Wi-Fi kit vendor Aruba Networks has today announced an agreement to acquire Wi-Fi management vendor AirWave Wireless for $37m, in a deal expected to close at the end of March. Aruba said that AirWave wouldn't be " folded straight into Aruba", adding that AirWave software "will continue to be sold, supported, and maintained."

AirWave's core product is its wireless management software which allows users to run different types of technology, and different vendors' systems side by side. Aruba's EMEA marketing director Roger Hockaday said, "With this acquisition we're looking to lay claim to the multi-vendor wireless network management business, and since AirWave also manages wireless networks we don't - like WiMax and Metro wireless - this would also extend our reach into other markets."

However, Aruba may be hard pushed to dent market leader Cisco's dominance in three areas, the consumer, enterprise and service provider markets. Figures from research firm Infonetics in mid-December showed wireless LAN (WLAN) infrastructure equipment, such as WLAN switches, controllers, access points, broadband routers and outdoor wireless bridges increased by 14 per cent from 2Q07 to 3Q07, giving an overall value for the market of $870 million in 3Q07,

Quocirca analyst Rob Bamforth said that Aruba could find its position in the market strengthened, explaining, “It does open up opportunities, especially in the enterprise market – it gives Aruba extra reasons to place themselves in front of customers.”

Infonetics wireless analyst Richard Webb agreed, saying that Cisco’s dominance in the market, “looks unassailable,” but added, “Other players such as Aruba Networks continue to improve their performance in the enterprise segment quarter on quarter.”

Hockaday said one of the reasons for Aruba acquiring AirWave was an attempt to limit the disruptive change firms go through when they introduce new technology. "Customers would prefer a phased migration rather than a forklift upgrade and one of the key issues for companies running two or three different vendors products is managing such a system", added Hockaday.

Hockaday also pointed out that the majority of AirWave's customers today were actually Cisco customers and that Aruba also had customers that used AirWave's software for management. Aruba is hoping that the acquisition gives them, what Hockaday said was, "An entry into the installed base of our competitor's customers."

Aruba, will also be hoping that the AirWave acquisition combined with 802.11n rollouts and other technology like endpoint security rollouts may also help it gain market share.