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Juniper Networks, Inc.
(408)
745-2000
1194
North Mathilda Ave.
Sunnyvale, CA 94089
www.juniper.net
Sales
$701
million
Business Description
We
design and sell products and services that together provide our customers
with Internet Protocol (IP) network infrastructure solutions. Our solutions
are incorporated into the global web of interconnected public and private
networks across which a variety of media, including voice, video and data,
travel to and from end users around the world. Our network infrastructure
solutions enable service providers and other network-intensive businesses to
support and deliver services and applications on a highly efficient and low
cost integrated network. As a result, our customers, which include service
providers, government organizations, cable operators, mobile operators,
research and education institutions and network-intensive businesses, are
able to convert networks that provide commoditized, best efforts services
into more valuable assets that provide differentiation and value and
increased reliability and security to end users, both corporate and
residential.
Juniper Networks Technology and Products
Early in the Company’s history, we developed, marketed and sold the first
commercially available purpose-built IP backbone router optimized for the
specific high performance needs of service providers. As the need for core
bandwidth continued to increase, the need for service rich platforms at the
edge of the network was created. Our products are designed to address the
needs at the core and the edge of the network as well as for wireless and
cable access by combining high-performance packet forwarding technology and
rich software into a network-optimized solution.
Today, as then, our technology is built upon our router architecture, ASIC
and software expertise. Our products offer a full suite of scalable, tested
routing protocols, which are used to control and direct network traffic, and
are critical to a network routing solution. This control is made more
important by the fact that the size and complexity of IP networks are
increasing at a time when service providers are looking to differentiate
themselves through value-added service offerings.
General Product Architecture
We believe that an overview of the physical nature of our products is
helpful in understanding the operation of our business.
Although specific designs vary among our product families, our platforms are
essentially modular, with the chassis serving as the base of the platform.
The chassis contains components that enable and support many of the
fundamental functions of the router, such as power supplies, cooling fans,
and components that run our JUNOS or JUNOSe operating system, perform
high-speed packet forwarding, or keep track of the structure of the network
and instruct the packet forwarding components where to send packets. Each
chassis has a certain number of slots that are available to be populated
with components we refer to as modules or interfaces.
The modules are the components through which the router receives incoming
packets of data from the network over a variety of transmission media. The
physical connection between a transmission medium and a module is referred
to as a port. The number of ports on a module varies widely depending on the
functionality and throughput offered by the module. In some cases, modules
do not contain ports or physically receive packets from the network, but
rather enhance the overall functionality of the router. We refer to these
components as service modules.
Product Families
M-Series and T-Series: Our M-series platforms are extremely versatile as
they can be deployed at the edge of operator networks, in small and medium
core networks, and in other applications. The M-series product family
includes the M5, M7i, M10, M10i, M20, M40e, M160 and M320 platforms. Our
T-series platforms, T320 and T640, are primarily designed for core IP
infrastructures. The M-series and T-series products leverage our ASIC
technology and the same JUNOS operating system to ensure continuous and
predictable service delivery, while reducing capital and operational costs.
E-Series: Our E-series products are a full featured platform with support
for carrier-class routing, broadband subscriber management services and a
comprehensive set of IP services. The E-series family includes the ERX-310,
ERX-705, ERX-710, ERX-1410, and ERX-1440 platforms. Leveraging our JUNOSe
operating system, the E-Series service delivery architecture enables service
providers to easily deploy innovative revenue generating services to their
customers and avoid the costly and limiting piecemeal outcomes that result
from equipment that delivers inconsistent edge services. All E-Series
platforms offer a full suite of routing protocols and provide scalable
capacity for tens of thousands of users.
J-20: Our J-20 product, developed together with Ericsson A.B., provides a
scalable solution for wireless networks and supports wireless operators in
their evolution from voice-centric networks to the new multimedia-rich
networks.
The Juniper Networks Strategy
Our objective and strategy is to transform the business of networking by
converting bandwidth, which is a commodity, into a dependable, secure and
highly valuable corporate asset. Our technological leadership and problem
solving abilities combined with our experience and fundamental understanding
of the requirements of high performance IP network infrastructure will help
us in meeting our objectives. Key elements of our strategy are described
below.
Maintain and Extend Technology Leadership. Our application-specific
integrated circuit (ASIC) technology, software and network-optimized product
architecture have been key elements to establishing our technology
leadership. We believe that these elements can be leveraged into future
products we are currently developing. We intend to maintain and extend our
technological leadership in the network infrastructure market through
continued investment to enhance the feature richness of our products and to
develop future differentiated offerings for our customers.
Leverage Early Lead as Supplier of Purpose-Built Network Infrastructure.
From inception we have focused on designing and building IP network
infrastructure for service providers and network intensive businesses and
have integrated purpose-built technology into a network optimized
architecture that specifically meets our customers’ needs. We believe that
many of these customers will deploy network infrastructure equipment from
only a few vendors. The purpose-built advantages of our products provide us
with a time-to-market lead, which is a critical advantage in gaining rapid
penetration as one of these selected vendors. Once our products have been
widely deployed in a customer’s network, we create a significant barrier to
entry to potential competitors who do not currently offer
commercially-viable next generation routing solutions.
Be Strategic to Our Customers. In developing our solutions, we work very
closely with customers to design and build a product specifically to meet
their complex needs. Over time, we have expanded our understanding of the
challenges facing these customers. That increased understanding has enabled
us to subsequently design additional capabilities into our products. We
believe our close relationships with, and constant feedback from, our
customers have been key elements in our design wins and rapid deployment to
date. We plan to continue to work very closely with our customers to
implement enhancements to current products as well as to design future
products that specifically meet their evolving needs.
Enable New IP-Based Services. Our platform enables network operators to
build networks cost effectively and to offer new differentiated services for
their customers more efficiently than conventional products. We believe that
the delivery of IP-based services and applications, including web hosting,
outsourced Internet and intranet services, outsourced enterprise
applications and voice-over IP, will continue to grow and are
cost-effectively enabled by our network infrastructure solutions.
Establish and Develop Industry Partnerships. Our customers have diverse
requirements, some of which our products satisfy. Our products are not
intended to satisfy certain other requirements. Therefore we believe that it
is important to build relationships with other industry leaders in a diverse
set of networking technologies in order to fully support our customers’
requirements.
Markets and Customers
Our customers include network operators in and value added resellers that
sell into the following markets:
Service Providers
Supporting nearly every major service provider network in the world, our
platforms are designed and built for the scale and dependability that
service providers demand. Our IP infrastructure solutions benefit these
customers by:
• Reducing capital and operational costs by running multiple services over
the same network using our high density, highly reliable platforms;
• Promoting generation of additional revenue by enabling new services to be
offered to new market segments based on our product capabilities; and
• Providing increased asset longevity and higher return on investment as
their networks can scale to multi-terabit rates based on the capabilities of
our platforms.
Government Organizations
Our solutions provide the security, dependability, and performance required
by leading government agencies, including the United States Department of
Defense, intelligence and civilian agencies. Juniper Networks helps
government agencies transform their networking infrastructure by:
• Delivering best-in-class network security without impacting performance or
the ability to turn on additional services;
• Providing highly dependable (reliable, available, and stable) products to
ensure that government networks are operational and available;
• Offering flexible and comprehensive service and support packages designed
for federal customers; and
• Working as a business partner for the long term with the optimal
combination of flexibility, responsiveness, technical know-how and financial
strength.
Cable Operators
Our solutions can enable cable operators to migrate their business model and
systems from a flat rate Internet access offering to delivery of rich,
pay-per-use content. Our platforms enable cable operators to enhance
profitability by:
• Enabling cable providers to use a single, cost-effective network to
generate additional revenue and profit in key markets;
• Increasing customer satisfaction, while lowering costs, by enabling
consumers to self-select automatically provisioned service packages that
provide the quality, speed and pricing they desire; and
• Enabling operators to profitably package high performance, two-way,
high-speed services and network-based security solutions for telecommuters,
small businesses and small offices.
Mobile Operators
We play a leadership role as the mobile industry transforms into a business
environment in which many interactive voice and data services are supported
over a single, cost-efficient infrastructure. Mobile providers are improving
existing business models with our solutions by:
• Achieving a lower cost of ownership and better operational scale in their
networks;
• Facilitating a cost effective migration path from traditional networks to
a single IP network;
• Reducing implementation costs and timelines through our partnerships with
leading system integrators, which deliver integrated total solutions, with
full service and support; and
• Creating and delivering new offerings and enhancing the revenue potential
of existing services.
Research and Education Institutions
Research and education (R&E) networks push the envelope in networking and
applications, continually demanding the most advanced products and
technologies while simultaneously helping shape their development. These
networks help academic researchers and educators transform their vision into
reality with scientific and educational advancements using applications such
as telemedicine, 3D visualization and simulation, grid computing, and
collaborative videoconferencing. Our products are deployed in R&E
institutions and networks worldwide and further those institutions goals by
providing:
• High performance, reliable platforms for leading-edge scientific and
educational applications; and
• Advanced capabilities including IPv6, multicast, and packet filtering
while maintaining high performance.
Network-Intensive Businesses
Our solutions are designed to meet the reliability and scalability demanded
by the world’s largest and most advanced networks. For this reason,
information intensive enterprises that rely on their networks for the
essence of their business are able to deploy our solutions as a powerful
component in delivering the advanced network capabilities needed for their
leading-edge applications while:
• Reducing costs through operational efficiencies in implementing and
managing the network;
• Driving down capital expenses with sophisticated network intelligence that
is robust, secure and scalable; and
• Providing enterprises with the control necessary to deliver an assured
user experience to their customers and internal clients.
Fundamental Requirements for High Performance, Low Cost Integrated Networks
As they work to support dramatic growth in IP traffic and seek to offer new
revenue generating or mission-critical services, service providers,
government organizations, cable operators, mobile operators and
network-intensive businesses require network infrastructure equipment that
is not only feature rich but also delivers high reliability and performance.
Feature richness, high reliability, high performance, security, scalability,
interoperability, and cost effectiveness are each fundamental requirements
in meeting the needs associated with the growth in IP traffic and the
efficient delivery of value-added services to end users.
Feature Richness. The importance of increasing revenue streams and
decreasing capital and operational costs for our customers is a significant
priority in the industry. Customers want to sell more revenue generating
services with better cost efficiencies, which is ultimately a function of
the features and capabilities that can be provided on each of the network
elements. Most of the feature richness evolves in software and as the
networks advance, more and more features are required to sell new services
as well as to lower the ongoing costs of operating the network. Next
generation routers therefore need to have flexibility to add new
capabilities frequently without compromising the performance of the system,
which gets increasingly difficult as the network demands increase.
High Reliability. As businesses and consumers increasingly rely on IP
networks for mission-critical applications, high network reliability is
essential. As a result, those businesses and consumers expect service
providers to deliver a high degree of reliability in their networks.
High Performance Without Compromising Intelligence. To handle the rapid
growth in IP traffic, today’s network operators increasingly require network
infrastructure that can operate at higher speeds, while still delivering
real-time services such as security and quality-of-service features. The
processing of data packets at these high speeds requires sophisticated
forwarding technology to inspect each packet and assign it to a destination
based on priority, data type and other considerations. Since a large number
of IP packets, many of which perform critical administrative functions, are
small in size, high performance IP routers need to achieve their specified
transmission speeds even for small packet sizes. Since smaller packets
increase packet processing demands, routing large numbers of smaller packets
tends to be more resource intensive than routing of larger packets. A wire
speed router, which achieves its specified transmission rate for any type of
traffic passing through it, can accomplish this task. Thus, provisioning of
mission-critical services increasingly requires the high performance enabled
by wire speed processing.
High Performance Under Stressful Conditions. In a large and complex network,
individual components inevitably fail. However, the failure of an individual
device or link must not compromise the network as a whole. In a typical
network, when a failure occurs, the network loses some degree of capacity
and, in turn, a greater load falls on the remaining network routers, which
must provide alternate routes. IP infrastructure must quickly adjust to the
new state of the network to maintain packet forwarding rates and avoid
dropping significant numbers of packets when active routes are lost or when
large numbers of routes change. Routing protocols are used to accomplish
this convergence, a process that places even greater stress on the router.
Given the complexity of IP network infrastructure, the convergence process
is far more complex and places a far greater load on the routing software,
thereby requiring a much more sophisticated device.
Security. There are more and more issues everyday regarding network security
ranging from simple denial of service attacks to sophisticated, pervasive
and malicious intrusions. The challenge of security is increasing in
awareness within all of our customers and we are continually improving and
evolving the security capabilities on product solutions. It is extremely
important to provide comprehensive network-based security services that are
fully integrated, free of performance trade-offs and scaled to any customer
or market.
Scalability. Due to the rapid growth in IP traffic, service providers must
continuously expand their networks, both in terms of increased numbers of
access points of presence (PoPs), and also greater capacity per PoP. To
facilitate this expansion process, network infrastructure equipment must be
highly scalable. Next generation routers therefore need to be flexible and
configurable to function within constantly changing networks while incurring
minimal downtime.
Interoperability. In order to gain acceptance in IP networks, new products
must be compatible with the existing network environment. Given the open and
inter-connected nature of the public network infrastructure, service
providers, government organizations, cable operators, mobile operators and
network-intensive businesses must control and police traffic on their
networks. As a result, the operating system in each router must offer 100%
compatibility with the interior protocols and standards used within each
network. The compatibility level must be maintained despite changes to
equipment configuration and network architecture and upgrades to the various
protocol standards. Thus, the operating system must be flexible to support
any necessary revisions. This level of compatibility, in turn, cannot impact
the performance, scalability or reliability of the equipment. Attaining this
sophisticated level of interoperability is highly challenging and requires
significant testing to ensure compatibility.
High Return on Investment in Network Infrastructure. Continued growth in IP
traffic, price competition in the telecommunications market and increasing
pressure for network operators to attain higher returns on their network
infrastructure investments all contribute to our customers’ desire for
solutions that significantly reduce the capital expenditures required to
build and operate their networks. In addition to the basic cost of
equipment, network operators incur substantial ancillary costs for the space
required to deploy the equipment, power consumed and ongoing operation and
maintenance of the equipment. Network operators therefore want to deploy
dense and varied equipment configurations in limited amounts of rack and
floor space. Therefore, in order to continue to scale their networks toward
higher data speeds in a cost effective manner, network operators need the
ability to mix and match easily many different speed connections at
appropriate densities, without significantly increasing the consumption of
space or power and driving costs higher.
These requirements define a clear need for IP infrastructure solutions that
can support high speeds and offer new IP-based services. At the same time,
network operators are eagerly seeking new solutions that increase the level
of scalability and reliability within their networks and reduce the cost of
their architectures.
Ticker
JNPR
SIC Code
3576
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