Brocade Communications Systems

Brocade Communications Systems, Inc.
Type Public
Traded as NASDAQBRCD
Industry Networking Hardware and Software
Founded 1995
Headquarters San Jose, California, USA
Key people Michael Klayko, CEO
Products Fibre Channel backbones, switches, and directors; SAN extension and routing; network management applications; FCoE/CEE solutions; IP routing, switching, application traffic management, security, and wireless mobility products
Revenue $2.2 billion USD (FY10)
Employees 5,000
Website www.brocade.com

'Brocade Communications Systems, Inc. is an American multinational corporation and a technology company specializing in data and storage networking products. The company's product portfolio spans across enterprise (LAN, WLAN) Switches, WAN (Internet) Routers, SAN Switches, Application Delivery Controllers, Network Security Appliances, Ethernet/Storage Network Adapters and PHY Transceivers. Founded in 1995, Brocade Communications is headquartered in San Jose, California, USA. As of December 2010, it holds the largest market share in SAN switches.[1]

Contents

History

Brocade was founded in August 1995, by Seth Neiman (a venture capitalist, a former executive from Sun Microsystems and a professional racer), Kumar Malavalli (a noted technology entrepreneur, philanthropist and co-author of the Fiber Channel technology) and Paul R. Bonderson (a former executive from Intel Corporation and Sun Microsystems). Seth Neiman became the first CEO of the company.

The company's first product, SilkWorm, which was a Fiber Channel Switch, was released in early 1997.

Incorporation and IPO

Brocade was incorporated on May 14, 1999, in Delaware. On May 25, 1999, the company went public at a split-adjusted price of $4.75. On Initial Public Offering (IPO) 3,250,000 shares were offered with an additional 487,500 shares offered to the underwriters to cover over-allotments. The top 3 underwriters, based on number of shares, for Brocade's IPO were, in order, Morgan Stanley Dean Witter, BT Alex.Brown, & Dain Rauscher Wessels.

Brocade stock is traded in the National Market System of the NASDAQ GS stock market, under the ticker symbol BRCD.

Products

Brocade's first Fiber Channel switch SilkWorm 1000 (SW1000) (released in 1997) was based on the "Stitch" ASIC and their own VxWorks-based firmware (Fabric OS or FOS). SilkWorm eventually came to be a long-lived marketing designation for an entire line of products, with the first product being retro-named the SilkWorm 1000 (SW1000) to distinguish it from subsequent platforms. Bruce Bergman was the CEO during most of this period. Product names were generally puns on various kinds of woven fabric, since a switched Fibre Channel network is also called a "fabric".

In 1998, Gregory Reyes joined the company as CEO. During the next three years of the dot-com boom and bust, Brocade released its "Flannel" ASIC (which supported an FC-AL interface to a FC-SW fabric), added services (such as zoning and support for translating private loop devices into the fabric), and ultimately the next generation of switches based on the "LOOM" ASIC. In 2001, Brocade released the SilkWorm 6400, which was designated "director" similarly[2] to IBM ESCON directors already well-established[3] on mainframe computer market. The term "director" became universally used for more expensive FC switches.[4]

From 2001 to 2003, Brocade released switches based on its third generation ASIC, "BLOOM" (Big LOOM). BLOOM introduced increased throughput of 2 Gbit/s instead of 1 Gbit/s. Brocade integrated BLOOM into its first "pure" director, the SilkWorm 12000, in April 2002. The director offered up to 128 ports in two 64-port pseudo-switches (domains). The 12000 represented several internal architecture and technical changes besides the new ASIC: it had an upgraded control processor architecture (Intel i960 moved to PowerPC 405GP), changed the embedded operating system (FOS v4.0 migrated from Wind River Systems VxWorks to MontaVista Linux), and introduced the backplane architecture (hierarchical PCI buses with replaceable blades attached to a backplane). The Bloom ASIC also introduced a notable capability of frame-level Fibre Channel trunking, which provided high throughput with load balancing across multiple cables. It needed to be implemented in the ASIC hardware to ensure in-order delivery of frames. Also hot firmware upgrade was introduced with FOS v4.1 in October 2003.

At the time, Brocade's main rival, McDATA, held over 90% market share in director segment, owing to strong position first in ESCON market and then in FICON market. The SilkWorm 12000 director gained over one-third of the market share after its release in 2002. Brocade added mainframe customers with FICON and FICON CUP support on the SilkWorm 12000.[5] In 2003, the SilkWorm 12000 was named “Storage Product of the Year” by Computing.[5]

In 2004, the BLOOM II improved on the previous ASIC design by reducing its power consumption and die size, while maintaining 2 Gbit/s technology. It powered Brocade’s second generation director, the SilkWorm 24000. Still a 128 port design, it was the first one that could operate as a single 128-port switch (a single domain). The new director also used approximately two thirds less power than its predecessor. Brocade introduced also its first multiprotocol Fibre Channel router, the SilkWorm 7420. Brocade also acquired Rhapsody Networks (a SAN virtualization startup company). This was also the time frame in which Brocade first entered into the embedded switch market, delivering multiple switches physically integrated into other vendors' hardware, such as storage controllers and blade server chassis.

As of March 2009, Brocade had sold over 10 million SAN switch ports with over 44,000 directors installed, and held 75.5% of the overall SAN switch market (Dell'Oro Group, 1Q09 SAN Report).

In Late 2010 Brocade released the VCS product line. The individual products are identified by the VDX moniker. These are CEE/Data center bridging (DCB) and TRILL based switches allowing for multi-hop Fibre Channel over Ethernet (FCoE).

Brocade ASICs

1st Generation - 1997

2nd Generation - 1999

3rd Generation - 2001

4th Generation - 2004

5th Generation - 2008

Summary of Brocade products

Brocade hardware products include Fibre Channel switches and directors; Ethernet switches and routers; application delivery controllers (load balancers, etc.); fabric extension switches; embedded switch blades; Fibre Channel host bus adapters (HBAs); and Converged Network Adapters (CNAs). Other hardware solutions from Brocade support common protocols that include iSCSI, FCIP, GigE, FICON, FCoE, CEE, and Layer 2-7 networking protocols.

Brocade name Brocade
switch
type
McDATA name
before
acquisition
Max. port
speed (Gb/s)
Max. ports IBM reseller
type-model
[6]
HP reseller
designation
[6]
EMC Connectrix
reseller
designation
[6][7]
1000 1 -  ?  ?  ?  ?  ?
2000 7 -  ?  ?  ?  ?  ?
2800 2, 6 - 1 16 2109-S16 16B DS-16B
3000 18 -  ?  ?  ?  ?  ?
3014 33 -  ?  ?  ?  ?  ?
3016 22 -  ?  ?  ?  ?  ?
3200 16 - 2 8 3534-F08 2/8 DS-8B2
3250 27 - 2 8 2005-H08 2/8V  ?
3800 9 - 2 16 2109-F16 2/16 DS-16B2
3800VL 17 -  ?  ?  ?  ?  ?
3850 26 - 2 16 2005-H16 2/16V DS-16B3
3900 12 - 2 32 2109-F32 2/32 DS-32B2
12000 10 - 2 2 x 64 2109-M12 2/64 ED-12000-B
24000 21 - 4 128 2109-M14 2/128 ED-24000B
48000 42 - 4 384 2109-M48 4/256 ED-48000B
200E 34 - 4 16 2005-B16 4/16 DS-220B
4100 32 - 4 32 2005-B32 4/32 DS-4100B
4900 44 - 4 64 2005-B64 4/64 DS-4900B
5000 58 - 4 32 2005-B5K 4/32B DS-5000B
AP-7420  ? - 4 16 2109-A16  ?  ?
7500 46 - 4 16 2005-R18 400 MPR  ?
7600 app 55.2 - 4 16  ?  ?  ?
DCX 62 - 8 768 2499-384 DC Backbone ED-DCX-B
300 71 - 8 24 2498-24E 8/24 DS-300B
5100 66 - 8 40 2498-B40 8/40 DS-5100B
5300 64 - 8 80 2498-B80 8/80 DS-5300B
VA-40FC  ? - 8 40  ?  ?  ?
Mi10K - Intrepid 10000 10 256 2027-256  ? ED-10000M
M6140 - Intrepid 6140 10 140 2027-140 2/140 ED-140M
 ? - ED-6064 10 64 2032-064 2/64 ED-64M
 ? - Sphereon 4300 2 12 2026-E12  ?  ?
M4400 - Sphereon 4400 4 16 2026-416  ? DS-4400M
 ? - Sphereon 4500 2 24 2026-224  ? DS-24M2
M4700 - Sphereon 4700 4 32 2026-432  ? DS-4700M
 ? - Sphereon 3232 2 32 2027-232  ? DS-32M2
 ? - ES-3016 1 16 2031-016  ? DS-16M
 ? - ES-3032 1 32 2031-032  ? DS-32M
 ? - ES-3216 2 16 2031-216  ? DS-16M2

Dell PowerConnect B-series

Besides selling these switches under their own name, some models are also sold as Dell PowerConnect-B series switches.[8] Dell retains more or less the Brocade's model name. Unlike the own switches with different software images for Ethernet-switches being used as a layer-2 switch or layer-3 router the firmware for the B-series PowerConnect switches is a combined firmware. The switches can also run the layer 4-7 switching firmware from Brocade to use these switches as hardware-based network load balancer

Besides the pure Ethernet-switches (which are originally Foundry swiches as B-ML, B-MX and B-FCX switches,[8] Dell also offers Fibre Channel over Ethernet (FCoE) and Fibre Channel switches:

  • B-DCX chassis-switches for fibre-channel at 1, 2, 4 and 8 Gbit/s[9]
  • M5424 blade for the Dell M1000e blade-chassis offering FCoE capabilities for blade-servers with 16 internal 10 Gbit/s FCoE interfaces and 8 external 8 Gbit/s FC interfaces as well as external 10 Gbit/s ports[10]
  • B5300 80 port Fibre Channel switch: 80 port 8 Gbit/s FC switch[11]
  • B5100 40 port Fibre Channel switch: 40 port 8 Gbit/s FC switch[12]
  • B300 24 port FC switch[13]
  • B8000/B8000e: top-of-rack FCoE switch[14]
  • Brocade 1020 CNA: FCoE 10 Gigabit Ethernet Converged Network Adapter
  • Brocade 815 and 825 Host Bus Adaptor for pure FibreChannel networks

Software

The Brocade product portfolio also includes network management applications.

Awards and recognition

Mergers, Acquisitions, Divestitures

Competition

Within the Ethernet/IP networking market, Brocade competes with the following companies :

Within the Storage Area Network (SAN) market, Brocade competes with the following companies :

Controversies

In 2005, Gregory Reyes resigned as CEO after being indicted for securities fraud relating to backdating stock option grants. After spending about a year investigating these allegations, the Department of Justice (DoJ), through the US Attorney’s Office, the SEC, and the FBI filed criminal and civil charges against Reyes. In roughly the same time frame, the DoJ, SEC, and FBI also began investigating over 100 other companies for similar activities. Greg Reyes and Stephanie Jensen, the former vice president of HR, were charged with 12 counts of fraud.[15] Two counts were dismissed, and on August 7, 2007, Reyes was convicted on the remaining 10 counts.[16] On January 16, 2008, he was sentenced to 21 months in prison and ordered to pay a $15 million dollar fine.[17] Stephanie Jensen, Brocade's former vice president of human resources, was convicted in a separate trial.[18] On March 19, 2008, she was sentenced to four months in prison and ordered to pay a $1.25 million fine.[19] The convictions of both Reyes and Jensen were appealed.[20] On August 18, 2009 the United States Court of Appeals for the Ninth Circuit overturned Gregory Reyes' convictions and sent the case back to the lower courts for retrial, where he was again convicted, and sentenced to 18 months in prison and a $10 million fine.[21] As of August 2011 Reyes is incarcerated at the Taft Correctional Institution in Taft, California, with an anticipated release date of December 29, 2011.[22] As of August 2011, a second appeal remains pending.[23]

See also

References

  1. ^ "Infonetics Research: SAN equipment market to more than double by 2014 - FierceTelecom". fiercetelecom.com. http://www.fiercetelecom.com/press_releases/infonetics-research-san-equipment-market-more-double-2014. Retrieved 21 October 2011. 
  2. ^ By today's standards, SW 6400 was a semi-director, simply a bundle of small switches interconnected with external cables and integrated with a basic management application, Fabric Manager 1.0.
  3. ^ Cooney, Michael (Jan 8, 1996). "IBM prepping entry-level ESCON connectivity". Network World 13, No. 2: 10. ISSN 0887-7661. http://books.google.com/books?id=ow0EAAAAMBAJ&lpg=PA10&dq=ESCON%20director%20fibre&pg=PA10#v=onepage&q&f=false. Retrieved 10 August 2011. 
  4. ^ Henry Newman (September 18, 2003). "Fibre Channel Directors: Myths, Realities, and Evaluations". Enterprise Storage Forum. http://www.enterprisestorageforum.com/hardware/features/article.php/3079491/Fibre-Channel-Directors-Myths-Realities-and-Evaluations.htm. Retrieved August 9, 2011. 
  5. ^ a b http://www.redorbit.com/news/technology/19890/brocade_silkworm_12000_director_named_storage_product_of_the_year/index.html
  6. ^ a b c IBM TotalStorage SAN Switch B16, B32, B5K, B64, H08, H16, M12, M14, M48, and R18 (Router) Release Notes
  7. ^ EMC VisualSAN Support Matrix
  8. ^ a b "SAN Switches". Dell web site. http://www.dell.com/us/business/p/fibrechannel-switches. Retrieved August 9, 2011. 
  9. ^ "Dell PowerConnect B-DCX 4S". Dell web site. http://www.dell.com/us/enterprise/p/powerconnect-b-dcx4s/pd. Retrieved August 9, 2011. 
  10. ^ "Brocade M5424 Fibre Channel Blade Switch". Dell web site. http://www.dell.com/us/enterprise/p/brocade-m5424/pd. Retrieved August 9, 2011. 
  11. ^ B5300 80 port FC switch, visited 22 July, 2011
  12. ^ B5100 40 port FC switch, visited 22 July, 2011
  13. ^ B300 24 port FC switch, visited 21 July, 2011
  14. ^ B8000 series switches, visited 22 July, 2011
  15. ^ Gollner, Philipp (2007-08-02). "Brocade trial seen as test for backdating cases". Reuters. http://www.reuters.com/article/businessNews/idUSN3125716820070802. Retrieved 2007-08-03. 
  16. ^ Therese Poletti and Elise Ackerman, Ex-Brocade CEO Reyes guilty on all securities fraud counts, San Jose Mercury News
  17. ^ Pimentel, Benjamin (2008-01-16). "Ex-Brocade CEO sentenced to 21 months". MarketWatch. http://www.marketwatch.com/news/story/ex-brocade-ceo-sentenced-jail-fined/story.aspx?guid={56CF0E9D-DD5C-4FBF-AF1F-D958FC7B5233}. Retrieved 2008-12-18. 
  18. ^ Robertson, Jordan (2007-12-05). "Brocade exec guilty in stock option case". AP. http://news.yahoo.com/s/ap/20071206/ap_on_hi_te/brocade_stock_options;_ylt=AiXRjDjhksidSpAobudELg5U.3QA. Retrieved 2007-12-05. 
  19. ^ Former Brocade Official Sentenced in Backdating Case, New York Times, March 20, 2008.
  20. ^ Mintz, Howard (May 8, 2009). "Brocade's Reyes hopes to reverse stock options backdating convictions". San Jose Mercury News. http://www.mercurynews.com/ci_12331758. Retrieved May 11, 2009. 
  21. ^ Bailey, Brandon (2010-06-24). "Brocade ex-CEO Reyes sentenced to 18 months in prison, $15M fine". San Jose Mercury News. http://www.mercurynews.com/top-stories/ci_15368224. Retrieved 2010-06-24. 
  22. ^ Federal Bureau of Prisons Inmate Locator, query for inmate no. 98008-111, accessed August 16, 2011.
  23. ^ United States of America v. Gregory Reyes, no. 10-10323 (registration required), Ninth Circuit Court of Appeals, PACER search, retrieved August 16, 2011

External links