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Juniper Networks creates networking equipment such as switches and routers used primarily by businesses and Internet Service Providers to route IP data such as emails, videos, files and other digital communication. For example, an email that you send to a distant friend travels through various switches and routers made by companies like Juniper, Cisco, Alcatel-Lucent and Huawei along the path to its destination.
Edge Routers, along with Core Routers and Enterprise Routers, are used by Internet Service Providers to route data traffic from network to network.
The market for switches is almost 50% bigger than the corresponding router market. However, due to Cisco's entrenched position in the switching market, we do not believe Juniper will attain a majority share in this space. Of the various kind of switches, bottom layer switches are the most prevalent types of switches found within networks and account for more than 90% of our market size estimates.
In addition to networking hardware, Juniper provides maintenance and support services to its customers to help them fix problems that occur with networking equipment. Juniper's network service revenues and profits are dependent on the installed base of Juniper switch and router equipment in use.
Juniper also provides its customers with security solutions that help protect networks from outside attacks. Network security equipment includes products such as Virtual Private Networks (VPNs) and firewalls. Juniper faces competition from the likes of Cisco, CheckPoint and IBM. With software-defined networking gaining steam, security has become a major concern for customers given the involvement of white label hardware.