The man with responsibility for navigating the choppy waters of Microsoft’s battle with Google opted to head for the lifeboats. Long-time executive Johnson wrapped up 16 years with Microsoft and headed for network hardware maker Juniper.

Microsoft said in a statement Johnson’s old Division would be split into two groups: Windows/Windows Live and Online Services, both under CEO Steve Ballmer. A trio of senior vice presidents will head the Windows Live side.

As for Online Services, and the duty of trying to find a way to carve out some of Google’s share of the online search and advertising markets, Microsoft plans to create a new senior leadership role. Satya Nadella, currently running the search, ad, and MSN engineering efforts, apparently will stay in that position and report to the new lead.

Johnson held a prominent role over the past few months with regards to Microsoft’s failed attempt to acquire Yahoo. All Things D said he served as the point person for those negotiations, which ultimately ended with Yahoo signing a search advertising deal with Google.

All Things D also cited the internal memo from Ballmer to Microsoft regarding the latest reorganization, and Johnson’s departure. Ballmer told employees the Yahoo takeover attempts were “a tactic, not a strategy” to expand Microsoft’s search and advertising share.

“Search is the key to unlocking the enormous market opportunities in advertising, and it is an area that is ripe for innovation,” Ballmer said.

Companies like Cisco Systems, Juniper Networks, and Alcatel-Lucent are all cashing in on the online video explosion. The products they make like routers and switches direct traffic over the web and help companies manage traffic as well as direct large amounts of data.

Zeus Kerravala, a network infrastructure analyst with Yankee Group said in an AP article,” Cisco would like to see video delivered to every device everywhere, if you’re looking to something to create the next wave of network upgrades, video is front and center. It drives bandwidth like we’ve never seen before.”

Online video is expected to grow from $1.3 billion last year to $7 billion by 2010, according to the research firm Parks Associates. Even so companies are still struggling with ways to generate revenue while avoiding the copyright infringement issue.

Around 210 million people have a broadband connection globally, and the number is expected to increase to 40 to 50 million new subscribers each year, according to networking and telecommunications researcher Dell ‘Oro Group.

Increased traffic and video’s large bandwidth requirements are creating a golden opportunity for networking companies.

Cisco has benefited the most from video. Their shares are up 50 percent from a year ago and financial analysts believe the company’s annual revenue can grow 20 percent this year to around $34 billion.

“This is going to be a multiyear phenomenon – right now you’ve got the YouTubes and the consumer applications sucking up capacity on the networks, and we haven’t even had IPTV deployments in any significance yet,” said Troy Jensen, senior research analyst with investment bank Piper Jaffray & Co. “But once this couple-year investment cycle winds down, it could potentially be tough times again.”

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Currently for 2006 the mobile market is worth $17 billion and is projected to reach $47 billion by 2009. The mobile market consists of gambling, adult content, games, music, TV, and infotainment.

The biggest players in the global mobile market will be the Asia Pacific and European regions. Asia Pacific will account for 37 percent of the market revenue while Europe will be a close second with 35 percent during the period from 2006 to 2011.

Mobile music accounts for the largest portion of the market. 80 percent of the revenue for mobile music comes from ringtones. The second biggest category is infotainment that covers a variety of topics.

By 2011 Juniper forecasts a shift away from mobile music and says the revenue leaders will be mobile games and mobile TV. Also playing a role will be mobile gambling in the Asia and Europe markets.

North America accounts for 14 percent of the global mobile entertainment market for 2006 but is projected to grow to 19 percent by 2011. South America has the smallest portion of the mobile entertainment market with 3 percent but over the next five years they are expected to grow 2 percent for a total of 5 percent of the market.

The mobile phone continues to evolve from a communication device to something that offers a broader array of options. Bruce Gibson senior consultant at Juniper said,”Busy lifestyles in both developed and developing markets means that consumers will have to grab entertainment and relaxation as and when they can. Growing disposable incomes, next generation mobile technology and the metamorphosis of the mobile handset into a multifunction communications and entertainment device will enable them to achieve this in a way hitherto thought impossible”.

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Juniper predicts that the largest market over that period of time will be the European market that is currently well established. They expect the Asia-Pacific market to be the second biggest area of growth.

The projected amount of revenue from 2006 to 2011 in those markets is $ 14.5 billion according to Juniper. Europe is expected to lead the market in mobile adult content generating 39 percent of the revenue. Asia-Pacific is expected to generate 33 percent of the revenue.

Bruce Gibson of Juniper said,”

One reason for the growth of mobile adult content is the 3G mobile networks and the improved quality of video and graphics. The previous generation of mobile content was geared towards text-based services.

Gibson said.

Either way the projected growth in mobile adult content is impressive.

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After the Alcatel (ALA) and Lucent (LU) deal took place, speculation over the future of Juniper Networks (JNPR) began to swirl.

Those rumors soon filtered around to the point where the Swedish tech firm Ericsson (ERICY) had to deny they were looking at Juniper with an open checkbook in hand.

Svanberg told reporters on Monday, “It’s not critical for us to own routers… We have not looked at them,” in reference to Juniper.

Hopeful investors pushed Juniper up amid that speculation, but the deflating comments by Svanberg pushed the stock price back to 18.76.

For Juniper’s part, the company continued forward with its normal business. The company announced the availability of its next-generation Secure Access SSL VPN Federal Information Processing Standards (FIPS) appliances, the SA 4000 FIPS and SA 6000 FIPS.

Those products are intended for government use, particularly at the federal level. Juniper does need to see significant adoption of those and other parts of its hardware lines in the wake of the Alcatel-Lucent merger.

Lucent has been one of Juniper’s biggest customers, along with Ericsson and Siemens. The business Lucent gave Juniper would likely go to Alcatel now, draining a large part of Juniper’s revenue stream, the Wall Street Journal reported.

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This move is an additional step in Juniper Networks’ strategy to bring secure and assured networking to customers worldwide through rich traffic processing. The combination of Juniper Networks’ best-in-class secure and assured networking solutions and Kagoor’s session border control (SBC) technology, delivers a powerful solution for network operators looking to cost-effectively deploy quality Voice over Internet Protocol (VoIP) and other rich media services. Session border control technology is also one of the key building blocks required for infranets.

Headquartered in San Mateo, California, with a research and development (R&D) center in Herzelia, Israel, Kagoor brings to Juniper Networks a highly skilled engineering team with deep voice expertise. In addition, the company’s VoiceFlow SBC products are installed in over 100 carriers worldwide, most of which also use Juniper Networks’ platforms. Kagoor also brings powerful synergies through a number of common strategic partnerships including Lucent, Siemens and NEC. Juniper Networks will leverage the acquisition to establish an Israeli R&D center which will tap into the strong engineering talent pool in Israel.

“Network operators worldwide are increasingly looking to deliver enhanced VoIP and other rich services to their enterprise and consumer customers, but they need to do this in a secure and assured fashion. SBC technology is a key element in delivering these attributes. With Kagoor, Juniper gains best-in-class SBC technology and an acknowledged center of excellence in voice,” commented Kittu Kolluri, general manager, Security Products Group, Juniper Networks.

“Our joint customers and partners have already recognized the value Juniper Networks and Kagoor bring in delivering best-in-class solutions to help them differentiate their service offerings,” commented Jim Dolce executive vice president, Worldwide Field Operations, Juniper Networks. “This acquisition demonstrates Juniper Networks’ continued commitment to helping customers enhance their businesses through the creation of IP-based infranets that deliver the quality and assurance of private networks, with the flexibility and positive economics of public networks.”

“We welcome this initiative by Juniper Networks. Session Border Control technology is a key element in delivering secure, reliable Next Generation Network solutions to our customers. We are pleased to extend our existing partnership with Juniper into this important area,” commented Andreas Mueller-Schubert, president Fixed Networks Solutions, Siemens.

“We’re very pleased to be joining the Juniper Networks team and are excited at the opportunity this represents for our combined customers and partners. Kagoor’s voice expertise and comprehensive SBC functionality is a great complement to Juniper’s networking and security expertise,” commented Opher Kahane, co-founder and CEO, Kagoor Networks.

The acquisition is expected to close in the second quarter of 2005 subject to certain customary closing conditions. Kagoor generated less than $5M of revenue in 2004 and it is expected to be less than $0.01 per share dilutive to Juniper Networks in 2005 and to be accretive in 2006.

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Working through prime contractor Science Applications International Corporation (SAIC), Juniper Networks holds the multi-year contract for all IP routers for the GIG-BE Program. Currently being deployed, the M- and T-series routing platforms are achieving the stringent performance, reliability and security requirements expected, which has contributed to the successful IOC milestone.

“As a worldwide defense initiative, the GIG-BE network is the foundation for the future of the high-speed, high-capacity network capability for the DoD,” said Lieutenant General Harry D. Raduege, DISA director. “Reaching the IOC milestone on budget and on schedule demonstrates that our vendors are successfully supporting the DoD’s goal of leveraging information technology to more efficiently network our troops with operations.”

“We’re very pleased with the progress achieved thus far and look forward to supporting the milestones identified by the DoD as the GIG-BE network is fully deployed in the years to come,” said Scott Kriens, chairman and CEO of Juniper Networks. “As the sole router vendor for the GIG-BE Service Delivery Nodes, we’re proud to participate in the deployment and execution of this project and view it as a commitment to the war fighters and people of this country.”

The GIG-BE is a worldwide, ground-based optical network with up to 10-Gbps connections serving Defense Department users at 90 sites around the globe. The GIG-BE program seamlessly integrates the capabilities of high performance routers with the advanced optical core to provide a feature-rich IP service for the DoD. This secure and reliable enterprise IP infrastructure will enable the DoD to transform the modern battlefield into a huge information grid, enabling instantaneous communication for rapid response to changing combat conditions.

“Since GIG-BE is a DISA program, obviously cyber security is an integral part of the network design,” said Paul Kurtz, executive director of the Cyber Security Industry Alliance. “This is an excellent illustration of government leadership by example, constructing a secure, high-capacity, next-generation network. In fact, the GIG-BE program could be seen as an instructive example of some of the network security enhancements private corporations should be implementing today.”

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Juniper Networks today announced that it has been ranked as the market leader in META Group’s METAspectrum(SM) report for the Secure Sockets Layer Virtual Private Network (SSL VPN) market. META Group is a leading provider of information technology (IT) research, advisory services, and strategic consulting.

The new METAspectrum evaluation provides an objective assessment of companies providing SSL VPN products — often referred to as application security gateways — used primarily to provide secure remote access to applications for an organization’s own employees. However, SSL VPN deployments encompassing extranet access are increasingly common.

Juniper Networks was positioned in the leader segment of the METAspectrum analysis and was specifically recognized for its largest market presence and highest evaluated performance, as illustrated in the METAspectrum evaluation, as well as its dominant market share, and strength in rapidly innovating and driving increasing degrees of functionality.

“Since delivering the industry’s first SSL VPN appliances in 2001, we have continued to innovate ahead of the competitive field and offer differentiated products to ensure enterprises are equipped to deliver ubiquitous secure access,” said Krishna “Kittu” Kolluri, general manager and vice president, security products group at Juniper Networks. “Juniper Networks’ technology leadership is accurately reflected in our dominant SSL VPN market leadership, as we deliver significant advantages for remote employee, partner and customer access to network resources. We are pleased by our leader rating in the SSL VPN METAspectrum, earned by our highest scores based on META Group’s METAspectrum evaluation criteria.”

“We developed METAspectrum to enable IT professionals to quickly evaluate vendors based on their ability to deliver on the presence and performance criteria that matter most in a given market,” said Mark Bouchard, senior program director, META Group. “Juniper Networks finds itself in an overall leadership position by virtue of its acquisition of NetScreen, which had earlier acquired SSL VPN visionary Neoteris. Juniper presents a highly refined vision of extending secured access to an ever-widening user population. It played an instrumental role in the formation of this market segment, and their early participation is reflected in the relative maturity of their solutions.”

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Juniper Networks today announced that it has grown its market share leadership position in the Secure Sockets Layer Virtual Private Network (SSL VPN) market, according to Infonetics Research, Inc.’s “VPN and Firewall Appliances and Software Quarterly Worldwide Market Share and Forecasts for 2Q04″ report published recently.

According to the Infonetics report, Juniper Networks garnered 57 percent revenue market share within the SSL VPN product category during 2Q04, in a market forecasted to reach $466 million by CY07. The company’s market share leadership has continued to grow, including from Q104 when Infonetics reported that Juniper Networks owned 45 percent revenue market share.

“Juniper had another great quarter, particularly in application security gateways (SSL VPNs), a market that they are beginning to run away with. Worldwide SSL VPN revenue grew 10 percent between the first and second quarters this year, and will grow 92 percent by 2Q05; between 2003 and 2007, we project annual revenue to jump 467 percent,” stated Jeff Wilson, senior analyst at Infonetics Research. “Juniper is not only excelling with its core routing and secure access products, it is also experiencing growth in sales of its intrusion detection and prevention solutions.”

Krishna “Kittu” Kolluri, general manager and vice president, security products group at Juniper Networks, said, “Our lead in the SSL VPN market continues to grow because enterprises share our vision for ubiquitous secure access. The Juniper Networks SSL VPN products continue to standout from the crowd, offering enterprises significant technology enhancements for remote employee, partner and customer access to network resources, and deep integration with key vendors for a layered security approach. We are proud to see our SSL VPN innovation and sales efforts rewarded with unrivaled market leadership, as measured by Infonetics Research.”

In a related Infonetics report titled “Intrusion Detection and Prevention System Products — Quarterly Worldwide Market Share and Forecasts for 2Q04,” Juniper Networks was recognized as the unit shipment leader with 37 percent market share in the network-based in-line intrusion detection and prevention products (IDP) market. This demonstrates Juniper Networks momentum in the market and the increasing recognition of the value of its NetScreen IDP products, which provide the ability to detect and prevent application-level attacks, in a single device, in real-time before they reach the intended victims.

The “VPN and Firewall Appliances and Software Quarterly Worldwide Market Share and Forecasts for 2Q04″ report provides an in-depth analysis of the VPN and firewall markets for Q204, including worldwide and geographic regional results, market assumptions and drivers, as well as forecasts for each market. The “Intrusion Detection and Prevention System Products (IDS/IPS) — Quarterly Worldwide Market Share and Forecasts for 2Q04″ report provides an in-depth analysis of the IDS/IPS markets for Q204, including worldwide and geographic regional results, market assumptions and drivers, as well as forecasts for each market.

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