Juniper Networks posted robust first-quarter growth despite ongoing supply chain challenges.

Juniper posted $1.1 billion in revenue for the quarter, up 9% year over year. CFO Ken Miller said the vendor still expects 7% to 9% revenue growth for the full year despite the supply challenges.

CEO Rami Rahim explained that the vendor's cloud and enterprise verticals more than made up for slowing service provider sales during the quarter.

“Cloud and enterprise strength more than offset a modest decline in our service provider vertical, which was due entirely to the timing of shipments as a result of supply chain challenges,” Rahim said, according to a transcript of the call. Rahim added that the enterprise channel was the vendor's largest customer vertical for the first time in its history.

He expects current supply issues will persist for the rest of the year. “I now don’t anticipate significant improvements throughout the entire year and I do think we’ll see improvements in 2023.”

Rahim also explained that customer interest in Juniper’s cloud-ready data center portfolio remains high with “a meaningful new data center win with a top 10 cloud provider.”

“I think we won based on the strength of our engagement in routing that essentially translated to an opportunity in switching,” he said, without naming the provider, adding that he expects this deal “is likely to drive meaningful revenue over the next few years.”

He did add that while he continues to see new opportunities in hyperscalers and cloud giants, the vendor has been reluctant to call a hyperscale data center win. 

“There are very few number of hyperscale customers that use OEMs for their data centers,” he said. “That said, we’ve all along said that the opportunity beyond hyperscale is large.”

Rahim touted the combination of the Apstra platform for automation and its underlay switching technology that differentiates Juniper from other switch vendors.