Dell Oro Group take on Foundry and Brocade merger: Datacenter requirements are evolving towards converged fabric

Dell'Oro Group - Foundry Networks - Brocade
Networking market research firm, the Dell'Oro Group, provided their insight regarding the recently announced Brocade/Foundry merger:

Alan Weckel
"Brocade’s recent purchase of Foundry is an excellent example of two companies combining to address the opportunities of a converged fabric in the data center," said Alan Weckel - Dell’Oro Group Senior Analyst for Ethernet Switch and IP Telephony Enterprise Market Research. "We continue to see the market segment into more specialized products focused on unique network areas."

"First, datacenter requirements are evolving towards a converged fabric such as the ability to combine Ethernet and Fibre Channel." "Second, the wiring closet continues to push VoIP and WLAN requiring PoE, QoS, and robust security." "This divergence in product requirements is making it difficult for vendors to develop a product for one segment and then modify it slightly to address another market." "Hence some smaller vendors will be required to pick one area of specialization or to partner in order to offer a complete solution that covers the unique characteristics from the wiring closet edge to the data center core." "In the case of Brocade, they decided to acquire Foundry instead of partnering to increase the breadth of its product portfolio."

Bobby Johnson
"Brocade and Foundry bring complementary strengths to the table in terms of technology leadership, product portfolio, and the ability to capitalize on key market trends," said Bobby Johnson - CEO and President of Foundry Networks. "Together we believe we will be a much stronger entity with a compelling value proposition to compete more effectively in, and across, our respective markets."

Enjoy the Foundry Slide Show Presentation of the Foundry/Brocade deal. The New Brocade: End-to-End Networking Solutions Provider

Summary: Brocade's Acquisition of Foundry
View the financial results of Foundry Networks for its second quarter which ended June 30, 2008.

Michael Klayko
"We believe the industry is at an inflection point in the way enterprise and service provider networks and data centers are being architected," said Mike Klayko - Chief Executive Officer of Brocade. "Customers are demanding networking solutions that meet the needs for today and can address the many advances in network convergence that are still ahead."

"Brocade has taken an important step through this acquisition in developing a networking infrastructure strategy that will serve as the foundation for capitalizing on these dynamic opportunities." Enjoy the Brocade Slide Show Presentation of the Brocade/Foundry deal. Summary: Brocade's Acquisition of Foundry

Summary: Brocade's Acquisition of Foundry
View the financial results of Brocade for its second quarter which ended April 26, 2008.

Additional Resources: Listen to webcast of Brocade/Foundry merger announcement (registration required) View webcast transcript of Brocade/Foundry merger announcement Listen to podcast: Brocade: Gunning for Cisco - interview with Ian Whiting, Vice President and General Manager, Data Center Infrastructure at Brocade. Wall Street Shaves 21% Off Brocade Stock Price (While Foundry Soars 32% Higher):

Wall Street Shaves 21% Off Brocade Stock Price
In the opinion of yours truly, the "smoking gun" that has motivated Wall Street to be so negative in driving down the Brocade stock price can be found within the merger announcement webcast transcript detailed below: Jayson Noland - Robert Baird & company — Analyst "Thank you." "First, Bobby congratulations and what would your role be in the new company?" -------------------------- Bobby Johnson - Foundry Networks, Inc. — CEO "So, we have just concluded the deal at about 1:00 pm this afternoon." "Let me, let me be clear; Brocade has acquired Foundry." "Mike Klayko is the CEO." "My role will be to support Mike, and we’ll work over the next few months to define my ongoing role." "I love this technology, and for people that may not know the history here, Brocade and Foundry are more or less siblings." "Seth Neiman of Crosspoint was the initial seed money for both companies." "And so we’ve kept in touch with each other throughout the years, and this was a great opportunity for both sides." "So my role is still undefined." "We’ll work on that, but I’m committed to making this happen, and I’m committed to helping Mike and both teams." -------------------------- Mike Klayko - Brocade Communications Systems, Inc. — CEO "Thanks Bobby." "Let me add one other piece of color to the point that we’ve been working up to the minute." "We’re going to have this dialog." "Anybody that’s got 30 years of experience, obviously we came up with roles, and there’s more things to do than there are hours in the day, so what we have to do is come up with something that keeps him within 24 hours a day of occupying his time, so there’s gong to be lots of opportunities." -------------------------- Jayson Noland - Robert Baird & company — Analyst "Bobby has quite a following in the networking world, and obviously it would be great to be able to retain him, as well as the Foundry sales force." -------------------------- Mike Klayko - Brocade Communications Systems, Inc. — CEO "Well, we agree." -------------------------- Wow! After reading above that Bobby Johnson has no defined role in the "new Brocade," yours truly can't help but believe that Bobby Johnson is cashing out and moving on! Related story: Initiative - try to challenge our Unified Fabric and Data Center 3.0 Vision Cisco certainly does not appear too worried about the Brocade/Foundry merger announcement!

Do YOU agree with yours truly that Bobby Johnson will bolt from the new Brocade after the merger?

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