Businessmodel of Juniper Networks

Customer Segments

Juniper has a niche market business model, with a specialized customer segment. The company targets its offerings at organizations that depend on high-performance networks to deliver mission-critical transactions, services, and applications. Its most common customers are service providers (wireless and wireline carriers, cable operators, and Internet content/application providers), governments agencies and organizations (federal, state, and local), financial services firms, energy/utility companies, and research/education institutions.

Value Proposition

Juniper offers three primary value propositions: innovation, convenience, and brand/status.

The company places a strong emphasis on innovation. It developed and marketed the first commercially-available purpose-built IP backbone router optimized for the unique high-performance needs of service providers. It also maintains OpenLabs, a set of centers for new innovations.

The company’s offerings create convenience through ease of use. Its Junos Platform features a single modular operating system (Junos OS) with common base of code and a single, consistent implementation for each control plane feature. It also offers one common modular software architecture that scales across all Junos-based platforms.

The company has established a powerful brand as a result of its success. It holds several leadership positions, including the following:

• Third-largest market share holder for routers and switches used by Internet Service Providers
• Fourth-largest market share holder for edge routers and second largest for core routers
• Second-largest market share holder for firewall products and data center security appliances Juniper’s clients include most major service providers and it serves over 30,000 enterprises, including several companies in the Global *Fortune *100. Lastly, it has won many honors, including “Resilient Supply Chain Technology Driver of the Year“ from Global Supply Chain Resiliency Council (2016) and the MEC Industry Award for the “Biggest Contribution to R&D“ for its SRAN solution (2015).

Channels

Juniper’s main channel is direct sales team, which operates worldwide. It also acquires customers through the use of channel partners - namely distributors, value-added resellers (VARS), and original equipment manufacturers (OEMs). The company promotes its offering through its website, social media pages, and attendance of expos, summits, conferences.

Customer Relationships

Juniper’s customer relationship is primarily of a personal assistance nature. The company offers assistance to customers in the following ways:

Training Services – Include instructor-led virtual and in-person courses, as well as the Juniper Networks Certification Program, which consists of hands-on and written lab exams

Professional Services - Help assess, design, and implement network solutions; specific services are as follows:

• Core & Edge – Shortens time needed to bring opportunities to market and capabilities online
• Data Center – Evaluates, designs, implements, and migrates data center architectures to ones that decrease complexity and enhance scalability and performance

• Security – Identifies and handles areas of security exposure and risk Maintenance Services – Service and support tools for software and hardware products; specific services include the following:

• Juniper Care – Includes service automation tools and 24/7 mission-critical support
• Juniper Care Software Advantage – Provides software upgrades/updates and comprehensive technical support Advanced Services – A subscription-based program offering enhanced versions of Professional Services and Juniper Care; it is available in on-site and remote formats

Despite this orientation, there is also a self-service component. The company’s website includes a variety of self-help resources, including case studies, product documentation and downloads, and online courses. There is also a community element in the form of peer forums.

Key Activities

Juniper’s business model entails designing and developing software and hardware products. Its manufacturing is primarily carried out by contract manufacturers and original design manufacturers (ODMs) in the U.S., China, Malaysia, Taiwan, and Mexico. Its main manufacturers are Celestica Incorporated, Accton Technology Corporation, Flextronics International Ltd., and Alpha Networks Inc.

Key Partners

Juniper maintains the following partnership programs:

Strategic Alliances – The company combines its solutions with those of other tech firms to produce offerings of benefit to customers. Specific partners include AT&T, BT, IBM, Nokia, and Verizon.

Technology Alliances – The company works with other technology companies to design and develop innovations silicon, software, and systems in order to advance the networking space. Specific types of partners include Broadband Access, Data Center/Cloud/NFV, Optical Networking, Security, and Wireless firms. Specific individual partners include Gainspeed, Opscode, ADVA Optical, Cyphort, Firemon, Kapersky Lab, Lastline, Niksun, Aerohive, Aruba Networks, Ruckus Wireless, and VMware.

Authorized Federal Partners – The company combines its solutions with those of U.S. federal organizations to produce offerings of benefit to federal, state, and local governments. Specific partners include General Dynamics, Lockheed Martin, Northrop Grumman, and Raytheon.

Partners receive access to training programs, sales/marketing resources, and general support.

Key Resources

Juniper’s main resources are its engineers, who have significant experience in high-end computing, ASIC design, network system design, routing protocols, embedded operating systems, and software applications. It also depends on its training, consulting, and customer service staff to provide advice and support. An important physical resource is its collection of seven centers called OpenLabs. These venues invite clients and partners to come together and use Juniper resources to build innovative network-integrated software solutions. Lastly, the firm places a high priority on intellectual property, with 2,480 issued patents worldwide and many more pending as of December 2015.

Cost Structure

Juniper has a value-driven structure, aiming to provide a premium proposition through significant personal service and regular product improvements. Its biggest cost driver is cost of revenues, a variable expense. Other major drivers are in the areas of research/development and sales/marketing, both fixed costs.

Revenue Streams

Juniper has two revenue streams:

Products – Revenues generated from the sale of its networking products

Services – Revenues generated from the sale of services (training, consulting, etc.)