Closer Look: Brocade’s Deal for Foundry

Catching up: Earlier this week Brocade Communications Systems (BRCD) announced plans to acquire Foundry Networks for $3 billion. This deal figures to be significant in the evolving battle for market share and mindshare in converged data center networks. Here’s a roundup of analysis from major tech sites:

  • PC World describest Brocade’s move as “a major strategic move in a brewing war over the future of data-center connectivity” that would “combine a maker of Fibre Channel SAN (storage area network) switches for data centers and a specialist in enterprise Ethernet LANs, two technologies that are headed toward a merger themselves.”
  • Search Networking examines whether the acquisition allows brocade to gain ground on Cisco Systems (CSCO), with one analyst opining that it “is likely to help Brocade remain a viable competitor in a two-company battle, but it’s not likely to dramatically change the balance of power in that battle.”

  • Network World looks at how Brocade’s deal for Foundry will “give Brocade a shot in the arm in the area of Fibre Channel over Ethernet (FCoE), a technology expected to make major data center inroads in the next few years.”
  • eWeek notes that the deal “is all about connectivity, and it is causing plenty of talk in the storage and networking analyst communities.” Also: the acquisition will allow Brocade salespeople to pitch one converged network featuring Fibre Channel SANs (storage area networks), IP 10 Gigabit Ethernet, or both, to potential customers.

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About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.