Tag Archive for Juniper Networks

HPE Buying into Artificial Intelligence Market

HPE Buying into Artificial Intelligence MarketIn the first mega-deal of 2024, Hewlett Packard Enterprise (HPE), the offshoot of industry pioneer Hewlett-Packard, announced a $14 billion acquisition deal with networking equipment maker Juniper Networks (JNPR). HPE is positioning the deal as an artificial intelligence play. HPE CEO Antonio Neri claimed the acquisition was, “… a major leap forward in our AI and hybrid cloud strategy.

HPE logoHPE is buying Juniper for $40 per share. That is a 32% premium above Juniper’s closing stock price on the day before the HPE announcement. The deal is expected to close in early 2025. Juniper CEO Rami Rahim will lead the combined HPE networking business and report to HPE’s Neri. The deal will add $11.2 billion to HPE debt, including $1.7 billion of assumed Juniper debt. HPE will pay for the acquisition in part through cash from a 2023 sale of its remaining interest in China-based joint venture H3C for $3.5 billion.

About Juniper

Juniper logoJuniper has been under performing of late. The company’s stock price fell about 8% in 2023, while the NASDAQ Composite gained 43%. The firm has struggled against Cisco (CSCO) in the networking equipment market. Juniper Networks was founded in 1996. It has grown its networking product line-up, including routers, switches, and security products. But the company also runs Mist AI. Mist AI is an AI and machine learning business that specializes in AI-powered network management.

About HPE

HPE has a long history of acquisitions.

  • In 2001 the original HP purchased Compaq for $25 billion.
  • HPE has a long history of acquisitions.HP acquired services provider Electronic Data Systems for $13.9 billion in 2008.
  • In November 2009 HP acquired switch maker 3Com for $2.7 billion. 
  • 2010 saw HP spend $2.35 billion on the acquisition of 3PAR.
  • In 2015, HP spun out its software, services, PCs, and printers to a new firm called HP Inc.. HPE kept the server, storage, networking, tech support, consulting, and financing for data center gear businesses.
  • HP acquired Aruba Networks in 2015 for $2.7 billion.
  • During 2017 HPE bought flash storage maker Nimble Storage for $1 billion.
  • HPE bought Cray Supercomputers in 2019.

Artificial Intelligence

HPE has already benefited from AI industry growth. It told investors in November that orders for servers containing accelerated processing units for use in Artificial Intelligence Market had added up to 32% of its server segment. Overall net revenue for 2023 was $7.4 billion.

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This latest HPE acquisition follows a familiar pattern to HPE’s other networking acquisitions over the last several decades. They seem to be trying to buy market share. And the results have been meh.

When I started in the business it was Compaq Deskpro’s on the desktop and Proliant’s were the go-to servers. We had an end-to-end 3Com network. Today we don’t buy HP desktops and the network guys don’t even know what a 3Com is. Both HPE and Juniper have struggled behind Cisco. It is unlikely the merger will change that.

HPE seems to be hanging its hat on growth in the server sector to support AI deployments. I am sure they want to bundle the Mist Artificial Intelligence on a server and a 3PAR SAN and sell it to us as a network management/security solution, at some inflated price. Who remembers HP OpenView?

Good luck HPE.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Are Your VPNs – Virtual Pwnd Networks

Updated October 21, 2019 – The U.S. and U.K. spy agencies have issued separate cybersecurity advisories on 10/21/2019 urging users to patch and mitigate the VPN holes discussed below. The NSA advisory (PDF) warns that “multiple nation-states advanced persistent threat (APT) actors have weaponized” the flaws. The U.K.’s National Cyber Security Centre (NCSC) advisory is here.

Updated September 29, 2019 – SafeBreach Labs discovered a vulnerability in Forcepoint’s VPN client software. The flaw will give attackers unfettered access to its users’ Windows computers.

In its article detailing the bug, Forcepoint explained The flaw enables an attacker to insert their own executable which will run with administrative privileges, giving the attackers administrative access to the system. Forcepoint gave the bug a CVE number of 2019-6145 and a base severity score of 6.7. According to a  Forcepoint knowledge base article, the flaw is patched in version 6.6.1 of the Forcepoint VPN Client for Windows.

Updated September 10, 2019 –  ZDNet is reporting that the Chinese state-sponsored hacker group APT5 is targeting enterprise VPN servers from Fortinet and Pulse Secure since the security flaws discussed below became public knowledge last month. FireEye reports (PDF) that APT5 has been active since 2007 and has targeted multiple industries.

APT5 was reportedly one of the first to start scanning the internet and then later attempt to exploit vulnerabilities in the Fortinet and Pulse Secure VPN servers. The attackers sought to steal files storing password information or VPN session data from the affected products. These files would have allowed attackers to take over vulnerable devices.

Are Your VPNs - Virtual Pwnd NetworksEverybody loves their virtual private networks. SSL VPNs provide a convenient way for business users to connect to corporate networks while out of the office. A recent study by FlexJobs found 30% of workers have left a job because it did not offer flexible work options like remote work. Further, the report said, that 80% of staff would be more loyal to their employers if they had flexible work options and 52% of workers have tried to negotiate flexible work arrangements with their employer.

Great firewall of ChinaHackers love VPNs too

Last month VPNpro found that the majority of VPN services have close ties to China. CSO Online points out that if you are running a VPN that is developed and owned in China, then there is a serious chance that your information is not as private as you think. Every technology company that operates within China, including ISPs, are required to comply with any Chinese governmental request for data. That includes your data. The Chinese government has a long and well-documented history of hacking, favoring, and helping local businesses at the expense of foreign companies.

VPNpro also found that some Chinese firms own different VPNs split among different subsidiaries. For example, the Chinese company Innovative Connecting owns three separate businesses that produce VPN apps: Autumn Breeze 2018, Lemon Cove, and All Connected. In total, Innovative Connecting produces 10 seemingly unconnected VPN products, the study shows.

VPN attacksChina is not the only concern

VPNpro also found that seven of the top VPN services are owned by Gaditek, based in Pakistan. This means the Pakistani government can legally access any data without a warrant and data can also be freely handed over to foreign institutions, according to VPNpro.

VPNpro identified a further four companies: Super VPN & Free Proxy, Giga Studios, Sarah Hawken, and Fifa VPN, which together own 10 VPN services – where the parent company, and therefore the company of origin, is completely hidden.

If that is not scary enough – There are new reports that attackers are now targeting the devices used to attach VPNs to the network. Help Net Security reports that attackers are exploiting known flaws in Pulse Connect Secure SSL VPN and Fortigate SSL VPN installations.

Flaws VPN installations

These attacks could allow attackers to steal passwords and gain full, remote access to an organization’s networks. Attackers have been targeting two vulnerabilities:

  • CVE-2019-11510, an arbitrary file reading vulnerability in Pulse Connect Secure
  • CVE-2018-13379, a path traversal flaw in the FortiOS SSL VPN web portal.

Researchers Meh Chang and Orange Tsai at Taipei City, Taiwan-based consultancy Devcore reported the flaws to Fortinet on Dec. 11, 2018, and to Pulse Secure on March 22, 2019.

In an August 9, 2019 blog post the Devcore researchers recapped their Black Hat 2019 demonstration. Tsai told TechCrunch in an email, “The SSL VPN is the most convenient way to connect to corporate networks … it’s also the shortest path to compromise their intranet.

Pulse Secure VPNs

Pulse Secure logoPrivately held California-based Pulse Secure released an update on April 24, 2019, to address these flaws and urged customers to upgrade all affected products “as soon as possible.” The vendor warned that aside from patching, no workaround would protect systems, “Multiple vulnerabilities were discovered and have been resolved in Pulse Connect Secure (PCS) and Pulse Policy Secure (PPS).

Cyber threat intelligence firm Bad Packets has warned about activity aimed at vulnerable Pulse Connect Secure endpoints. So far they have found nearly 15,000 Pulse Secure VPN endpoints vulnerable to CVE-2019-11510 across all sectors of the U.S. This includes:

  • U.S. military networks,
  • Hospitals,
  • Electric utilities,
  • Financial institutions, and
  • Fortune 500 companies.

Fortinet VPNs

Fortinet logo

Fortinet (FTNT) released a security advisory on May 24, 2019, to address these flaws and urged customers to update their firmware to safeguard themselves. In a blog post, the Devcore researchers wrote about the flaws they’d found in Fortinet devices, “In the login page, we found a special parameter called magic. Once the parameter meets a hardcoded string, we can modify any user’s password.”

Independent British security researcher Kevin Beaumont told BankInfoSecurity he was tracking attacks against Fortigate servers. Beaumont reported seeing “the Fortigate SSL VPN backdoor being used in the wild” against one of his honeypots.

ZDNet claims the number of vulnerable FortiGate VPNs is believed to be in the hundreds of thousands, although we don’t have an exact stat about the number of unpatched systems that are still vulnerable to attacks.

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This isn’t the first time that serious flaws have been found and patched in enterprise-grade networking gear. In 2016 researchers found a vulnerability in Fortinet’s FortiGate OS – that functioned as an SSH backdoor and researchers found an authentication bypass flaw in Juniper Networks (JNPR) ScreenOS firmware.

Patch your systemsIn April 2019, U.S. Homeland Security issued a warning about vulnerabilities in many major corporate VPN applications. The VPN apps from — Cisco (CSCO), Palo Alto Networks (PANW), Pulse Secure, and F5 Networks (FFIV)— improperly store authentication tokens and session cookies on a user’s computer.

Obviously, there is no time to waste: firms should update their vulnerable Pulse Connect Secure SSL VPN and Fortigate SSL VPN installations as soon as possible.

Security researcher Kevin Beaumont told BankInfoSecurity:

Lots of companies have the basics around patching Windows and Linux down, as they have vulnerability management platforms and agents … Those don’t extend to FortiOS and Pulse Secure. So they just don’t patch as they never see [vulnerabilities].

Maybe firms should get their VPN devices on a regular update schedule before they become Virtual Pwnd Networks.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Whats Up With Cisco?

Whats Up With Cisco?What is up with Cisco? Their fiscal results for 2017 Q3 showed revenue of $11.9 billion, a 1% decline in revenue, compared to last year. This is the 6th consecutive down quarter. The networking goliath also issued downward guidance for 2017 Q4. They estimated a revenue declines of 4-6% year-over-year.

Cisco logoOn the earnings call, Cisco CEO Chuck Robbins blamed several factors for the lower guidance. He cited:

  • “A pretty significant stall right now” in the U.S. federal public sector.
  • Service provider revenues were down in Mexico.
  • United Kingdom business is being dampened by currency issues.
  • Middle East, there is “pressure… relative to oil prices.”

Cisco layoffs

Then there are the layoffs. Cisco buried the announcement in a footnote in the company’s SEC 8-K report that 1,100 more layoffs are coming. That is on top of the 5,500 announced in August 2016.

In May 2017, we extended the restructuring plan to include an additional 1,100 employees with $150 million of estimated additional pretax charges.

Cisco layoffs

According to SDXCentral, the Cisco CEO stressed several times on the earnings call, that the company is transitioning to more software and subscription-based business. He declared,

I am pleased with the progress we are making on the multi-year transformation of our business.

These weak financial results and the move to a subscription-based business have fed speculation about the future Cisco business model. TechTarget speculates that Cisco may go so far as to separate the Network Operating System (NOS) from the hardware. They contend the move would be a dramatic departure from Cisco’s traditional business model of bundling high-margin hardware with its NOS. The author believes that market trends will likely force the vendor to release an open NOS.

Open NOS

Cisco 3750 switchTechTarget cites reports from The Information that a hardware-independent NOS called Lindt is coming. Reportedly Lindt will run on a white box powered by merchant silicon. According to the article, a number of market trends are driving the move to a hardware-independent NOS.

The first market trend forcing Cisco’s hand is the company’s declining dominance of the Ethernet switch market. Since 2011, the company’s share has dropped from 75% to less than 60% last year, according to the financial research site Trefis. The decline is important to Cisco’s bottom line. Switches accounted for 40% of Cisco’s product sales in 2016, 30% of net revenues, and 20% of the company’s $162 billion valuation.

Infrastructure as a ServiceCisco’s weakening performance in switching is tied to the second market trend forcing Cisco to release a hardware-independent NOS. Its customers are turning to public cloud providers, Amazon (AMZN) Web Services, Microsoft (MSFT) Azure, and IBM (IBM) SoftLayer, for their IT infrastructure. The more enterprises subscribe to infrastructure as a service, the less networking gear they need in their data centers.

Cloud computing

The shift to cloud providers is found in the latest numbers from Synergy Research Group. Revenue from public cloud infrastructure services is growing at almost 50% a year. In the fourth quarter of last year, revenues topped $7 billion.

 cloud providers are building open networking hardware and softwareThe third market trend forcing Cisco to a hardware-independent NOS is enterprises that were Cisco’s largest customers are now competitors. Enterprises and cloud providers are building open networking hardware and software to replace inflexible proprietary systems that lock them in. Those companies include large financial institutions, like Bank of America, Goldman Sachs, and Fidelity Investments. As well as communication service providers, AT&T (T), Deutsche Telekom, and Verizon (VZ).

The technology shift is driving an enormous amount of spending on IT infrastructure. Worldwide spending on public and private cloud environments will increase 15% this year from 2016 to $42 billion, according to IDC. Meanwhile, spending in Cisco’s core market of traditional infrastructure for non-cloud data centers will fall by 5%.

White boxes

Arista NetworksWhile Cisco is ignoring the trend away from proprietary hardware, the article says Cisco’s rivals are embracing it. Juniper (JNPR) and Arista (ANET) have released versions of their NOS for white boxes favored by cloud providers and large enterprises. Both companies reported year-to-year revenue growth in switching last year. Even Cisco’s patent lawsuit against upstart Arista was set back by the courts.

Rohit Mehra, an analyst at IDC hypothesized that Cisco’s resistance to change is likely due to fear that giving customers other hardware options would accelerate declining sales in switching. “There would be potentially some risk of cannibalization in the enterprise space,” he added.

Cisco insists its customers are not interested in buying networking software that’s separate from the underlying switch. The Cisco spokesperson told TechTarget:

TCisco insists its customers are not interestedhe vast majority of our customers see tremendous value in the power and efficiency of Cisco’s integrated network platforms, and the tight integration of hardware and software will continue to be the basis of the networking solutions we offer our customers

TechTarget adds that Cisco doesn’t say the article is wrong. Instead, the company falls back on a corporate cliché for refusing to discuss a media report. “We don’t comment on rumor or speculation,” a Cisco spokesperson said.

The networking market is evolving away from the hardware that Cisco depends on for much of its valuation. Cisco will resist changing its market approach for as long as possible. But in the end, the company will have to become a part of the trend with an open NOS capable of running on whatever hardware the customer chooses.

Cisco’s own problems

Rather than change its model for selling networking gear, Cisco has spent billions of dollars on acquisitions over the last few years to create software and subscription-based businesses in security and analytics. But Cisco’s software push has yet to pay off with 5 conservative down quarters.

Finally, Cisco just recently patched a flaw in IOS software that affected more than 300 models of its switches. Despite issuing an advisory on March 17, Cisco did not release the patch for this vulnerability until May 8, 2017. The Cisco vulnerability was part of the Vault 7 WikiLeaks dump of alleged CIA hacking tools.

Alleged CIA hacking toolsThe vulnerability, rated a critical 9.8 out of 10 by the Common Vulnerability Scoring System, is in the Cluster Management Protocol, or CMP. could allow a remote, unauthenticated attacker to reload devices or execute code with elevated privileges. This vulnerability can be exploited during Telnet session negotiation over either IPv4 or IPv6.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Snoops Offer Security Tips

Snoops Offer Security TipsIn one of the more ironic, notice I did not say tragic, turns in the post-Snowden era, the National Security Agency (NSA) has published a report with advice for companies on how to deal with malware attacks. FierceITSecurity says the report (PDF) boils down to “prevent, detect and contain.” To be more specific, the report recommends that IT security pros:

  • Segregate networksSegregate networks so that an attacker who breaches one section is blocked from accessing more sensitive areas of the network;
  • Protect and restrict administrative privileges, in particular high-level administrator accounts, so that the attacker cannot get control over the entire network;
  • Deploy, configure, and monitor application whitelisting to prevent malware from executing;
  • Restrict workstation-to-workstation communication to reduce the attack surface for attackers;
  • Deploy strong network boundary defenses such as perimeter and application firewalls, forward proxies, sandboxing and dynamic analysis filters (PDF) to catch the malware before it breaches the network;
  • Network monitringMaintain and monitor centralized host and network logging product after ensuring that all devices are logging enabled and their logs are collected to detect malicious activity and contain it as soon as possible;
  • Implement pass-the-hash mitigation to cut credential theft and reuse;
  • Deploy Microsoft (MSFT) Enhanced Mitigation Experience Toolkit (EMET) or other anti-exploitation capability for devices running non-Windows operating systems;
  • Employ anti-virus file reputation services (PDF) to catch known malware sooner than normal anti-virus software;
  • Implement host intrusion prevent systems to detect and prevent attack behaviors; and
  • Update and patch software in a timely manner so known vulnerabilities cannot be exploited.

The author quotes from the report;

I Luv your PCOnce a malicious actor achieves privileged control of an organization’s network, the actor has the ability to steal or destroy all the data that is on the network … While there may be some tools that can, in limited circumstances, prevent the wholesale destruction of data at that point, the better defense for both industry and government networks is to proactively prevent the actor from gaining that much control over the organization’s network.

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For those who have not been following along, the TLA’s have been attacking and manipulating anti-virus software from Kasperskey.

SpyingWe also now know suspect that the TLA’s have compromised at least one and probably two hardware vendors. The Business Insider recalls, way back in 2013, as part of the Edward Snowden NSA spying revelations.German publication Spiegel wrote an article alleging that the NSA had done a similar thing — put code on Juniper Networks (JNPR) security products to enable the NSA to spy on users of the equipment. 

Over at Fortinet (FTNT) they had their own backdoor management console access issue that appeared in its FortiOS firewalls, FortiSwitch, FortiAnalyzer and FortiCache devices. These devices shipped with a secret hardcoded SSH logins with a secret passphrase.

The article seems like advertising for the TLA’s hacking program.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers and anything else that catches his attention since 2005. You can follow him at LinkedInFacebook and Twitter. Email the Bach Seat here.

iPad Driving Wireless Networks

iPad Driving Wireless NetworksJuniper (JNPR) recently loosened up its purse-strings and bought Trapeeze Networks to fill the most obvious hole in its product line. Juniper purchased the WLAN vendor from Belden (BDC) for $152 million in cash. The Belden/Trapeeze relationship is something I never got, when I think Belden, I think cable, and connectors not wireless. NetworkWorld cites Gartner “…more than 60% of end-users purchased their WLAN solutions from the same vendors as their wired LANs, meaning that Juniper has likely been leaving a lot of opportunity on the table.”

David Yen, executive vice president, and general manager, Fabric and Switching Technologies, at Juniper (and owner of possibly the longest title in networking), told NetworkWorld that the industry is much more mobile, “it was time for us to include wireless.” GigaOm says that the purchase was a recognition by Juniper that the enterprise networks were going through a sea change, thanks in part because of a big upsurge in the number of mobile devices connecting to corporate networks. This proposition is backed up by a survey by BoxTone Mobile Service Management which found that 73% of the surveyed companies intend on deploying the Apple (AAPL) iPad as well as other iOS devices for use on their network within the next 12 months, with 25% of those companies set to deploy right away. More than 50% of those surveyed plan on deploying their own iPad app within the next 12 months, while 25% of those plan on deploying as many as three of their own iPad apps.

IT executives interviewed by WindowsITPro.com argue that the iPad isn’t for everyone, but is very well suited for users that consume more content than they produce, such as, e-mail and corporate documents. Another area where the iPad seems to be making inroads into corporate IT is as a device that displays content for cloud and software as a service (SaaS) business solutions.

Some of the iPad initiatives include:

  • Mercedes-Benz is using iPads on showroom floors according to ZDNET. MB uses the iPad to present and execute the various financing options for customers without having to go sit down in an office.
  • SAP the world’s largest business software developer has released an iPad app so that its customers can access their reports and corporate data with the iPad. ZDNET reports that SAP is also using and supporting iPads internally. Rob Enslin, the North American president at SAP, says that he now carries an iPad instead of a laptop when he travels. “It’s allowed me to almost run a paperless office,” said Mr. Enslin. He said that he uses the iPad to view business apps, briefing documents, customer information, and other corporate data.
  • ServiceMax has developed an iPad app for pushing the device as a modern solution for field service applications according to WindowsITPro.com
  • Rackspace has developed a configuration management tool for cloud data centers according to TechWorld

Dominic Orr, CEO of Aruba Networks (ARUN), told GigaOm that his firm expects to see future demand coming from corporations who are seeing a big shift in the way their networks are being used. “The network model has shifted from hotspots to ubiquitous and uniform networks access,” Orr said. Companies now want wireless access not only in boardrooms and hubs of productivity but also in stairwells, corridors, kitchens, and other areas. Why? Because the devices accessing the network are entirely different, he pointed out. “Our demand is being driven by smartphones and smartpads,” he said. In the past, laptops were used for wireless access, but it was difficult to walk around and use them as easily one can use a smartphone or an iPad. The smart devices, however, encourage anywhere computing, which, in turn, puts a different load on the networks.

Mr. Orr goes on to say that iPads and tablets are very multimedia-centric, which means folks are looking for good, solid, and even coverage across their entire campus, and not just in certain specific areas, Mr. Orr pointed out. “While netbooks and laptops have wired Ethernet built into them, the new smart devices can only access the Internet via mobile connections,” he added. “You either have 3G or Wi-Fi.” These demands for improved coverage have led the research firm Dell’Oro Group to estimates that the enterprise WLAN market will grow from $2.2 billion in 2010 to $3.4 billion in 2014.

Steve Jobs loves his iPad

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The iPad, and many new and emerging consumer devices, only have Wi-Fi connections network teams are going to face many challenges in the face of iPad adoption. Wi-Fi networks are viewed as a utility by employees, who expect to connect any device to any network to get connected. Underscoring a major societal and cultural trend of the connected lifestyle, Enterprise adoption of the iPad is part of the larger trend of consumerization of IT (which I have written about here, here, and here) in which companies are allowing employees to choose which tools they use.  The negative consequences of not allowing users to choose the products they want to use themselves simply aren’t worth it, according to Karl Ageberg, CIO at Lund University in a PCWorld article. That movement will also open the door to competing products from a growing number of Android-based tablets and Research In Motion’s upcoming PlayBook.

Some of the ways  iPads will force changes:

  • Internal IT security to deliver secure access methods for all consumer devices in general.
  • Security policy changes, to offer secure and controlled access to corporate data.
  • Network and application security design, to provide secure and controlled access to corporate data.
  • Network management to make sure mission-critical devices and applications get the required QoS and SLA required.
  • Mobile device management platforms ability to control access and storage of sensitive corporate data on these devices.
  • Support for consumer devices, owned both by the organization or by individuals.

Has the iPad breached your IT walls?

How has the iPad changed how you do business?

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.