Aerohive Offers Discount Program for Aruba Customers

By Jeffrey Burt  |  Posted 2015-03-13 Print this article Print
tech money

Aerohive Networks is launching a program aiming to lure away customers of rival Aruba Networks that may be concerned about Hewlett-Packard's plans to buy Aruba for $2.7 billion.

A week after HP executives announced plans to buy the wireless network technology vendor, Aerohive officials unveiled a program called "Get Me Off This Island." Through the sales promotion, Aerohive through the end of the year will offer Aruba customers discounts of up to 25 percent on purchases of Aerohive networking gear.

To be eligible for the program, businesses must have 25 or more Aruba access points installed at the time they order the Aerohive gear. In addition, they must submit a decommissioning statement confirming that their Aruba access points are no longer being used, according to Aerohive officials.

Soon after HP announced the deal March 2, Aerohive CEO David Flynn said customers could suffer as HP works to absorb Aruba.

"Merging two companies is complicated, and inevitably slows down product development, breaks partnerships and creates headaches for customers," Flynn said in a statement sent to media outlets. "Meanwhile, we'll keep focusing on innovation, advancing our technology, expanding our ecosystems, and bringing better wireless and better intelligence to our customers."

In a keynote at Aruba's Atmosphere 2015 user conference the day after the HP announcement, Aruba CEO Dominci Orr warned users that they would be inundated by competitors looking to sow seeds of doubt about the deal. Orr told them that Aruba, under HP, would continue to innovate and continue put customers needs first.

"Our primary focus is to continue to excel … in this enterprise wireless networking space," the CEO said, noting that after the deal closes, he and Keerti Melkote, Aruba's co-founder and chief strategy and technology officer, will run HP's networking business, ensuring leadership stability. "You have my word that we will not limit your choice of wireless products."

HP CEO Meg Whitman also tried to put any concerned users at ease, telling them that "the strategic intent is to allow Aruba to prosper and scale."

Aerohive wasn't the only Aruba competitor to warn customers about the deal. In an email in late February, when rumors first surfaced about a potential deal, CEO Shane Buckley said the "acquisition will likely have an impact on both vendors' WiFi product portfolios, which may cause disruptions to existing customers."


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