On September 25th, Brocade held its annual “Tech Day” conference. This yearly event is normally a pretty geeky show where the company talks about things like Ethernet Fabrics, software defined networks (SDNs), and other exciting topics like the transition from 16 Gig to 32 Gig FibreChannel. This year’s conference included its fair share of geek talk, but new CEO Lloyd Carney did take the time to give an update to the business and talk about the market at a high level.
There were several underlying themes to Mr. Carney’s keynote, but the main, high-level theme was focusing the company. Historically, Brocade has played in many markets across both the enterprise and service provider landscapes, particularly with its IP portfolio. Moving forward, the company will channel its resources almost exclusively into building products that can accelerate the transformation of the data center.
For many reasons, I think this is the right decision for the company. First, the data center is where the action is. Last month, I got the results back from a joint ZK Research/Tech Target Network Purchase Intention Study that indicated that the momentum we saw in the data center last year would continue into this year. Data center and wireless LAN were, by far, the two highest-rated networking initiatives for the upcoming year. Virtualization, SDNs and cloud computing have forever changed the data center network, and it’s this change that gives Brocade a shot at taking some share. One the principles by which I conduct my research is that significant share shift only occurs at points of market transition, and the data center is going through more transition today than it has in decades.