JUNIPER PARTNER SUMMIT 2014: No, it isn't pulling out of the enterprise and/or security

The figures leave no room for doubt - it has to, according to a senior executive
Juniper Networks' Russell Skingsley

Juniper Networks' Russell Skingsley

Juniper will remain dedicated to the enterprise and security because it has to. That’s the simple fact according to APAC, VP Centre of Excellence, Russell Skingsley.

Charged with trying to explain to the Juniper Partner Summit in Sydney exactly what High IQ Networking (basically an SDN play) was, Skingsley made a compelling case for Juniper’s commitment in these two sectors.

He said that the big Cloud powers were providing the engine of growth on the Internet. And Juniper’s fate had been tied to that growth since its inception.

“If you look at the bandwidth side of things alone, Netflix in the US is responsible for something like one-third of the bandwidth on US networks. And pretty much every market they move into, we see a similar kind of dominance of the Internet bandwidth,” he said.

“There are companies that in their areas are equally influential and one of those is Amazon Web Services. It has very quickly become the king of Infrastructure-as-a-Service (IaaS) and a lot of people feel that all IT is moving towards this IaaS model.

“AWS is so dominant in their area that Rackspace decided ‘that’s it , we give up, we can’t compete with Amazon anymore, we’ve got to do something different, we’ve got do managed Cloud services for enterprises but we can’t catch Amazon’. And, actually, a lot of our customers are coming to that conclusion, as well.

“However, you look at this - and we talk about these Cloud providers all the time- when you hear us talking about Cloud building you may think well Juniper is only interested in these guys, and ask so is giving up on the enterprise?

“Quite often, the two questions I get are: Is Juniper giving up on security and is Juniper giving up on the enterprise? We’re absolutely not giving up on either.”

Addressing the enterprise question first, Skingsley pointed to VMware CEO, Pat Gelsinger, who recently said in-premise datacentre is a $2 trillion market.

Gelsinger suggested 92 per cent of datacentre is delivered on-premise still and that as far as out as 2020, 77 per cent of datacentre services would still be delivered on premise. That is 77 per cent of the $2 trillion.

“Amazon will fill about $6 billion this year so AWS is completely dominant in the IaaS market but there is $ 2 trillion of on-premise IT. There is absolutely no way Juniper can afford to ignore on-premise datacentre,” Skingsley said.

“The other question is around security: there is a move towards Cloud and there is enormous spend available in IT. We have to consider what is the main concern for our IT users moving into Cloud. I don’t think the needle has changed on this for the last two years we have been talking about it. The number one concern is security, and continues to be security.

“So if you add up these things there is a massive amount of spend on internal IT, there’s a good amount of it going to the public Cloud but certainly not all of it, and the number one concern of IT users is security, then there is no way we can get out of security, there is no way we can not look after enterprise IT.”

He also backed up Gelsinger’s 92 per cent claim with some data from IDC – and the codicil he tended to only use the analyst data that agreed with him. He said IDC asked how much of a company’s budget is allocated to buying the different types of IT and services today and how much would be allocated in 24 months time.

"I found this this extremely interesting,”Skingsley said. “The respondents are still spending 36 per cent of their budget on traditional on-premise IT. Then there’s another 30 per cent being spent on traditional outsourcing - which usually means you’ve brought somebody in to run some stuff that is still sitting inside your premise, and 17 per cent on self-run private Cloud - which is run by the internal IT team, still running on your servers but being delivered in a Cloud type self-service portal for your internal customers.

“Another 19 per cent goes on managed private Cloud which is probably exactly the same thing. You’ve got your servers in your datacentres and you’ve brought some guy in to manage them and the stack. And finally there’s dedicated private Cloud which is sitting in somebody else’s datacentre but still dedicated infrastructure for you.

"When you look at the other side of things, the genuinely public Cloud is sending this data to Amazon or Azure or whatever . That’s makes up about 15 per cent. So that’s about 85 per cent that could be still considered on-premise IT, especially from Pat Gelsinger’s perspective.”

Those figures backed-up further the case for Juniper’s continued commitment to enterprise and security and, ultimately, it’s High IQ Network and Cloud building solutions.