US blocking Juniper network deal could benefit Huawei, warns HPE

HPE (Hewlett Packard Enterprise) is warning the US Justice Department not to block its ‘Juniper Network’ deal, or it might benefit Huawei. The deal of $14 billion may also help Cisco continue dominating the wireless network technology world.

HPE is a global company that works on IT and network products. It provides network services and solutions to businesses and helps them with planning, operating, and analyzing their data and applications. It focuses on storage and software strategies.

The OEM planned to merge with Juniper Networks. Juniper uses AI to boost its network performance and help enterprises connect their networks efficiently.

According to HPE, the primary goal of this transaction is to use Juniper’s data center routing more effectively. It would merge certain Juniper solutions with its storage and computing to elevate competition and innovation in the network industry.

On the flip side, this merger will result in a reliable alternative to Cisco and Huawei in the network technology world. Being a Wi-Fi player, Juniper could have offered great help to HPE in providing better network products to business customers.

While the deal was about to happen, the US Department of Justice blocked the agreement. As per DoJ, the new merger could affect competition. It believes:

“… the merger would eliminate fierce head-to-head competition between the companies, raise prices, reduce innovation, and diminish choice for scores of American businesses and institutions.”

DoJ even filed a case on this matter in a California court. In a move to stop the US from blocking the Juniper $14 billion deal, HPE said that this step may help Huawei and Cisco in the network segment and let them harm US national security.

HPE warns that Huawei has been repeatedly considered a national security risk by the US government. Thus, the suspension of the deal will eventually help the Chinese tech giant in the competition and affect the US’s security concerns.

 “… this lawsuit will hobble competition with Huawei… and thus, damage the US’s stated aim of reducing the use of Chinese technology in critical infrastructure globally.” – said HPE.

The American network firm isn’t the first to play the “Huawei card” for its own sake. T-Mobile also used the same trick to merge with Sprint for 5G Innovation.

Apart from Huawei, Cisco is also on the ‘beneficiary’ list. The company owns more than half of the WLAN Market, while HPE + Juniper’s share is 25%. DoJ filed the lawsuit on HPE and Juniper on January 30. The case may soon get a new hearing.

US blocking Juniper network deal could benefit Huawei, warns HPE (Image Credits: HPE)

(via)