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QLogic Switch Sales Disappoint

Although the merger of SAN switch rivals Brocade and McData may prove a good thing for QLogic in the long term, the HBA vendor has yet to realize hopes for its young switch business.

In its earnings report Tuesday night, QLogic said its switch business -- including blade server switches and standalone SAN switches -- grew only 12 percent year over year and 9 percent sequentially last quarter. (See QLogic Reports Earnings.)

While those aren't bad numbers, QLogic has been forecasting 20 percent year-over-year growth in switch revenue. Further, the 12 percent growth compares to a 33 percent year-over-year increase in Qlogic's far larger HBA business.

QLogic did not break out exact revenue for HBAs and switches.

QLogic CEO H.K. Desai admits the switch business isn't growing as fast as he hoped and says he is counting on qualifications from storage vendors such as EMC, Dell, Hewlett-Packard, IBM, and Sun to eventually push sales. Desai confirms that EMC has qualified the SANbox 9000 256-port switch and added it to its reseller list, but none of the storage vendors are rebranding QLogic SAN switches in OEM deals yet. (See Switch Logic Favors QLogic and QLogic Grabs Director's Chair.)

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