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Business Profile

Information Technology Firm Sees Major Trends Bolstering Sales to Defense, Intelligence

September 1, 2012
By Michael A. Robinson

A well-known communications technology company is bucking the trend of reduced sales to government and the defense sector. Its leadership sees the advent of new technologies and capabilities creating a boom market for government organizations looking to tap that innovation wellspring.

Juniper Networks is well-known throughout the high-technology world as a key supplier of high-performance networking gear and related products for companies that provide online and wireless services. But that focus on supporting the bandwidth and security needs of Internet providers, corporate networks and data centers obscures a key fact about this Silicon Valley giant—the federal government ranks as its next largest customer by far.

Not only that, but defense and intelligence agencies account for the bulk of its federal sales. Last year, federal revenue grew faster than the company’s overall sales.

In a wide-ranging interview with SIGNAL, Juniper Chief Executive Officer (CEO) Kevin Johnson notes that his company has nearly doubled sales in the past five years, jumping from $2.3 billion to $4.5 billion. Though Johnson declines to say what proportion of those sales come from the defense market, he does say defense and intelligence agencies at least kept pace with Juniper’s overall expansion since 2007.

“In many ways the same market trends that we see broadly around the world are very applicable to federal,” Johnson says. “I would argue in fact that they are more applicable to federal because of the scale at which the federal government is required to operate.

“And that sort of connects to the value proposition and the focus we have at Juniper. We are a company that is a pure play in high-performance networking,” he states.

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