The tidal wave of semiconductor consolidation continues to wash over the industry. Chipmaker Broadcom, which bought storage and networking supplier Brocade last year for $5.9 billion, is said to be in talks to sell off the latter’s IP networking business, which includes routers, switches and wireless technologies that the company acquired when it bought Ruckus Wireless earlier this year.
Broadcom plans to keep Brocade’s Fibre Channel storage-area network (SAN) switching business and may sell off its other networks. In a blog post, CEO Hock Tan indicated that the firm would keep the networking storage business to ensure that the relationship with customers who buy its chips-such as Cisco and Juniper-is not jeopardized.
SAN products are the backbone of data center operations and are used in server, storage and storage-area network applications. Brocade’s SAN portfolio includes SFX, MLX and CES switches; SAN extension switches, embedded SAN switches for blade servers; optical transceivers; and management software.
Extreme Networks, which focuses on core networking technology and acquired Zebra Technologies’ wireless LAN business for $1.2 billion last year, is in talks to buy Brocade’s IP business, reports say. The company expects the acquisition to be accretive to its financial results and to drive revenue opportunities in the Middle East, says co-founder and CEO Mark Rice. The deal will bring deployment simplicity, strong microsegmentation, fabric technology and automation to its portfolio, he adds. It will also give it a presence in the high-end data center market as well as support the emerging markets for SD-WAN and virtualized networking with its Vyatta product suite, Rice adds.