There are rumors swarming that Dell may buy Brocade Communications Systems Inc. Brocade is respected for its high-end SAN networking gear and owns 70% of the SAN switching market, and would be a good target for Dell because of its Ethernet switching. Or at least that’s what several Wall Streeters say.
Raymond James analyst Brian Alexander explained why a deal like this would make sense for Dell in a note to clients:
“We believe Dell is looking to acquire a networking company given management’s view that owning intellectual property across the data center stack (servers/storage/networking) is strategically important.”
Brocade would come at a price. Last week, the company hit its 52-week high. As of today, Brocade’s market cap stands at $3.36 billion.
More talk about a Dell-Brocade deal here.