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Jon Oltsik

What about Extreme Networks?

With all of the industry consolidation, Extreme Networks seems like a logical target.

By joltsik on Tue, 10/27/09 - 10:20am.
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First, full disclosure. I've worked with Extreme Networks (EXTR) for a long time. That said, I was saddened to see that the company announced a re-organization this week and laid off 70 people.

At this point, Extreme Networks' market cap is less than $200 million so the obvious questions is: Why isn't someone buying the company? I wish I knew because it seems like a steal to me. Yes, Extreme Networks is small compared to other vendors but the company has a strong operating system, core to edge networking coverage, and some unique functionality that eases network operations. Oh and by the way, Extreme Networks offers high-end networking gear at near commodity networking prices.

The logical suitor in my view is HP (HPQ). HP ProCurve networking has tons of momentum but lacks a high-end aggregation and/or core switch. Purchase Extreme Networks and that problem goes away.

In spite of the setback, Extreme continues to do well in vertical industries like education and hospitality. I hope that Extreme can ultimately benefit from the re-organization and emerge stronger or end up somewhere where its innovation and feistiness are appreciated.

good call... thats why HP

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By Anon (not verified) on Wed, 11/11/2009 - 4:57pm.

good call... thats why HP just grabbed 3COM

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About Networking Nuggets and Security Snippets
Jon Oltsik is a principal analyst at Enterprise Strategy Group responsible for the networking and security services at ESG. Prior to joining ESG, Jon was the founder and principal of Hype-Free Consulting. Mr. Oltsik previously served as VP of Marketing & Strategy at GiantLoop Network where he managed all marketing activities and defined the company’s strategic vision. Jon was also a Senior Analyst at Forrester Research where he covered a wide range of infrastructure and IT topics. In this role, he was frequently quoted in business journals, including the Wall Street Journal, Business Week, and the New York Times, and was also the recipient of a prestigious "best research" award for his breakthrough report, "The Internet Computing Voyage."