Juniper eyes public sector for growth

US-based Juniper Networks, which specialises in IT network infrastructure solutions, is eyeing Indian public sector, particularly government and defence segments, for growth.

The company recently won its bid to set up the State Wide Area Network (SWAN) for Himachal Pradesh. It has bagged similar projects in two other states. It is already in discussions with the defence authorities to provide network infrastructure for various projects.

"At present, government and defence are the two of the fastest-growing segments for the company within the enterprise business. We expect it to catch up with our service provider business over the next one and a half years as government and defence establishments are investing significantly in IT," Juniper Networks India MD Nagendra Venkaswamy said.

At present, service providers like telecom players, who offer mobile and broadband, generate 65 per cent of the revenue for Juniper in India.

"The enterprise business has grown tremendously in the last two years, from 10 per cent to 35 per cent. The focus is on enterprise business, particularly the public sector," he added.

In the Asia Pacific region, India is the fifth largest market for the company after Japan, China, Australia and South Korea. The $2.3 billion company has been active in the Indian market for the last five years.

"The company views India as a critical market for growth. At present, its contribution to the overall revenue could be small, but the projections are promising," Venkaswamy said.

He pointed out that over half a dozen central government organisations had deployed Juniper's products and solutions.

"We are targeting the SWAN projects and the defence organisations which are planning to improve their network infrastructure, for growth. In the coming years, the two segments will be as big as the IT/IT-enabled services sector in terms of market size," he pointed out.

Juniper is also looking at the manufacturing, banking and financial services segments for growth.

In the service provider business, the company will leverage on rural connectivity, the retail sector, broadband and IPTV for growth.

"There is an indication that most of the telecom players will expand their network infrastructure significantly over the next two years driving business for us in the process," he stated.

The company also operates a R&D centre in Bangalore, its second largest worldwide. It employs close to 800 engineers. Juniper Networks India Vice-president Sridhar Sarathy said by the end of 2008, 40 per cent of the company's R&D strength will be located in India.

"The Indian R&D centre has developed two products end-to-end. Three more products are in the pipeline. In a year's time, Bangalore will play a significant role in every product developed by the company," he added.

Juniper is keen on expanding its R&D centre in Bangalore. It recently opened its second unit, which can accommodate 800 engineers. It has also set up its second design verification laboratory in Bangalore.