3 Comments

Summary:

The demand for Apple’s iPad is going through the roof and nowhere is its impact more visible than inside corporations. It is one of the reasons why demand for corporate Wi-Fi gear is going strong and benefitting the likes of Meraki and Aruba Networks.

tim cook new ipad

About two years ago, Dominic Orr, the chief executive officer of Aruba Networks (a ARUN) told us that the iPad (and iPhone) was going to act like an accelerant for Wi-Fi in corporations. Two years later, his prediction is coming true. Apple yesterday reported that it sold 11.8 million iPads in the first three months of 2012, up 151 percent from the first three months of 2011. The iPhone saw year-over-year sales jump to 35.1 million.

Today, Jack Monti, an analyst with UBS Securities, wrote this in a note to his clients:

We believe these results are a primary driver of the strong growth in the enterprise wireless networking market with wireless devices proliferating (iPads, iPhones, tablets, etc.). Note Apple iPads/iPhones do not have wired Ethernet ports and primarily rely on Wi-Fi or cell networks for connectivity. BYOD trends are likely to remain strong with enterprise wireless LAN in demand as a key means of robust connectivity.

In fact, it is one of the few bright spots in the networking business. Thanks to the economic crisis in Europe, many of the larger networking equipment makers are reporting softer earnings and don’t see things changing very much. Or as Monti points out:

 Our checks continue to suggest enterprise Wi-Fi is a key area of investment for 2012. Indeed, while that is the case, laterals exposed to other areas of networking do not inspire confidence for an Apr-Q beat-RVBD, PLCM, EXTR, and MERU all missed, with FFIV experiencing weaker than expected enterprise demand.

As Sanjit Biswas, CEO of Aruba competitor Meraki last year pointed out :

 “We used to have one device on Wi-Fi: our laptop,” says Biswas. “Then we had two devices — laptop and our phones using the Wi-Fi.”

Remember the time they used to say Apple didn’t have a chance in the enterprise market. Well all that is history. Now mind you we aren’t that surprised about it all and have written about it countless times. We love our Wi-Fi. We love our iPad and together they make things so much easier and better!

  1. I wouldn’t be surprised if Apple bought a company like Boingo or at least licensed from them the ability to automatically connect iOS devices like my AT&T iPhone does as soon as I get close to a Starbucks. It would be even more interesting if an agreement included giving priority and additional bandwidth to iOS devices. -JebBrilliant

    Share
  2. Unfortunately, my corporate network does not allow my iPhone or iPad to access WiFi. Goodness knows this needs to change as we design more sophisticated mobility apps…

    Share
  3. Except that my iPad constantly drops WiFi connections. Looking though various forums this seems to be a fairly common issue with protected networks.

    Share

Comments have been disabled for this post