Market Leader Programs
5G Transport - A 2023 Heavy Reading Survey
2023 Open RAN Operator Survey
Coherent Optics at 100G, 400G, and Beyond
Open RAN Platforms and Architectures Operator Survey
Cloud Native 5G Core Operator Survey
Bridging the Digital Divide
5G Network Slicing Operator Survey
Open, Automated & Programmable Transport
The Journey to Cloud Native
;-)
-- Brian Santo
The Fiber Channel storage area networking (SAN) market is at best flat, and by most estimations is slowly shrinking, while Ethernet-based options and cloud storage grow.
Broadcom has been working at consolidating the FC SAN market for a short while. Last year, while still known as Avago, it bought Emulex, which also produced components for storage networking.
Brocade is pretty much the last major customer standing in FC SAN. It makes most of its money on FC SAN, with a run rate of about $1.4 billion on operating profit a year, according to Broadcom. At the rate the business is shrinking, Broadcom should certainly be able to make its money back, and perhaps even double its bet if the FC SAN market doesn't fall off a cliff any time soon.
Furthermore, Broadcom thinks it can reduce Brocade's costs enough to increase the margins on Brocade's FC SAN products from about 40% to 45%.
-- Brian Santo