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This is the first article we host about Meru Networks, by Paulo Santos.

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It’s never easy for me to talk about companies losing money. The one reason for a company to exist is for it to make money. So when a company is losing money, there’s the very real risk that it’s entirely worthless. However, sometimes losing money can be temporary. Upon looking at Meru Networks (MERU), I believe such might be one of those times.

The business

Meru Networks sells enterprise-class wireless LANs. Sort of a souped-up wifi able to handle high user density environments. It sells products for environments where a regular wifi hotspot, or a combination of hotspots, would fail to provide decent coverage. As Meru Networks puts it:

Meru wireless LANs are specifically designed for environments where high-density wireless traffic is generated by business-critical applications. Such conditions are accelerated in places where the bring-your-own-device (BYOD) trend is in full force and weak networks are unacceptable: hospitals and airports, universities and schools, hotels and other enterprises.

With the explosion of mobile devices, more and more locations are in need of such solutions. To try and get by without a solution specific for high-density usage will quickly lead to an unacceptable drop in service levels. Meru explains how that happens when the typical legacy wifi solution employing microcells is applied. This solution leads to blind spots in the coverage as well as overlapping and interference between cells (SourceMeru presentation):

channel interference

Meru solves this by deploying a single channel over the entire area, while virtualizing the entire network. The end result is better coverage with fewer blind spots as well as no overlapping cells.

rf virtualization

 

Since the benefits of these solutions are particularly evident in high usage density environments, Meru has reorganized itself to target specifically those kinds of situations benefiting the most. It has thus setup itself to go after business opportunities in education, hospitality and healthcare, which it believes constitute 43% of the wireless access TAM.

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Original article can be found here