Client diversification on tap for Brocade

Friday, March 11, 2011

The Mexico, Central America and Caribbean division of US data center and network solution provider Brocade (Nasdaq: BRCD) expects to shift a larger percentage of its overall sales toward service providers this year, the division's sales manager, Moises Montaño, told BNamericas.

Brocade groups its flagship products into storage area network (SAN) and ethernet areas. Roughly 70% of the division's overall sales currently go toward data centers, but Montaño said change is in the air.

"The percentage of revenues that comes from data centers will decline as a percentage of overall sales because we are going to seek strong sales in other sectors... mainly service providers or operators, telephony companies and ISPs," he said.

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Even so, private sector data center construction for cloud computing and virtualization will provide fresh business opportunities for Brocade. Meanwhile, the public sector will be looking to outsource to private data centers instead of constructing their own, the executive said.

Cisco (Nasdaq: CSCO) represents one of Brocade's most frequent competitors across the division, while US networking company Juniper Networks (Nasdaq: JNPR) presents challenges in the ethernet sphere.

Brocade expects overall sales in Mexico, Central America and the Caribbean to increase 30% during the fiscal year, ending in October, and plans to maintain a 100% indirect sales set-up in the foreseeable future, according to Montaño.

Globally, Brocade saw net profits drop 47% to US$27mn during its fiscal first quarter, ended January 29. Revenues during the same period crept up 1.3% to US$546mn.

Founded in 1995, Brocade offers a range of ethernet, storage and converged networking solutions.