Public sector coming to forefront of Juniper's Latin American sales, VP says

Monday, January 24, 2011

US networking company Juniper Networks (Nasdaq: JNPR) sees the public sector taking center stage in its Latin American corporate sales, Juniper's vice president for corporate sales in Latin America and the Caribbean, Juan Chico, told BNamericas.

Juniper is banking on a rush of ICT expenditures even as countries such as Peru head to the polls later this year, as well as significant public sector investments in other countries like Chile, Colombia, Mexico and Brazil, according to the VP.

"In terms of growth, the public sector represents one of the largest growth markets for us in Latin America," Chico said.

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Brazil stands out for its long-term IT infrastructure potential due to the upcoming World Cup and Olympic Games, according to Chico, who also singled out public sector opportunities in Chile due to the country's stability.

Other priorities this year include cultivating Juniper's channel partner relations and capturing business opportunities generated by OEM agreements with IBM (NYSE: IBM) and US computer giant Dell (Nasdaq: DELL), the latter of which gives Juniper a stronger presence in Latin America's burgeoning data center sphere.

"Both IBM and Dell operate in an extremely strategic segment of the market. They have access to the data centers of some of the most important clients in the world... through a business model that is more based on consulting, and not necessarily moving products," Chico said.

According to Chico, IBM and Dell are relying on their relationship with Juniper to strengthen their hand against players such as Cisco (Nasdaq: CSCO) and HP (NYSE: HPQ).

In Latin America, Juniper has offices in Mexico, Brazil, Colombia and Argentina. The company's main corporate sector accounts include Brazilian federal energy company Petrobras (NYSE: PBR), Venezuelan state oil company PDVSA and Brazil's leading private sector banking group, Itau Unibanco (NYSE: ITUB).

Chico said Juniper supplements its partner business with direct coverage when dealing with key accounts.

Juniper's Americas region recorded revenues of US$533mn in the third quarter of last year, compared with US$423mn year-on-year.

The Sunnyvale, California-based company is expected to report fourth quarter results this week.