Rami Rahim, CEO, Juniper Networks

CNBC Asia - Interview with Rami Rahim

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Rami Rahim Headshot

This is a live broadcast media interview CEO, Rami Rahim had with CNBC Asia’s ‘Squawk Box Asia’ during his recent visit to Singapore.

As global companies race to adopt 5G and also AI technologies, hardware network companies have to deliver more robust digital infrastructure to meet those needs. CNBC Asia’s Martin Soong and Sri Jegarajah speaks to Rami on Juniper’s business strategy, its message for its customers, as well as its position within the current economic environment.

0:10 Introduction/F1

0:40 Juniper’s message for customers

1:30 Juniper’s current position within the current economic environment

2:40 Networking growth is a stronger longer-term secular growth story

3:45 Juniper’s stock performance

4:38 Externalities and trade tensions

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You’ll learn

  • The future of networking according to Rami

  • Why AI is important to crush networking costs

Who is this for?

Network Professionals Business Leaders


Rami Rahim Headshot
Rami Rahim
CEO, Juniper Networks


0:01 foreign

0:04 Network CEO ramirahim is here to talk

0:08 about uh his company's business strategy

0:10 he joins us live around the desk here

0:11 for a nice change at the sgx Romney

0:13 great to see you welcome and good

0:15 morning and welcome to Singapore of

0:17 course you're you're here let's get this

0:18 out of the way first for F1 Formula One

0:21 yes yes we have a customer event in fact

0:23 here that's all around Formula One we're

0:26 sponsoring Aston Martin as a team and

0:28 I'm really really looking forward to

0:30 hosting our customers and visiting

0:32 customers here in the region excellent

0:34 and I mean what what sort of message uh

0:37 do you have for your customers when you

0:39 uh when you manage to get FaceTime with

0:41 them yeah absolutely you know I think

0:43 the history of networking of it has been

0:46 around scale and performance it's about

0:48 keeping up with the insatiable demand

0:50 for network capacity I think the future

0:53 is about battling complexity and Juniper

0:55 I think better than anybody else is

0:57 employing and leveraging artificial

0:59 intelligence to crush the costs of

1:02 running networks and to improve the end

1:04 user experience of those networks that's

1:07 the key message that's resonating with

1:09 our customers around the globe

1:10 especially here in the in the region

1:14 rewarded those names that are really

1:17 strongly positioned towards the cloud

1:20 and that build out data centers Etc and

1:23 where are you on that journey and how

1:25 concerned are you about a pullback in

1:27 Enterprise spending in this environment

1:29 with recession potentially looming yeah

1:31 a ramp cloud cloud is probably the

1:34 biggest Trend that is affecting all of

1:37 our business and our segments

1:39 Enterprises are moving workloads and

1:41 applications to the cloud they're

1:42 leveraging the cloud to streamline their

1:45 operations Cloud providers of course are

1:47 investing massive amounts in their

1:49 infrastructure to keep up with Cloud

1:50 demand and service providers as they

1:53 move towards 5G what people fail to

1:55 realize sometimes is that 5G is natively

1:58 a cloud-based architecture and

2:00 increasingly it'll be even more

2:01 cloud-based in the future we are

2:03 addressing all of these Trends and we're

2:06 doing it with differentiated technology

2:08 and solid execution this is why even

2:10 through the dark days of the pandemic

2:11 over the last couple of years we've

2:13 grown our business so I'm actually

2:15 really proud of the strategy but then

2:17 more so the execution that's around

2:19 Cloud so you're questioning around you

2:21 know are we concerned so far demand

2:23 signals for our business I think are

2:26 very solid they're robust and I think

2:27 that's because of the fact that the

2:29 pandemic has shined a big light on the

2:32 importance of what we do at Juniper and

2:34 delivering connectivity to everybody

2:37 that uses the network for practically

2:39 any reason today it's absolutely a very

2:42 strong longer term secular growth story

2:46 but in the current environment we are

2:48 hearing even uh strong tech companies

2:53 pulling back

2:54 recommitting on spending Capital

2:57 spending and even talking about Job

3:00 freezes and layoffs where are you where

3:03 is Juniper in that narrative and should

3:05 we expect any kind of confessional ahead

3:07 of earnings season you know I have to

3:10 say that so far we have not seen any

3:12 meaningful weakness in demand signals

3:15 the demand for our technology remains

3:18 robust and I believe part of that has to

3:21 do with the fact that we are in a space

3:23 that's resilient digital transformation

3:25 is a thing I think digital

3:27 transformation projects among our key

3:29 vertical segments are going to be

3:31 protected but I also believe that it's

3:33 solid execution we have a vast Market

3:35 opportunity we have relatively low share

3:38 we have strong differentiation

3:39 technology that should allow us to grow

3:41 even in a difficult Market environment

3:44 should that transpire over the coming

3:46 year so talk about difficult Market

3:48 environment I mean last night your stock

3:50 did really well of about two and a half

3:52 percent along with the broader Market of

3:53 course but you've underperformed formed

3:55 the s p this year and you know if you

3:57 take a look all the way back to 2017

3:59 which was about five years ago the stock

4:01 is pretty much where it was then it's

4:04 basically gone nowhere what are you

4:06 telling investors right now you know I

4:08 focus on the fundamentals of the

4:09 business and I have to say over the last

4:11 two to three years in particular as we

4:14 have really focused to diversify our

4:16 strategy and to expand our offering

4:18 especially in the Enterprise space we

4:21 have driven tremendous results in Top

4:23 Line for this company and I think we're

4:25 in the early Innings of that performance

4:28 I I solidly believe that as we continue

4:31 to execute on this strategy we offer the

4:33 kinds of differentiation that really

4:34 matters to our customers today our stock

4:37 price will eventually follow suit Rami

4:39 just uh quickly when you look at the

4:41 externalities uh Juniper is it

4:43 collateral damage in any way potentially

4:45 from the U.S China trade tensions and

4:48 the U.S restrictions on licensing AI

4:51 chips to China you know no it has not

4:54 actually been in big impact and it's

4:55 partly because of the fact that China is

4:57 not a massive market for us yet we

4:59 actually do see opportunities there but

5:01 we're very selective in where we compete

5:04 for the most part it has not really

5:06 affected us but I will say as a CEO of a

5:08 technology company what we would hope

5:10 for is an opportunity to compete

5:12 globally and openly based on the merits

5:15 of our technology and to the extent that

5:17 that becomes more and more possible

5:19 we're very happy with that we'll let the

5:21 politicians deal with the

5:23 um you know the negotiations on that

5:24 front understood Rami thank you very

5:26 much indeed for uh either one of the

5:28 Aston cars if they have a chance at a

5:30 podium I I sure hope so yes okay all

5:34 right we'll see you then uh come fourth

5:36 and fifth yeah it's a good job on

5:38 competing with my Nissan almero I'll

5:40 beat them all hands down uh Rami thank

5:42 you very much indeed for the ramad Rahim

5:43 uh Juniper Networks

5:47 [Music]

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