HPE acquires Athonet to expand wireless connectivity leadership

HPE (NYSE: HPE) today announced the acquisition of Athonet, a provider of private cellular network technology that provides mobile core networks to enterprises and communications service providers, to expand its edge-to-cloud connectivity capabilities. The acquisition will combine HPE telecom services with Aruba’s existing network portfolio, bringing HPE to the forefront of the growing private 5G network market, which IDC predicts will exceed $1.6 billion by 2026.

Headquartered in Vicenza, Italy, Athonet has over 15 years of experience in providing 4G and 5G mobile core network solutions to users and partners around the world. As an award-winning technology pioneer, Athonet has over 450 successful customer deployment cases in a variety of industries, including leading mobile operators, hospitals, airports, ports, utilities, governments and public safety organizations.

As enterprises face more and more complex connectivity challenges across large and remote sites, private 5G networks can provide network services with high coverage, high reliability and high mobility in campus and industrial environments. At the same time, private 5G networks are also an effective supplement to cost-effective, high-capacity Wi-Fi network connections. By integrating Athonet's advanced technology into HPE Aruba's network product portfolio, HPE can not only provide private network function services directly to enterprises, but also allow communications service providers (CSPs) to quickly deploy private 5G networks for their customers.

Tom Craig, vice president and general manager of HPE’s Communications Technology Group, said, “Telecom customers are looking for simpler ways to deploy private 5G networks to meet their growing expectations for connecting to the edge. At the same time, enterprise customers are also demanding customized 5G network experiences with low latency, no interference, wide coverage and strong security across campus and industrial environments to complement their existing wireless networks. With the acquisition of Athonet, HPE has one of the most complete private 5G network and Wi-Fi product portfolios for communications service providers and enterprise customers, and we will also provide customers with a new private 5G network experience in the form of network as a service through HPE GreenLake.”

HPE expands private 5G network solutions for telecom and enterprise customers

HPE will integrate Athonet's technology into its existing communications service provider and Aruba network enterprise products to create a private network portfolio that can accelerate digital transformation from edge to cloud. The network portfolio will bring the following value to customers:

Enhanced private networks by combining the high capacity of Wi-Fi with the wide coverage and mobility of 5G networks

Accelerate the deployment of private 5G networks, help telecom B2B teams and enterprise users improve agility, and stimulate enterprise innovation

Providing differentiated 5G network and Wi-Fi services to help the telecom industry develop new revenue sources

Based on HPE GreenLake, it provides telecom and enterprise customers with a pay-as-you-go model to help maintain revenue and cost balance and reduce the risk of entering new markets

Leverage 5G network orchestration and zero-touch automation to manage operational complexity and cost-efficiency, delivering new workloads from edge to cloud

With billions of dollars in investment in the 5G network market, communications service providers are looking for simpler ways to meet the changing needs of customers and drive new B2B revenue by deploying edge computing and private 5G networks. As one of the most widely used communications portfolios on the market, HPE's telecommunications service portfolio has been further strengthened with the inclusion of Athonet's software. The portfolio serves more than 300 customers in 160 countries and connects more than 1 billion mobile devices worldwide. Based on existing private 5G network solutions, HPE will provide communications service providers with enhanced products to support private 4G and 5G networks, while providing telecom-grade orchestration and automation capabilities. These features will help companies launch new B2B services to meet customers' growing expectations for connected edge networks.

Gianluca Verin, CEO and co-founder of Athonet, said: "Athonet was born to provide customers with private 4G and 5G network solutions that deliver carrier-grade reliability and performance to meet their growing and more challenging connectivity needs. We are very pleased to join HPE and believe that with Athonet's highly specialized technical team, the two parties will work together to create more products and services for the rapidly growing private 5G network market and build on HPE's strategy to become the industry's leading edge-to-cloud solution provider."

Private 5G networks provide enterprises with new ultra-secure, easy-to-deploy and manageable technical capabilities for highly specialized applications such as robotics and industrial IoT, data networks and pipelines, and security system facilitation. The acquisition of Athonet strengthens Aruba's product portfolio at the edge of connectivity, bringing unique and highly sought-after technical capabilities that enable Aruba to deliver a fully integrated Wi-Fi and private 5G network portfolio. At the same time, integration with Aruba Central will allow network administrators to manage Wi-Fi and private 5G networks through a single control platform and gain AI-based insights, workflow automation, and strong security.

Athonet's private 5G network products will be provided through HPE GreenLake, HPE's edge-to-cloud service platform. The Wi-Fi and private 5G network costs will be merged into the monthly subscription fee, and customers do not need to pay additional costs. Flexible consumption options, including HPE's Network as a Service (NaaS), mean that private 5G networks can be deployed with lower risk, less upfront investment, and on-demand expansion.

HPE portfolio integration and time to market

HPE will integrate Athonet's solutions with its existing communications software assets and plans to provide services to customers after the transaction closes. At the same time, HPE will integrate these solutions with the Aruba network portfolio in the near future. The transaction is expected to be completed in the early third quarter of HPE's fiscal year 2023, and the specific listing date depends on regulatory approval and other customary closing conditions.

¹ Source: IDC, "Worldwide Private LTE/5G Wireless Infrastructure Forecast, 2022-2026", Doc ##US48891622, March 2022, Enterprise Core (EPC/vEPC and 5G Core) revenue is expected to exceed $1.6 billion.