This solution is very cheap and ideal for home labs or small businesses that want to be able to use the very secured 802.1X authentication for their Wi-Fi networks.
- 1x virtual machine running Kali Linux 4.0
- 1x Cisco router
- 1x Cisco WLC 2504 controller
- 1x Cisco AP 1702
- 1x Aruba controller 651
- 1x Aruba AP 105
- 1x MacBook Air running MacOS 10.11.1
- 1x Asus Laptop running Windows 8
The following drawing explains how the 802.1X authentication using EAP-PEAP[EAP-MSCHAPv2] works:

setup_freeradius_on_kali_linux_-_slides.pdf |
Cheers'
François Vergès
Useful links / Sources:
https://www.kali.org/
http://freeradius.org/doc/
https://www.openssl.org/docs/manpages.html
CWSP Official Study Guide to understand 802.1X in a Wi-Fi environment