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TRANSCRIPT
Welcome
Kathleen Bela, VP Investor Relations
October 29, 2009
2 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
SAFE HARBOR
FORWARD LOOKING STATEMENTS
Information and projections contained in today’s presentation slides and related webcast concerning Juniper Networks' business outlook, future financial and operating results, 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: general economic conditions globally or regionally; business and economic conditions in the networking industry; changes in overall technology spending; 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; manufacturing and supply chain constraints; ability to establish and maintain relationships with distributors and resellers; variations in the expected mix of products sold; changes in customer mix; changes in geography mix; customer and industry analyst perceptions of Juniper Networks and its technology, products and future prospects; delays in scheduled product availability; market acceptance of Juniper Networks products and services; rapid technological and market change; adoption of regulations or standards affecting Juniper Networks 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 taxregulations; currency fluctuations; litigation; and other factors listed in Juniper Networks’ most recent report on Form 10-Q filed with the Securities and Exchange Commission (SEC). All information and projections contained in today’s slides and related webcast speak only as of the date of today’s presentations and related webcast. Juniper Networks undertakes no obligation to update the information contained in these slides and related webcast in the event facts or circumstances subsequently change.
3 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
AGENDA
Strategic Overview Robyn Denholm, CFO
Q & A Michel Langlois, SVP Junos Software
Manoj Leelanivas, SVP & GM, Edge and
Aggregation Business Unit
The New Network for the Next Decade
Robyn Denholm, CFO
October 29, 2009
5 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
HEADLINES
--New silicon innovation will advance the economics of networking
--Our expanded portfolio of MX products will continue to drive our market share momentum
--Opening up Junos to new partnerships and licensing model will drive incremental revenue opportunities as we move forward
--We remain committed to our long term financial model
6 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
FOCUS ON CORE STRATEGIES YIELDING RESULTS
THE POWER OF ONE
INNOVATION FOR THE FUTURE
Platform Services
High-Perf.Networking
Choice andFlexibility
LowerTCO
Mobility VideoMega-
Consolidation Green
Process PeopleProductivityPlanning
ServiceProviders
Enterprise
JUNOS
ALIGN GTM BY SEGMENT, EMBRACE PARTNERSHIPS
DELIVER CUSTOMER-FOCUSED VALUE
EXECUTIONAL EXCELLENCE
Aligned
GTM
Customer-
Focused
Value
One
JUNOS
Advance
Intellectual
Property
Excellence
in Execution
7 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
ANNOUNCEMENT SUMMARY:NEW SOFTWARE PLATFORMS
Multi-service
Network Client
Provides location-aware
intelligence to simplify,
secure and streamline
application access for
users wherever they are
Open Network
Application Platform
Designed for building
applications that simplify
network operations,
automate support and
scale services
Delivers reliable, high-
performance, low-cost
platform for routing,
switching and security –
with APIs and SDK to
write to the network
8 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
• Software Platform: Fueling Innovation Across the NetworkJunos + Junos Space + Junos Pulse
• Systems and New Silicon: “3D Scaling” and Universal Edge
Junos Trio Chipset = 3D Scaling Breakthrough
MX 3D Routers = First Universal Edge PlatformMX 3D
ANNOUNCEMENT SUMMARY: SYSTEMS AND NEW SILICON
INNOVATION FOR THE FUTURE
Green
Advance
Intellectual
Property
Platform Services Mobility GreenVideo
Mega-
Consolidation
9 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
The Definition of Universal Edge:
Any User, Any Service, Any Where
Identity & Policy
SRX
IP/ETHERNET
Ethernet @ Scale!
BANDWIDTH
Scaling from
KB to GB
SUBSCRIBERS
Thousands to Millions
of Subscribers
SERVICES
Real Time Video,
Voice and data
everywhere
SECURITY
Securing the
un-tethered
experience
RAN Aggregation Packet Core BackboneEX, A-Series, BX , MX 3DM GGSN, WiMax, LTE/EPC T, M
EPC
MOBILE SOLUTIONS
10 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
Platform
Software
MX 3D
Trios
Hardware
REVEALING THE NEW MOBILE NETWORK
Application
Software
Mobile Carrier
Ethernet Transport DPI/DAA
Voice with
SBC
Subscriber
Management
WiMax
GatewaySubscriber
Usage Reporting
Video Experience
Monitoring
Mobile
Security
Voice Experience
Monitoring
Media Caching Identity & Policy
Management
Multi-Access
Gateway
GGSN
Mobile
Packet Core
Mobile
Subscriber
Management
11 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
• Data Center 2 Cloud Initiative
Five New Solutions + Eight New Products
Security at Massive Scale for Cloud Services
• Systems and New Silicon: “3D Scaling” and Universal Edge
Junos Trio Chipset = 3D Scaling Breakthrough
MX 3D Routers = First Universal Edge Platform
MX 3D
ANNOUNCEMENT SUMMARY: DATA CENTER 2 CLOUD INITIATIVE
INNOVATION FOR THE FUTURE
Green
Advance
Intellectual
Property
Platform Services Mobility GreenVideo
Mega-
Consolidation
• Software Platform: Fueling Innovation Across the NetworkJunos + Junos Space + Junos Pulse
12 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
3 STEPS TO CLOUD-READY DATA CENTER NETWORKP
olic
ies
Infr
as
tru
ctu
re
SecureShare
Simplify
STRATUS
New New
Client-Server flows
Server-Server flows
DC-DC flows
Resources Pool
Virtualization
13 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
Data CentersClients Global High-Performance Network
Server
to Server
Client to DC
SECURE – CLOUD ENABLED SECURITY
DC to DC
Securing flows
between VMs 2
Securing flows
between servers 1
Elastic transport
using VPLS 3
Coordinated threat
control 5
Securing flows
from Clients to DC 4
Coordinated Threat Control
14 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
• Junos-Based Partnerships
Dell + IBM = Extended Global Market Reach
Blade Network Technologies = First-Ever Junos Licensing Deal
Dozens of Third Parties Building Applications on Junos
• Data Center 2 Cloud Initiative
Five New Solutions + Eight New Products
Security at Massive Scale for Cloud Services
• Systems and New Silicon: “3D Scaling” and Universal Edge
Junos Trio Chipset = 3D Scaling Breakthrough
MX 3D Routers = First Universal Edge PlatformMX 3D
ANNOUNCEMENT SUMMARY:JUNOS-BASED PARTNERSHIP
• Software Platform: Fueling Innovation Across the NetworkJunos + Junos Space + Junos Pulse
15 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
FOCUS ON SHAREHOLDER VALUE
--Differentiated strategy driving return on investment in R&D
--Core tenet of strategy is our value proposition of an integrated portfolio based on our key asset of one-JUNOS
--Investment in advancement of silicon will continue to improve economics of networking and lower product costs
--Creating a new ecosystem for third-party developers on the power of JUNOS creates value, choice and flexibility for customers
--Partnerships enhance our go-to-market leverage both in the Service Provider and Enterprise markets
16 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
Reflects Non-GAAP information above.
COMMITMENT TO OUR LONG-TERM FINANCIAL MODEL
Revenue
Gross Margins
Operating Expenses:
R&D
S&M
G&A
20%+
66-68%
18-19%
19-20%
3-3.5%
39-42%
25%+
Targeted Model -unchanged
TotalOperating Expenses
Operating Margins
17 Copyright © 2009 Juniper Networks, Inc. www.juniper.net
TAKEAWAY
--New silicon innovation will advance the economics of networking
--Our expanded portfolio of MX products will continue to drive our market share momentum
--Opening up Junos to new partnerships and licensing model will drive incremental revenue opportunities as we move forward
--We remain committed to our long term financial model
Q & A