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Cisco Buys Airespace

Cisco Systems Inc. (Nasdaq: CSCO) has announced plans to acquire wireless LAN switch startup Airespace Inc. for $450 million in stock and assumed options.

Cisco announced the deal Wednesday after the market closed.

Unstrung reported late last week that the networking giant was finalizing a deal for Airespace (see Cisco Buying Airespace?). The startup has been seeing rapid growth in the enterprise wireless LAN space and is ranked as the third largest 802.11 equipment provider after Cisco and Symbol Technologies Inc. (NYSE: SBL) by some analysts (see Synergy: Switches Sizzle ).

Get the rest of the story at Unstrung.

— Dan Jones, Site Editor, Unstrung

jsailor 12/5/2012 | 3:29:53 AM
re: Cisco Buys Airespace this is reminiscent of the way Cisco bought their way into Ethernet switching first with Crescendo, then Kalpana (the market leader at the time) , then Grand Junction. Presumably all in an effort to ensure that they garnered greater than 50% of the market. However, as some readers have pointed out, Crescendo's execs have been treated very well over the years.
As the market share numbers indicate, those who haven't drank the Cisco Kool-Aid, went with Airespace. I'm not sure they'll be happy with being force-fed Kool-Aid now.
gumbydammit 12/5/2012 | 3:29:52 AM
re: Cisco Buys Airespace And God bless them for it.

The original Cisco AP gear was getting a little dated, even the original wireless phone was in need of a redesign.

This should put them on good footing going forward.....
/gd.
green 12/5/2012 | 3:29:52 AM
re: Cisco Buys Airespace congratulations. it is next to impossible to compete with cisco in the enterprise. I am impressed by their customer wins during a difficult time (2001 - 2004). how did they do it ??? anyone know their revenue figures for last year ?
jsailor 12/5/2012 | 3:29:48 AM
re: Cisco Buys Airespace
If this report is to be believed:
http://www.nwfusion.com/review...

All Aruba needs is marketing and a sales team because their product is superior to Cisco's. Airespace declined to participate.


djkstra 12/5/2012 | 3:29:45 AM
re: Cisco Buys Airespace Is this Cisco's move towards Wimax ??

Well, this was the cisco's response to Wimax..
http://www.lightreading.com/do...
green 12/5/2012 | 3:29:44 AM
re: Cisco Buys Airespace aruba should do okay but only if it is acquired by
someone. my guess a 250-300 million price tag. but
who will buy ?
dnewman 12/5/2012 | 3:29:41 AM
re: Cisco Buys Airespace If this report is to be believed:
http://www.nwfusion.com/review...

All Aruba needs is marketing and a sales team because their product is superior to Cisco's. Airespace declined to participate.


Hello -- I conducted that test and wrote the article.

I wouldn't draw the conclusion that Aruba's gear is superior to a no-show. I certainly give Aruba, Cisco, Chantry, and Colubris credit for showing up. I give Aruba credit for fielding a great product. But I just can't say how Airespace would have fared; it's a hypothetical.

Airespace and Aruba did play in another WLAN switch test I did 18 months ago, and at the time they were about even.

My experience is that both companies make solid products. I expect a strong rivalry to continue, and that's good for customers.

Regards,
David Newman
Network Test
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