Market Insight

Brocade—the Puzzle Has Been Solved, Mostly

April 03, 2017  | Subscribers Only

Matthias Machowinski Matthias Machowinski Directing Analyst, Enterprise Networks and Video

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Last November, Broadcom announced that it would acquire Brocade for $5.9B and subsequently divest Brocade’s IP networking business (WLAN, Ethernet switches, routers, and networking software), only holding onto Brocade’s storage area networking (SAN) business. In November, we wrote that the spin-off “will put significant pressure on the IP networking business over the short-to-medium term” due to uncertainty over the new ownership. Our assessment proved true as Brocade’s IP networking revenue plunged 27% in its Q1 FY17 (vs the previous quarter) and was down 19% on a YoY basis (adjusted for the Ruckus acquisition) in market segments that experienced growth. Please log in to read the complete insight.

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