JDSU acquires Arieso for $85 million, adding RAN smarts to core solutions

JDSU acquires Arieso for $85 million, validating customer-centric SON vision, and importance of network-wide optimisation.

Network test and performance assurance company JDSU has acquired UK-based network optimisation company for $85 million.

David Heard, President of Communications Test & Measurement at JDSU, said that Aireso’s RAN optimsation and SON capabilities would extend his company’s test and assurance capabilities out beyond the edge of the core into the RAN.

“We are there to provide end to end network and service enablement solutions for carriers. There’s a huge push in the marketplace moving to small cell architectures and het net architectures, and in order to make those work RAN optimisation and SON have a clear place to enable that end to end visibility,” Heard said.

Heard added that with JDSU already number one in provisioning and assuring Ethernet services in the backhaul network, using Arieso’s solutions would enable it to get visibility out to the edge within its Packet Portal product. “We can not only see to the edge of the core but also to the RAN, the subscriber and ultimately what apps they are using,” he said.

Our customers said we needed this space filled. We looked at the competitive field and we picked the winner not just historically but in the next five years.

Staying independent
For Shirin Dehghan, founder and CEO of Arieso, it is validation of over a decade of work that started with the development of algorithms that would enable networks to use network data to become self optimising, and saw the company push the boundaries of network optimisation right to the user.

“Joining JSDU will allow us to extend the customer-centric, location-aware approach into the service and application domains, and the different connotations that has how for operators manage the network. By being able to bring that together with what we see at radio link will give us a unique position as the only company to provide that in neutral, vendor-independent way,” Dehghan says.

Stressing the desire to remain independent, Dehghan said she “could not comment” on whether other providers, including the major Network Equipment Providers, had been sizing up Arieso.

“Remaining independent to service multi-vendor and multi-technology environments is extremely important,” she added. Heard said that “carriers want that voice of truth in the network” that an independent provider provides.

“Our customers said we needed this space filled. We looked at the competitive field and we picked the winner not just historically but in the next five years. We think Shirin and her team are essential to that,” Heard added.

Neither party wanted to comment on how Arieso was valued, although the company has stated that it had “bookings” of $27 million in 2012. Heard said that the price reflected the ongoing strategic importance of Arieso to JDSU. The companies have been talking for around six months, and the deal was concluded over the past 90 days, Heard said.

Over its history Arieso has raised an undisclosed amount in funding from Qualcomm Ventures, Add Partners, Oxford Capital Partners and Carbon Trust. Dehghan said the acquisition “feels great”.

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