferation of devices and the penchant for connected socialization, telco consumers will experience downtimes as pressures to the old system. It was well and good when there were not so many hand-held unit owners in the Philippines or India. But when the cost of a unit goes down, the number of users increases. There will be a breaking point.”
Verma further explained that companies reaching the breaking point should look into its capex versus sales revenue.
In his presentation before leaving for Singapore, the Asia headquarters of the world’s second-largest manufacturer of computer networks products, Verma said traffic growth creates financial challenges as devices and network requirements impact on cost and profitability.
“New investments will cause a breaking point. It may not happen today or tomorrow; but it will happen when investments in information technology and business value reach its trigger point.”
Of course, Verma claims his company’s solution will help avoid that breaking point: one operating system for networks.
Called Junos, Juniper’s is one of 19 available OSs in the market but packaged last year as the brain that will control and manage the entire IT infrastructure, from security to routers to switches of a company.
With Junos, Juniper will compete with Cisco Inc.’s Internetwork Operating System (IOS).
Still, Ricky Benipayo Lopez, country manager for Dell’s large enterprise and public business segment, said they welcome Juniper’s product “as it completes our range of offerings to enterprise clients.”
In its filing with the US Securities and Exchange Commission in June, Juniper announced its OEM agreements with Dell and IBM Corp. “where they will rebrand and resell our products as part of their product portfolios.”
Lopez said he expects the partnership to help them gain more foothold on the enterprise sector in the Philippines.
To note, Dell still doesn’t offer its online purchasing system to Philippine-based buyer while Juniper doesn’t maintain an office in the country. Both sell through local distributors and channels.
