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Aruba CEO shrugs off Trapeze acquisition

Alex Scroxton

Dominic Orr, CEO of wireless vendor Aruba Networks, has claimed he is not concerned with the acquisition of old competitor Trapeze by Juniper earlier this week.

Speaking on a conference call with analysts as Aruba released its first quarter results, Orr said he did not take Juniper lightly as a competitor.

However, he said: "We have been competing with a main competitor [Cisco] who own 70% to 75% of the wire market and have made no less than three acquisitions in the wireless LAN space and we compete very favorably against that.

"Then second to that is HP who now have above 10% of the wire infrastructure that has now made two acquisition of wireless assets and since the acquisitions, we had continued to grow about market.

"Now Juniper is commanding probably a little less than 2% wire infrastructure and now has picked up one asset. So in terms of the overall landscape we play in, this is something that we feel very comfortable to deal with," he continued

The proliferation of mobile smartphone and tablet devices has caused a massive surge of interest in edge wireless networking, driving Aruba to record sales and net profits in the first quarter of its fiscal 2011, according to Orr.

Q1 sales were up 44% year-on-year to $83.1m (£52.1m), while GAAP net income hit $2.1m, reversing a hefty year-ago loss.

"Employees and executives alike are bringing the iPads, smartpads and smartphones into the office and demanding secure, scalable connectivity whenever and wherever they need it," said Orr.

"With the executive suite adopting devices like the iPad, wireless LAN is increasingly becoming top of mind for CIOs," he added.

Aruba said it was encouraged by strength in its enterprise business, as well as core verticals such as education, healthcare and government, all sectors in which wireless plays well.

The firm is forecasting sales of approximately $87m during Q2.


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