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Brocade's fiscal first quarter earnings show a rise in datacenter fabric sales that validates a recent strategy shift.

Brocade's Datacenter Push Paying Off

Dan O'Shea
2/14/2014
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Brocade's increasing focus on the datacenter and service provider markets appears to be paying dividends, as the company reported a jump in datacenter fabric sales in its fiscal first quarter earnings report this week.

"We continue to see growth in our Ethernet fabric sales," said Lloyd Carney, CEO of Brocade Communications Systems Inc. (Nasdaq: BRCD), on the earnings call. "Brocade VDX sales were up 61% year-over-year as both enterprises and service providers implement next-generation networking architectures to support their increasingly virtualized datacenters."

Carney added that datacenter-related sales delivered about 59% of Brocade's overall IP networking-related revenue during the quarter. Datacenter revenue grew about 5% year-over-year. That's a modest figure, but Carney said things will pick up this year.

The results are an early vindication of Brocade's effort to press the competition in the datacenter and service provider segment. The company also accelerated its SDN/NFV efforts during the past year with the acquisition of Vyatta. (See Brocade: Poised for Virtual Joy?, Brocade Buys Vyatta for Software Routing Smarts, and Brocade Sets an SDN Plan.)

On the SDN/NFV front, Brocade also said it moved its Vyatta 5600 virtual router, targeted at carrier and large enterprise infrastructure virtualization needs, into beta testing opportunities during the quarter. Carney said Brocade will be aggressively pushing that platform in the next 18 months. "The focus is on market share," he said. "It's on getting that platform into as many hands as possible."

— Dan O'Shea, Managing Editor, Light Reading

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