Brocade Communications

Company Background

Brocade Communications Systems, Inc., founded in 1995, was a prominent American technology company specializing in storage networking products. Headquartered at 130 Holger Way, San Jose, California, 95134, USA, Brocade became renowned for its Fibre Channel storage area network (SAN) solutions, which facilitated high-speed data transfer between data storage and servers. Over time, the company expanded its portfolio to include a wide range of IP/Ethernet hardware and software products, catering to data centers, campus, and carrier environments.

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Service Offerings

Brocade’s diverse product and service offerings encompassed:

• • Storage Networking: Fibre Channel directors and switches, SAN extension solutions, embedded blade server switches, and optical transceivers.

• • IP Networking: Routers and network switches designed for data centers, campus networks, and carrier environments.

• • Software Solutions: Network management software supporting both physical and virtual devices, as well as software-defined networking (SDN) and network functions virtualization (NFV) products.

These offerings enabled organizations to build robust, scalable, and efficient network infrastructures, supporting various applications from data storage to advanced networking functionalities.

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Acquisitions and Growth

Throughout its history, Brocade pursued strategic acquisitions to enhance its technological capabilities and market reach:

• • Foundry Networks (2008): Acquired for approximately $2.6 billion, this move expanded Brocade’s Ethernet switching and routing solutions, strengthening its position in the IP networking market.

• • Vyatta (2012): The acquisition of Vyatta brought software-based networking technologies into Brocade’s portfolio, aligning with the industry’s shift towards SDN and NFV.

• • Ruckus Wireless (2016): This acquisition enhanced Brocade’s wireless networking solutions, allowing the company to offer comprehensive wired and wireless products to its customers.

These strategic moves enabled Brocade to diversify its offerings and remain competitive in the rapidly evolving networking industry.

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Acquisition by Broadcom

On November 2, 2016, Broadcom Limited announced its intention to acquire Brocade Communications Systems for approximately $5.5 billion. The acquisition was completed in November 2017. As part of the deal, Broadcom divested Brocade’s IP networking business to avoid competition with its existing customers, focusing instead on Brocade’s core storage area networking products.

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Legal and Compliance Aspects

In 2007, Brocade agreed to pay a $7 million civil penalty to settle allegations by the U.S. Securities and Exchange Commission related to stock option backdating practices. The settlement was reached without admitting or denying the allegations.

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Legacy and Impact

Brocade Communications Systems played a significant role in advancing storage and IP networking technologies. Its products and innovations have left a lasting impact on data center architectures and network infrastructures worldwide. Following its acquisition, Brocade’s core technologies continue to be integral components of Broadcom’s offerings, supporting the evolving needs of modern enterprises.

In summary, Brocade’s journey from a storage networking pioneer to its integration into Broadcom reflects its adaptability and influence in the technology sector.