U.S. Markets closed

Hewlett Packard Targets Small Businesses With Aruba Instant On

Zacks Equity Research

Hewlett Packard Enterprise HPE recently unveiled powerful and secure wireless solutions called Aruba Instant On, which are designed to cater to the needs of small businesses.

Reportedly, the Instant On product suite will initially include indoor/outdoor Wi-Fi access points (APs) to provide a secure, high-speed wireless connectivity with easy set-up and management.

With these solutions, the company is looking to target businesses with 100 employees and below that workforce.

Keerti Melkote, co-founder and president of Aruba, stated in an interview to CRN that competitors like D-Link, Ubiquiti Networks UBNT and Netgear NTGR will not be able to match the enterprise-grade security and analytics, which the new products will offer.

The first round of products is expected to be shipped beginning this early July at a starting price of $119.

Focus on SMB Market

The networking requirements of small businesses are changing, courtesy of the proliferation of mobile devices, the increasing use of cloud-based applications and the need to deliver a seamless Wi-Fi experience.

Per IDC, by the end of 2023, two-thirds of SMBs (small and medium businesses) will embrace digital transformation as a key component of their IT strategies. Moreover, the firm added that digital transition is putting new demand on SMB communications infrastructure including the wireless LANs.

The SMB market is a focus for many companies. Surging demand for easy-to-manage Wi-Fi solutions is a positive.

Aruba expects the new Instant On Wi-Fi product for small businesses to open up as much as a $3-billion market opportunity for its partners.

Talking about Instant On, SYNNEX SNX, the largest distributer for Aruba, believes that the new set of products will provide the company with an enormous market opportunity.

Moreover, CDW management expects that combining CDW’s expertise with Aruba’s Instant On platform, its small business clients will be able to efficiently fulfil the growing needs of their businesses.

Hewlett Packard Enterprise Company Revenue (TTM)

Hewlett Packard Enterprise Company Revenue (TTM)

Hewlett Packard Enterprise Company revenue-ttm | Hewlett Packard Enterprise Company Quote

A Push to Intelligent Edge Segment

Hewlett Packard Enterprise has been benefiting from its Intelligent Edge segment, driven by solid growth in Aruba Services and Aruba Product revenues. Consistent installed base growth drives Aruba Services while strong growth across both the wired and wireless LAN is a tailwind for Aruba Product revenues.

However, we note that in the last reported quarter, Aruba product revenues declined 7% due to the execution issues in North America and longer enterprise sales-cycles.

Despite such challenges, the company’s Intelligent Edge strategy and the launch of innovative products are likely to ramp-up growth going forward.

HPE carries a Zacks Rank #2 (Buy) You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Hottest Tech Mega-Trend of All                

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
NETGEAR, Inc. (NTGR) : Free Stock Analysis Report
 
Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report
 
Ubiquiti Networks, Inc. (UBNT) : Free Stock Analysis Report
 
SYNNEX Corporation (SNX) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research