Ruckus Wireless Inc
) recently completed the acquisition of YFind Technologies Pvt.
Ltd. for an undisclosed sum. Through this acquisition Ruckus
intends to offer value-added services to its customers by
providing them a comprehensive suite of location-based services
(LBS). LBS combines software having location intelligence and
indoor positioning location analytics.
Benefits from the Acquisition
Privately-held YFind Technologies is a leading provider of
indoor positioning and real-time location analytics. Therefore,
the combination of Ruckus' unique, Smart Wi-Fi technology with
YFind's LBS and analytical capabilities will help the former
offer the improved LBS. Ruckus will also get to convert its Smart
Wi-Fi networks into location-intelligent infrastructures.
LBS is a convenient program offered by telecom operators and
internet service providers to the retail, hospitality, education
and healthcare markets primarily to understand the demographic
trend. LBS identifies the geographical position of a user and
provides information specific to the location.
The service providers need to constantly stay in tune with the
traffic and the sales generated. In short, they need to
understand the complex indoor environments, study footfall trends
and enable context driven content delivery. With the help of LBS
technology, Ruckus intends to provide the intelligence needed to
meet these demands.
LBS's Market Trends
A research & advisory services firm Convergence Catalyst
projects the LBS global market to grow to $10.3 billion in 2015
from $2.8 billion in 2010. The firm also noted that America
boasts a 51% LBS market share, followed by Asia Pacific that
commands a 25% share.
Another firm, Global Industry Analysts (GIA), predicts that
the LBS market will surge to $21.14 billion in annual revenues by
2015. A report, titled 'Location Based Services (LBS): A Global
Strategic Business Report' by GIA mentioned North America to be
the biggest regional LBS market registering service revenues of
Popularity of LBS
The growing popularity of LBS is further highlighted by the
fact that bellwethers are acquiring or expanding their
) bought WiFiSLAM and
Cisco Systems, Inc
) acquired ThinkSmart;
) augmented their indoor mapping services. Also, more and more
companies are delving into this indoor location technology.
The report from GIA opined that increasing consumerism and
mobile phone user base has augmented the requirement for tracking
and monitoring. It is thus can be said that LBS stand a great
chance to capture the increasing opportunity. Providers will
surely look to cash in on this opportunity and Ruckus's YFind
acquisition is a move in that endeavor.
Aruba Networks, Inc
) had acquired indoor location startup Meridian in May, 2013.
) also has a decent presence in the LBS market and the company
claims to command a 40% market share.
Thus, while there is a vast business opportunity for Ruckus in
the LBS segment, it also has to deal with increasing competition
from heavyweights, its peers as well as start ups.
Ruckus currently has a Zacks Rank #2 (Buy).
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