Growth in fiber channel capacity is a key indicator of networking business
Brocade’s (BRCD) SAN (storage area network) revenue performance was primarily driven by growth in directors and offset by declines in switch and embedded sales in fiscal 1Q16. Continued growth in overall fiber channel storage for Brocade is also a strong indicator of the durability of its stored networking business.
According to the CEO of Brocade, Lloyd Carney, “During the quarter we recognized our first revenue from a recently announced Brocade analytics monitoring platform, an innovative new SAN monitoring and analytics solution that’s targeted our sizeable install base of fiber channel customers.” Customers have responded well to this solution, as it offers concrete business value and a tangible return on investment.
Brocade to launch fiber channel technology
Within the next few months, Brocade is expected to launch its Gen 6 fiber channel technology with advanced capabilities designed to address the performance, scalability, and reliability needs for virtualization, flash-based storage requirements, and new data center architectures.
In fiscal 1Q16, Brocade’s storage networking product revenue exceeded its outlook range, underscoring continued demand for fiber channel connectivity in traditional and flash-based storage networking environments.
Brocade accounts for 4.6% of the iShares North American Tech-Multimedia Networking ETF (IGN). The other top holdings of this ETF include Harris (HRS) with a 9.1% weight, Cisco (CSCO) with an 8.7% weight, and Qualcomm (QCOM) with an 8.6% weight.