AEROHIVE Mike Allers 404.861.7784 mallers@aerohive.com © 2011 Aerohive Networks CONFIDENTIAL Mobility Changes Everything © 2011 Aerohive Networks CONFIDENTIAL Visionary Network Infrastructure Company › Cloud-enabled, Controller-less Wi-Fi, Routing, VPN, Switching › 16,000 Customers (1,600+ in Q2/14) HiveManager OS Cloud Services Platform Public or On-Prem › HIVE – Listed NYSE › 550+ Employees › Most Visionary Vendor - Gartner MQ Wired & Wireless LAN 2014 › Deloitte - #5 of 500 NAM “Fastest Growing Companies › Apple Partner Switches APs & Routers › iBeacon #5 of 500 “Fastest Growing” “Most Visionary” Apple Partner © 2011 Aerohive Networks CONFIDENTIAL 3 New AND Existing Customers Driving Rapid Growth Total Customers YearQ1-Q3 over Year – 1H 2013 2013Growth YoY Growth 60% 50% 40% 30% 20% 10% ol a ot or a M Ar ub o* Ci sc ke t M ar o Ci sc ck us Ru ro -10% Ae 11,609 Customers hi ve 0% -20% -30% © 2011 Aerohive Networks CONFIDENTIAL Source: Infonetics, Aerohive 4 Our Customers © 2014 2011 Aerohive Networks CONFIDENTIAL 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 onpremises-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. © 2011 Aerohive Networks CONFIDENTIAL 6 Bob Knows Best Legacy Enterprise Networks Architected for Basic Connectivity Rigid Centralized Control & Enforcement Employee Guest Employee Employee Employee Employee Employee Guest Guest ENTERPRISE DATA CENTER © 2011 Aerohive Networks CONFIDENTIAL ENTERPRISE CLIENTS 8 Mobility Revolution Breaks Legacy Enterprise Networks MORE DEVICES Employee MORE DATA Employee Guest Employee MORE USERS Employee Guest Employee MORE CLOUD SERVICES ENTERPRISE DATA CENTER Employee Guest ENTERPRISE CLIENTS MORE LOCATIONS © 2011 Aerohive Networks CONFIDENTIAL 9 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 No single point of failure Local data forwarding..what do you lose? Self healing mesh architecture No controller tax Scalability and future proofing No feature licensing Start small and grow Distributed intelligence Controller capacity? Feature licenses? (FW, RADIUS, CWP, BYOD, Bonjour GW) Performance Data bottlenecks No data bottlenecks QoS, Spectrum analysis..$$$ Service Level Agreements QoS & Spectrum analysis included © 2011 Aerohive Networks CONFIDENTIAL How does it work? Architectural Alternatives Central Vs. Distrib. Control10 How does it work? Wireless Network Wired Network Reporting Policy Configuration Heat Maps SLA Compliance HiveManager NMS With anetworking second fast Mesh and best AHiveAPs single HiveAP byHiveAP, itself acts as are best discovered, Dynamic path Cooperative Control, With roaming, Asstateful more HiveAPs are apolicy full-featured enterprise class path forwarding can be is pushed and the forwarding and stateful Cooperative RF power access point can securely clients cooperative RF, station added, coverage, used for extra resiliency WLAN is operational roaming provides levels minimize Identity-based security, including stateful and seamlessly roam load balancing and reliability and backhaul and reachability inspection FW, rogue detection & mitigation HiveManager iswithout a single mgmt resiliency a interface single co-channel interference across the WLAN seamless resiliency are bandwidth increases for configuration, OS updates & local Airtime Scheduling, SLA compliance and Dynamically reroutes around point of failure monitoringimplemented of thousandsat devices forwarding edge enabled failures ofthe © 2011 Aerohive Networks CONFIDENTIAL 11 Application Visibility See, Manage How the Network is Really Used © 2014 Aerohive Networks 12 Control at Scale You Must Inspect Packets in Real Time To Make Automated Policy Decisions Inspecting Packets takes PROCESSING! Processing packets real-time takes POWER 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! © 2014 Aerohive Networks Central Controller Architecture Distributed Architecture Application Processors in 500-AP network Disruptive Price Point Aerohive List Price vs. Cisco List Price Highly Distributed Large # Regional Sites 1,000 Sites, 3,000 APs1 Centralized Campus 200 Sites, 12,000 APs2 10 Buildings, 5,000 APs3 $35 $8 $8 $30 Millions $5 $4 $25 Millions 58 % less $6 $20 $7 60 % less $15 $3 $6 Millions $7 26 % less $5 $4 $3 $10 $2 $2 $5 $1 $- $1 $- 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) © 2011 Aerohive Networks CONFIDENTIAL 14 Proven Customer Success 1,700+ restaurants 200+ schools and administrative buildings 12 hospitals, 200+ clinics Simple and scalable management Wireless access for 176,000 students, 20,000 staff and teachers Visibility and control of medical applications Why Aerohive? Why Aerohive? Why Aerohive? Simplicity © 2011 Aerohive Networks CONFIDENTIAL Scalability Security 15 Deploying for Density, Performance & AVC $100,000 802.11ac Deployment Comparison Density, Performance, Application Visibility and Control 120 111 Access Points 100 80 60 50 50 More Clients More Throughput More Processing 40 20 0 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 © 2011 Aerohive Networks CONFIDENTIAL 16 BREAKING NEWS – Aerohive Voted Best Value in Wired/Wireless LAN Winner of the Trend Setter Award © 2011 Aerohive Networks CONFIDENTIAL 17 Start Small And Grow Disruptive Go-to-Market Model Easy to Get Started Easy to Expand • Easy evaluation • Additional locations • Easy installation • Additional infrastructure • Effective for large and small customers • Additional applications 56% 1 of business from repeat customers 1. Based on Company prepared analysis of bookings from Q1 2013 – Q4 2013. © 2011 Aerohive Networks CONFIDENTIAL 18 Target Customer: Significant Market Opportunity and Competitive Advantage Seek executive exception Fortune-like Sell to this broader audience who will use our solution “as is” Commercial Upper Midmarket Retail Healthcare D. Enterprise Education Lower Midmarket SMB © 2011 Aerohive Networks CONFIDENTIAL Primary sales focus & marketing message • Focused product development • Focused marketing content & demand gen • Channel can be made more self-sufficient Sell to audience who need & value our enterprise features Not a focus (avoid) 19` The Midmarket Opportunity NATIONAL CENTER FOR THE MIDDLE MARKET MIDDLE MARKET SMALL BUSINESS <$10M - <$1B BIG BUSINESS <$10M ANNUAL REVENUE <$1B ANNUAL REVENUE 195,000 ANNUAL REVENUE ~6M BUSINESSES ~2,000 BUSINESSES the US Midmarket is the © 2011 Aerohive Networks CONFIDENTIAL 4 BUSINESSES th largest global economy 20 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 © 2011 Aerohive Networks CONFIDENTIAL Thank you! © 2011 Aerohive Networks CONFIDENTIAL