Copyright 2009 Juniper Networks, Inc.
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2 Safe Harbor Statements made during all analyst day presentations and question and answer sessions concerning Juniper Networks' business outlook, future financial and operating results, strategic direction, product and technology development and release plans and overall future prospects are forward looking statements that involve a number of uncertainties and risks. Actual results could differ materially from those anticipated in those forward-looking statements as a result of certain factors, including: business and economic conditions generally or in the networking industry; changes in overall technology spending; the network capacity requirements of service providers; changing market requirements; delays in scheduled product availability; the timing of orders and shipments; manufacturing and supply chain constraints variations in the mix of products sold; customer perceptions and acceptance of our products; litigation; and other factors listed in our most recent report on Form 10-Q filed with the SEC. All statements made during these presentations and sessions are made only as of today. Juniper Networks undertakes no obligation to update the information presented during these presentations and sessions in the event facts or circumstances subsequently change after the date of this meeting. In addition, certain historical Non-GAAP financial information will be presented today. For reconciliation of such measures to comparable GAAP measures, please visit our website at and click on the link entitled Analyst Day 2009 Non-GAAP reconciliations. 2
3 HIGH-PERFORMANCE NETWORKING JUNIPER S GROWTH ENGINE Pradeep Sindhu Founder, CTO, and Vice Chairman Juniper Networks 3
4 Agenda The Power of High-Performance Networking The Foundation of Juniper s Technology The Coming Paradigm Shift Juniper s Unique Position 4
5 Connect Everything, Empower Everyone JUNIPER S FOUNDING VISION All information systems on the planet will be connected into a single global high-performance network because this maximizes their utility We uniquely assumed this network would Use a single general-purpose mechanism: the Internet Protocol Connect anything that can produce, consume, process, or store information Handle any communication application permissible by laws of physics Handle global scale so everything could be connected and in so doing enriches every aspect of human existence! 5
6 The Internet Explosion A RESOUNDING CONFIRMATION! # Web Sites 130EB/yr Internet Capacity # Connected Devices 162M 1B Total Digitized Information # Google Searches/Month 100M 420EB 31B/mo 12EB/yr 40M 4PB/yr 33K 1 1.7M 60PB/yr 25M 9.5M 160M 110EB 2.7B/mo Exponential growth, now matter how you measure it! The clearest indication of value delivered to end-users Burning Question: Why? 6
7 Driving Force Behind Exponential Growth THE IMPERATIVE TO GROW HUMAN KNOWLEDGE AS FAST AS POSSIBLE Knowledge Growth Rate C S C Information System S C N S N N Computing Digital Computing Stored Program Pipelining Microprocessor Multi-core Networking Digital Transmission Digital Storage Core Memory Circuit Switching Disk DRAM Packet Switching TCP/IP Flash HPN Storage 7
8 Juniper s Focus: High-Performance Networking Scalable: Ability to grow to connect large number of end-points, any to any Fast: Ability to support any communication application Reliable: Ability to function despite failures whether accidental or willful Secure: Ability to protect itself and the information it carries Simple: Built with simplest set of mechanisms Exponential Growth => Constant Technological Challenge
9 Core Technology Competencies Features and Functionality = Customer Value 9
10 Core Technology Competencies Features and Functionality = Customer Value 10
11 Silicon THE FOUNDATION OF PERFORMANCE Stateful Processing 400 Cost/unit Bandwidth 1 Fabric Engine (F) C G F 10 E S Core Engine (C) 20 Edge Engine (E) 80 Services Engine (S) General-Purpose Microprocessor (G) , ,000 Instructions/packet 11
12 The Network Instruction Set Processor A FUNDAMENTAL ADVANCE IN NETWORKING SILICON Performance Architectural Improvements Functionality 4 x system capacity every 2 years 12
13 The Network Instruction Set Processor A FUNDAMENTAL ADVANCE IN NETWORKING SILICON JUNOS 20x Network Instruction Set IP1, 2 250nm 4 Chips 18m T 47Gbps IO IP3 180nm 10 Chips 446m T 412Gbps IO I-Chip 90nm 1 Chip 160m Transistors 219Gbps IO NISP 65nm 4 Chips 1.2Bn Transistors 604Gbps IO x system capacity every 2 years Next Generation 13
14 JUNOS THE FOUNDATION OF FUNCTIONALITY Software Development Fundamentals Code once inserted is hard to remove Extreme optimizations damage structure Very rapid or large changes damage structure Structure degrades with change unless checked Badly structured software degrades even faster Complexity is the enemy of reliability Complexity threshold => There is a point of no return Quality is inversely proportional to #variants # Releases # Code Bases # Acquisitions 14
15 JUNOS THE FOUNDATION OF FUNCTIONALITY ONE Code Base ONE JUNOS ONE Architecture Module X API Faster TTM Lower TCO Higher Productivity Better Quality Q08 4Q08 ONE Release Train 1Q09 15
16 One Architecture and Code Base JUNOS Competition Management SDK aos bos Mod1 Mod2 ModN Kernel cos NMS Glue dos Forwarding Services 16 Consistency Leverage Longevity Reliability
17 One Architecture and Code Base JUNOS Competition Management SDK Mod1 Mod2 Kernel ModN Multiple network Operating System versions are the silent killers of efficiency Forwarding Services Forrester report 17 Consistency Leverage Longevity Reliability
18 One Development Train JUNOS Competition releases (100%) on time: one per quarter Reliability Consistency Speed 18
19 One Virtualized Network Unified Functional Manager Advanced Insight Manager Network and Security Manager Security Threat Response Manager Lower TCO Better Security More Control Diagnostic System Provisioning System Visibility System 19 J Series SA Series EX Series Infranet Controller STRM NSMXpress WX/WXC M Series SRX5800 EX8200 Series MX Series
20 Systems THE FOUNDATION OF SCALABILITY AND VIRTUALIZATION Uniform architectural principles Small number of building blocks Separated by clean, long-lived interfaces Take physical constraints into account Space, power, cooling Signaling C E C E C E C E G F S G F S G F S G F S G C G F E S Massive-Scale Multi-Chassis Virtualized Systems Integrated Systems Modular Systems Small-Scale Medium-Scale Massive-Scale 20
21 Systems THE FOUNDATION OF SCALABILITY AND VIRTUALIZATION Lower Power Best Price/Performance Operational Simplicity C E C E C E C E G F S G F S G F S G F S G C G F E S Massive-Scale Multi-Chassis Virtualized Systems Integrated Systems Modular Systems Small-Scale Medium-Scale Massive-Scale 21
22 The Second Paradigm Shift Centralize what you can, distribute what you must The global information infrastructure is being re-architected, by escalating costs, user preferences, and an increasingly powerful network This shift will transform all industries associated with producing, consuming, storing, processing, and transporting information Most networks will be High-Performance Networks and all unconnected information systems will be worthless 22
23 Forces Driving Consolidation High cost of distributed infrastructure Operational expense Inefficient utilization Difficulty of providing security CAPEX OPEX Increasingly capable WAN Reliable Secure General-Purpose Strong user preference for Simplicity Ubiquity Uniformity Convenience (mobility, long battery life) 23
24 Clouds: The New Information Infrastructure Clients (billions) Global High-Performance Network Workforce Globalization Mega Data Centers (thousands) Mobile Home Branch Campus Infrastructure Consolidation 24
25 Why Now? Relative Degree costs of for distribution given capability Computing CAPEX/Unit Networking CAPEX/Unit # Computers Consolidation Pressure Cost of Managing Distributed Infrastructure # Networking Devices T I M E Mainframes ( 60 75) Minis/Client-Server ( 76 86) PCs/Internet ( 87 07) New Information Infrastructure Era ( 08???) 25
26 Key Implications The Market is coming towards Juniper s Core Competency: High-Performance Networking
27 Data Centers THE ENGINES OF CLOUD COMPUTING Limited Slow Unreliable Insecure Complex Underutilized Power Hungry Expensive Scalable Fast Reliable Secure Simple Efficient Green Cost-Effective 27
28 Data Centers THE ENGINES OF CLOUD COMPUTING Limited Slow Unreliable Insecure Complex Underutilized Power Hungry Expensive CPU IO Scalable Fast Reliable Secure Simple Efficient Green Cost-Effective 28
29 Data Centers THE ENGINES OF CLOUD COMPUTING Limited Slow Unreliable Insecure Complex Underutilized Power Hungry Expensive CPU IO Disk IO Scalable Fast Reliable Secure Simple Efficient Green Cost-Effective 29
30 Data Centers THE ENGINES OF CLOUD COMPUTING Limited Slow Unreliable Insecure Complex Underutilized Power Hungry Expensive CPU IO Disk IO # CPUs Scalable Fast Reliable Secure Simple Efficient Green Cost-Effective 30
31 Data Centers THE ENGINES OF CLOUD COMPUTING Limited Slow Unreliable Insecure Complex Underutilized Power Hungry Expensive CPU IO Disk IO # CPUs # Disks Scalable Fast Reliable Secure Simple Efficient Green Cost-Effective 31
32 Data Centers THE ENGINES OF CLOUD COMPUTING Limited Slow Unreliable Insecure Complex Underutilized Power Hungry Expensive CPU IO Disk IO # CPUs # Disks Disks IO Compute Scalable Fast Reliable Secure Simple Efficient Green Cost-Effective 32
33 Data Centers THE ENGINES OF CLOUD COMPUTING Limited Slow Unreliable Insecure Complex Underutilized Power Hungry Expensive CPU IO Disk IO # CPUs # Disks Disks IO Compute Scalable Fast Reliable Secure Simple Efficient Green Cost-Effective 33
34 Root of Current Limitations: Legacy LEGACY NETWORKS, LEGACY NETWORKING TECHNOLOGIES, AND LEGACY VENDORS Legacy Ethernet Initially designed for small scale to run over coaxial cable Progressively enhanced with features some of which are irrelevant to data centers Scale, performance, cost and packet loss remain challenges Infiniband Initially designed as a replacement for PCI to connect IO devices to servers Subsequently positioned as a low-latency HPC interconnect Scale and security remain challenges FiberChannel Initially designed for remotely connecting disks to a server via SCSI Progressively enhanced with features to provide scale and security for storage Scale, performance and cost remain challenges 34
35 We Need Three Fundamental Advances A single, scalable, cost-effective high-performance network purpose-built for connecting equipment inside the data center A much tighter coupling between compute, storage, and services elements and the network A single data center management system for setting policies, virtualizing, and allocating resources in a data center 35
36 We Need Three Fundamental Advances Partner for Success C S N Go It Alone 36
37 The Stratus Project DELIVERING ON THE PROMISE OF CLOUD COMPUTING Data Center Manager 37
38 THANK YOU 38
39 39
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