Aruba Networks

The American company Aruba Networks created in 2002 by Keerti Melkote and Pankaj Manglik makes products for corporate wireless local area networks. The company implements technical solutions for wireless networks. The main field of activity – corporate Wi-Fi.

Performance Indicators

2014: Growth of revenue by 21%

In 2014 financial year closed on July 31, 2014 Aruba Networks received revenue in the amount of $728.9 million that is 21% more in comparison with previous year. Net loss for this period was a little reduced — from $31.6 million to $29 million. The analysts polled by Bloomberg expect that in 2017 financial year revenue of Aruba will reach $1 billion.

2011

The volume of its sales in 2011 was nearly 400 million dollars. According to Dell'Oro Group, in 2011 Aruba took the second place in the world market of WLAN where together with OEM deliveries for Alcatel-Lucent it possessed nearly 18%. (The Cisco Systems company controlling nearly 53% of this market taking into account Linksys products became the leader of 2011.)

Products & Services

The Aruba Networks company projects and create Mobility-Defined Networks for departments of IT and representatives#GenMobile — new generation of technically competent users using mobile devices both at work and for personal contact. The Aruba Mobility-Defined Network mobile solutions differ in reliability: the infrastructure systems of optimization of performance and mechanisms of security automate accomplishment of tasks which required participation of the person earlier. Application of such solutions allows to increase productivity of work and to lower operating costs.

The line of Aruba includes access points of different level of complexity: from the simple devices developed for the Wi organization - Fi - access at small offices, to the special products expected work in the contaminated production environment or out of premises. The majority of devices works in two ranges, supports standard 802.11ac and MIMO technology. Each model is produced in two options: with external and with the integrated antennas.

The range of network equipment of Aruba also includes the class RAP access points (remote access points) providing access to corporate network through VPN and using the data on networks and politicians set from the controller. Besides the wireless line of Aruba includes dual-band access points of the Instant family — the configured devices capable to perform functions of the virtual controller and, respectively, to manage "child" access points.

The range of Aruba controllers is also provided by devices of a different class and appointment: from the products of initial level supporting up to 16 access points, to solutions of the class high-end with the maximum capacity in 40 GB / with, focused on use as the central core of big Wi-Fi of the networks supporting standard 802.11ac and to 2048 access points. All controllers are equipped with wide functionality of security: have different authentication schemes, the guest portal, a built-in firewall, WIPS, the analysis of traffic (DPI), are able to suppress "nonnative" access points and to cipher traffic on the majority of widespread algorithms. Devices are connected to each other and to access points through IPsec and support technology of seamless roaming.

Aruba Networks portfolio also includes the Airwave and ClearPass software products having several basic advantages: they are easily scaled and also are universal, i.e. correctly interact with the equipment of other producers. The software solution Airwave represents the system of centralized operation and monitoring of network resources. The software tool ClearPass manages access to network, controlling policy at any level up to user and supports integration with the systems of billing that allows to implement the concept of BYOD safely.

Network solutions of Aruba are simple in deployment and setup which is facilitated including due to extensive base of documentation available to partners in the vendor center of support. In addition to it, Aruba gives an opportunity to use own program for calculations of a coverage of Wi-fi: both for premises, and for the external territory.

Business in Russia

2015: Opening of office in Russia

In February, 2015 Aruba Networks opened representation in Russia and the CIS countries. This decision was made in connection with significant  increase in amount of works of the company in the territory of the Russian Federation and neighboring states.

The office Aruba is opened in Moscow, start of regional representative offices in St. Petersburg and Kazan is also planned. Aruba products, including access points and Wi-fi controllers, devices for remote access, switches of mobile access, in Russia advance Marvel Distribution companies, Netwell and OCS Distribution.

By February, 2015 Aruba saved up 400 clients (1% of a total quantity in the world) in the Russian market in four years of presence there. Here the company focused on promotion of the equipment of standard 802.11 the expert allowing to build networks of gigabit performance.

History

2015: HP buys Aruba Networks for $2.7 billion

On February 25, 2015 the Bloomberg agency announced the preparing sale of Aruba Networks of HP corporation. This acquisition for the American producer of the computer equipment can become the largest for several years.^[1]

According to the edition, at the beginning of March, 2015 it will be announced Aruba purchase by HP company. At the same time the source notes that the parties did not sign the final agreement therefore failure of the transaction is not excluded.

HP can purchase Aruba Networks

Against the background of rumors about sale of Aruba of its action instantly rose in price for 21% up to $22.24 for the moment of closing of the exchange in New York on February 25, 2015. As a result market capitalization of the company reached nearly $2.4 billion. What amount she intends to offer HP for Aruba, the edition did not report.

Aruba purchase if it takes place, should become the largest for HP since 2011 when the company purchased software developer of Autonomy for $10.3 billion. HP does not comment on the possible transaction, but the CEO Meg Whitman let know that the company is ready to make acquisitions of different scale for return of business to growth.

On March 2, 2015 the Hewlett-Packard (HP) company announced Aruba Networks purchase. Due to this acquisition which cost was about $2.7 billion the American corporation will expand the opportunities in the market of mobile networks, the The Wall Street Journal newspaper writes.^[2]

Shareholders of Aruba will receive from HP about $24.67 counting on each security belonging to them that is about 1% less in comparison with share value at the time of closing of biddings on February 27, 2015. This day the quotations of Aruba reached the value, maximum for the previous two years, thanks to rumors about sale of vendor. Taking into account a debt and some cash payments the purchase price of Aruba is estimated at $3 billion.

HP was purchased by Aruba Networks for $2.7 billion

Commenting on the concluded bargain, the chief executive officer of HP Meg Whitman said that integration of a product line of Aruba in the field of wireless networks with a switching equipment of HP the safest in the market will allow the last to propose network solutions which will help the enterprises and the organizations to develop mobile networks of new generation.

Joint HP and Aruba will direct work the CEO of the last Dominic Orr and the director of strategic and technical issues Keerti Melkote. They will report to Antonio Neri, the head of division of HP of Enterprise Group which is engaged in development and sale of network equipment.

Before Aruba purchase the HP corporation worked several years at the market of corporate network infrastructure, however the share of vendor steadily decreased, unlike subject to acquisition. Joint market share of HP and Aruba analyst of Needham & Co. Rich Valera estimates at 20% against 50% at the leader of Cisco Systems. According to the expert, the united company will be able to offer qualitatively new and "really good products".

According to observers of Bloomberg, one of the reasons which induced HP to Aruba purchase the Chinese market is where to the companies from the USA traditionally not easy to do business. Aruba will help HP to make the next breakthrough in Celestial Empire, observers believe.^[3]

2007

Aruba came for the IPO in 2007.

Notes