Shake-up to continue in the WLAN sector

The WLAN sector is maturing, and one aspect of maturation is what farmers call the thinning of the herd: As a technology shows promise, many companies and investors flock to it, hoping to make a profit. This process, however, soon creates a glut: there are too many companies competing for a growing but not-growing-fast-enough market. Bermai and Legra were but two promising start-ups which closed their doors in 2004. ReefEdge is teetering on the brink: in late November it announced a round of layoffs as it was trying to reorient its corporate focus. The company may well entertain being acquired in 2005. Wireless switch maker Aruba lost its CFO just as the company prepares for an IPO. The loss of its CFO follows Aruba losing a central regional manager and investor, Walter Foss. Earlier in 2004, Aruba's cofounder and former CEO left the company. The company says that these changes are part of Aruba's plan to become more Wall Street-friendly. We expect more companies to close their doors in 2005 -- either go belly up, or be acquired (whole, or their IP) by larger competitors as the industry consolidates.

[Fierce Wireless]