Cloud computing has become all the rage recently. In response, Aerohive Networks, a wireless LAN supplier, acquired privately-held Pareto Networks, which had developed Network as a Service (NaaS) offerings.Pareto Networks, located in Sunnyvale, Calif., developed cloud services that support routing, SSL VPN, 3G/4G WWAN, CloudProxy (N-way proxy functionality), and cloud provisioning functions. Aerohive moved into the cloud arena in October 2009 with its HiveManager Online solution. The vendor plans to integrate Pareto's routing and Virtual Private Network services into Aerohive's operating system (HiveOS) and Cloud Services Platform (HiveManager Online) later this year.

Movement to the cloud has been evident in areas, such as software, but has been slow to evolve in the networking space. Wireless LAN suppliers, such as Aerohive, have been at the forefront of this movement.

However, competition in this space is expected to increase in the coming months. Cloud services are natural extension for traditional telecommunications providers, such as AT&T and Verizon. In addition, network equipment vendors, such as Cisco and HP, are expected to focus more on this space as the market evolves. Aerohive is moving in the right direction, however, time will tell how successful its cloud initiatives will be.