Aerohive adds cloud and edge network features to Extreme portfolio

Software-defined networking (SDN) specialist Extreme Networks plans to drive deeper into cloud management and edge networking following its $272m (£214m) acquisition of Aerohive, a cloud networking and wireless pioneer.

The deal, announced on 26 June, will also bring Extreme Networks new subscription revenue streams, and strengthens its position in wireless local area networking (WLAN) as the industry begins to transition to the new Wi-Fi 6 standard – also known as 802.11ax.

Aerohive, which also has interests in how artificial intelligence (AI) and machine learning can be applied to future networks, was among the first suppliers to offer controller-less Wi-Fi and cloud network management, and recently launched the industry’s first three Wi-Fi 6 access points (APs), and an industry-first pluggable AP.

It claims a global footprint of 30,000 enterprise cloud WLAN customers, including in NHS trusts in Essex and Lincolnshire, the National Portrait Gallery, Oxford Brookes University, and Scottish supermarket chain Scotmid Co-op.

“The acquisition establishes our leadership in cloud, AI and machine learning, adding a proven and mature cloud services platform and subscription service model,” said Extreme CEO Ed Meyercord.

“Extreme continues to invest in software and AI to expand the automation capabilities across our portfolio of edge-to-cloud networking solutions. The ability to improve user experiences, lower operating expenses, and deliver cloud-managed networks is key to our strategy.”

Meyercord said that having scaled Extreme’s business to $1bn in revenue and expanding its portfolio organically, the next step was to transform the firm to add sustainable, subscription-oriented cloud offerings.

Aerohive CEO David Flynn said the acquisition was a major milestone for the business. “The role that cloud-managed technology plays in modern enterprises is impossible to overstate – it is where digital transformation is won and lost,” he said.

“Aerohive’s expertise and excellence in cloud management and edge technology, combined with Extreme’s extensive solutions portfolio and continued investment in software and AI for automation, gives our customers the most advanced digital experiences in the market.”