As Elliott Management sees it, Juniper needs to make some serious decisions regarding its security strategy. As a whole, Juniper's security story is one beset with "missteps and distractions," Elliot Management wrote, not the least of which was Juniper's "mis-executed" product transition away from its legacy NetScreen products. The investment firm also said the recent exit of Bob Muglia, executive vice president, Software Solutions Division, spells more bad news for Juniper's security business. "Juniper's board should undertake a strategic review of the security business, which is underperforming and now lacks a leader after Bob Muglia's recent resignation," the filing read.
Juniper admits that its security business has been a pain point. In 2010 and 2011, it faced significant backlash from partners and customers, who felt it was too slow to respond to customer complaints about its flawed SRX services gateways. "Given the security business' underperformance and dilution to Juniper's year-over-year growth profile, [Wall] Street analysts have repeatedly asked management if the business can be divested or de-emphasized," Elliott stated.