THE OPPORTUNITY IN DATA CENTER. 1 Copyright 2014 Juniper Networks, Inc.
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1 THE OPPORTUNITY IN DATA CENTER 1
2 DATA CENTER NETWORK TAM BY PRODUCT AREA Data Center Network TAM USD Billions High End FW FW IDP/IPS Secure Routers Routing Core & Agg Switches % CAGR ( ) 4% 11% 0% 10% 5% Datacenter Network Profit Pool Breakout Percentage/USD Billions 2.5 High End FW FW IDP/IPS Secure Routers Routing Core & Agg Switches 9% 8% 8% 9% 22% 3.6 7% 8% 20% % TOR Switches 50% 56% TOR Switches E 2017E For Legend with margin assumptions used to calculate profit pools, please see backup slide 29 Source: Juniper PSD Strateg and Corporate Strategy analysis, Gartner, Forrester, Infonetics, Dell Oro 2013E 2017E 2
3 Millions Millions GLOBAL DATA CENTER ETHERNET SWITCHING MARKET CY11 CY12 CY13 CY14 CY15 CY16 CY17 100G 10G 1G 40G $5, $4, $4, $3, $3, $2, $2, $1, $1, $ $- CY11 CY12 CY13 CY14 CY15 CY16 CY17 Asia Pacific CALA EMEA North America The 2014 Total DC Ethernet switching market is $8.3B 37% of Global Ethernet TAM Validates Data Center Switching focus 10Gb Ethernet switch port speed represents 73% of Data Center switching revenues in 2014 Validates focus on 10GbE opportunities 1Gb Ethernet switch port speed revenues are in decline Validates a lesser focus on 1GbE 40GbE and 100GbE have the most % growth and will exceed 1Gb port speed revenues in the near future Validates future growth and focus on 40GbE and 100GbE North America represents 49%, EMEA represents 26%, APAC represents 21% and CALA represents 4% of the total Data Center Ethernet switching market in 2014 Distribution aligns fairly well with Juniper SA distribution Validates that we are not significantly over/under performing in one Theater Data Center switching % growth trends have a strong correlation across Theaters Juniper s global market share is 11.3%, 12% in NA and EMEA, 9.5% in APAC and 9.2% in CALA Validates that we should expect % growth of market to be relatively consistent across Theaters 3 Source: Infonetics, 3Q13
4 CUSTOMER CHALLENGES WITH THE DATA CENTER 4
5 MARKET PROBLEM Increasing virtualization and the need for greater agility in the data center has put strain on network and IT teams as they struggle to keep up with requirements for new applications, greater scale, speed, and security (cloud, automation, and SDN are seen as answers, but ) Lack of automation and orchestration makes the network static, and changes are time consuming. Networks have become increasing complex to operate, manage and deploy, driving up costs. Competitive solutions lock you into a single vendor network architecture, limiting choice and your freedom to design the network the way you want. 5
6 CUSTOMER CHALLENGES Agility User Experience Costs 6
7 APPLICATIONS ARE DRIVING IT TRANSFORMATION Virtualization Clouds SDN 7
8 TWO PROBLEMS WITH THE NETWORK 1. Impedes time to value V 2. Low value over time T 8
9 OUR SOLUTION FOR THE DATA CENTER 9
10 INTRODUCING THE METAFABRIC ARCHITECTURE A simple, open and smart network for the data center Architecture for a coherent network in and between DCs Vision and framework to guide our investments The story we tell our customers whole portfolio 10
11 PREVIOUSLY WE FORCED A CHOICE DATA CENTER NETWORK Virtual Chassis QFabric Customer 11
12 NOW WE ENABLE CHOICE Virtual Chassis Fabric QFabric DATA CENTER NETWORK Standalone Virtual Chassis Customer 12
13 METAFABRIC DATA CENTER ORCHESTRATION SCRIPTING NETWORK AUTOMATION NETWORK DIRECTOR VMWare NSX NETWORK VIRTUALIZATION JUNOS CONTRAIL DATA CENTER NETWORK DC Edge DATA CENTER INTERCONNECT NETWORK SERVICES 13
14 GUIDING PRINCIPLES Simple Smart Open Easy to deploy and use Save time Improve performance Maximize Flexibility 14
15 METAFABRIC ARCHITECTURE PORTFOLIO Switching Flexible building blocks; simple switching fabrics Routing Universal data center gateways Management Smart automation and orchestration tools SDN Simple and flexible SDN capabilities Data Center Security Adaptive security to counter data center threats Solutions & Services Reference architectures and professional services 15
16 DATA CENTER SWITCHING CALL OUT 16
17 SALES OPPORTUNITY: SMALL MEDIUM ENTERPRISE Juniper s MetaFabric switching architecture is a perfect fit for the small/midsize enterprises. One of its leading benefits is its adaptability; it can scale up or down to support almost any data center and provide long-term investment protection. The MetaFabric switching architecture includes deployment options and products designed to meet the needs of all sizes of customer. Two examples make this clear: Virtual Chassis Fabric technology, which enables a customer to manage multiple switches as one logical entity. The new QFX5100 line of data center switches, introduced in conjunction with the MetaFabric architecture, delivering the world s most nimble 10/40GbE data center access switch, enabling hitless rack upgrades. 17
18 TARGET MARKET & AUDIENCE Market: Enterprise IT: Mid Large Size Enterprises Equipment Size: 1-16 racks (40 servers per rack), servers. Employee Size: 500+ employees. Industries: Primary: FSI, GOV : Secondary: Healthcare and SLED. Enterprises who are investing in cloud (both private cloud DCs and public cloud) for agility and greater ROI but are hindered by legacy networks that are increasingly proprietary, closed, complex and costly to manage. Audience: itdm Networking & Influencers: Technical Decision-Maker (TDM) : Responsible for product evaluation measured by technical capabilities such as performance, scale, reliability, feature support, ease of deployment, integration, and manageability. VP/Director of Networking: Understands networking and security impact on all data center components, and views these as a key facilitator to performance of critical DC technologies including server, storage, virtualization, enterprise applications and operational management. Data Center Architect: Responsible for the holistic design of data center assets including facilities, infrastructure, applications, insource/outsource operations, and management Enterprise Architect: Business leader that determines how to execute best the strategies that drive its development including IT. 18
19 JUNIPER SWITCHING IN THE DATA CENTER Deployed Extensively Over 20,000 customers, 15M+ ports Data center, campus, branch, SP Financials, healthcare, education #3 LAN switching vendor Why We Win in the Data Center Simple Open Smart Delivering Operational Simplicity 19
20 QFX5100 FAMILY INDUSTRY S MOST NIMBLE TOR SWITCH QFX GbE / 40GbE Access Switches Fabric architectures one switch, any deployment Topology-independent ISSU hitless operations Insight Technology data for smart analytics Rich L2/L3, MPLS Low latency FCoE SDN protocols Rich Junos features ease of deployment, manageability 20
21 QFX5100 DEPLOYMENT OPTIONS Virtual Chassis Fabric Up to 20 members Virtual Chassis Up to 10 members QFabric Up to 128 members Managed as a Single Switch Spine-Leaf QFX5100 Layer 3 Fabric L3 Fabric 21
22 TARGETS Many organizations want to eliminate or upgrade out-of-date and fault-prone hardware. They have goals to support new services, add capacity and increase application reliability and availability. They are often on a three-year server and storage refresh cycle, while network components might be on a five to seven year cycle. GREENFIELD Upgrades New Build Outs Legacy Equipment EOL Moves Mergers and acquisitions COMPETITIVE DISPLACEMENT Cisco FEX IB (Nexus 5K + Nexus2K) Cisco Catalyst Brocade Switching Extreme/Enterasys Switching UP-SELL / CROSS-SELL EX4200 installed base MX Series 22
23 SIGNS THAT YOUR DATA CENTER IS READY TO EVOLVE Application owners or end users complain about poor performance. Your service-oriented architecture delivers disappointing results because of latency. You delay moving more applications to your private cloud due to doubts about switch throughput. In some racks, 10 or more virtual machines share a single I/O port. Your Fibre Channel network is four or more times faster than your Ethernet network. 23
24 1GBE VS. 10GBE GO AFTER THESE TARGETS FOR 1GBE GO AFTER THESE TARGETS FOR 10GBE 1. Enterprise IT companies that are 1. Enterprise IT companies that are migrating to expanding their 1GbE data center a 10GbE data center network: network: o Sell the QFX5100 o Sell the EX4300 o Triggers: o Triggers: Virtualization 1GbE server purchase (purchasing Increase application performance new servers and require more ports) Upgrade network infrastructure Upgrade network infrastructure Replace legacy equipment Replace legacy equipment 2. Existing EX4200 customer looking to migrate 2. Existing EX4200 customer looking to add to a 10GbE data center network more 1GbE to their network o Sell the QFX5100 o Sell the EX4300 Note: If a company is looking to manage a mixed data center network (1GbE and 10GbE), sell both the EX4300 and QFX
25 RESOURCES 25 Web Resources Data Center Resources : MetaFabric Resources: Data Center Solutions on Partner Center: QFX Series Switches: EX Series Ethernet Switches: Enterprise IT Case Studies Revlon (web page) Lurie Childrens Hospital (web page) Avality (case study) Selling Tools QFX5100 Sales and Enablement Resources: EX4300 Sales and Enablement Resources: Data Center Field Sales Guide:
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