1 EIT 2.3 Moving IT from the Backroom to the Boardroom Bob Worrall, SVP, CIO

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3 Moving IT from the Backroom to the Boardroom According to IDC, two-thirds of global 2000 enterprises will have a digital transformation at the center of their corporate strategy by the end of IT is becoming the core driver of “how business does business” with high expectations and levels of responsibility. Juniper IT set out to modernize its application platform and migrate to the cloud. The company set a target for a zero data center footprint for corporate IT in order to innovate faster and improve how corporate applications functioned. Between 2011 and January 2016, Juniper went from 18 data centers to just one with only 50 racks, resulting in significant cost savings and increased efficiency. This provided the opportunity for IT to partner with the business in developing new products and identifying new market opportunities.

4 Moving IT from the Backroom to the Boardroom

5 LOOKING AT THE CLOUD…

6 61 B $ PUBLIC CLOUD 16% CAGR* CLOUD APPLICATION SERVICES (SaaS) 18% CAGR* PUBLIC CLOUD Of enterprises use public cloud services today** BUSINESS IS MOVING TO THE CLOUD My managed service provider My cloud service provider My on-premises data center My hosted service provider VirtualPhysical VirtualPhysicalVirtualPhysicalVirtual *Gartner, “Public Cloud Forecast, 4Q2015” **Gartner, “Survey Analysis: Cloud Adoption Across Vertical Industries” Feb % 318 B $ Virtual

7 OUR JOURNEY BEGINS On premise model SaaS

8 WHY NOT CLOUD?

9 THE TIPPING POINT All of which led to the Board commitment we needed Double down on the new skills sets: Integration, Security, Automation, Networking, VMO, Monitoring Create a network ready that acts as a "cloud interconnect service” C-Level & BOD Reviews of early wins led to a big bet. We saw a move to the cloud as an opportunity Juniper IT our Juniper IT team regularly contributes to the innovation cycle, and in fact, we've become the business Our largest customers we’re adopting cloud and there was value in reflecting these new business models ourselves. The opportunity to push our own networking technology extremely hard and create a better experience for our customers. "Based on the great results we’ve seen, shouldn't we change our POV to “why not cloud – everywhere?

10 THE CASE FOR CLOUD – AN EASY SELL Costs reduced 30% Improved efficiencies/operations CIO can become a “digital CIO” What every CEO/CFO wants to hear Investing savings into R&D Time for “solve for x” projects Strategic seat at the table What every IT organization wants to hear Increase shareholder value through increased investment in innovation What every Board of Directors’ wants to hear

11 CLOUD FIRST Aggressive adoption of PaaS, SaaS, IaaS COSTSECURITYBENEFITSPROVIDER A company-wide initiative including IT, Real Estate, Finance and Engineering

12 THE CHALLENGE FROM THE BOARD 90% day-to-day / 10% project ratio Obsolete enterprise systems Loose affiliation of mobile and collaboration tools 40% day-to-day / 60% project ratio Application Rationalization / Consolidation Engineering Environment of the Future FROMTO

13 CLOUD & APPLICATION STRATEGY Workload SaaS PaaS IaaS 25 % 50 % 25 %

Physical Data CentersCloud Data Centers CLOUD STRATEGY ENABLES SIGNIFICANT DATA CENTER CONSOLIDATION virtual today – target zero data centers by end of % %

15 ENGINEERING ENVIRONMENT Not Just Corporate IT DEVELOPMENT COST DEVELOPMENT SPEED TRADITIONAL PRODUCT DEVELOPMENT ENVIRONMENT

16 ENGINEERING ENVIRONMENT OF THE FUTURE Accelerating product development/lowering costs DEVELOPMENT COST DEVELOPMENT SPEED CLOUD-BASED ENGINEERING ENVIRONMENT 75% SAVINGS 2 purpose built facilities: Bangalore & Washington Washington 12MW – renewable (Hydro) - PUE Load 3,000 racks combined 200,000+ VMs by End of Year Contrail-OpenStack controlled Ansible for orchestration

17 INCREASING SHAREHOLDER VALUE Cloud-based solutions enable ongoing innovation CLOUD-BASED SOLUTIONS

18 “CLOUD CYCLE” Cloud-based solutions enable ongoing innovation CLOUD-BASED SOLUTIONS CLOUD FUNDING/ RAIN MAKING

19 “CLOUD CYCLE” Cloud-based solutions enable ongoing innovation CLOUD-BASED SOLUTIONS CLOUD FUNDING/ RAIN MAKING POOL OF INNOVATION/R&D

20 “CLOUD CYCLE” Cloud-based solutions enable ongoing innovation CLOUD-BASED SOLUTIONS CLOUD FUNDING/ RAIN MAKING POOL OF INNOVATION/R&D CLOUD-BASED IDEAS

21 “CLOUD CYCLE” Cloud-based solutions enable ongoing innovation CLOUD-BASED SOLUTIONS CLOUD FUNDING/ RAIN MAKING POOL OF INNOVATION/R&D CLOUD-BASED IDEAS INCREASED SHAREHOLDER VALUE

22 3 Key Things You Have Learned During this Session 1.Board / Stakeholder commitment is key 2.Savings are possible, but agility, time to market and business value are key 3.The journey to the cloud can make IT relevant again

23 Thank you Bob Worrall SVP, CIO