Aerohive Networks Acquires Cloud-Based Networking Leader Pareto Networks

Expands Uniquely Reliable Cloud-Based Wi-Fi to Broader Cloud Networking Solution

SUNNYVALE, Calif., January 18, 2011 - Aerohive Networks, creators of the award-winning cooperative control wireless LAN (WLAN) architecture, today announced that it has acquired privately-held Pareto Networks, the leader in cloud-based networking. Aerohive 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.

These solutions will address the cost, operational complexity and survivability requirements of today's mid-size enterprises and highly distributed branch/teleworker networks.

News Facts

  • Pareto Networks, located in Sunnyvale, Calif., delivered the industry's first cloud-based router/VPN solution - released June 2010
    • Technologies include routing, SSL VPN, 3G/4G WWAN, CloudProxy (N-way proxy functionality), and cloud provisioning
    • Patents pending include - cloud-based networking (Network-as-a-Service) and CloudProxy
  • Aerohive has been successfully selling cloud-based Wi-Fi and VPN since October 2009 - with its HiveManager Online cloud-based solution
  • Aerohive's approach is unique, 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.
    • Aerohive's network operating system, HiveOS, already has a very rich networking feature set including user based policy enforcement, stateful inspection firewall (w/ALGs), IPSec VPN, QoS, DHCP, mesh routing, a full RADIUS server and extensive network monitoring and analysis tools.
  • Aerohive plans to deliver the following software integration and new platforms commencing in Q2 2011
    • Routing/VPN Platforms
      • BR 200 - Branch Gateway
      • BR 100 - Telecommuter Platform
      • Cloud VPN Gateway (VMware)
    • HiveOS features
      • Routing, 3G/4G Backup, CloudProxy, SSL VPN
    • Cloud Features
      • Router and VPN management, Simple End User Provisioning, Google Maps/Geo Location


"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, Aerohive Networks.

"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. Adding this technology and talent to Aerohive's existing expertise in cloud-based Wi-Fi 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 Wi-Fi."

"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, Yankee Group.

"This is a good move for Aerohive as it leverages their existing cloud-based Wi-Fi footprint and capitalizes on Pareto's early market entry and cloud networking technology," concluded Kerravala.

About Aerohive Networks
Aerohive unleashes the potential of enterprise Wi-Fi, enabling customers to stop buying copper, to move applications to the air, and to maximize workforce productivity. The company's award-winning cooperative architecture and cloud-based network management eliminate costly controllers, saves money and provides unprecedented resiliency, up to 10X better application performance, and an opportunity to start small and expand without limitations. Aerohive was founded in 2006 and is headquartered in Sunnyvale, Calif. The company's investors include Kleiner Perkins Caufield & Byers, Lightspeed Venture Partners, and Northern Light Venture Capital. For more information, please visit, call us at 408-510-6100, follow us on Twitter @Aerohive, subscribe to our blog or become a fan on our Facebook page.