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What to Expect from Hewlett Packard Enterprise in 1Q17

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Part 4
What to Expect from Hewlett Packard Enterprise in 1Q17 PART 4 OF 7

Will Hewlett Packard Enterprise’s Revenues Rise in WLAN Segment?

Wireless LAN market grew in 3Q16

According to IDC, the total WLAN (wireless local area network) market rose 8.4% YoY (year-over-year) and 6.7% on a sequential basis in 3Q16. The enterprise WLAN market rose 8.4% YoY in 3Q16.

According to Nolan Greene, senior research analyst of network infrastructure at IDC, “In customary fashion, the enterprise WLAN market performed robustly in the third quarter of the year. In every facet of business, and across different verticals from education to hospitality, mission-critical functions are continuing to migrate from the wired network to wireless.”

Will Hewlett Packard Enterprise’s Revenues Rise in WLAN Segment?

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Cisco leads in WLAN market share

At the end of 3Q16, Cisco Systems’ (CSCO) WLAN revenue rose 0.4% YoY, and its market share was 43.7% as compared to 43.5% in 2Q16 and 47.1% in 3Q15. Cisco’s acquisition of Meraki is one of the key revenue and growth drivers for the firm.

Hewlett Packard Enterprise (HPE) is another major player in this market with a share of 14.3% in 3Q16 as compared to 14.6% in 2Q16. Brocade-Ruckus’s (BRCD) (RKUS) revenues rose 22% YoY, but its market share fell to 6.7% in 3Q16 from 6.8% in 2Q16 and 6.3% in 3Q15.

Ubiquiti’s and Huawei’s revenues also rose significantly YoY in 3Q16 by 87% and 208%, respectively. Ubiquiti accounted for 4.3% of the overall market in 3Q16 up from 2.5% in 3Q15. Huawei accounted for 4.3% of the market in 3Q16 compared to 1.5% in 3Q15.

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