Recently, the news regarding HP, buying out Aruba, has been the hyped in the IT industry, especially with the users and clients of both companies. It was said that the infamous HP procurve routers which was renamed HP Procurve Network, will be integrated to the Aruba Networks and this combination is concluded to produce a wide set of benefits for the channels and users of both companies.
The Buyout ticks at a stunning $2.7 Billion. The actual cost of Aruba was supposed to be $3 Billion, computed from a rate of $24.67 for each existing shares within the company, but it was reduced to the state mentioned due to deductions from Aruba’s cash and debts.
As mentioned above, the HP procurve routers or network which has been toe-to-toe with Cisco routers, will be upgraded with this buyout. HP is looking to give their wireless service a big boost in order to serve the ever-increasing demands of the market. In accordance to this, the CEO of HP, Meg Whitman, will also push forward, the act of splitting the company into two, later this year – The HP enterprise for HP Inc. The former will serve services for enterprises while the latter will be serving buyers of PCs, printers and other HP Products.
There were many concerns stated, especially from the clients of Aruba, since the record of HP has recently been declining while Aruba are on their record-breaking years within the same area of market. The somehow, disappointing state of the sales of HP bugged some of the clients of Aruba, but it is confirmed by both CEO’s of the company that there’s nothing to be worried about as no big changes will surely happen with their clients.
The CEO of Aruba said that it certainly is easy to be worried about being bought out by HP, which has recently been having a hard time in the industry. Additionally, he also stated that in this case, he thinks that the background of the CEO, Whitman, who has earned a serious reputation worldwide, is more important than looking at the recent declines of HP.
HP and Aruba has both etched their names within the industry and with the combination of their strengths especially in networking, it is foreseen that good things will surely come their way especially after seeing that both CEO’s are calm and contented about the things that are happening.