According to a Cisco VNI report, by 2016 almost 50% of the global internet traffic will flow through Wi-Fi connections. The increasing demand for tablets and user convenience is causing this shift from wired connections to wireless connections. This growth will provide tailwinds to companies like Cisco (CSCO) and Aruba Networks (ARUN), which provides Wi-Fi networking products and services.
Aruba is known for providing innovative technology, which helps it to compete with the comparatively much larger player - Cisco. Aruba pitches its wireless products, with the aim to replace the existing wired network. This strategy is not followed by Cisco, as it generates larger revenue from selling wired networking products.
Understanding the business
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|