Highlights:

In the stark and shifting landscape of technology, Hewlett Packard Enterprise’s acquisition of Athonet stands as a decisive maneuver, a testament to the enduring truth that in the pursuit of progress, one must adapt or be left behind. This is not mere diversification; it is a strategic advance, a complement to HPE’s established dominion over Wi-Fi.

Athonet emerges as a global presence with over 450 deployments. HPE’s embrace of Athonet is no cautious wade but a plunge into the depths of the private 5G market, a domain forecasted to go beyond $1.6 billion by 2026 for core networking alone.

The merger of HPE’s Aruba and Athonet’s pioneering 5G solutions brings in a new era of wireless synergy. Envision a world where Wi-Fi and 5G converge, offering enterprises connectivity options previously out of the question. This convergence is not solely for internet or coverage; they think it will be the foundation for the evolution of edge computing, IoT, and AI applications. 

Consider HPE’s strategy using Athonet’s technology and existing customer base to increase 5G deployments. Strengthen and to conquer.

For HPE, private wireless is not new, but now they have to rely less on partners. HPE stands ready to improve the wireless landscape.

Move over Cisco.

Will HPE partners become competitors? 

By positioning their private 5G offerings alongside Wi-Fi, not a substitute, it offers the best of both worlds, if they have the right deployment partners.

Will HPE become the preferred partner for enterprises seeking a better wireless solution? Is this the hole in the market they hope to fill? 

Or, will this strategy build more walls than bridges?

How will Nokia and Ericsson react? The telecom sector can make the big boys touchy. I mean look how controlling they are now. Ericsson just pushed Nokia out of AT&T which was a big win.

Both regularly collaborated with HPE for solutions, products, and customers. In fact, with Open RAN coming, HPE was becoming a cornerstone in the Open RAN market. 

Nokia has worked with HPE on Cloud RAN solutions, focusing on integration, interoperability testing, and validation of Nokia’s product solutions with HPE’s telco servers. This collaboration aimed to provide a competitive Cloud RAN solution to CSPs and enterprises globally.

However, with HPE’s enhanced capabilities through the Athonet integration, there could be areas where HPE might now offer solutions that overlap with those of Nokia and Ericsson. This could potentially shift the dynamics from collaborative to competitive in certain segments of the market. Maybe HPE’s ability to provide comprehensive Wi-Fi and private 5G solutions could position it as a direct competitor in scenarios where Nokia or Ericsson would have been the sole providers.

It’s important to note that the telecommunications industry is complex and multifaceted, with companies often playing dual roles as collaborators and competitors. The relationships between such companies are dynamic and can evolve with market trends, technological advancements, and strategic business decisions.

As the private 5G network market grows, it will be interesting to observe how HPE’s integration of Athonet’s solutions will impact its partnerships and competitive stance with companies like Nokia and Ericsson. The outcome will likely depend on how each company leverages its strengths and responds to the changing landscape of enterprise networking solutions. For more detailed insights, one can refer to the latest reports and analyses provided by industry experts and market research firms. 

Is HPE a Leader in Cloud RAN?

Yes, HPE is one of the leaders in Cloud RAN with their suite of servers alongside Dell, and their main partner here is Nokia. Remember Nokia offers NDAC which is a private networks solution for Enterprises.

HPE will go alongside Nokia into CSPs. They also go together into Enterprise asking for CloudRAN as well.

Not only that but NPE has integrated Nokia’s in-line accelerator card into its ProLiant DL110 platform.

Those two are very tight nowadays and I wonder what the relationship will be like going forward.

Remember, HPE is a leader in Cloud Datacenters.

That’s right, HPE is a leader in providing servers for Cloud Datacenters. I would think alongside Dell.

HPE is a leader in Hybrid clouds. I am bringing this tidbit up because HPE is slowly becoming an end-to-end solution provider for private wireless networks and cloud networks. They seem to be covering all of their bases.

HPE will also provide AI servers for 5G Open RAN. 

The ProLiant DL 110 Plus Telco Server is vRAN optimized offering AI enabled 5G Open RAN solutions. Pretty cool, right?

Using AI to control power usage without hurting reliability of the 5G network is the key.

Also, automation is another innovation, allowing multivendor support. That way they are not limited to, say, just Nokia. The HPE RAN Automation service management solution is making life easier for the end integrators. Making things easy to deploy and integrate makes everyone’s life easier.

Remember they can be used in vDUs and cDUs. They also can be co-located in the RAN part of the network as well. Complete end-to-end solutions for servers.

What risks will HPE face post Athonet acquisition?

• Will HPE be able to integrate it into their current portfolio?
• Will market competition drive them into submission?
• Will their current partners become competitors and start looking at Dell as a new partner?
• Will HPE absorb Athonet only to find it’s not their market fit and let Athonet fade away?
• Will there be new regulatory challenges they didn’t count on?
• What are HPE’s customers really looking for?
• What will Athonet customers expect going forward? 
• Will Athonet customers hang on or move on?

Why Athonet?

I wondered why Athonet, and all these are just guesses.

• Athonet is a partner of AWS to enable its 4G/5G core management and orchestration. AWS should allow them to scale on demand.
• The AWS partnership is something customers are already working with, in many cases, and has a somewhat easy interface.
• Athonet already has an Enterprise presence in private wireless.
• Athonet has government and public safety customers, so I hear.
• Athonet has over 450 deployments, not too shabby.
• Athonet has been around for over 10 years and they have a proven record.
• Apparently Athonet is making money.

How will HP win?

I would assume by staying on this path, smaller acquisitions and larger partners. Since they’re already in so many enterprise solutions as well as Cloud Data centers, they have what it takes to increase share on the private wireless markets alongside Wi-Fi expansions.

If they can continue to provide the overall solutions alongside major players, they should become dominant. 

They also have an in on the larger Cloud RAN and Open RAN deployments by working alongside Nokia. Unfortunately, in the USA, Nokia seems to be losing major market share. First Verizon then AT&T. That may become an issue and may force HPE to step it up with Ericsson as the AT&T Open RAN migration takes place.