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The Fall of Fibre Channel: Page 5 of 16

  • And that brings us to Fibre Channel. Specifically, the problem with Fibre Channel is that, while it is both reliable and fast, it doesn’t actually present users with a
    business case at all!

    When it comes to data centers, it’s simply the only game in town – a technology hegemony, essentially. And that makes it vulnerable to new technologies that can demonstrate the all-important ROI (return on investment).

    What’s aggravating matters is that a single vendor dominates the Fibre
    Channel market: Brocade Communications Systems Inc. (Nasdaq: BRCD) accounts for about 80 percent of the market
    for Fibre Channel switches of eight to 16 ports, or about 60 percent of the
    SAN equipment market total.

    As we all know (another of history’s lessons) hegemonist dictatorships don’t have a great
    record of putting their citizens’ (read: end-users’) interests first. Whenever one vendor is running
    the show – be it IBM Corp. (NYSE: IBM) with mainframes, Cisco Systems Inc. (Nasdaq: CSCO) with routers, or Brocade with
    Fibre Channel switches – two things are inevitable: One, prices go up (and
    stay there). Two, proprietary gimmicks rule the day, making interoperability
    a concern, and making it harder for other vendors to get into the game.

    The inevitable end result is customer dissatisfaction and an open door for newer, cheaper, disruptive technology options.