By David Sims, TMCnet Contributing Editor

Aerohive (News - Alert) Networks, creators of the cooperative control wireless LAN (WLAN) architecture, has acquired privately-held Pareto Networks, a vendor of cloud-based networking. 

“The addition of Pareto's technology and employees offers a unique opportunity to accelerate our entry into the broader cloud-based networking space and establish an immediate leadership position,” said David Flynn, CEO of Aerohive Networks (News - Alert).

Aerohive officials say they will immediately integrate Pareto’s routing, VPN and innovative cloud services technology into Aerohive’s operating system (HiveOS) and Cloud Services Platform (HiveManager Online) with new features and platforms beginning to be delivered in Q2 2011.

Last month TMC's (News - Alert) Shamila Janakiraman wrote that Pareto Networks introduced a definitive guide to teleworking, a dedicated eBook that explores the benefits and barriers to telework. According to company sources, the eBook examines telework from all angles. It throws light on the technical and cultural requirements to support teleworking. It also specifies the considerations enterprises should make to ensure that they have all the requirements for an effective telework deployment in their workplace.

“Pareto was first to market with a cloud-based router solution, designed to eliminate the cost and complexity of large, highly distributed branch/teleworker networks," Flynn noted. "Adding this technology and talent to Aerohive’s existing expertise in cloud-based WiFi network management will enable Aerohive to reduce the cost and complexity of mid-size enterprises, branch and micro-branch networks in the same way that it has for enterprise WiFi.”

Pareto Networks delivered the industry’s first cloud-based router/VPN solution – released June 2010. Its p?atents pending include cloud-based networking (Network-as-a-Service) and CloudProxy.

"Cloud-based networking is going to become a significant trend in the years to come because of its ability to reduce the complexity and operational cost of networking, for mid-market and distributed enterprises,” said Zeus Kerravala, senior vice president and distinguished research fellow of Yankee Group (News - Alert).

Aerohive’s approach is "unique," company officials say, as failures in the WAN link, or the cloud, do not impact the on-going operation of the network: "This is because no data goes to the cloud and no control or policy enforcement functions (RF optimization, channel selection, load balancing, authentication, roaming, and QoS) are carried out in the cloud."

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