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Brocade Sews Up a Good Quarter: Page 3 of 3

Hip to this trend, Reyes is guiding Brocade to focus on connecting SANs over distances using optical networking technologies. Now Brocade uses DWDM (dense wavelength-division multiplexing) and ATM (asynchronous transfer mode) technologies; in the future, however, it promises to play well with IP.

That’s a good thing, because one of its influential resellers, Cisco Systems Inc. (Nasdaq: CSCO), is migrating that way in a hurry. Earlier this year Cisco invested in one storage-over-IP firm, SAN Valley Systems, and it acquired NuSpeed, a startup in that same genre (see Cisco to Acquire NuSpeed Internet).

Storage-over-IP isn’t a hostile threat to Brocade yet, but when it gets there Brocade hopes it can interoperate so as not to end up as the Apple Computer of the SAN market (see SAN Surprise Jolts Market). That’s why, in between chirping buzzwords, Reyes noted that Brocade invested $18 million in interoperability labs, equipment, and testing resources during 2000.

“It’s not about who’s ASICs are bigger or how many ports you can jam into a chassis,” Reyes says. “It’s about being able to scale.”

-- Phil Harvey, senior editor, Light Reading http://www.lightreading.com