Closer Look: Brocade's Deal for Foundry

Here's a closer look at analyst reaction to Brocade Communications (BRCD) plans to acquire Foundry Networks for $3 billion.

Rich Miller

July 24, 2008

1 Min Read
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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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