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Broadcom has announced a definitive agreement under which it will acquire Brocade merging networking with storage competency to build stronger company. Broadcom believes the SAN business is a strong complement to its portfolio of enterprise storage and networking solutions, also with the grow of converged storage solutions.
Due to competitive overlaps, Broadcom plans to divest the IP Networking business. Brocade’s intention is to assist Broadcom in finding a buyer that will continue to invest in the strong portfolio that Brocade created.
Considering the leadership of Brocade in SAN FC environments and the multiple partnership with OEM hardware vendor will be interesting see how the new company will grow.
Also will be interesting see the reaction of both Qlogic and Emulex with historical business in the SAN FC world (for server host bus adapters) but also in competition with Broadcom (and Intel) on the networking and CNA network cards.
Please access the FAQ document and the Press Release which will provide more details on today’s announcement and do not hesitate to contact your Brocade account manager if you have additional questions.