NEW YORK (TheStreet) -- Back in June, shortly after Aruba Networks (ARUN) was putting the pieces back together while recovering from "Hurricane Cisco" (CSCO), I argued there was considerable value left in the stock. Too much was being made of a near-term hiccup. It wasn't a popular opinion. But it was a point that needed to be driven home.I won't deny the legitimacy regarding concerns about Aruba's long-term health in the wireless local-area-network (WLAN) market. That Cisco owns more than 50% share of that industry is a big deal. But what transpired three months ago with Aruba losing as much as 44% of its value can only be described as pure panic selling and a gross overreaction. In the article in June I said the following: "While I won't begrudge investors for having bailed on the stock, whether to lock gains or to cut their losses, this may prove later to have been an erratic move. For new investors, though, that are looking to 'test Aruba's waters,' the question to ask is, how much of Aruba's struggles has more to do with poor sales execution versus the idea Aruba might be losing both market share and its 'best of class' status." softer-than-expected margins. For Aruba, which is working to build credibility, margins are always going to be an issue. Fairly or unfairly, Cisco's presence and its far-reaching capabilities is always going to be tied with Aruba's long-term prospects. Even so, I don't think we should assume that customers are going to willingly bypass Aruba's best-of-breed WiFi business, in favor of discounted alternatives. Right now, given the tough IT spending environment, customers may look to save. But this level of underinvestment won't last indefinitely, not if enterprises truly care about competing.
The good news is it looks as if Aruba's management is finally beginning to address Aruba's competitive leverage in a more aggressive manner, including building on the company's advantages in price and performance. I'm also encouraged by Aruba's new investments in sales and marketing. I believe these new initiatives should help consumers better differentiate the performance improvements of Aruba's products versus those made by Cisco and, to a lesser extent, Juniper ( JNPR). Follow @saintssense This article was written by an independent contributor, separate from TheStreet's regular news coverage.