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

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Nov. 15 2016, Updated 8:04 a.m. ET

Wireless LAN market grew in 2Q16

According to IDC, the total WLAN (wireless local area network) market rose 6.7% YoY (year-over-year) and rose 6.7% on a sequential basis (quarter-over-quarter) in 2Q16. The Enterprise WLAN market rose 9.4% YoY in 2Q16.

Nolan Greene, senior research analyst of network infrastructure at IDC, said, “recognizing the critical role that WLAN plays in IT’s mobility and digital initiatives, enterprises are committing to WLAN upgrades and refreshes.” Greene also stated: “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.”

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Major players in the WLAN market

At the end of 2Q16, Cisco’s (CSCO) WLAN revenue had risen 1.1% YoY. 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.

Aruba-Hewlett Packard Enterprise (HPE) is another major player in this market with a share of 14.6% in 2Q16 compared to 15.8% in 1Q15 and 17.1% in 2Q15. HPE’s revenues in 2Q16 fell 6.1% YoY to $197.6 million driven by the spin-off of the H3C business.

Brocade-Ruckus’s (BRCD) (RKUS) revenues grew 7.9% YoY, and its market share rose to 6.8% in 2Q16 from 7.7% in 1Q16 and 6.9% in 2Q15.

Revenues for Ubiquiti and Aerohive also rose significantly YoY in 2Q16 by 95.3% and 34.1%, respectively. Ubiquiti accounted for 4.2% of the overall market in 2Q16, and Aerohive accounted for 2.7% of the market.

In May 2015, HPE acquired Aruba Networks for $3 billion in hopes of enhancing its role in the WLAN market.

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