{"id":1309,"date":"2009-10-15T17:08:54","date_gmt":"2009-10-15T21:08:54","guid":{"rendered":"http:\/\/rbach.net\/blog\/?p=1309"},"modified":"2022-12-30T12:19:06","modified_gmt":"2022-12-30T17:19:06","slug":"brocade-selling-itself","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/brocade-selling-itself\/","title":{"rendered":"Brocade Selling Itself"},"content":{"rendered":"

\"Brocade<\/a>ChannelInsider<\/a><\/em> citing the Wall Street Journal<\/em> is reporting<\/a> that network equipment maker Brocade<\/strong> Communications Systems Inc.<\/a> put itself up for sale<\/strong> on 10-05-09. The paper, citing people familiar with the matter, said Oracle and Hewlett-Packard<\/strong> were potential bidders for the company, but a deal was not imminent and Brocade may not even go ahead with a sale. Oracle CEO Larry Ellison<\/strong> told investors at Oracle’s annual shareholder conference Wednesday. “We have no interest in buying Brocade,<\/em>” in response to a question from an investor according to Fortune<\/a>.<\/p>\n

\"Data<\/a>To compete with much bigger rival Cisco<\/strong> Systems Inc, the company has been bolstering sales partnerships with large technology vendors such as IBM and Dell<\/strong> to expand their customer reach. In an interview with Reuters last month, Brocade Chief Executive Michael Klayko had said he did not see a need for Brocade to merge with or acquire another company, citing the company’s expertise and partnerships.<\/p>\n

However, Goldman Sachs analyst Min Park told Fortune<\/a><\/em>, interest in Brocade is picking up, “Brocade is a likely strategic fit for a number of potential acquirers.<\/em>” He includes Hewlett Packard, Juniper, Dell, IBM, and Oracle<\/strong> among those interested in Brocade.<\/p>\n

rb-<\/strong>
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It is unlikely that Dell will purchase Brocade since Dell has Perot Systems to digest and a sales partnership with Brocade. Juniper is not in the financial position but is the most need of the product. IBM is financially capable but the hardware business seems to be losing focus at Big Blue. That leaves HP\u00a0 for three reasons, first, it is financially capable, second, it is looking to grow its ProCurve business and its EDS acquisition is well underway. The wild card could be Huawei if they can get government approval. Of course, Brocade CEO Mike Klayko just may have needed some extra pocket money as the Wall Street Journal article triggering a 14 percent jump in the company’s shares. Mr. Klayko’s $5 million<\/a> in options increased by $700,000 in one day.<\/em><\/p>\n

 <\/p>\n

Ralph Bach<\/a>\u00a0has been in IT long enough to know better and has blogged from his\u00a0Bach Seat<\/a> about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedIn<\/a>,\u00a0Facebook<\/a>,\u00a0and\u00a0Twitter<\/a>. Email the Bach Seat\u00a0here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Brocade will put itself up for sale according to WSJ Oracle and Hewlett-Packard are potential bidders<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[3216,81,32,216,748,43,15,3206],"class_list":["post-1309","post","type-post","status-publish","format-standard","hentry","category-business","tag-3216","tag-brocade","tag-business","tag-dell","tag-huawei","tag-ibm","tag-networking","tag-private-equity"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/1309","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/comments?post=1309"}],"version-history":[{"count":6,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/1309\/revisions"}],"predecessor-version":[{"id":132751,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/1309\/revisions\/132751"}],"wp:attachment":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/media?parent=1309"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/categories?post=1309"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/tags?post=1309"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}