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Independent Study Shows TCO Improvements with JUNOS Implementation

SUNNYVALE, Calif., February 24, 2009 - Juniper Networks, Inc. (NASDAQ: JNPR), the leader in high-performance networking, today announced the results of a new study that reveals total cost of ownership (TCO) improvements in companies that have deployed JUNOS® Software, the network operating system that integrates routing, switching, security and network services.

The study, conducted by Forrester Consulting, Inc. (NASDAQ: FORR), demonstrates that through the use of JUNOS Software and Juniper switches and routers, the companies achieved an overall reduction in operational costs for specific network operations tasks, including planning and provision, deployment, planned and unplanned network events.

Among other top-line results, the study reports a 41% reduction in overall network operations costs based on dollar savings across specific task categories: planned events, reduction in frequency and duration of unplanned network events, the sum of planned and unplanned events, the time needed to resolve unplanned network events and the "adding infrastructure" task. The study also reveals:

  • 54% reduction in maintenance and support costs (a "planned events" category)
  • 27% reduction in network downtime (based on reduction in frequency and duration of unplanned (network events)
  • 41% increase in network stability/reliability (the sum of planned and unplanned events)
  • 40% decrease in time to resolution (the time needed to resolve unplanned network events)
  • 25% reduction in cost to deploy (the "adding infrastructure" task)

"This study demonstrates our fundamental value proposition with JUNOS Software: It offers the power of one operating system to reduce complexity, achieve operational excellence and deliver dynamic services with lower TCO," Mark Bauhaus, EVP and GM, Service Layer Technologies Group, Juniper Networks. "Today's savvy CIO is not looking to just cut costs, but rather find ways of improving efficiency and prioritizing projects with faster returns on investment. The sheer scope of TCO improvements highlighted in the study, from savings across multiple network operating system task categories to the time needed to resolve unplanned network events, clearly demonstrates how JUNOS Software pays rich dividends in lower cost and simplicity across a wide variety of network infrastructures."

Forrester used its deep research expertise in enterprise networking and its Total Economic Impact™ (TEI) methodology, which not only measures costs and cost reduction, but also weighs the enabling value of a technology in increasing the effectiveness of overall business processes. For this study, Forrester employed four fundamental elements of TEI in modeling JUNOS Software: costs and cost reduction; benefits to the entire organization; flexibility; and risk.

Based on interviews with customers, Forrester constructed a TEI framework for a composite organization and an associated ROI analysis to illustrate the areas of financial impact. Forrester identified a three-year risk-adjusted ROI of 63% associated with the deployment of Juniper switches and routers and JUNOS Software in an enterprise network, and positive financial payback within nine months.

Forrester identified numerous benefits derived from a JUNOS Software implementation. One major factor is lower network operations costs affected by network operating systems. Enterprises noted that network tasks including planning, provisioning, adding infrastructure, planned and unplanned events were both less frequent and required less time to execute under JUNOS Software. The composite company assumes a 41% overall cost savings associated with these tasks. For the specific tasks used to calculate the overall cost savings, the composite organization assumed the following savings: planning and provisioning: 20%; adding infrastructure: 25%; planned network events: 54%; and unplanned network events: 27%.

Another significant benefit is the potential to avoid hiring network administrators. The research found that the rapid learning curve for JUNOS Software, the overall simplicity and ease of supporting JUNOS Software, and the reliability of the underlying software allowed customers to forestall hiring additional network support staff to maintain the Juniper infrastructure. The composite organization assumes savings of US$297,697 associated with avoiding hiring administrators over the three-year period of this analysis.

The companies represented in the study range from a defense contractor that uses its network to support its R&D functions and a high-tech manufacturer whose R&D and global sales teams require a network that can support high-performance voice and video applications to an international financial services firm headquartered in Europe and an online movie ticketing service that represents more than 10,000 theatres in the USA. The composite organization created from these interviews represents a company that serves 4,000 users in 30 locations around the world.

For a complimentary copy of the commissioned study, please go to: https://www.juniper.net/us/en/reports/junos_tei.pdf.

About Juniper Networks

Juniper Networks is in the business of network innovation. From devices to data centers, from consumers to cloud providers, Juniper Networks delivers the software, silicon and systems that transform the experience and economics of networking. Additional information can be found at Juniper Networks (www.juniper.net).

Juniper Networks and Junos are registered trademarks of Juniper Networks, Inc. in the United States and other countries. The Juniper Networks and Junos logos are trademarks of Juniper Networks, Inc. All other trademarks, service marks, registered trademarks, or registered service marks are the property of their respective owners.