Wireless | News

Aerohive Buys Pareto Networks To Expand Cloud Offerings

• By Dian Schaffhauser
• 01/19/11

Two competitors in the wireless networking market are joining forces. Aerohive Networks has acquired Pareto Networks and will begin integrating Pareto's network-as-a-service technology into its own products and services starting in the second quarter of 2011.

Aerohive, which has a strong foothold in the K-12 and higher education spaces, delivers wireless networking that doesn't require controller hardware to manage its access points (APs); the "intelligence" needed for managing the AP is built into the AP itself, and the AP reports back to a central console that can be cloud- or appliance-based.

Newcomer Pareto, launched in mid-2010, sells a Branch on Demand offering that allows the customer to set up wireless operations for branch offices or remote workers quickly. That bundle includes wireless hardware and a virtual gateway, which can all be managed centrally through cloud services.

"Cloud-based networking is going to become a significant trend in the years to come because of its ability to reduce the complexity and operational cost of networking, for mid-market and distributed enterprises," said Zeus Kerravala, senior vice president and distinguished research fellow at analyst firm Yankee Group. "This is a good move for Aerohive as it leverages their existing cloud-based WiFi footprint and capitalizes on Pareto's early market entry and cloud networking technology."

"The addition of Pareto's technology and employees offers a unique opportunity to accelerate our entry into the broader cloud-based networking space and establish an immediate leadership position," said David Flynn, CEO of Aerohive.