The US Department of Justice has blocked a $14 billion deal between Hewlett Packard Enterprise (HPE) and Juniper Networks, giving Cisco Systems a significant boost in its market dominance. The lawsuit claims that the merger would reduce competition and weaken innovation in the networking market.
However, partners say that the deal would actually strengthen competition and innovation, citing Fortinet, Arista, Nile, Meter, and Extreme Networks as alternatives to Cisco’s dominant position. Executives at HPE and Juniper Networks have denied the allegations, saying the lawsuit is “fundamentally flawed” and pledging to fight it in court.
The deal was expected to close by the end of 2024 or early 2025, but the DOJ’s intervention has thrown a wrench into plans. HPE CEO Antonio Neri has said that the combined business would have a significant market share, despite Cisco’s nearly three times larger networking business.
Solution providers are concerned about the impact on innovation and competition, saying that the lawsuit will hurt HPE more than Juniper. The decision is seen as a victory for Cisco, which has been the dominant player in the market for three decades.
The DOJ’s intervention also raises questions about the future of HPE and Juniper Networks, with customers now wondering where they go from here.
Source: https://www.crn.com/news/networking/2025/shocked-partners-doj-lawsuit-to-block-hpe-juniper-deal-boosts-cisco