Broadcom bids billions for Brocade in order to break it up
Chip maker Broadcom wants to buy storage vendor Brocade Communications Systems, stripping out its Fibre Channel business and selling the rest.
Broadcom has agreed to pay around $5.5 billion for Brocade, it said Wednesday.
But it doesn't want all of it: After the deal closes -- between May and October 2017, Broadcom hopes -- it plans to sell off Brocade's IP-based wireless and campus networking, data center switching and routing, and software networking products.
The bit Broadcom wants to keep, Brocade's Fibre Channel SAN business, is in for a challenging time as enterprises turn to cloud storage and hyperconverged infrastructures. Fibre Channel doesn't play well in the virtualized SANs that hyperconvergence entails.
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