About Juniper Networks, Inc.
Juniper Networks helps its customers branch out and up, all the way to the cloud. The company makes infrastructure hardware and software for large-scale networks for cloud-computing providers (including data centers), financial services; national, federal, state, and local government; as well as research and educational institutions. Its routers, switches and security technologies are high-performance networks that enable customers to build scalable, reliable, secure and cost-effective networks for their businesses, while achieving agility and improved operating efficiency through automation. Juniper also introduced cloud management and security products which enable enterprises to consume cloud infrastructure and services securely. Juniper sells directly and through resellers and distributors including Ingram Micro and Hitachi. More than half of the company's sales are made to customers based in the US.
Juniper gets around 65% of its revenue from its products and the rest from services. Routing products such as the ACX, MX, PTX, Cloud Customer Platform series and NorthStar Controller, generate more than 35% of revenue. Services, which include support, professional, and educational services, account for about 35% of revenue, with switching products – the EX, QFX series and Mist Access Points – providing some 20%, and security products, the SRX series, Branch SRX, Virtual Firewall and Advanced Malware Protection among others, about 10%.
Juniper relies on contract manufacturers – Celestica, Flextronics International Ltd., Accton Technology, and Alpha Networks – to make its products.
Juniper Networks, based in Sunnyvale, California, does business in some 150 countries. While the US is its largest market, accounting for more than 50% of sales, Juniper has significant sales in the Europe, the Middle East, and Africa region, over 25% of sales, and Asia/Pacific, more than 15% of sales.
Sales and Marketing
Juniper sells its products directly and through distributors, resellers, and original equipment manufacturers (OEMs). More than 40% of revenue comes from service providers, while enterprise customers account some 35% and cloud supplies about 25%. Juniper has resale agreements with Ericsson, Nippon Telegraph and Telephone Corporation, NEC Corp., and IBM.
The company's advertising expenses were $14.6 million, $20.0 million, and $19.9 million, for 2019, 2018, and 2017, respectively.
After consistently rising for three years, Juniper's net revenue declined consecutively. Overall, it had an 8% decrease between 2015 and 2019. In 2019, revenue fell about 4% to $4.4 billion, about $202 million less than the 2018 revenue figure.
The net revenues decreased primarily due to the Service Provider vertical, partially offset by growth in Enterprise and Cloud.
Juniper's profit dropped to $345 million in 2019 from $566.9 million in 2018.
The company had cash and equivalents of $1.3 billion in 2019, about $1.2 billion less than in 2018. Operations generated $528.9 million while investing activities used $528.2 million, and financing activities used $1.2 billion.
Juniper delivers highly scalable, reliable, secure, and cost-effective networks, while transforming the network's agility, efficiency, and value through automation.
Juniper believes that the network needs for customers in its Cloud, Service Provider, and Enterprise verticals are converging as these customers recognize the need for high-performance networks and are adopting cloud architectures for their infrastructure and service delivery, such as large public and private data centers and service provider edge data centers, for improved agility and greater levels of operating efficiency. The company believes that this industry trend presents an opportunity for Juniper Networks, and it has focused its strategy on enabling customers' transition to cloud architectures through the following strategic priorities:
Power Public and Private Cloud Data Centers. The company's Junos Operating System, or Junos OS, application-specific integrated circuits, or ASIC, technology, and management and automation software investments across routing, switching, and security will continue to be key elements to maintaining Juniper's technology leadership and transforming the economics and experience of its public and private cloud customers. In 2019, the company introduced its next-generation operating system, Junos OS Evolved. It has the same command-line interface, the same applications and features, the same management and automation tools as Junos OS, but its infrastructure is entirely modernized, which enables higher availability, accelerated deployment, greater innovation and improved operational efficiencies.
Connect Users and Devices Securely to the Cloud and to Each Other. In developing our solutions, Juniper strives to design and build best-in-class products and solutions for core, edge, and metro networking infrastructure for connecting user and devices securely to the cloud and to each other.
Build and Manage Distributed Clouds. Its Service Provider customers are investing in the build-out of high-performance networks and the transformation of existing legacy infrastructure to distributed cloud environments, which resides in multiple, distributed data centers in order to place applications and services closer to end users, such as enabling managed security and low-latency applications.
Mergers and Acquisitions
Juniper Networks' recent acquisitions were made to bolster its network, security and software offerings.
In 2019 Juniper agreed to acquire California-based, Mist Systems, which develops technology for using artificial intelligence to manage cloud-based wireless networks, for $405 million. Mist's technologies are used to make Wi-Fi more predictable, reliable, and measurable. The company also developed an AI-driven virtual assistant, Marvis, which helps wireless troubleshooting. Juniper says the addition of Mist would bolster its enterprise networking portfolio. The deal was expected to close in the second quarter of 2019.
Pradeep Sindhu founded Juniper Networks in 1996 to develop high-performance routers. The company's first product, the M40, became Juniper's calling card and established the company as a player in the hardware market.
1133 Innovation Way
Sunnyvale, CA 94089-1228
Phone: 1 (408) 745-2000
Employer Type: Publicly Owned
Stock Symbol: JNPR
Stock Exchange: , NYSE
Chairman: Scott G. Kriens
EVP and CFO: Ken Miller
CEO: Rami Rahim
Employees (This Location): 300
Employees (All Locations): 9,419
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