Channel Marker

Jun 7 2011   4:57PM GMT

Rumor alert: Dell to buy Brocade?



Posted by: PatOuellette
Tags:
Brocade Communications
Dell
Pat Ouellette


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.

Check out more IT channel news on SearchITChannel.com and follow us on Twitter!

 Comment on this Post

 
There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.

REGISTER or login:

Forgot Password?
By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to: