The Network Will Define The Winners In The Cloud

Transcription

1 Forward Looking Statements Statements in these presentation slides and related webcast concerning Juniper Networks business, economic, industry and market outlook, trends and opportunity; 2016 and long-term financial model; competitive landscape; product portfolio and success of particular products and product families; the contribution of new products to our revenues; future financial and operating results, strategies and ability to deliver revenue, earnings and margin growth; expected drivers of growth; revenue diversification and expected vertical, geographical and technology mix; expected cash flows; improvements to our cost structure and expense reductions and management; innovation pipeline; capital structure; capital return program, including future dividends, dividend growth and share repurchases and our intent to target a return of 50% of our annual free cash flow (through dividends and buybacks) beyond 2016; GTM and innovation strategies; and overall future prospects are forwardlooking statements within the meaning of the Private Securities Litigation Reform Act that involve a number of uncertainties and risks. Actual results or events could differ materially from those anticipated in those forward-looking statements as a result of several factors, including: general economic and political conditions globally or regionally; business and economic conditions in the networking industry; changes in overall technology spending and spending by communication service providers and major customers; the network capacity requirements of communication service providers; contractual terms that may result in the deferral of revenue; increases in and the effect of competition; the timing of orders and their fulfillment; issues resulting from the transition to our new ERP system; manufacturing and supply chain constraints, changes or disruptions; availability of key product components; ability to establish and maintain relationships with distributors, resellers and other partners; variations in the expected mix of products sold; changes in customer mix; changes in geography mix; customer and industry analyst perceptions of us and our technology, products and future prospects; delays in scheduled product availability; market acceptance of our products and services; rapid technological and market change; adoption of regulations or standards affecting our products, services or the networking industry; the ability to successfully acquire, integrate and manage businesses and technologies; product defects, returns or vulnerabilities; the ability to recruit and retain key personnel; significant effects of tax legislation and judicial or administrative interpretation of tax regulations; currency fluctuations; litigation settlements and resolutions; the potential impact of activities related to the execution of capital return and product rationalization; and other factors listed in Juniper Networks most recent report on Form 10-K and subsequent report on Form 10-Q filed with the Securities and Exchange Commission. All statements contained in these presentations and related webcast are made only as of the date set forth at the beginning of this presentation. Juniper Networks undertakes no obligation to update the information contained in these slides and related webcast in the event facts or circumstances subsequently change. Use of Non-GAAP Financial Measures These presentation slides contains references to the following non-gaap financial measures: revenue, operating margin; gross margin; earnings per share; operating expenses as a percentage of revenue; and free cash flow. For important commentary on why Juniper Networks considers non-gaap information a useful view of the company s financial results, please refer to the supplemental information posted on the Investor Relations section of our website at With respect to future financial guidance provided on a non-gaap basis, we have excluded estimates for amortization of intangible assets, share-based compensation expenses, acquisition-related charges, restructuring and other (benefits) charges, impairment charges, professional services related to non-routine stockholder matters, litigation settlement and resolution charges, gain or loss on equity investments, retroactive impact of certain tax settlements, nonrecurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-gaap exclusions. These measures are not presented in accordance with, nor are they a substitute for U.S. generally accepted accounting principles or GAAP. In addition, these measures may be different from non-gaap measures used by other companies, limiting their usefulness for comparison purposes. The non-gaap financial measures used in these slides should not be considered in isolation from measures of financial performance prepared in accordance with GAAP. Investors are cautioned that there are material limitations associated with the use of non-gaap financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of items that are recurring and will be reflected in our financial results for the foreseeable future. A reconciliation of non-gaap guidance measures to corresponding GAAP measures is not available on a forward-looking basis due to the high variability and low visibility with respect to the charges which are excluded from these non-gaap measures.

2 The Network Will Define The Winners In The Cloud Jonathan Davidson EVP & GM, Juniper Development & Innovation May 17, 2016

3 CLOUD ECONOMICS ARE COMPELLING 5 of 5 the Top Telco Providers of the Top Cloud Providers ~ $5.5 ~$2.5 $ 1 $ 1 OPEX CAPEX OPEX CAPEX Source: IHS 2016, Public 10-K Reports

4 MAKING NETWORKS MORE RELEVANT THAN EVER Juniper Solution Alignment with Industry People, Business, Things Metro Edge Core Cloud Campus & Branch Access & Aggregation Edge Core Data Center Cloud Services Security JUNIPER SOLUTION DOMAINS

5 IP LEADERSHIP REQUIRES BROAD EXPERIENCE All Networking Is Not Equal Complexity and TAM Campus/ Branch Metro Edge Core Data Center Campus Core Cell Site Routing Business Edge MPLS LSR Core DC Leaf Switch Secure Router Mobile Backhaul Broadband Edge IP Core DC Spine Switch Campus Edge Carrier Ethernet Mobile GiLAN Internet Peering DC Core Switch High-End Routing Metro Transport Converged P/PE Supercore DC Interconnect Cloud CPE IP + Optical Infrastructure Edge DCI Transport DC Edge Routing DC Core Routing

6 TRANSFORMING IP TRANSPORT Metro and Core Innovations SOFTWARE DEFINED HIGH PERFORMANCE IP + OPTICAL 5x Cisco NCS6000 1x Juniper PTX5000 Northstar SDN 35% More Utilization Real-time Cloud Traffic Engineering Automated Management Cisco NCS % Smaller Juniper PTX % Less Power 1.4B Savings / 5y One Less 150MW Plant Multi-Layer Convergence High-Speed Interconnect Open Systems

7 TRANSFORMING SERVICE DELIVERY Edge And Enterprise Innovations HIGH PERFORMANCE PHYSICAL + VIRTUAL ORCHESTRATION 100% More Capacity and ½ Power vs. Cisco ASR9922 Industry s First Carrier- Class Virtualized Router Contrail #1 SDN Controller MX 100% More Broadband Sessions in ¼ Space vs. ALU7750SR-12E vmx Actively Deployed in World s Largest Business SP Cloud CPE at 3 of Top Managed Providers

8 TRANSFORMING THE CLOUD Data Center Innovations OPEN SOFTWARE HIGH PERFORMANCE AUTOMATION The Juniper QFX Q smashed right through [every test milestone] -Network Test, Inc., Dec 2015 Industry s First Carrier Class Disaggregated OS Contrail Networking Voted #1 Openstack Network Controller QFX 480 x 100GE #1 in Industry 2M FIB #1 in Industry Containerized Virtual Security High Speed Telemetry

9 Advanced Anti- Malware Protection Threat Detection Feeds Physical and Virtualized Protection in the Network 1 Based on SRX compared to Fortinet 2 Based on tests by NSS Labs 3 Based on vsrx compared to F5 TRANSFORMING SECURITY Software Defined Secure Networks Policy SDSN Physical Virtual Cloud Service Management New Innovations SRX5000: 2x capacity and 4x rate over the competition 1, 98.9% exploits blocked 2 SRX300 and SRX1500: Price/Performance Leaders vsrx: 100G, 10x higher than the competition 3, 75% less CPU 3 csrx: 1 st containerized FW SKY ATP and Spotlight Secure: Cloud-based, Machine Learning Security Director: Unified Policy Automation

10 Thank you