Mobility Changes Everything

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Presentation transcript:

Mike Allers 404.861.7784 mallers@aerohive.com

Mobility Changes Everything

Visionary Network Infrastructure Company Cloud-enabled, Controller-less Wi-Fi, Routing, VPN, Switching 16,000 Customers (1,600+ in Q2/14) HIVE – Listed NYSE 550+ Employees Most Visionary Vendor - Gartner MQ Wired & Wireless LAN 2014 Deloitte - #5 of 500 NAM “Fastest Growing Companies Apple Partner iBeacon Cloud Services Platform Public or On-Prem Cloud Services Platform Public or On-Prem HiveManager OS Switches “Aerohive is a wireless LAN vendor primarily, we’re moving into wireless networking and networking in general.  The key difference between us and everyone else in the marketplace is simple yet important and that’s the lack of a controller.  Traditional wireless for the last 10 years or so has been based around intelligence in a central controller with fairly thin APs at the edge.   Aerohive has moved that model forward as Moore’s Law has made access points cheaper and more powerful we can now do everything a controller can do inside the access point.  So this allows the Aerohive solution to have stateful firewall and high levels of security and encryption in the access point without the additional cost, bottlenecks, or single point of failure offered by our competitors. We built our Wi-Fi solution focused on our customers business needs TODAY and we are in the 5th generation of our product and we are the only company who does this. ”  -Aerohive Elevator Pitch About Aerohive: “Aerohive senior staff originated with NetScreen (first company to put a firewall on a chip) which then purchased by Juniper Networks. While at Juniper the former NetScreen team was tasked to identify a “best of breed” enterprise wireless LAN Equipment Vendor. Looking around at the market they came back to Juniper and determined that not a single player in the market could be recommended b/c they all relied on a legacy architecture that had a similar flaw: they all required a controller. They recommended that Juniper make their own solution from the ground up and eliminate the controller, Juniper thanked them for their input, sat on their hands for a few years and ultimately opted to buy Trapeze Networks. So in 2006 that former NetScreen team, believing in their idea of building a next-gen wifi solution left Juniper and created Aerohive. Today we are the fastest growing Wi-Fi manufacturer in the industry. *Slide Note: If you have time you can speak to “according to the most recent Gartner report…” BACKGROUND ---------------------------------------------------------------------------------------------------------------------------------------------- Aerohive Advisor Bob O'Hara, co-founded Airespace, and is widely regarded as a pioneer in the wireless LAN industry for his significant role in the creation of the original 802.11 standard and in 2003 introduced the first centralized control system for wireless LANs. Cisco Systems acquired Airespace in 2005 and to this day runs a very profitable business selling this same configuration to customers. When Airespace introduced controllers into the market, they did so in order to overcome the shortfalls of autonomous APs at a price point that was appropriate for the time.  Now that AP hardware is a commodity and extremely powerful CPUs and RAM are cheap, APs can be built to do all of the same things that controllers can do... and more.  The reason that I say more is that controllers introduced problems of their own, such as throughput bottlenecks, single points of failure, manual configuration of everything, and a few more un-fun items.  These problems do not exist when using software between APs. APs & Routers #5 of 500 “Fastest Growing” “Most Visionary” Apple Partner

New AND Existing Customers Driving Rapid Growth Total Customers Year over Year Growth – 1H 2013 11,609 Customers Source: Infonetics, Aerohive

Our Customers 5

Wired and Wireless Infrastructure Magic Quadrant Aerohive is a Visionary! A Magic Quadrant Visionary for wired and Wireless Infrastructure We have been made a Visionary in the Wired and Wireless LAN Access Infrastructure for the 3rd year in a row!! Aerohive Networks Aerohive continues to grow faster than the overall industry in terms of revenue Aerohive's key differentiator continues to be its distributed intelligence, controller-less architecture and unified HiveManager network service applications, supporting a cloud- or on- premises-based single control point for onboarding, monitoring, and managing both the WLAN and wired switches as a unified network. Enterprises should consider Aerohive for all overlay WLAN deployments, especially in the education, retail and healthcare sectors. Clients report that the context-based visibility, policy enforcement and analytics capabilities have good user interfaces and ease of use. Aerohive customers gave high marks for its experience, including sales, support and performance of the solution. The vendor's solutions are typically the most cost-effective, based on the bids that Gartner reviews.

Bob Knows Best

Legacy Enterprise Networks Architected for Basic Connectivity Rigid Centralized Control & Enforcement Employee Guest Employee Employee Employee Guest Employee Employee Guest ENTERPRISE DATA CENTER ENTERPRISE CLIENTS 8

Breaks Legacy Enterprise Networks Mobility Revolution Breaks Legacy Enterprise Networks ENTERPRISE DATA CENTER Employee Guest ENTERPRISE CLIENTS MORE DEVICES MORE LOCATIONS MORE USERS MORE CLOUD SERVICES MORE DATA 9

Scalability and future proofing Distributed (Controller-less) Wi-Fi Architecture Delivering simplicity, reliability and affordability Management Management within the network only Centralized cloud-based or Local management Redundancy Requires multiple controllers Local data forwarding..what do you lose? No single point of failure Self healing mesh architecture No controller tax Scalability and future proofing Controller capacity? Feature licenses? No feature licensing Start small and grow Distributed intelligence (FW, RADIUS, CWP, BYOD, Bonjour GW) Performance Data bottlenecks QoS, Spectrum analysis..$$$ No data bottlenecks Service Level Agreements QoS & Spectrum analysis included How does it work? Architectural Alternatives Central Vs. Distrib. Control

How does it work? HiveManager NMS Reporting Heat Maps SLA Compliance Policy Configuration Wireless Network Wired Network  With Cooperative Control, clients can securely and seamlessly roam across the WLAN With a second HiveAP, fast stateful roaming, cooperative RF, station load balancing and seamless resiliency are enabled Cooperative RF power levels minimize co-channel interference As more HiveAPs are added, coverage, reliability and backhaul bandwidth increases Mesh networking and best path forwarding can be used for extra resiliency and reachability Dynamically reroutes around failures HiveAPs are discovered, policy is pushed and the WLAN is operational HiveManager is a single mgmt interface for configuration, OS updates & monitoring of thousands of devices A single HiveAP by itself acts as a full-featured enterprise class access point Identity-based security, including stateful inspection FW, rogue detection & mitigation Airtime Scheduling, SLA compliance and local forwarding implemented at the edge Dynamic best path forwarding and stateful roaming provides resiliency without a single point of failure With Cooperative Control, clients can securely and seamlessly roam across the WLAN And now I’d like to take you through a brief example of how you can deploy this technology into your enterprise network. On the right of your screen you see a simplified enterprise switch topology, with four access layer switches and two aggregation switches. We can start by bringing in a single HiveAP into the network infrastructure and connecting it to one of the switches.   The single HiveAP by itself acts as a full-featured enterprise-class access point -- robust functionality with the identity-based security and quality of service, and local forwarding at the edge of the network. When you bring in a second HiveAP, they are joined together in a hive, and then you start to see the power of the cooperative control architecture. They work together to implement fast, stateful roaming, cooperative RF control, station load balancing, and provide seamless resiliency. For example, on your screen you can see the circles around the two access points are of different colors. Those represent the channels, the access points are working on. There are channel negotiation protocols that work together to make sure they’re running on separate channels. The access point that the laptop is connected to has taken the user state and the keys and has shared that with the next top neighbor, so that next top neighbor is able to implement predictive roaming. So when the laptop moves, he will roam seamlessly to the next top neighbor, with roam times well under 50 milliseconds, because his state and security has been pre-populated at that access point. We can also implement mesh networking and best path forwarding for extra resiliency and reachability. The mesh networking protocols will dynamically re-route around network infrastructure failures. For example, on your screen you can see the two access points are connected together with a mesh link. The red X shows that the switch has failed, but the mesh routing protocols will route the traffic around the switch failure and will allow applications to continue uninterrupted even in the event of a LAN infrastructure failure. The network can be seamlessly scaled by simply adding more HiveAPs as needed, as you need more coverage, you want more reliability or more back-haul bandwidth into the network infrastructure. You don’t have to worry about capacity planning up front because there were no fixed constraints around your controller capacity. In this topology, four of the HiveAPs are wired directly into the Ethernet network, what we call portals, and one of the HiveAPs on the bottom left is wired as a mesh node, where the cell phone is connected to. With a more complex topology like this, we now have many more access points, and many of them are running on the same channel. To eliminate co-channel interference, the cooperative control auto power level adjustment features kick in and power levels are adjusted to provide maximum coverage with minimal co-channel interference, allowing the system to give you the most robust wireless infrastructure possible. With a more complete deployment like this, with more nodes and more alternative routes through it, you have even higher levels of resiliency. You can recover from multiple failures in your wired or wireless infrastructure. As we’re showing here, we have had two switch failures and a wireless LAN access point failure, and the traffic is still routed around through multi-hop mesh into the network infrastructure, providing unprecedented levels of resiliency. And not only does the cooperative control architecture provide these functionality advantages and technological advantages, but it provides substantial economic advantages when deploying a wireless LAN.  

Application Visibility See, Manage How the Network is Really Used

Control at Scale Central Controller Architecture Distributed Architecture You Must Inspect Packets in Real Time To Make Automated Policy Decisions Processing packets real-time takes POWER Inspecting Packets takes PROCESSING! AVC needed to deliver the security, visibility and enforcement required for mobile-centric networks Processing requirements make a distributed, controller-less architecture disruptive all over again! Application Processors in 500-AP network

Disruptive Price Point Aerohive List Price vs. Cisco List Price Highly Distributed 1,000 Sites, 3,000 APs1 Large # Regional Sites 200 Sites, 12,000 APs2 Centralized Campus 10 Buildings, 5,000 APs3 26 % less 58 % less 60 % less APs Management Controllers Redundant Controllers* * Typical Cisco enterprise deployments require redundant controllers for high availability. Company estimates based on Cisco list pricing from www.cisco.com and Aerohive list pricing as of Jan 2014. For illustrative purposes only. Note: Comparisons do not reflect discounts to list prices which may be typically offered in a commercial transaction. 1. Aerohive list price 3,000 x 121 APs, HiveManager Online Mgmt. & 5 yrs. Support (5x1y) vs. Cisco list price1,000 x 2504-5 Controllers, 3,000 x Aironet-1600 APs, Prime Mgmt. & 5 yrs. support(5x1y) 2. Aerohive list price 12,000 x 121 APs & HiveManager Online Mgmt. & 5 yrs. Support (5x1y) vs. Cisco list price 200 x 5508-100 Controllers, 12,000 x Aironet-1600 APs, Prime Mgmt.& 5 yrs. Support (5x1y) 3. Aerohive list price 5,000 x 121 APs, HiveManager Online Mgmt. & 5 yrs. support (5x1y) vs. Cisco list price 10 x 5508-500 Controllers, 5,000 x Aironet-1600, APs, Prime Mgmt. & 5 yrs. support. (5x1y) 14

Proven Customer Success 1,700+ restaurants Simple and scalable management Why Aerohive? Simplicity 200+ schools and administrative buildings Wireless access for 176,000 students, 20,000 staff and teachers Why Aerohive? Scalability 12 hospitals, 200+ clinics Visibility and control of medical applications Why Aerohive? Security

Density, Performance, Application Visibility and Control Deploying for Density, Performance & AVC $100,000 802.11ac Deployment Comparison Density, Performance, Application Visibility and Control More Clients More Throughput More Processing Based on list pricing for Cisco AP2700 and Cisco 5508-50 WLAN Controller & Prime cisco.com - Jan 2014 price list Based on list pricing for Aruba 224s and Aruba 7200 WLAN Controller, RF Protect, PEFNG, & Airwave SecureWireless.com – March 2014 price list Based on list pricing for Aerohive March 2014. price list Aerohive list pricing includes 7/24 support

BREAKING NEWS – Aerohive Voted Best Value in Wired/Wireless LAN Winner of the Trend Setter Award

56% of business from repeat customers Start Small And Grow Disruptive Go-to-Market Model Easy to Get Started Easy evaluation Easy installation Effective for large and small customers Easy to Expand Additional locations Additional infrastructure Additional applications 56% of business from repeat customers 1 Based on Company prepared analysis of bookings from Q1 2013 – Q4 2013.

Target Customer: Significant Market Opportunity and Competitive Advantage Fortune-like Seek executive exception Sell to this broader audience who will use our solution “as is” Commercial Primary sales focus & marketing message Focused product development Focused marketing content & demand gen Channel can be made more self-sufficient Retail Healthcare D. Enterprise Education Upper Midmarket Focused product development Better execution – less “one off” developments Roadmap less influenced by non target feature requests Greater dependence on SE feedback Work with the right technology partners Focused marketing content & demand gen Better brand recognition w target Content made channel ready Enterprise simplicity resonates with larger accounts too Channel can be made more self-sufficient Allows Aerohive to scale Sales & channel can ramp faster Sell to audience who need & value our enterprise features Lower Midmarket SMB Not a focus (avoid) 19

The Midmarket Opportunity NATIONAL CENTER MIDDLE MARKET FOR THE MIDDLE MARKET SMALL BUSINESS <$10M ANNUAL REVENUE ~6M BUSINESSES BIG BUSINESS <$1B ANNUAL REVENUE ~2,000 BUSINESSES <$10M - <$1B ANNUAL REVENUE 195,000 BUSINESSES the US Midmarket is the largest global economy th 4

Competitive Opportunity in Midmarket / Commercial Large Enterprise Midmarket Small Business Aerohive Single unified architecture Aruba Legacy Aruba Instant Cisco Airspace Cisco Meraki Cisco Unified Access

Thank you!