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Brocade expands stake in slowing Fiber Channel Market. (Storage News Review).



The phenomenal growth in the Fibre Channel market slowed to a crawl last year, and Brocade brocade (brōkād`), fabric, originally silk, generally reputed to have been developed to a high state of perfection in the 16th and 17th cent. in France, Italy, and Spain.  has carved itself a strong foothold foot¬∑hold ¬†
n.
1. A place providing support for the foot in climbing or standing.

2. A firm or secure position that provides a base for further advancement.


foothold
Noun

1.
 in the SAN director market.

Those are two of the findings of the latest SAN market report from Gartner Dataquest. Although the market for FC switches, hubs and HBAs exploded between 1997 and 2000, growth in 2002 was just 3% year-on-year, according to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 Gartner. That followed growth of 11% in 2001, and a CAGR CAGR

See: Compound Annual Growth Rate
 of 189% between 1998 and 2000. Total worldwide FC revenue last year was $1.47bn, according to Gartner.

Growth this year will accelerate slightly, according to report author and Gartner chief analyst James Opfer. "It's going to be a little bit more than 3% this year," he said. Last year's growth was slowed by the slump in the market for external RAID storage, which saw a double digit Noun 1. double digit - a two-digit integer; from 10 to 99
integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction"
 percentage decline in revenue, Opfer said.

Gartner estimated that Brocade accounted for 33% of global revenue for what the researcher categorizes as "Fibre Channel Core Switch" revenue, gaining $118m of revenue for its Silkworm silkworm, name for the larva of various species of moths, indigenous to Asia and Africa but now domesticated and raised for silk production throughout most of the temperate zone. The culture of silkworms is called sericulture.  12000 device. Launched early in 2002, the 12000 has been a controversial device. Although it was aimed at the director market, it lacked key high-end features and as a result was widely judged to qualify only as large switch for use in network cores, rather than as a SAN director.

Nevertheless Brocade set an ambitious target to achieve a 40% share of the director market with the 12000 by the end of November 2002. Gartner's figures are for the full year 2002, and on a run-rate basis Brocade may well have made its target. Before the end of this quarter, Brocade's OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and  partners will begin shipping updates to the 12000 that will allow it to qualify in many analysts view as a director--although "not quite" in Opfer's view. Opfer would not comment on what effect this will have on the market share of the 12000 this year. Regarding Cisco's entry market into the SAN market, he said he was not able to judge how quickly the storage market will take up its products.
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Publication:MarketWatch: Storage
Date:Jun 24, 2003
Words:351
Previous Article:Disk sales spin is slowing, IDC Says. (Storage News Review).
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