Since founding Juniper Networks 20 years ago, I’ve worked tirelessly with Juniper engineers to deliver on our commitment to invest in and incubate disruptive innovation.
Today, I’m pleased to share that Juniper Networks has entered into an agreement to acquire Aurrion, a disruptive innovator in silicon-photonics technology. If you’re not familiar with silicon-photonics, consider this:
Over the past almost two decades, Juniper has dramatically reduced the cost per bit-per-second of the electronics portion of networking systems. Unfortunately, the optoelectronics portion—the one that converts electricity to light and vice-versa—has not followed a similar cost curve.
Historically, the optoelectronic portion represented significantly less than half the cost of a networking system, especially for optoelectronics designed for short to medium distances. If we fast forward to today, we see that things have completely reversed: the optoelectronics portion now represents significantly more than half the cost.
And here’s the real problem—the explosive growth of video streaming, social networking and other bandwidth intensive applications such as data center to data center traffic means that there is no letup in the hunger for greater bandwidth at ever decreasing cost and ever increasing flexibility.
Something has to change.
Aurrion has invented breakthrough technology that combines the economies of scale pioneered by the silicon industry with the unique properties of light to carry information over long distances at significantly lower cost. The end result? Dramatically lower cost per bit-per-second for networking systems, higher capacities for networking interfaces, and greater flexibility in how bandwidth carried on light is processed inside the electronic portions of networking systems.
Why Juniper and Aurrion?
As the world moves rapidly to the cloud, Juniper will continue to be a leader in the industry in developing the network infrastructure that powers this transformation. We expect that Aurrion’s breakthrough technology will result in fundamental and permanent improvements in cost per bit-per-second, power per bit-per-second, bandwidth density, and flexibility of networking systems. If we couple this new technology with Juniper’s history of bringing innovative networking products to market, we believe we can make significant improvements to the foundations of all of our networking products within a relatively short time.
Simply put, we believe this acquisition will strengthen Juniper’s ability to bring the most advanced and most cost effective network products to market more quickly.
Please join me in welcoming Aurrion to the Juniper community. We look forward to sharing more with you as we continue to combine our strengths for the benefit of our customers and our industry.
Statements in this blog concerning Juniper Networks' business, strategy and focus; market demand; the results and improvements made possible by Aurrion’s technology, including as combined with Juniper Networks solutions; the impact of the acquisition on our ability to bring the most advanced and cost effective network products to market; and our overall future prospects are forward-looking statements that involve a number of uncertainties and risks. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of several factors, including our ability to close the contemplated acquisition and integrate the acquired company and its technology and other factors listed in our most recent report on Form 10-K and subsequent quarterly reports on Form 10-Q filed with the Securities and Exchange Commission. All statements made in this blog are made only as of August 2, 2016. Juniper Networks undertakes no obligation to update the information in this blog in the event facts or circumstances subsequently change after the date of this blog.