Brocade results show its business flatlining with steady-ish revenues and profits, and growth dependent on a recovering market but no technology rabbits to pull out of its hat and drive growth higher. Fourth quarter fiscal 2013 revenues were a chunky $559m, 3 per cent down on the same quarter last year, with profits of $64m, 19 …
Getting bought is not an option as neither IBM nor HP would tolerate this - relabeled Brocade hardware is central to both companies.
Buying Mellanox -albeit cool- would just give them another niche unless the could add mellanox IB technology to their etherstuff. otoh, the ethernet market is corned by cisco, so it would not make sense.
They might concentrate on "anything but ethernet" with mellanox, but.. dunno, is this worth it? Mellanox would not come cheap.
Dell also uses Brocade parts in their blade chassis and older versions of the Active System were sold with Brocade FC switches as well.
Mellanox won't come cheap and Oracle and IBM might be a bit pissy about that purchase as they both use Mellanox products as well.
Brocade only really works if it stands on it's own as far as it's core FC business goes. It's ethernet business doesn't have the strength to sustain it. Maybe an HBA company and getting into the flash caching game?
InfiniBand is not an escape route
Mellanox is trying to convert itself to an Ethernet provider with RoCE. I think the writing is on the wall for both FC and IB, as Ethernet surges, and as blockIO gives way to object access modes. Supporting object storage is the only way Brocade could move into a growth area.
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