Arbor Networks Acquisition Is a Tale of Two Cities—and a Strategic Move Into Wider World of Wireless

quality of its team. David Munson, the dean of engineering at the University of Michigan, calls Jahanian “a terrific entrepreneur.” He adds that the professor “was instrumental in building Arbor Networks into a premier network security provider.”

For his part, Jahanian sees the Danaher acquisition as a natural next step in Arbor’s broader evolution. “It’s another inflection point,” he says, and it will help the firm “expand into a new emerging market.”

That market is wireless and mobile. Up to this point, Arbor has been more focused on Internet service providers. But as Doherty explains, voice, data, and other communication streams (including WiMax and LTE broadband access technologies) are being woven together into an “all-Internet-protocol fabric”—and that means these streams, which used to run separately, now need a unified security system. Jahanian sees that as a “terrific opportunity for the company.”

As for Arbor’s continuing impact on the Michigan and Massachusetts innovation communities, Doherty didn’t give many specifics. But he said the company will “continue to grow our presence in Ann Arbor and in Chelmsford.” Jahanian calls Arbor Networks “a wonderful example of how the innovation economy can work when you have universities and entrepreneurs aligned behind great technology,” and how “research funded in universities can result in a powerful engine for economic growth.”

Meanwhile, U-M’s Munson says he is “heartened that the acquisition of Arbor Networks calls for Arbor’s research and development activity to remain in Ann Arbor. This is a cornerstone for Ann Arbor’s rapidly developing software and networking industry.”

Looking back, it’s certainly interesting to see that Arbor’s two-pronged geography approach was successful. We’ll see if Danaher can keep it going—and help the company achieve even wider impact.

Author: Gregory T. Huang

Greg is a veteran journalist who has covered a wide range of science, technology, and business. As former editor in chief, he overaw daily news, features, and events across Xconomy's national network. Before joining Xconomy, he was a features editor at New Scientist magazine, where he edited and wrote articles on physics, technology, and neuroscience. Previously he was senior writer at Technology Review, where he reported on emerging technologies, R&D, and advances in computing, robotics, and applied physics. His writing has also appeared in Wired, Nature, and The Atlantic Monthly’s website. He was named a New York Times professional fellow in 2003. Greg is the co-author of Guanxi (Simon & Schuster, 2006), about Microsoft in China and the global competition for talent and technology. Before becoming a journalist, he did research at MIT’s Artificial Intelligence Lab. He has published 20 papers in scientific journals and conferences and spoken on innovation at Adobe, Amazon, eBay, Google, HP, Microsoft, Yahoo, and other organizations. He has a Master’s and Ph.D. in electrical engineering and computer science from MIT, and a B.S. in electrical engineering from the University of Illinois, Urbana-Champaign.