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Colubris deal fills need for wireless solution, says ProCurve boss

  
By Alex Scroxton

12 August 2008

HP ProCurve has revealed that demand from corporate users and reseller partners for wireless solutions was a big factor in yesterday’s acquisition of wireless LAN vendor Colubris.

 

“This acquisition is based on need,” said ProCurve vice-president and general manager Marius Haas. “We’ve been working on wireless, but when we did an assessment of the cost benefits of organic development versus the cost benefits of acquiring a company like Colubris, it was a pretty easy decision.”

 

As revealed yesterday by MicroScope, HP ProCurve has handed over an undisclosed sum for Massachusetts-based Colubris, giving the networking vendor a route into the lucrative WLAN sector.

 

Analysts had already suggested the deal could be the beginning of a strategic shift for ProCurve, which was historically notoriously shy of the M&A arena. But Haas insisted this was not the case.

 

ProCurve EMEA boss Alberto Soto García said: “Two years ago you will recall the rumour was we were going to be sold or spun off, but the reality now is we are purchasing technology, so I think there will be a major shift in how ProCurve is perceived.”

 

Canalys analyst Andy Buss said the acquisition would allow ProCurve to compete on a level footing in areas where converged networks were key and Cisco was strongest.

 

“It won’t approach Cisco’s position in the next couple of years, but can play to its strengths and take some marketshare,” he claimed.

 

In terms of product integration, ProCurve anticipates Colubris’ WLAN portfolio will slot neatly into its own product suite. The new partners are in the middle of developing a more detailed roadmap and anticipate releasing further details before very much longer.

 

Back in April, Colubris launched a worldwide partner programme which could now be perceived as under threat. Tom Racca, Colubris marketing vice president, conceded there would naturally be worries over the future of the programme, but assured channel partners they would not be cast aside.

 

“It’s a great opportunity for partners to move into the HP programme. We have a strong solution today and by rolling that up with ProCurve we think it’s an unbelievable solution set to take to market,” he said.

 

Subject to the right boxes being ticked, the acquisition should go through at the end of October, although Haas hinted both parties were very keen to bring the closure date forward.