Infotech Lead India: Brocade CEO Lloyd Carney says the networking company intends to focus on data center networking projects in coming months.
The strategy is to focus on fewer, but larger opportunities.
For Brocade, the data center market is growing.
For instance, Equinix is planning to spend around $650 million towards capital expenditures (Capex) in 2013. Out of this, $165 million will be for ongoing capital expenditures and around $485 million for expansion capital expenditures.
In Q4, 2012, Capex of Equinix stood at $210.4 million. $166.9 million was for expansion capital expenditures and $43.5 million was for ongoing capital expenditures. Equinix’s Capex for 2012 was $764.5 million.
“Our strategy is to deliver solutions that allow customers to increase returns from their IT investments in traditional data center architectures as well as highly virtualized, cloud-enabled networks where enterprises and service providers are looking for improved performance at a lower cost of ownership,” said Brocade CEO Lloyd Carney.
Meanwhile, Brocade reported second quarter revenue of $538.8 million, down slightly year-over-year.
Brocade’s Gen 5 (16 Gbps) Fibre Channel products exceeded 50 percent of its shipments of directors and switches in the quarter.
Storage Area Networking (SAN) business revenue, including products and services, was $374.4 million, down 6 percent due to soft demand in the overall storage market that impacted the company’s revenue from some of its OEM partners.
SAN product revenue decreased 7 percent. Brocade’s Gen 5 (16 Gbps) Fibre Channel products represented approximately 52 percent of director and switch revenue in the quarter, higher than the 23 percent reported in Q2 2012 and 42 percent in Q1 2013.
IP Networking business revenue, including products and services, was $164.4 million, up 15 percent. The growth was driven by solid growth in Ethernet switch revenue, up 13 percent, and routing revenue, up 34 percent.