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Brocade's Business Booms: Page 3 of 3

But competitors and industry sources see the pending establishment of interoperability standards as significant progress. "[Brocade] slowed the competitive process for a very long time. The outcome isn't the way we would have wanted it to work out entirely, but it's going to give us a chance to go into Brocade shops and offer a better-priced alternative," said one competitor, who asked for anonymity.

"Competition will definitely increase," agrees Dan Tanner, senior analyst at the Aberdeen Group consultancy. But he doesn't see Brocade being undercut easily on price. "The SAN market may not be all that cost sensitive," he says. If a carrier is ready to install SANs at all, they're usually ready to spend big. Instead, he thinks the rumbling for putting SANs onto native IP networks is more threatening. "Fibre Channel won't disappear anytime soon. But IP storage transfer is definitely in the works."

-- Mary Jander, senior editor, Light Reading http://www.lightreading.com