Juniper Networks Introduces Purpose-built Solution for GPUaaS and AIaaS Providers to Accelerate AI Delivery and Simplify Ongoing Operations

Rhea-AI Summary

Juniper Networks (NYSE: JNPR) has unveiled a new solution specifically designed for GPU-as-a-Service (GPUaaS) and AI-as-a-Service (AIaaS) providers. The solution features QFX Series Switches, PTX Series Routers, and SRX Series Firewalls, managed through Juniper Apstra® and Mist AI™.

Key benefits include:

• Up to 85% reduction in operational costs and 10x faster deployment time
• Zero Trust Security with EVPN VXLAN capabilities for multi-tenancy
• SRX 4700 firewall delivering up to 1.4 Tbps throughput
• Multi-vendor support and optimization for AI workload performance

Juniper currently holds a 49% market share in the 800G OEM market, demonstrating strong momentum in AI data center solutions. The platform integrates with Red Hat® OpenShift® for enhanced Kubernetes automation and includes validation tools through Juniper's Ops4AI Lab.

Positive

• Market leadership with 49% share in 800G OEM market
• Up to 85% reduction in operational costs
• Up to 10x faster deployment time
• High-performance SRX 4700 firewall with 1.4 Tbps throughput

Negative

• None.

Insights

Data Center and AI Infrastructure Expert

Juniper Networks' new purpose-built solution for GPUaaS and AIaaS providers represents a strategic move to capitalize on the rapidly growing managed AI services market. This offering directly addresses the infrastructure challenges faced by neocloud providers and traditional service providers looking to monetize the AI boom without forcing their customers to invest in costly GPU hardware.

The solution's architecture combines high-performance networking hardware with AI-driven automation, targeting a critical pain point for service providers: the complexity and cost of managing multi-tenant AI environments. By claiming deployment time reductions of 10x and operational cost savings of up to 85%, Juniper is positioning this as both a technical and financial accelerator for providers entering the competitive AI services space.

Particularly noteworthy is Juniper's focus on Ethernet-based networking for AI workloads, as highlighted in the ionstream.ai testimonial. This approach diverges from NVIDIA's preference for InfiniBand in high-performance computing environments, offering providers a more flexible, familiar, and widely-supported networking technology with a larger talent pool to support it - a important advantage for service providers managing complex multi-tenant environments.

Juniper's claimed 49% market share in the 800G OEM switch market indicates they've successfully positioned themselves ahead of competitors like Cisco and Arista in the highest-performance networking segment critical for AI workloads. This early leadership in AI-optimized networking hardware could translate to significant revenue growth as the GPUaaS/AIaaS market expands.

For investors, this announcement signals Juniper's commitment to the AI infrastructure market beyond just selling switches. By creating purpose-built solutions for service providers, Juniper is establishing itself in a potentially lucrative position in the AI value chain, sitting between GPU manufacturers and the enterprises consuming AI services.

Cloud Services and AI Market Analyst

Juniper's purpose-built solution for GPUaaS and AIaaS providers targets an emerging sweet spot in the AI infrastructure market - the layer between GPU manufacturers and enterprises seeking AI capabilities without massive capital investment. This move positions Juniper to capitalize on what could become a multi-billion dollar market segment as AI adoption accelerates across industries.

The strategic importance of this announcement lies in how it addresses the economic equation of AI infrastructure services. For neocloud and specialized AI providers to compete effectively against hyperscalers like AWS, Azure, and Google Cloud, they must offer compelling price-performance advantages while maintaining flexibility. Juniper's claimed operational cost reductions of up to 85% directly impact these providers' margin structures, potentially enabling more competitive pricing models for end customers.

The emphasis on Ethernet-based networking rather than InfiniBand represents a calculated bet on the future architecture of multi-tenant AI environments. While InfiniBand offers raw performance advantages in tightly-coupled HPC environments, Ethernet provides significantly better flexibility, familiarity, and operational simplicity - critical factors for service providers managing dynamic customer workloads across shared infrastructure. This approach also avoids the vendor lock-in associated with NVIDIA's networking stack.

Market timing is particularly favorable for this solution. As enterprises face GPU shortages, rising energy costs, and the complexity of AI infrastructure management, the appeal of specialized AI cloud services has grown substantially. IDC projects the AI infrastructure market will reach $151 billion by 2027, with a significant portion flowing through service providers rather than direct enterprise purchases.

For investors, this represents Juniper's most comprehensive attempt to monetize the AI boom beyond just component sales. By creating purpose-built, integrated solutions for service providers, Juniper is establishing a potentially more defensible and higher-margin position in the AI value chain while expanding their addressable market.

AI-Native Networking Platform provides managed providers with unique visibility from fabric to GPU, assured network performance for AI workloads, and best-in-class security

SUNNYVALE, Calif.--(BUSINESS WIRE)-- Juniper Networks (NYSE: JNPR), a leader in secure, AI-Native Networking, today announced a new solution purpose-built for neocloud, traditional SPs and other AI cloud providers who are deploying and managing GPUaaS (GPU-as-a-Service) and AIaaS (AI-as-a-Service) offerings. The new solution accelerates time-to-market, simplifies operations, and lowers the cost of managing these services, all while delivering high-performance data center networks that are optimized for multi-tenant environments. This is the latest Networks for AI solution introduced by Juniper, who is experiencing strong momentum in the AI data center space as companies worldwide seek for industry-leading switching, routing, security and automated operations.

Enterprises are turning to neocloud, traditional SPs and other AI cloud providers for on-demand AI services to reduce costs and improve time-to-market. These companies build optimized infrastructure to deliver better performance and offer more competitive pricing, particularly by enabling a pay-as-you-go model for expensive hardware like GPUs, making AI development more accessible. Such providers are typically more agile and responsive, offering cutting-edge AI technologies with greater flexibility and customization. Some also focus on data sovereignty and privacy, catering to organizations with strict regulatory requirements.

Juniper's solution provides a powerful and secure way to deploy highly optimized, cost-effective and multi-tenant cloud-based AI services. It delivers high-performing, scalable and secure networks for cloud-based AI services such as training and inference with Retrieval Augmented Generation (RAG). It is quick-to-deploy and easy-to-manage, providing time-to-market advantages to AI cloud providers. The solution today consists of QFX Series Switches, PTX Series Routers and SRX Series Firewalls managed via Juniper Apstra® data center assurance software and Mist AI™.

The solution delivers these key benefits:

Automation accelerates deployment and simplifies operations

By leveraging a combination of intent-based networking and Mist AI, Juniper simplifies Day 0/1/2+ operations and reduces ongoing costs by up to 85 percent in some instances, with up to 10x reduction in deployment time. Through an integration with Red Hat® OpenShift®, even more automation benefits can be achieved in Kubernetes environments.

Zero Trust Security and Multi-tenancy protects users and data

Juniper's Zero Trust DC Security portfolio, along with EVPN VXLAN capabilities within Juniper switches, provide multi-tenancy capabilities, and protects the AI infrastructure, models and confidential data from internal and external threats. Juniper’s SRX 4700 next-generation firewall is a power-efficient, 1 U device designed for service providers, cloud providers and large enterprises. It delivers the industry’s highest firewall throughput per rack unit, up to 1.4 Tbps, and supports 400 Gbps interfaces with wire speed MACsec to safeguard data in motion.

Validated solutions provide confidence

With Juniper's Ops4AI Lab, managed providers can validate their AI models prior to actual deployment across various networking, compute and storage platforms and configurations. In addition, Juniper Validated Designs (JVDs) exist for multi-vendor AI blueprints, including NVIDIA and AMD accelerated computing, Weka and VAST storage. These tools ensure confidence and expedite GPUaaS and AIaaS deployment times.

Open flexibility avoids vendor lock-in

Juniper has the only multi-vendor solution for DC fabric management and automation, making it the most flexible to design and simplest to manage. Juniper also has unique capabilities to optimize AI workload performance over Ethernet, allowing providers to use open and proven technologies and products that avoid vendor lock-in. With a runway to 1.6 Tbps/port switches and multi-vendor support for GPU-agnostic systems, Juniper reduces costs, assures faster innovation, maximizes design flexibility and avoids supply chain challenges.

Continued momentum in AI DC

As a leader in AI-Native Networking and AI technologies, Juniper’s early bet on “Networks for AI” is paying off with strong market success. First to ship 800G Ethernet switches among OEMs, Juniper now commands a leading 49 percent share of the 800G OEM market, according to 650 Group’s Q1-Q3 2024 revenue shipment report published in December 2024. With AI-optimized solutions, Open4AI Lab and white-glove service to customers, Juniper has been winning many AI DC customers. Juniper AI data center solutions are powering networks from the world’s largest ACP, with hundreds of thousands of GPUs, to enterprise deployments.

Supporting Quotes

“Managed AI services, such as GPUaaS and AIaaS, have been growing rapidly. To capture the demand, neocloud, traditional SPs and other AI cloud providers need to move fast and deliver exceptional value. Juniper is excited to deliver a purpose-built solution for these providers, expediting their journey towards offering unique and compelling services with the performance, security, automation and open flexibility their customers demand.”

- Praveen Jain, Senior Vice President & General Manager, Data Center & AI, Juniper Networks

“Enterprises of all sizes are aggressively looking to use recent advancements in AI to transform their businesses, but they are getting slowed down by the complexity of managing infrastructure. AI cloud infrastructure services from Digital Ocean speed up time-to-market, lower cost of ownership, and remove the complexity of deploying AI. Scalable, reliable and operationally simple networking from Juniper for front-end and back-end AI networks helps us deliver high fidelity AI services to our customers.”

- Bratin Saha, Chief Product and Technology Officer, Digital Ocean

“Selecting the right GPU infrastructure and deciding whether to build, buy or rent it can significantly impact a company’s success in the rapidly evolving field of AI and ML. Juniper provides us with easy-to-deploy, secure, AI-optimized networking for our multi-tenant AI infrastructure that for us is on par with traditional InfiniBand but has a far greater human resource pool to support it since it’s Ethernet. It is also far easier to reconfigure for rapidly changing AI requirements in multi tenancy so that we can deliver high-performance GPU as a Service quickly however our customers choose to consume it.”

- Jeff Hinkle, CEO, ionstream.ai

“As enterprises look to expand AI investments in 2025, they want high-performance, secure and cost-effective AI cloud infrastructure from us. Vultr’s collaboration with Juniper Networks empowers these enterprises and AI innovators to harness the full potential of accelerated computing. Using Juniper networking solutions, we can deliver AI services to our customers quickly, securely and scale to their highest performance expectations.”

- David Gucker, COO, Vultr

Upcoming Events

• Visit the Juniper booth (Hall 2, D12) at Mobile World Congress in Barcelona, Spain, March 3-6, 2025. For media briefings, contact pstill@juniper.net.
• Register for Juniper’s virtual event, “Your AI Data Center your Way”, March 11, 2025 to see how Juniper is helping customers build and operate data center infrastructure to take advantage of the AI revolution.
• Visit the Juniper booth (2120) at NVIDIA GTC in San Jose, CA, March 17–21, 2025.

About Juniper Networks

Juniper Networks believes that connectivity is not the same as experiencing a great connection. Juniper’s AI-Native Networking Platform is built from the ground up to leverage AI to deliver exceptional, highly secure and sustainable user experiences from the edge to the data center and cloud. Additional information can be found at Juniper Networks (www.juniper.net) or connect with Juniper on X (Twitter), LinkedIn and Facebook.

Juniper Networks, the Juniper Networks logo, Juniper, Junos, and other trademarks listed here are registered trademarks of Juniper Networks, Inc. and/or its affiliates in the United States and other countries. Other names may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250226441880/en/

Media Relations:

Kelsey Akerson

Juniper Networks

kakerson@juniper.net

+14089368179

Source: Juniper Networks

FAQ

What is the throughput capacity of Juniper's SRX 4700 firewall for AI services?

The SRX 4700 firewall delivers up to 1.4 Tbps throughput and supports 400 Gbps interfaces with wire speed MACsec.

How much can JNPR's new AI solution reduce operational costs?

The solution can reduce ongoing operational costs by up to 85% and achieve up to 10x reduction in deployment time.

What is Juniper's current market share in the 800G OEM market?

Juniper commands a 49% share of the 800G OEM market according to 650 Group's Q1-Q3 2024 report.

Which key components are included in JNPR's new AI-Native Networking solution?

The solution includes QFX Series Switches, PTX Series Routers, and SRX Series Firewalls, managed via Juniper Apstra® and Mist AI™.