Last week, 20-somethings on Wall Street were buzzing about self-serving rumors that IBM would buy Brocade Networks. Well that didn’t happen (and I don’t think it ever will), but IBM did make a networking acquisition when it scooped up Blade Networks today. Terms of this deal were not disclosed.
Why Blade and not Brocade? Several reasons:
IBM is also probably anticipating a technology change in the HPC market as 40 and 100 gigabit Ethernet replaces Infiniband. Once again, Blade Networks will provide a turnkey blade solution for scientific computing and smart planet analytics. Blade also provides port and device consolidation for the burgeoning trend toward Ethernet-based storage.
I really don’t think that IBM wants a stand-alone networking business again, so an acquisition of Brocade, Extreme, Force 10, or even Juniper seems unlikely. With Blade, IBM can deliver a data center unit–complete with memory, processors, and networking/storage IO–in a tightly-integrated can. My guess is that IBM will sell a ton of these.
Tags: Blade Networks, Brocade Networks, Ethernet Storage, Extreme Networks, Force 10, HP, IBM, Infiniband, Juniper Networks Posted in Uncategorized | No Comments »
I’m here in the wasteful energy capital of the world, Las Vegas, for Interop. After back-to-back meetings and a few strolls across the show floor, here are some of my observations:
More tomorrow, I have to walk through the cigarette smoke Casino and meet some friends for dinner.
Tags: Arista Networks, Barracuda, Brocade Networks, Cisco Systems, Extreme Networks, ITIL Posted in Uncategorized | No Comments »
ESG’s research indicates that network security spending will be a focus area for 2010. Nearly half (48%) of midsized (less than 1,000 employees) and enterprise (more than 1,000 employees) organizations will invest in network security technologies like firewalls, IDS/IPS, gateways, and threat management solutions.
Yes, all of these technologies are important components of a defense-in-depth security architecture, but they are also quite mature. Why the network security renaissance? Because of:
With all of this activity, many networking vendors stand to benefit. Cisco and Juniper have great network security offerings that interoperate with their core networking products. HP will pick up TippingPoint with 3Com, but it needs to build an architecture story quickly. Brocade is working with partners and must continue to make this a core part of its value. Other networking vendors need to make similar moves.
Security gets more complex each day, so state-of-the-art devices may have a short shelf life. Expect continuous investment in network security moving forward. Networking vendors that recognize this will put themselves in the best position.
Tags: Brocade Networks, Check Point, Cisco Systems, Crossbeam Systems, HP, Juniper Networks, McAfee, Sourcefire, TippingPoint Posted in Uncategorized | 3 Comments »
Cisco is getting a lot of flack for billing its announcement yesterday as something that will “change the Internet forever.” I certainly understand this sentiment–will a new high-end core router, albeit with very impressive performance ratings, really change the Internet forever?
The answer is pretty simple: the router alone won’t change the Internet, but the underlying architecture? That’s another story.
Looking a bit below the surface, Cisco wants to build integrated network services that span the entire cloud. Internet data centers will be able to share network services like traffic management, prioritization, and security with service providers and cloud services with provisioning tools rather than complex networking devices. Want to burst processing or gain instant access to more storage? The network (in this scenario, the Cisco network) will help expedite and manage this. The fact that Cisco is arming CRS-3 with a networking positioning system should be a strong hint at where it ultimately wants to go.
Endpoints are also included in the architectural mix. PCs, smart phones, home routers, and even cable TV set tops will have “always-on” access to network services across wired and wireless public and private networks based upon business and security policies. Video and IP telephony instantly gain network priority over gaming or random web surfing. Even in your home, Cisco’s aim is to let you (and your service provider) create network policies for IP traffic, access control, and overall security.
To me, the “change the Internet” message is a one-two punch: embed the foundation technology everywhere and then provide Cisco’s strong enterprise and service provider customers with ample ways to use the services, improve communications and productivity, and make money.
Okay, so if this is a “seed and harvest” strategy, Cisco is still in the “seed” part of the process. Nevertheless, with Cisco UCS, CRS-3, set top boxes, VPN clients, etc., Cisco is planting a lot of seeds in a lot of places.
Cisco still has a lot of work ahead, but the roots are moving into place. I don’t think that the CRS-3 will impact Brocade, Dell, Extreme Networks, Force 10, HP, IBM, or Juniper overnight, but each incremental piece of the overall architecture makes the story more compelling for consumers, enterprises, and service providers. This where the “change the Internet” message becomes more real.
Tags: Brocade Networks, Cisco Systems, Cloud Computing, Extreme Networks, HP, IBM, Juniper Networks, virtualization, VMware Posted in Uncategorized | No Comments »
Last week I blogged about ESG’s new data on IT spending. Here is a bit more detail with regard to networking and security.
Nearly half of all mid-market (i.e. 100 to 999 employees) and enterprise (i.e. 1,000 employees or more) companies will increase their spending on network hardware in 2010. Top priorities include WLAN, IP telephony, and WAN optimization.
Fifty-five percent of mid-market and enterprise organizations will increase their spending on information security technologies. In this case, there are differences between the sectors: 48% of mid-market organization will increase their spending on information security technologies while a whopping 61% of enterprises will increase their spending on information technologies. Top priorities are network security, endpoint security, and messaging/web security.
What does this mean for the tech industry?
All in all, the data points to more positive momentum. A good year for vendors to re-engage with customers, build long-term partnerships, and help them move beyond the Status Quo.
Tags: 802.11n, Aruba Networks, Brocade Networks, Cisco Systems, Crossbeam Systems, endpoint security, HP, Juniper Networks, McAfee, network security, Palo Alto Networks, WLAN Posted in Uncategorized | 1 Comment »
I never really believed the rumors about HP buying Brocade. No disrespect to Brocade, I just thought that HP’s interest was really in Ethernet and IP networking and not Fibre Channel.
Will another company acquire Brocade? I can’t think of any obvious takers. The financial analyst rumors that Juniper would buy Brocade were ridiculous and obviously spread by someone who doesn’t know Juniper. IBM and Dell? I don’t think either company is gung-ho to get back into the networking game. Besides, both companies already have a Brocade OEM relationship in place.
Since Brocade is likely to remain independent, my advice would be to prepare for the long-haul by filling in product gaps with innovative startups and doubling down on its direct sales and distribution channel resources.
If I were in charge of M&A at Brocade, here are a few areas that would top my Christmas shopping list.
1. WLAN. Yes, I know Foundry has a wireless offering but I can’t imagine that it is selling a lot of equipment. If Brocade’s board can stomach another big deal, Aruba Networks would give the company an immediate WLAN leadership position where it could upsell other switches and routers. If Aruba is too rich for Brocade’s taste, Meru Networks has great technology and would probably sell for a song.
2. Network security. The pickings are slim here but one interesting play might be Crossbeam Systems. Crossbeam is one of a few high-end “Network Security Super Gateways” (NSSG) and has been very successful in the service provider and ISP markets. This could help Brocade in both areas and also bring an instant relationship with Crossbeam OEMs like Check Point and ISS (now IBM). This would also complement Brocade’s data center strength.
3. Security management. Like Aruba, Brocade could reach for the stars and pick up market leader ArcSight but this would cost over $1 billion. Again, if this price is a bit too scary, Brocade could choose networking-savvy Nitro Security or feisty LogRhythm. Any of these choices could give Brocade a Cisco MARS alternative.
4. WAN optimization/Application Delivery. Brocade has a pretty good portfolio of Application Delivery Controllers but it could become a market upstart by grabbing A10 Networks. A10′s economic value proposition could be extremely attractive for companies with large and growing web applications and A10′s founder has roots at Foundry. This could also leverage Brocade’s data center prowess. On the WAN optimization side, SilverPeak has some strength in data center-to-data center networking and is likely available.
5. Network management. Lots of niche players here, too many to name. My advice would be to work closely with CA.
Brocade could stand firm as it has the Fibre Channel market pretty much locked up but Cisco, Dell, and even HP have internal agendas that probably favor FCoE over time. Nevertheless, FC isn’t going away any time soon. This gives Brocade a data center beachhead to build from. In this regard, Crossbeam and A10 Networks would definitely be a short-term fit while the others mentioned above would provide instant diversification.
In my humble opinion a creative M&A or aggressive partnering strategy would be extremely useful for Brocade in 2010 and beyond.
Tags: Aruba Networks, Brocade Networks, CA, Cisco Systems, Crossbeam Systems, Dell Computer, HP, IBM, Juniper Networks, Meru Networks Posted in Uncategorized | No Comments »
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