THE JUNIPER PRODUCT ADVANTAGE
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1 THE JUNIPER PRODUCT ADVANTAGE Manoj Leelanivas Chief Product Officer, Juniper Networks
2 CAUTIONARY STATEMENTS Forward-Looking Statements. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Except for historical information contained herein, all statements could be deemed forward-looking statement, including, without limitation, Juniper Networks views concerning our business outlook; economic and market outlook; our future financial and operating results; the expected impact of network transitions and timing of deployments with large customers; our capital return program; the potential impact of import tariffs; our expectations with respect to market trends; our future strategy; the strength of certain customer segments; our ability to expand business opportunities (including in hyperscale-switching, 5G buildouts and with enterprise customers); our expectations with respect to revenue growth or cost containment or our ability to improve profitability and make necessary investments; the introduction of future products; the strength of our solution portfolio; and overall future prospects. 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 by our customers; the network capacity requirements of our customers and, in particular, cloud and communication service providers; the timing of orders and their fulfillment; manufacturing and supply chain constraints, changes or disruptions; availability of product components; delays in scheduled product availability; adoption of regulations or standards affecting Juniper Networks products, services or the networking industry; the impact of import tariffs; and other factors listed in Juniper Networks most recent report on Form 10-Q and 10-K filed with the Securities and Exchange Commission. These forward-looking statements are not guarantees of future performance and speak only as of the date of this presentation. Juniper Networks undertakes no obligation to update the information in this presentation in the event facts or circumstances subsequently change. Non-GAAP Financial Measures. This presentation contains information regarding Juniper Networks financial results prepared on a basis of accounting generally accepted in the United States of America ( GAAP ) as well as certain financial measures calculated and presented on the basis of methodologies other than in accordance with GAAP ( non-gaap ). The non-gaap financial measures disclosed by Juniper Networks should not be considered a substitute for, or superior to, the financial measures prepared in accordance with GAAP. Please refer to Discussion of Non-GAAP Financial Measures in our quarterly earnings release for a detailed explanation of the adjustments made to the comparable GAAP measures, the ways management uses the non-gaap measures, and the reasons why management believes the non-gaap measures provide investors with useful supplemental information. With respect to future financial guidance provided on a non-gaap basis, we exclude estimates for amortization of intangible assets, share-based compensation expenses, acquisition-related charges, restructuring benefits or charges, impairment charges, litigation settlement benefits or charges and resolution charges, supplier component remediation charges and recoveries, gain or loss on equity investments, retroactive impact of certain tax settlements, significant effects of tax legislation and judicial or administrative interpretation of tax regulations, including the impact of income tax reform, non-recurring income tax adjustments, valuation allowance on deferred tax assets, and the income tax effect of non-gaap exclusions, and do not include the impact of any future acquisitions, divestitures, or joint ventures that may occur in the period. Juniper Networks is unable to provide a reconciliation of non-gaap guidance measures to corresponding GAAP measures on a forward-looking basis without unreasonable effort due to the overall high variability and low visibility of most of the foregoing items that have been excluded. The items that are being excluded are difficult to predict and a reconciliation could result in disclosure that would be imprecise or potentially misleading. Material changes to any one of these items could have a significant effect on our guidance and future GAAP results. Statement of Product Direction. Juniper Networks may disclose information related to development and plans for future products, features or enhancements ( SOPD ). SOPD information is subject to change at any time, without notice. Except as may be set forth in definitive agreements, Juniper Networks provides no assurances, and assumes no responsibility, that future products, features or enhancements will be introduced and third parties should not base purchasing decisions upon reliance of timeframes or specifics outlined in an SOPD, because Juniper may delay or never introduce the future products, features or enhancements. Company Logos. Juniper Networks, the Juniper Networks logo, Juniper and Junos are registered trademarks of Juniper Networks, Inc. and/or its affiliates in the United States and other countries. Other names and/or logos may be trademarks of their respective owners, and Juniper Networks use hereof does not imply an affiliation with, or endorsement by, the owners of these trademarks or logos. 2
3 ROUTING LEADERSHIP 3
4 MX 5G EXTENDS ROUTING LEADERSHIP Juniper Penta Silicon Powering the MX Series 5G Universal Routing Platform MX Family Addresses future demands, such as 5G, IoT and multicloud Industry s Only Edge Platform with Integrated Security for 5G and Enterprise DC Highest Density Edge Platform with Flex Provisioning from 10GE to 400GE speeds Fully Programmable with Open APIs Across Software and Hardware Layers Flexible Disaggregated Software to Enable End-to-End Network Slicing Universal Chassis Across Core, Data Center & Edge Enables Massive Opex Savings 4
5 AND PRESENTS A POWERFUL REFRESH OPPORTUNITY MX 5G 4 th Gen 2 ½ years to $1B 3 rd Gen 3 ¼ years to $1B 2 nd Gen 4 years to $1B 1 st Gen 1 1 TRIO Silicon Based 5
6 5G & IOT DRIVING NETWORK TRANSFORMATION THE SERVICE PROVIDER OPPORTUNITY 4G/5G Edge Cloud Contrail powering cloud infrastructure Telco Cloud Cellular IoT Mobile & Fixed Access Metro/ Aggregation Distributed Edge & Core Public Cloud Enterprise Wireless/IoT OS1 OS2 OS3 IP NETWORK 5G EPC SDWAN Private Cloud BNG Residential/ WiFi Node Slicing Junos Node Slicing for multi service convergence MX5G - Hybrid CUPS Junos MX 5G: Industry first 3GPP compliant 5G CUPS 6
7 Tier 1 SP in Europe Business Objective Building 10+ Distributed Telco Cloud DCs Hosting Multiple Dynamic, Mission-Critical, Virtual Services to Transform their Business Model Solutions Software Driven Operations with Contrail Cloud Open Programmable Infrastructure with MX, QFX, EX, SRX, vsrx Turnkey Solution with Plan-Build- Operate-Transfer Services Benefits Engineering simplicity with open programmable infrastructure and software driven operations New services development/deployment cut from 6-24 months to 8 weeks Software validation from several days to seconds 7
8 PTX IS THE PLATFORM OF CHOICE FOR SP CORE & CLOUD WAN Express Plus Silicon PTX10003 is ~50% more power efficient than Cisco NCS6K 230T capacity 25x more scalable than Cisco NCS6K & Nokia 7950 Programmable port speeds from 10GE to 400GE all with integrated MACSEC & Flex-buffering PTX Family NorthStar Controller is the first SDN controller to automate 4 control of multiple network layers ASIC-integrated streaming telemetry to enabled next 5 generation of automation 8
9 Continue to lead in routing 1: MX expected to benefit from 100G upgrades in the SP edge driven by 5G 2: Contrail leading telco cloud and edge cloud deployments driven by 5G and IoT 3: PTX delivering scale-out superiority and expected to be first to bring 400G in cloud WAN and SP core 9
10 SWITCHING LEADERSHIP 10
11 JUNIPER ADVANTAGE SWITCHING FOR CLOUD AND ENTERPRISE QFX Family Most power efficient DC switch. Highest route scale 1 DC spine switch 2 Common Standards-based Fabric Architecture for DC and Campus. Single OS across WAN and DC 3 400GbE capable, Native Security, and Programmable APIs EX Family 4 5 Leader in the Gartner Data Center Networking MQ Highest scale, multi-gig campus EX fabric to leverage ax transition with 1.8 million systems sold 11
12 CONTRAIL ENTERPRISE MULTICLOUD HYPERSCALE INFRASTRUCTURE FOR EVERY ENTERPRISE One platform for policy and control CONTRAIL ENTERPRISE MULTICLOUD ANY CLOUD ANY WORKLOAD ANY DEPLOYMENT Private clouds and public clouds Bare metal servers, public cloud instances, virtual machines, containers and physical networking devices Greenfield or brownfield, single or multivendor Open, Flexible & Complete Clear alternative to leapfrog ACI and NSX 12
13 Business Objective Supporting hosting classified advertising platforms in multiple countries around the world, ebay Classifieds must meet requirements unique to each market with very little functional overlap Solution Network Virtualization using Juniper Contrail Cloud Platform Scalable IP CLOS fabric using Juniper QFX 5K Platform Expert Design and Automation support by Professional Services Benefits Investment Protection No Vendor Lock-In Smart Automation Simplified Operations 13
14 SD-ENTERPRISE: COMPLETE, INTEGRATED, CLOUD DELIVERED OFFERING FOR CAMPUS AND BRANCH Coming Q Cloud Managed SD-LAN SD-Security SD-WAN SD-WIFI SD-Access 14
15 Business Objective Managed Business Services Offering for a SP operating in 182 countries Open, standards based, ondemand SD-WAN network with integrated security Solution Global solution for Vodafone SD-WAN built using Contrail SD-WAN deployed on NFX series ucpe Open and multivendor environment for multiple virtual network functions Integrated security using virtual functions to deliver next generation firewall features Zero touch deployment using Contrail Service Orchestrator Benefits Ensure application level quality of experience Ability to manage multiple sites using a combination of WAN connectivity types Self-care portal providing real-time, end-toend visibility and analysis of network performance Centralized selection, provisioning and management of WAN services 15
16 Plan to disrupt and grow in switching 1: QFX poised to win high-density 100G cycle in cloud and enterprise data centers and lead 400G for industry 2: Contrail Enterprise Multicloud cements position as an open alternative to existing solutions 3: Cloud-delivered campus and branch delivers simplicity and automation for the enterprise 16
17 SECURITY LEADERSHIP 17
18 SECURITY PORTFOLIO ONE MILLION SRX SYSTEMS SOLD Threat Intelligence Security is Converging with the Network 1 Juniper is Uniquely Positioned Continuous Threat Detection and Remediation Fast Flexible Automated at Scale Automated Adaptive Policy Enforcement Unified Security from Cloud to Branch Automated and Adaptive Policy Enforcement Industry s only container firewall (csrx) and highest scale virtual firewall (vsrx) Network Access APIs Endpoint 5 Open Security Partner Ecosystem 18
19 SECURITY PORTFOLIO REFRESH Q Q Q RU 20Gbps 1RU 40Gbps 1RU 80Gbps 5RU 480Gbps 8RU 960Gbps 16RU 2Tbps SRX4100 SRX4200 SRX4600 SRX5400 SRX5600 SRX
20 Business Objective Open, standards based, on-demand network, integrated security, total communications across all geographies Solutions SRX5800 Services Gateway for advanced data center security and enhanced visibility Sky ATP enables advanced malware protection from the cloud MX480 5G Universal Router as the WAN core, connecting data centers in Tokyo, Osaka, and Yokohama and EX9214 and QFX5100 Ethernet Switches for switching fabric Benefits Enhanced ability to combat rising tide of cyberthreats Increased productivity employees can easily access applications, whether in a private data center or in the public cloud Decreased space usage by 50% and power consumption by 2/3 Delivered unified geographically distributed data centers into a single streamlined pool of resources 20
21 Differentiate with converged networking & security 1: Unified detection and enforcement 2: Unified security from cloud to branch 3: 5G security leadership in SP 21
22 MONETIZING OUR SOFTWARE ADVANTAGE 22
23 PLANNED TIERED SOFTWARE LICENSING MODEL FOR ON-BOX, OFF-BOX, AND CLOUD ON-BOX SOFTWARE OFF-BOX SOFTWARE & CLOUD SERVICES Premium Premium Advanced Advanced Standard Standard Hardware Juniper Hardware Customer Support (HW & SW) Perpetual License Subscription/Term License (Includes Customer Support) 23
24 EXAMPLES: MX204 AND CONTRAIL ENTERPRISE MULTICLOUD, Q ON-BOX SOFTWARE OFF-BOX SOFTWARE Secure Connect Term licenses renewed every 1, 3, 5 years Multicloud Secure Subscription and term licenses MPLS Connect 100% Support SW Attach. Support for SW 17% of Product Multicloud Insight 100% Support SW Attach WAN Connect Hardware MX 204 Customer Support (HW & SW) Broader Enterprise entry level appeal Multicloud Automation CONTRAIL ENTERPRISE MULTICLOUD 24
25 WE EXPECT TO DOUBLE OUR SOFTWARE REVENUE BY 2021 % of Juniper Total Revenue ~8% 2018E ~16% 2021E Growth driven by on-box, off-box, and cloud software Enterprise customers increasingly looking for an OPEX model Term licensing available for customers who prefer CAPEX ~50% of software bookings expected to be subscription/term licenses by
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