Aerohive Acquires Pareto Networks to Expand Cloud Offering


Archived Published: 21 January 2011 ID: G00210336

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Summary

Acquiring Pareto Networks will enable Aerohive Networks to extend its offerings beyond the wireless LAN during 2Q11 and provide cloud-based management of VPN, wired and wireless network services for distributed enterprises.

News Analysis

Event

On 18 January 2011, Aerohive Networks announced that it had acquired the assets and personnel of Pareto Networks for an undisclosed amount. Pareto Networks focuses on cloud-based management tools for VPN, wired and wireless networking equipment within enterprises in many industries.

Analysis

This acquisition expands Aerohive's wireless LAN product offering and cloud offering to include cloud-based management for midsize enterprises, as well as for larger enterprises with distributed networking needs. As branches and remote offices adopt all-wireless office edge networking and the 802.11n standard, they have been driving these technologies into the enterprise. Pareto’s portal-based cloud management service will round out Aerohive’s VPN offerings and provide a broader feature set for management of distributed branch office management via cloud services.

This solution's ability to remove the burden of managing remote devices could help Aerohive expand its appeal and customer base in the branch and remote office market. The architecture of the Aerohive wireless solution and the current cloud-based capabilities of the network services will speed up integration of the Pareto wired component and provide Aerohive products with more functionality than offerings from its competitor Aruba and market differentiation from vendors such as Meraki.

Recommendations

  • Midsize and distributed enterprises: If you are selecting a vendor to deploy network connectivity within your business or for remote offices, as part of the selection process evaluate your business requirements for cloud-based management services for VPN, wired and wireless equipment.

  • Pareto customers: Evaluate the integration plans into Aerohive to ensure a seamless transition. In the long term, you will benefit from the integration of the Pareto solution with offerings from a larger, more established vendor; however this could cause short- to medium-term disruption.

  • Aerohive customers: Consider the expanded Aerohive for wireless branch and small-office deployments to simplify deployment and management through its cloud-managed offerings. This acquisition expands the use cases for Aerohive and provides a more comprehensive suite of features for cloud-managed offerings.

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