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Aruba Heads into 2009 Powered by Record WiFi Revenues
By Erik Linask Group Managing Editor As communications network elements continue to evolve, ensuring interoperability between then becomes increasingly important, and with the dramatic downturn in the economy, the ability to do so with legacy equipment becomes paramount to success. While many businesses will continue to explore opportunities to enhance their networks — particularly those that are still relying entirely on their legacy infrastructures, their focus will almost certainly be focused on solutions that allow them to increase their capabilities while retaining maximum functionality from their existing networks.
This has always been a concern due to natural purchasing cycles that revolve around ROI, but the need to upgrade certain elements for the sake of operational efficiency and business productivity is increased by new networking technology — including new wireless opportunities.
The ability to manage multi-vendor solutions easily from a centralized system is key to the migration process, and is one reason Aruba Networks is able to report record revenues for its 2009 fiscal first quarter.
Unlike many management platforms, Aruba’s AirWave platform is designed to manage network solutions from the key market players today, including Avaya (News - Alert), Cisco, HP, Motorola, Foundry Networks, Proxim, 3Com, Trapeze Networks, Tropos, and more — in addition, of course, to its own products. That capability allows businesses to increase their wireless networking capabilities with minimal capital expense.
![]() The value proposition of the AirWave solution, along with its 802.11n and remote networking solutions have enticed more than 700 new customers to deploy Aruba products and solutions, resulting in a 12 percent revenue increase from its Q1 2008, reporting $52.4 million in income. It now boasts a client roster of more than 6,000 businesses.
“Customers have clearly become more focused on the ways in which they can reduce operating expenses and increase productivity,” said Dominic Orr (News - Alert), president and CEO of Aruba.
Aruba offers its customers opportunities to extend the useful life of their legacy infrastructures, while adding wireless support throughout their facilities as well as support for remote workers. In particular, Aruba has done well in the education space, as many school systems and universities are exploring wireless networking opportunities in an effort to create more efficient an effective learning and teaching environments. It also has experienced significant growth in its retail and government customers.
Much of Aruba’s success in the quarter is a result of several major achievements during that period, which helped not only boost its recognition as a key networking solution provider, but enhanced its already successful product line.
For instance, it won FCC approval for software upgradeable access points, allowing customers to update their APs via software downloads. The FCC (News - Alert) also approved the use of additional 802.11n channels, increasing WiFi bandwidth capacity for Aruba’s wireless solutions. Aruba says these two key features will not only improve network performance, which is increasingly important with the growing use of bandwidth intensive applications, but will also reduce regular operating and maintenance costs.
The company also released a new version of its Adaptive Radio Management Software, ARM 2.0, which is also designed to increase network performance by directing individual clients or applications to designated channels, allowing the applications to run more efficiently.
While it is patently pleased with its Q1 2009 results, Aruba will not rest on its laurels. Management is well aware that its greater challenge lies ahead, and promises to continue its focus on providing efficient wireless networking solutions coupled with the latest security. Despite the tough quarter or more that lies ahead, its successes lead Aruba’s management to remain “cautiously optimistic about growth prospects” — a term that has become widely used within the communications industry, according to TMC’s (News - Alert) Group Editorial Director Greg Galitzine. Galitzine noted that “cautiously optimistic” was the most frequently used language he heard in recent meetings with several industry executives.
Erik Linask (News - Alert) is Group Managing Editor of TMCnet, which brings news and compelling feature articles, podcasts, and videos to nearly 3,000,000 visitors each month. To see more of his articles, please visit his columnist page. Edited by Erik Linask
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