Brocade Communications Systems

Brocade Communications Systems, Inc.

Type	Public
Traded as	NASDAQ: BRCD
Industry	Networking Hardware and Software
Founded	1995
Headquarters	San Jose, California, USA
Key people	Lloyd Carney, CEO
Products	Fibre Channel backbones, switches, and adapters; SAN extension and encryption; network management applications; Ethernet fabric solutions; IP routing, switching, application traffic management, security, and wireless mobility products
Revenue	$2.15 billion USD (FY11)
Employees	4,000
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 Ethernet (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 is headquartered in San Jose, California, USA. As of March 2012, the company holds the largest market share in SAN switches.

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^{[citation needed]} technology entrepreneur, philanthropist and co-author of the Fibre 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 Fibre Channel Switch, was released in early 1997.

On January 14, 2013 Brocade named Lloyd Carney as new Chief Executive Officer.

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), the company offered 3,250,000 shares, with an additional 487,500 shares offered to the underwriters to cover over-allotments. The top three underwriters (based on number of shares) for Brocade's IPO were, in order, Morgan Stanley Dean Witter, BT Alex.Brown, and Dain Rauscher Wessels.

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

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 4-7 networking protocols.^{[citation needed]}

Brocade also sells software-based networking devices including technology for virtual routers, virtual firewalls and VPNs through its wholly owned subsidiary, Vyatta.

Brocade Fibre Channel SAN Products

Brocade's first Fibre 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. In 2001, Brocade released the SilkWorm 6400, which was designated "director" similarly to IBM ESCON directors already well-established on mainframe computer market. The term "director" became universally used for more expensive FC switches.

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. In 2003, the SilkWorm 12000 was named “Storage Product of the Year” by Computing.

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.^{[citation needed]}

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).^{[citation needed]}

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).^{[citation needed]}

In May 2011, Brocade launched the industry's first 16 Gbps SAN platform family that includes the Brocade DCX 8510 Backbone, 6510 switch, and 1860 Fabric Adapter. The Brocade DCX 8510 is available in 8-slot or 4-slot chassis models supporting up to 384 16 Gbps ports at line-rate speeds and 8.2 terabits per second (Tbps) of chassis bandwidth. It includes optical inter-chassis links (ICLs) that simplify scale-out design for multi-chassis architectures. The Brocade 6510 switch is a 48-port 16 Gbps switch designed for virtualized applications and high performance storage including SSD arrays. Brocade also introduced the 1860 Fabric Adapter, the industry's first adapter that includes AnyIO™ 16 Gbps FC HBA, 10GbE CNA, and 10GbE NIC functionality on the same card. The Brocade 6505 switch (24-port) further expanded the 16 Gbps family with its introduction in April 2012.

Brocade SAN ASICs

Brocade designs its Fibre Channel ASICs for performing switching functions in its SAN switches.

The first family of SAN switches, the SilkWorm 1000, released in 1997, were based on the first generation of Brocade ASICs, called Stitch. The SilkWorm 6400 series of SAN Director class switches and SilkWorm 2400/2800 switches, released in 1999, were based on the second generation of Brocade ASICs, called LOOM. The SilkWorm 12000/24000 SAN Directors and SilkWorm 3200/3800/3850 SAN switches, released in 2001, were based on the third and fourth generation of Brocade ASICs called BLOOM and BLOOM-II.

The fifth generation of ASICs, called Condor and GoldenEye (scaled-down Condor), powered the SilkWorm 48/000 series of Directors and port blades, FR4-18i Extension Blade, and SilkWorm 200E/4100/4900/7500 series of switches respectively. These products were released into the market in 2004. The sixth generation of Brocade ASICs (designed in 2008) are called Condor 2 and Golden Eye 2. Condor 2 supports 40 ports of 8 Gbps per ASIC and GoldenEye 2 supports 32 ports of 8 Gbps. These ASICs are used in the DCX Backbone Family of chassis and port blades, FS8-18 Encryption Blade, FX8-24 Extension Blade, and 300/5100/5300/7800/Encryption switches. The 7th generation of Brocade ASICs are Condor 3. Condor 3 supports 48 ports of 16 Gbps per ASIC. These ASICs are used in the DCX 8510 Backbone Family and port blades, and the 6505/6510 switches. The current 16 Gbps product line (DCX 8510-8, DCX 8510-4, and 6510 switch) was originally launched in 2011. The 6505 switch was launched in May 2012.

Summary of Current Brocade SAN Products

Brocade name	Brocade switch type	Max. port speed (Gbps)	Max. ports	Dell version	EMC version	Fujitsu version	HDS version	HP version	IBM version
DCX 8510-8	120	16	384	DCX 8510-8	ED-DCX8510-8B	DCX 8510-8	DCX 8510-8	SN8000B SAN Director 8-Slot	SAN768B-2
DCX 8510-4	121	16	192	DCX 8510-4	ED-DCX8510-4B	DCX 8510-4	DCX 8510-4	SN8000B SAN Director 4-Slot	SAN384B-2
6505	118	16	24		DS-6505B		6505	SN3000B	SAN24B-5
6510	109	16	48	6510	DS-6510B	6510	6510	SN6000B	SAN48B-5
DCX	62	8	512		ED-DCX-B		DCX	DC SAN Backbone Director	SAN768B
DCX-4S	77	8	256	B-DCX	ED-DCX-4S-B		DCX-4S	DC04 SAN Director	SAN384B
300	71	8	24	300	DS-300B	300	300	8/24	SAN24B-4
5100	66	8	40	5100	DS-5100B	5100	5100	8/40	SAN40B-4
VA-40FC	92	8	40
5300	64	8	80	5300	DS-5300B	5300	5300	8/80	SAN80B-4
7800	83	8	22		MP-7800B	7800	7800	1606 Extension SAN Switch	SAN06B-R
Encryption Switch	67	8	32		ES-5832B			Encryption SAN Switch	SAN32B-E4 Encryption Switch

Summary of Legacy Brocade and McDATA SAN Products

Brocade name	Brocade switch type	McDATA name before acquisition	Max. port speed (Gb/s)	Max. ports	IBM version	HP version	EMC version
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 Director	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	?	?	?
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

Brocade Ethernet Switches and Routers

Brocade entered into the enterprise, campus, and Carrier Ethernet switch/router market through its acquisition of Foundry Networks in 2008.

In September 2010, Brocade entered the 100 Gigabit Ethernet arena with the high-density 32-port Brocade MLXe Core Router chassis and a two-port 100 Gigabit Ethernet module, targeted at service providers and data centers, claiming twice the 100 Gigabit Ethernet density of Internet core routers from its competitors Cisco and Juniper^{[citation needed]}. Along with it, the company also released the Brocade Network Advisor application for managing IP, storage, MPLS, application delivery, and wireless elements in converged service provider and data center networks. As of January 2012, Brocade is ahead of the 100 Gigabit Ethernet race with deployments across the world.

In December 2010, Brocade began shipping the Brocade VDX 6720 Switch as part of its product family for Ethernet fabric environments based on Brocade VCS Fabric technology (designed for virtualized and cloud computing environments). In August 2011, Brocade introduced two additional products for this family. The Brocade VDX 6730 Switch is a 10 GbE switch that uses FCoE to bridge VCS fabrics with Fibre Channel SAN fabrics. The Brocade VDX 6710 Switch is an entry-level 1/10 GbE switch that enables 1 GbE servers to connect to VCS fabrics as well as traditional LANs. In September 2012, Brocade announced a modular switch as part of this portfolio. The Brocade VDX 8770 Switch supports single VCS fabrics as large as 8000 switch ports with up to 384,000 VMs attached to the fabric. It provides port-to-port latency at 3.5 microseconds across 1, 10, and 40 GbE ports.

In November 2011, Brocade introduced the Brocade ICX product family. It released the Brocade ICX 6610 Switch for the campus networking segment, with a maximum switching capacity of 576 Gbps and forwarding capacity of 432 Mbps with PoE+. In March 2012, Brocade released the Brocade ICX 6430 Switch and Brocade ICX 6450 Switch for the campus networking segment, with full stacking capabilities as well as Layer 2 and Layer 3 functionality. The switches are available in 24- and 48-port 1 GbE models, with optional 1/10 GbE uplink/stacking ports. The company also announced its HyperEdge technology for automated single-point management and mix-and-max stacking for sharing advanced functionality among all the members of a switching stack. In September 2012, Brocade introduced the fixed form factor Brocade ICX 6605 Switch. This Ethernet switch features 1/10 GbE ports for server connectivity and 10/40 GbE ports for uplink connectivity. It is designed for data center Top-of-Rack (ToR) environments and campus LAN aggregation deployments.

In 2009, Brocade introduced the Brocade Mobility family of Wireless LAN (WLAN) solutions for campus environments, including multiple models of access points and controllers.

Software

The Brocade product portfolio also includes network management applications.

• SAN Management Software
  • Data Center Fabric Manager (DCFM)
  • Enterprise Fabric Connectivity Manager (EFCM) (from McDATA)
  • Fabric Manager
  • Host Connectivity Manager (HCM)
  • SAN Health

• SAN Application Modules
  • Data Migration Manager (DMM)

• IP Network Management Software
  • IronView Network Manager (INM)

Awards and recognition

• 2002
  • Brocade Wins Product of the Year from Storage Magazine and Searchstorage.com

• 2003
  • Innovative Technology of the Year from ComputerWorld
  • Brocade 3800 Finalist in Network Computing "Well Connected" Awards
  • Brocade 3900 Chosen as Finalist in Datamation Product of the Year (Storage Category)
  • Brocade 12000 Director wins Product of the Year Award at Paris Data Storage Forum

• 2004
  • Brocade MultiProtocol Router wins Product of the Year Award at Paris Data Storage Forum

• 2005
  • Search Storage Gold Award: Mi10K
  • Well-Connected Award: SANavigator
  • StorageX Wins Network Magazine Innovation Award
  • StorageX Earns "Excellent" Rating from Redmond Most Valuable Product Evaluation
  • Brocade Router Wins Best FC Product of the Year

• 2006
  • InfoWorld Technology of the Year Award: Mi10K
  • Brocade SAN Director Wins Gold for Storage Product of the Year
  • InfoStor MVP Award for the Brocade 48000
  • Big Bytes SAN Award for Brocade 4900

• 2010
  • 2010 Voted Number 1 Best Places to Work in the Bay Area
  • 2010 Fortune Magazine's 100 Best Companies to Work For

• 2011
  • 2011 Fortune Magazine's 100 Best Companies to Work For

• 2012
  • Brocade 1860 Fabric Adapter wins Storage magazine/SearchStorage.com 2011 Storage Networking Equipment Gold Product of the Year
  • Brocade 6510 Switch wins Storage magazine/SearchStorage.com 2011 Storage Networking Equipment Silver Product of the Year

Mergers, Acquisitions, Divestitures

• 2003 – Rhapsody Networks
• 2005 – Therion Software Corporation
• 2006 – NuView, Inc. Develops software solutions for enterprise file data management.
• 2007 – Silverback Systems, Inc. Provides network acceleration technologies.
• 2007 – McDATA. Key competitor in the Fibre Channel switch and director market.
• 2008 – Strategic Business Systems. Storage professional services company.
• 2008 – Foundry Networks. Ethernet Switches and Routers Maker.
• 2012 - Vyatta, Inc. Software-based networking technologies. The deal was completed on Nov.9, 2012.

Of note is that acquisition of Foundry at a price of approximately $2.6 Billion in December 2008 resulted in approximately $2B in goodwill moving to Brocade's asset sheets, of which approximately $1.8B still remained as of Q42011.

Competition

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

• A10 Networks
• Arista Networks
• Alcatel-Lucent
• Cisco Systems
• Dell, Inc. (post their acquisition of Force10 Networks)
• Enterasys Networks
• Extreme Networks
• F5 Networks
• Hewlett-Packard Company (post their acquisition of 3com Corporation)
• Huawei Technologies
• IBM Corporation (post their acquisition of Blade Network Technologies)
• Juniper Networks
• Avaya

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

• Cisco Systems
• Emulex
• QLogic

Legal Issues

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. Two counts were dismissed, and on August 7, 2007, Reyes was convicted on the remaining 10 counts. On January 16, 2008, he was sentenced to 21 months in prison and ordered to pay a $15 million dollar fine. Stephanie Jensen, Brocade's former vice president of human resources, was convicted in a separate trial. On March 19, 2008, she was sentenced to four months in prison and ordered to pay a $1.25 million fine. The convictions of both Reyes and Jensen were appealed. 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. Reyes was incarcerated at the Taft Correctional Institution in Taft, California, with an anticipated release date of December 29, 2011. As of August 2011, a second appeal remains pending.

Brocade announced on August 6, 2012, that a San Jose federal court jury returned its verdict in the case of Brocade v. A10 Networks, and found A10 responsible for broad-based intellectual property infringement and unfair competition, awarding approximately $112 million to Brocade The trial lasted three weeks. The jury unanimously awarded punitive damages against A10 Networks and also personally against its CEO Lee Chen, strongly condemning Chen and A10's unfair competition. The jury also returned an unambiguous verdict for patent and copyright infringement and trade secret misappropriation covering A10's entire AX Series load balancing server products.

Brocade announced on January 11, 2013 that a San Jose federal court confirmed a $60 million damages verdict against A10 Networks and entered an order permanently enjoining A10 from infringing on Brocade's patents involving technologies for Global Server Load Balancing and High Availability.

See also

• Virtual Cluster Switching (VCS)
• Fabric OS
• Fibre Channel
• List of Fibre Channel switches
• Storage Area Network
• Application delivery controller

External links

• Brocade website
• Brocade's YouTube Video Channel
• Informational page regarding Foundry acquisition
• Dell Oro Group take on Foundry acquisition