OFC 2018 Theme: 400 Gbps

Cambium acquires Xirrus, further consolidating the Enterprise Wireless LAN market

8/12/2019

On August 8, 2019, publicly-traded Cambium announced that it had completed the acquisition of the Xirrus products and cloud services from privately-held Riverbed Technology, Inc. Xirrus has been a vendor in the Enterprise WLAN market for a while now and has been associated with its high-performance enterprise-class WLAN products as well as its cloud-managed services. In our research, we find Xirrus has done well in the large venues, the education, government, and retail markets.

We interviewed the team at Cambium today and learned that the company is committed to using channels as a distribution strategy for the combined portfolio. Additionally, the team told us it will be supporting both Cambium WLAN customers as well as Xirrus customers, and that, over time, the products and services will be converged. We think it makes sense to rationalize the products, which will allow future customers to take advantage of developments made at each of the organizations. The team explained that Cambium will be focusing primarily on medium and small-sized customers and that it will not be pursuing large enterprises associated with the Fortune 1000, instance.

The timing of Cambium’s acquisition makes sense on several counts. First, it just completed its Initial Public Offering and is more well-capitalized than when it was a privately-held company. Second, during its IPO, Cambium identified that it expects its exposure to the enterprise market is key to its growth, so getting more exposure here will increase it further. Third, several other companies have acquired enterprise WLAN vendors, and Cambium is part of this greater trend. For instance, Arista Networks completed its acquisition of Mojo Networks in late 2018 and Juniper Networks closed its acquisition of Mist Systems at the end of 1Q19.

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2Q19 Huawei Ethernet Switch Results remain resilient and show robust growth in Europe

8/8/2019

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Huawei had record European revenue in 2Q19 for the Ethernet Switch market.

Both Data Center Switching and Campus Switching showed strong performance in Europe in the quarter despite the ongoing trade war. On an overall basis, Huawei’s Ethernet Switch results were flat Y/Y. China results for the company were down slightly Y/Y, but we note significant competition in China from local companies like H3C, Ruijie, Sundray, as well as several others.

With over a dozen vendors reporting results already, Europe has performed inconsistently. A little more half of the vendors grew Y/Y while the rest had Y/Y declines. While we expect Europe to fluctuate, especially with vendors have unique country and deal exposure, the results are unique and imply interesting share results for the region when we publish the 2Q19 report.

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650 Group Blog

Cambium acquires Xirrus, further consolidating the Enterprise Wireless LAN market

2Q19 Huawei Ethernet Switch Results remain resilient and show robust growth in Europe

CHRIS DePUY
&
Alan weckel

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650 Group Blog

Cambium acquires Xirrus, further consolidating the Enterprise Wireless LAN market

2Q19 Huawei Ethernet Switch Results remain resilient and show robust growth in Europe

CHRIS DePUY&Alan weckel

Archives

Categories

CHRIS DePUY
&
Alan weckel