Hewlett-Packard Company (NYSE:HPQ) Goes $3 Billion Deep For Aruba Networks, Inc. (NASDAQ:ARUN)

Hewlett-Packard Company (NYSE:HPQ) grand plans for a deep-traction Enterprise solution, in Mobile Mobility, has finally happened. In a press release on Monday, the company noted that it has forged a new deal with Aruba Networks, Inc. (NASDAQ:ARUN) to create an ‘enterprise transition for Converged Campus Networks.’

Hewlett-Packard Company (NYSE:HPQ) recently hiving of its enterprise businesses from its other segments was the first tentative step by CEO Meg Whitman to enter the competitive ‘mobile-first world.’ Monday’s announcement to acquire Aruba Network’s cutting-edge network access solutions for mobile enterprise is valued at $2.7 billion.

Aruba Networks housed in Sunnyvale, has 1,800 employees and revenues of $729 million for the year 2014. With analyst predicting growth rate of 30% in the next half-decade, Hewlett-Packard Company (NYSE:HPQ) moves are bound to be profitable.

In addition to the current intellectual property owned by Aruba networks, there is deeper potential. It already has an innovation engine that is highly respected in the industry and has sales segment with specialized edge. Analysts expect that the advanced marketing channel will form the core of HP’s networking business.

Converged Campus Solutions

HP’s press release noted that the acquisition of Aruba Networks will complement the companies own capabilities and help in building mobile-centric workplaces, study centers and more. The end vision is to create hubs of connectivity, via the mobile.

And the Wi-Fi technology suite that Aruba Networks possess are expected to be fulcrum around which the next-generation services from Hewlett-Packard Company (NYSE:HPQ) will begin to launch. The standard called as 802.11 ac Wi-Fi standard, it will form the backbone of speed as well as transition to cloud-based apps.

HP’s ‘switching portfolio’ needs the technology which will allow enterprises to convert their traditional investment to the mobile-facing solutions. The technology which will make this happen is Aruba’s wireless mobility solutions. As Whitman concludes, ‘Secure network solutions for enterprises will be deployed on ‘next-generation mobile networks,’ and Aruba Networks acquisition will position HP as the first adopter in the industry.