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HP, Cisco Could Buy Brocade Soon

The competition amongst major players in the networking equipment market is likely to go up in any of them manage to purchase Brocade, a company known for its robust storage and networking solutions.

Amongst the names potential suitors doing rounds, Hewlett Packard (HP) is been seen as a front runner while some have suggested that Oracle too may in the race after its purchase, earlier this year, of Sun Microsystems.

However, Larry Ellison of Oracle has been quick to squash rumours at the company’s shareholder meeting by mentioning “We are not buying Brocade”.

If HP does manage to get hold of Brocade it may change the competitive landscape in the market where Cisco and HP are major rivals with both trying their best to draw customers by offering data center systems which include computing networking and storage.

Industry watchers say that if Brocade goes to HP then it is likely bring several technological offerings for HP and make it more attractive to large enterprise customers.

Some analysts are of the opinion that while Oracle does intend to develop a more extensive product line that combines both hardware and software, it currently is not very keen on the kind of portfolio Brocade offers as it digresses from its core business strategy.

Our Comments

The recent wave of mergers and acquisition that has swept the markets is a clear sign that many companies believe that prices have hit a rock bottom and will only go up from there. HP hasn't acquire any companies lately with the last one, EDS acquired for $14 billion last year.

Related Links

Will Brocade find a buyer now?

(Reuters)

Ellison Dismisses Talk of Oracle Buying Brocade

(Wall Street Journal)

Brocade Buy Would Heighten HP, Cisco Rivalry

(Information Week)

Brocade: Buyer Would Likely Pay $13/Shr Or More, Bernstein Says

(Barrons.com)

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.