By now, you’ve probably heard that Brocade was purchased by Broadcom (if you haven’t… I’m sorry to break it to you this way). But what you might not have heard is that Broadcom plans to sell off Brocade’s IP networking business. Drew Conry-Murray at Packet Pushers breaks down how this sale might go down.
In 2015, Brocade’s IP networking business posted $601 million in revenue, versus $838 million for Arista and $4.85 billion for Juniper. Additionally, the purchase of Ruckus Wireless in 2016 brought in about 35% of total revenue in Q3 2016. Seems like someone could make a business out of those numbers.
Drew thinks the most likely outcome is a purchase by a private equity firm, in the mold of Riverbed or SolarWinds, made all the more attractive by Brocade’s Ruckus acquisition. Other options include purchase by another tech company, getting spun out on its own, or the dreaded piecemeal selloff.
We’ll know soon enough what they decide. It’s amazing what you can get for $6 billion these days!
Packet Pushers » Drew Conry-Murray comments:
Soon after Broadcom announced it was buying Brocade Communications for nearly $6 billion, Broadcom also declared that it would sell Brocade’s IP networking business, which includes routers, switches, and Ruckus Wireless.
The sale makes perfect sense, given that Broadcom’s networking silicon customers wouldn’t be happy about Broadcom competing against them.
The question then becomes, what happens to the IP networking side of Brocade?
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