Fibre Channel rivals Brocade and McData to combine

SAN specialist Brocade is to buy rival McData to increase its scale - but may still fall prey to Cisco

Leading Fibre Channel vendor Brocade last week announced its intention to buy rival McData. The proposed $713m deal might protect both vendors from being targeted for acquisition by Cisco.

A McData spokesman said that a combined Brocade/McData would benefit clients. “Storage networking vendors IBM, HDS and EMC all have to carry three product ranges [Brocade, Cisco and McData],” he said. “Having one less to certify, manage and support would be better.”

McData added that Brocade’s R&D cycles and its own were at similar stages, and in certain areas they complement each other. The companies are also working on an integration planning process.

However, Susan Clarke of analyst Butler Group said, “I don’t think the combined company will be big enough to resist [acquisition by] Cisco, although it would make it more difficult for the regulators to OK such an acquisition.”