Executive Summary

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Internet Backbone Routers from Juniper Networks Executive Summary Juniper Networks, Inc. (NASDAQ: JNPR) provides high-performance IP backbone routers for services providers to manage their Internet backbone traffic, efficiently utilize resources and provide differential IP services. They provide a family of router platforms that consist of the M20, M40, and M160 Internet backbone routers with JUNOS Internet software and Internet Processor II ASIC. Using purpose-built hardware and software, Juniper’s routers have proven themselves on Internet backbones handling exponentially increasing traffic while maintaining network reliability and service level agreements. With a focused product development strategy, in less than three years, Juniper has acquired 16% of the market for backbone routers competing against market leader Cisco. Their ASIC-technology and sophisticated routing software power a design that is highly specialized for the service provider market. Juniper has won large orders from some of the biggest backbone operators like UUNet and Cable & Wireless. Their strategic partnership with Nortel, IBM and Ericsson among others positions them well in a lucrative but increasingly competitive niche segment. Technology for Internet backbone routers Internet backbone routers are sophisticated and high-performance systems that need to have the following attributes:  stable and complex routing software  traffic engineering with sophisticated control  wire-speed packet-processing  support for wide variety of protocols and interfaces These routers use the integrated approach of multi-layer switching that combines the superior intelligence of layer 3 routing with the speed of layer 2 switching, thus according a balance between speed and control. However in most implementation there is often a trade-off between the two performance issues. Juniper has an architecture that avoids the trade-off by separating the routing and packet forwarding functions of their routers. Routing is done with sophisticated software and packet forwarding with specialized hardware. Like other vendors of backbone routers, Juniper has designed its routers to support Multi Protocol Label Switching (MPLS) that Page 1 of 5 Internet Backbone Routers from Juniper Networks classifies and expedites core traffic based on policy considerations – destination, application, class of service (CoS), etc. Packets are assigned Forwarding Equivalence Class (FEC) labels – representing a particular packet forwarding policy or CoS – are speeded through a label switched path (LSP) along which every node is switch or router is a label switch (supports MPLS). Along the LSP, routers forward packets just by looking at the label without the need to perform longest-match address look-ups for layer-3 information. Carriers and service providers support MPLS for the obvious benefits. Juniper’s System Architecture Juniper’s routers have generic elements like a routing engine, packet-forwarding engine, switch fabric and lines cards that together perform the routing and packet-forwarding functions. Juniper’s routers have a Routing Engine (RE) running on purpose-built router operating system, an ASIC-powered Packet Forwarding Engine (PFE), an over-sized switch fabric for headroom in bandwidth and flexible configuration of physical interface cards (PIC) that widens the base of support. The diagram below depicts the system architecture of the M40 router. The Routing Engine performs route calculations and maintains optimal routes in a routing table. It also generated the forwarding table used by the PFE to forward packets towards their next-hop destinations. Juniper’s routers run on a purpose-built router operating system called JUNOS Internet Software that implements popular routing protocols such as BGP4, IS-IS, OSPF and IP multicast. It has a policy definition language that allows administration of classes of service and security. It runs applications in protected memory, is modularized and offers a user-friendly command line interface. Juniper attributes the superior performance and manageability of its routers in part to JUNOS. Page 2 of 5 Internet Backbone Routers from Juniper Networks To achieve packet-forwarding speeds of up to 160 million packets per second (Mpps), Juniper uses a powerful application-specific integrated circuit (ASIC) called Internet Processor II™ (IPII), custom-built by IBM. The IPII processor adds IP intelligence to wire-rate packet forwarding, with functions like packet filtering, traffic analysis and load balancing without, degrading performance. It has been benchmarked at 160 Mpps with OC-48 loads, long-prefixes and large routing tables. Juniper emphasizes that a purpose-built ASIC based solution outperforms a generic CPU based solution when it comes to combining sophisticated filtering with wire-rate packet forwarding. M40 – Core router The M40, introduced in 1998, is a backbone router positioned for backbone cores has many features that appeal to service providers. It supports technologies such as protocols including ATM, Frame Relay, Ethernet, and MPLS. Its PIC modules offer a variety of interfaces including multiple DS3s, OC-12s, and OC-48s. The chassis can hold 32 different Physical Interface Card (PIC) modules within half of a rack offering industry-leading port density and flexibility. Internet Processor II ASICs in each PIC module and on the system board power the M40 to forward at wire-rate with speeds up to 40 Mpps. The switch fabric supplies a bandwidth of 40 Gbps. These features make the M40 useful Internet backbone cores. Page 3 of 5 Internet Backbone Routers from Juniper Networks M20 – Edge router The M20, introduced in 1999, is positioned as an edge router offering M20 high port density with support for up to 64 DS3s in 16 slots within just 14’ of rack space. It uses the same PIC modules as the M40 allowing for seamless operation between these backbone routers. It supports OC-48 speeds with packet forwarding speeds of up to 40 Mpps (equaling the M40) and a switching bandwidth of up to 20 Gbps. Components, including PICs, redundant fans, and redundant power supplies are all hot swappable to allow for instant upgrades and fast recovery from failures. A service provider can easily integrate this system into their existing framework because of Juniper's support for interoperability and industry standards. M160 – Bigger core router The M160 core router is the newest from Juniper launched in Spring 2000 to complement rather than replace the M40. The M160 maintains compatibility with major protocols and remains extensible by supporting industry standard protocols including ATM, Frame Relay, Ethernet, and MPLS. The chassis can hold 32 PIC modules like the M40, but the PFE with the IPII ASIC now offers speeds up to 160 Mpps with support for OC-192 links. Flexible configurations allow the aggregation of up to 256 DS3s in one box or the linking of 32 OC-48s. The M160 also runs on the JUNOS routing platform. Page 4 of 5 Internet Backbone Routers from Juniper Networks Markets and customers The primary markets that Juniper Networks competes in are those that provide high-speed IP services. The applications include backbone bandwidth management, multi services, content and Web hosting, public and private peering, and high-speed access. Several of the world's leading service providers are customers of Juniper Networks including Cable & Wireless, iAxis, Verio, UUNET, and MCI WorldCom. Juniper Networks has offices all over the world; the Americas, Asia-Pacific, Europe, Middle East, Africa, and Japan. In addition to direct sales efforts, Juniper Networks, Inc. has highly focused, value-added resellers and distributors. Partnerships The two primary partnerships relationships that Juniper has are with IBM and Solectron. IBM provides Juniper with custom ASICs for their routers that it manufactures specifically for Juniper. Solectron manufactures Junipers' products from the prototype stage to full production, also managing material procurement, final assembly, testing, control and shipment to customers Conclusion Traffic on Internet backbones presents service providers with a peculiar set of problems that continue to become unwieldy because of the growth of activity on the Internet and the World Wide Web. To remain competitive, service providers need to offer high levels of service and reliability while continuing to offer new products and services. Juniper was incubated by carriers and telecom equipment vendors to develop solutions to these problems. Highly specialized backbone routers from Juniper, with a robust architecture, purpose-built hardware and software, have proven in performance to be able to meet the expectations of these customers. Page 5 of 5

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