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Users Mull Merger

Brocade customers have welcomed the vendor's decision to acquire switch rival McData for $713 million and are now awaiting news of Brocade's long-term plans. (See Brocade Bags McData For $713M and Brocade Buys McData.)

"McData is a good switch manufacturer," says Andy Tran, CTO of Hollywood-based Pacific Title, which does special effects and creates trailers, credits, and subtitles for movies. "[But] it's very surprising that Brocade would do this, because McData has been undercutting [their] pricing."

Tran, who uses an array of Brocade kit, thinks that Brocade is now likely to replace its own low-end offerings in response to this pricing pressure. "I am imagining that they will kill the low-end products from Brocade and absorb the McData product," he says. "I don't mind paying for the high-end [Brocade] switches at a high price because no one else has them, but at the low end there are other people selling switches cheaper, such as McData."

In documents filed with the Securities and Exchange Commission (SEC) today, Brocade promises that users will get more detail on product roadmaps when the transaction closes, which is expected to be by the end of this year. Until that time, Brocade and McData will continue to operate independently, and, somewhat confusingly, compete in the same markets.

Brocade, however, is also offering migration services for McData customers who want to move over to its platform, which suggests that Brocade's technology will dominate future product releases.

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