HP splashes out $3bn on network firm Aruba

HP plans to dominate the $18bn wireless networking market

HP has bought California-based Aruba networks in a $3bn deal that will allow the company to boost its share in the wireless networking business, which currently stands at around four per cent.

The move comes as more organisations embrace mobile working and need a way to provide such services to the wider workforce. It's an industry said to be worth $18 billion and it's rapidly growing too, Aruba said.

Aruba is estimated to have at least a 10 per cent market share, which will help to give HP a substantial leg up in this area. The firm's CEO Dominic Orr, and chief strategy and technology officer, Keerti Melkote will stay on after the acquisition.

"Together, we will build on Aruba's proven 'customer first, customer last' culture, creating an innovative, agile networking leader ideally positioned to solve our customers' most pressing mobility, security and networking challenges," Orr said.

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HP is looking to provide enterprises with faster speeds so end-users can access cloud applications quicker. 

Meg Whitman, HP's chief executive said: "Enterprises are facing a mobile-first world and are looking for solutions that help them transition legacy investments to the new style of IT.

"By combining Aruba's world-class wireless mobility solutions with HP's leading switching portfolio, HP will offer the simplest, most secure networking solutions to help enterprises easily deploy next-generation mobile networks."

Earlier this year, HP announced it was going to deploy wireless technology such as Pro Wi-Di and Wireless Docking to boost its in-house wireless offerings, which it says will save the company $500m a year.

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