Aruba has a market share of 14.6% in WLAN
Aruba is Hewlett-Packard Enterprise’s (HPE) WLAN (wireless LAN) segment. According to market research firm IDC, Aruba’s revenue fell 6.1% YoY (year-over-year) at the end of 2Q16, driven by the spin-off of its H3C business in China.
HPE’s share fell to 14.6% in 2Q16 compared to 15.8% in 1Q16 and 17.1% in 2Q15. Ruckus Wireless’s (RKUS) revenues grew 7.9% YoY, and its market share was 6.8% in 2Q16 compared to 7.7% in 1Q16 and 6.9% in 2Q15.
Revenues for Ubiquiti and Aerohive also grew significantly YoY in 2Q16, by 95.3% and 34.1%, respectively. In 2Q16, Ubiquiti and Aerohive accounted for 4.2% and 2.7%, respectively.
Cisco’s (CSCO) WLAN revenue rose 1.1% YoY, and its market share was 43.7% compared to 45.2% in 1Q16 and 47.3% in 2Q15. Cisco’s acquisition of Meraki is one of the company’s key revenue and growth drivers.
The Enterprise WLAN segment rose 9.4% YoY in 2Q16, its strongest growth in the last two years. “Recognizing the critical role that WLAN plays in IT’s mobility and digital initiatives, enterprises are committing to WLAN upgrades and refreshes,” said Nolan Greene, senior analyst, enterprise networks at IDC, during the IDC European CIO Summit 2016.
Greene added, “Even as global economic indicators are mixed, IDC believes that enterprises will continue to invest in robust WLAN infrastructure in order to compete effectively in the digital economy.”
Networking revenue fell 22% YoY in fiscal 3Q16
Hewlett-Packard’s networking revenue fell 22% YoY and was up 12% on a constant currency basis, driven by the Aruba acquisition. Growth was reported across all geographic regions.
During Hewlett-Packard’s fiscal 3Q16 earnings call, Tim Stonesifer, the company’s executive vice president and CFO, noted that the company also saw YoY margin improvement driven by a “better mix and higher margin rates of Aruba.”