I think it expands the overall market.”īrocade and F5 refused to comment on the rumor. Kerravala says a lot of the market growth is going to be around software, but he doesn’t believe software ADCs will cannibalize hardware sales: “I think software opens up new use cases - developers could use it to see how things work, or I can expand into another part of my data center without buying more ADC hardware. The deal is worth US12.75 per share in an all-cash transaction valued at approximately 5.5 billion, plus 0.4 billion of net debt. Brocade is a provider in Fibre Channel storage area network switching and IP networking. have entered into a definitive agreement under which Broadcom will acquire Brocade. “The only way it helped us was to say, ‘Okay teams, now you configure and manage your own virtual load balancers.’ They weren’t too happy with that because it added complexity.” ( See the full explanation/interview here.)ĮBSCO eventually turned to a software ADC from Avi Networks that integrated neatly with the company’s private cloud, simplified the job of automation, and “wound up being considerably cheaper than our existing solution because it didn’t rely on proprietary hardware we are just paying for the software, and it is scaling on the same x86 virtualization platform all of our systems are running on.” Broadcom Ltd and Brocade Communications Systems, Inc. That proved too complex for developers, so the company considered a VM version of the same product: “All it did was shift the problem,” says Enterprise Architect Nate Baechtold. But the chipmaker made public its intentions to sell Brocade's networking business.EBSCO Information Services is one company that tried to use an existing hardware based ADC when it moved to an OpenStack environment and started down the path to automation. This report follows the announcement late last year of Broadcom intending to acquire Brocade for $US5.9 billion to broaden its storage business. However, the report also stated that the unidentified sources said Arris is “just one of the companies that Brocade is speaking to about the divestiture”, and that “there is no certainty its bid will prevail”.Ī decision is anticipated by the end of January, when more light may be shed on the future of Brocade’s entities, including Ruckus Wireless. It also highlights that the sources revealed Arris is not in talks to purchase any other divisions of the Brocade business, which includes software, datacentres, and switching.Īrris is a US-based company that makes electronics used by cable and satellite companies and according to Reuters, has a market capitalisation of $US5.53 billion, and purchased its British rival, Pace, for $US2.1 billion late last year. “Arris is looking to buy Brocade's network edge business, which is the most valuable of the assets being sold, according to the sources,” the report indicated.
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