Hewlett-Packard announced this week plans to buy Aruba Networks in a deal valued at $3 billion, saying the deal helps bolster the company’s wireless local area network capabilities.

The acquisition of Aruba places HP squarely into the indoor location services market and closes the gap to compete with Cisco for WiFi services. Aruba will become part of the new HP Enterprise company, set to be split off later this year from HP’s core PC and printer business.

According to about the acquisition, “With Aruba Networks contributing roughly $800 million to $1 billion in wireless revenue, the acquisition would only represent a small increase to the new HP Enterprise’s revenue. However, it would bolster HP’s overall networking market share and provide a newer platform to support the new wave of mobility services.”

Aruba, which acquired indoor specialist Meridian in May 2013, utilizes both WiFi and Bluetooth technologies to set up comprehensive management tools for mobile location services. The company has deployed an indoor positioning system at Levi’s Stadium, the home of the San Francisco 49ers, utilizing about 1000 Aruba beacons installed throughout the 1.85 million-square-foot stadium integrated with hundreds of WiFi access points.

In addition to Levi’s Stadium, Aruba names retailers, museums, casinos, and other venues as potential customers for location-awareness tools.

HP’s interest in Aruba Networks sets the stage for what should be an interesting shakeout for the indoor location and proximity marketing industry. Will further acquisitions soon be on the horizon?

Categories: Mobile + Location, Articles

Tags: Wi-Fi, Aruba Networks, Aruba, Hewlett-Packard, indoor location