EMC may Bet on Brocade and Arista, Reports Bernstein

By CIOReview | Thursday, March 26, 2015
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FREMONT, CA: According to Toni Sacconaghi and Pierre Ferragu of Bernstein Research, EMC has a track record of implementing its acquisition strategy for small growing companies. Continuing the tradition, the company may acquire Arista or Brocade to strengthen platform/product synergies between storage, virtualization and switch.

While Arista Networks designs and manufactures multilayer network switches to offer Software-Defined Networking (SDN) solutions for data centers and cloud computing; Brocade Communication Systems provides data and storage networking solutions including Networking-Attached Storage (NAS) and Storage Area Networks (SAN) and Internet Protocol (IP) switches.

EMC has shown its determination to enhance its networking capabilities by buying Cisco’s stake in its partnership with VCE which provides converged storage, networking and servers. The company also joined forces with VMware to create support for VCE for generating opportunities due to increased demand in integrated data center solutions. These recent partnerships and ownerships can weaken the relationship between Cisco and EMC since VMware and Cisco are competitors in SDN field. Arista Networks and Brocade Communications Systems can be better fit to be include in EMC’s plan, reports Jeffrey Burt of eWeek.com.

“The IT industry would consolidate over time, and that ‘consolidation opportunities’ existed for EMC to do a deal that was instantly ‘accretive’,” says Joe Tucci, CEO, EMC.