Light Reading
A new pay-as-you-go business model is Brocade's latest way of trying to get buyers' attention in the shadow of Cisco

Brocade Sells Router Subscriptions

Craig Matsumoto
News Analysis
Craig Matsumoto
8/30/2011
50%
50%

Brocade Communications Systems Inc. (Nasdaq: BRCD) is trying out an interesting business model: You can buy or lease equipment, but now you can also subscribe to it.

Under the Brocade Network Subscription, announced Tuesday at VMworld in Las Vegas, a customer gets shipped a Brocade router for free, then pays per month depending on how many ports get used. This way, customers can add or subtract router ports at will, rather than buying a large router or switch and filling it over time.

The deal isn't open to just anybody. Brocade is targeting large enterprises and data centers, and the company will be vetting customers before offering them subscriptions. Brocade classifies the subscription as a service, which means it can come out of maintenance budgets rather than equipment budgets; that trick will especially come in handy for government customers, says Lisa Paquette-Nelson, a finance director at Brocade.

Brocade also has some data-center product announcements at VMworld, including the VDX 6730 Data Center Switch. It's a 10Gbit/s switch line analogous to the 6720, Brocade's flagship switch, but with the addition of native Fibre Channel ports. Brocade is also announcing a pizza-box switch, the 6710, that includes 1Gbit/s ports as well as 10Gbit/s ports and omits support for Fibre Channel over Ethernet.

Why this matters
Brocade isn't shy about admitting it's second fiddle to Cisco Systems Inc. (Nasdaq: CSCO) -- and even to Juniper Networks Inc. (NYSE: JNPR) and Alcatel-Lucent (NYSE: ALU) -- in many customers' eyes. This is an innovative gimmick and an interesting take on the idea of flexible capacity.

If it works, it could present a new way to sell big pieces of gear. Expect these deals to be sparse at first, though; Brocade will want to watch each one carefully and make sure it's actually going to make money at this. Eventually, the company hopes to offer subscriptions through its channel partners.

As for the new equipment, it offers a few new twists on Brocade's data-center strategy, but the overall message, articulated last year, remains the same. Brocade is offering combined blocks of server, storage and networking -- but with major OEMs providing the server part. That's in contrast to Cisco's Unified Computing System, which uses Cisco-developed servers.

For more
Brocade's subscription pricing has no precedent, but we can give you lots of links about this fabric stuff.



— Craig Matsumoto, West Coast Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
fiatlux2
50%
50%
fiatlux2,
User Rank: Light Beer
12/5/2012 | 4:55:02 PM
re: Brocade Sells Router Subscriptions


Ethernet switches and the Application Delivery Controllers are also a part of the mix, Craig. In fact, the Rackspace win that we announced with this launch (http://bit.ly/pxBPtr) is an ServerIron ADX deployment.


Thank you for covering this news,


Brocade PR team

Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
The Rise of Virtual CPE

1|27|15   |   01:38   |   (3) comments


As NFV strategies evolve from tests and trials to production telco networks, expect to hear a lot about virtual CPE (customer premises equipment) rollouts during 2015.
LRTV Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Heavy Reading's Graham Finnie about the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control – and sign up for
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
LRTV Interviews
Bob Wilson, Arsenal Legend: The Light Reading Interview

1|16|15   |   35:36   |   (3) comments


Arsenal goalkeeping legend Bob Wilson was Light Reading's guest interviewee at the 2020 Vision Executive Summit in December. See what the former soccer star and sports broadcaster had to say when he took to the stage in Iceland.
LRTV Custom TV
What MEF Third Network Initiative Means for SDN & NFV

1|14|15   |   6:13   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss discusses the importance of the MEF Third Network initiative and why it's good news for SDN/NFV industry initiatives.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
Google Continues Gigabit Expansion
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/27/2015
BlackBerry Wants Net Neutrality Protection – That's Just Sad
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/22/2015
Verizon Ready for Google MVNO Challenge
Dan Jones, Mobile Editor, 1/22/2015
FiOS Picks Up Pace Again
Alan Breznick, Cable/Video Practice Leader, 1/22/2015
Indiana Carrier Takes Fiber to the Farm
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/22/2015
Like Us on Facebook
Twitter Feed
Webinar Archive