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Brocade aims high

Microscope contributor

 

 

In the wake of last month’s imprisonment of its former human resources chief Stephanie Jensen — for backdating and falsifying corporate records between 2000 and 2004 — storage vendor Brocade has come out fighting and reaffirmed ambitious growth targets to the end of the decade.

 

Brocade has seen little fallout from the scandal, and according to UK and Ireland country manager Paul Phillips, is probably now one of the "most SEC-compliant companies in the world".

 

Phillips also revealed an $800m war chest and said the vendor was "absolutely" still on the acquisition trail after its 2006 all-stock swoop on rival McDATA.

 

"We’ve looked at a number of companies, but haven’t found a good fit," he explained. "We want to buy revenues and move into adjacent markets."

 

He suggested networking, encryption and security services as interesting areas, but would not name any specific targets.

 

A year after the McDATA acquisition, Brocade has added about $100m per quarter in sales and anticipates revenues of $345m in its second quarter, which closes on 30 April.

 

Phillips said partners had seen little impact from the acquisition, as most of Brocade’s channel consisted of OEMs, badging Brocade kit as part of Sun or HP solutions, for example.

 

Brocade’s pursuit of a one-stop shop datacentre model has generated interest, with some expecting it to buy soon, saying there were some good deals to be made, particularly on the networking side.

 

"People like Extreme could be a good target — it’s in need of some fresh blood," said one source.


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