Broadcom's SAN Management Platforms To Simplify IT Operations

Broadcom (NASDAQ:AVGO) recently introduced a couple of storage area network (“SAN”)-based management software platforms, namely Brocade SANnav Global View and Brocade SANnav Management Portal.

The latest SAN management platforms offer enhanced visibility, thereby accelerating workloads (automating processes as required) in real time. The SAN users can benefit from high performance which streamlines business processes, enabling them to improve productivity.

Brocade SANnav Global View license offers up to 6 instances of SANnav Management Portal for a subscription duration of one to three years.

In terms of new hardware solutions, Broadcom expanded its Brocade Gen 6 solutions suite with the new Brocade 7810 Extension Switch, a replication connectivity device. It enables faster data transfer between data centers over long distances (nearly 25,500 kilometers), primarily to assist data retrieval in times of adverse situations.

The enterprises can utilize the latest Brocade switch which leverages robust hardware encryption technology. Further, the new switch offers protection of data-in-flight mode through cost-effective WAN (Wide Area Network) connection. The switch features low latency of approximately 250 milliseconds Round-Trip Time (RTT) and minimized packet loss functionalities.

Brocade switch runs on Ethernet interfaces of 1GbE (Gigabit Ethernet) and 10GbE with 12 fibre channel ports which have auto-sensing port speeds of 8, 16, and 32 Gb/s (gigabit per second). The enterprises can simplify troubleshooting of comprehensive I/O (input/output) flows by utilizing Brocade’s robust Fabric Vision alerting and monitoring technologies.

With the new offerings (now available), Broadcom attempts to simplify operations through robust data management methods which bodes well.



Notably, shares of Broadcom have lost 2.8% of their value compared with industry’s decline of 6.1% year to date.

Addressing Infrastructure Complexity Holds Key

Broadcom’s latest solutions are in sync with growing demand from enterprises to address infrastructure complexity concerns. Per ESG’s research data, 68% of the surveyed IT decision makers were of the view that “IT is more complex than it was just two years ago”.

Increasing mobility of workers and growing popularity of BYOD or Bring Your Own Devices in workplaces are some of the basic factors leading to complexity in IT systems. These aspects call for a robust data system which enhances visibility and enables enterprises to accelerate workloads in data center to stay in tune with the changing work practices.

This is where Broadcom’s new solutions come handy. The new solutions are capable of handling scalability requirements of next-generation applications. The company’s strong ties with leading OEMs across multiple target markets are expected to aid it in gaining key insights into the requirements of customers.

The acquisition of Brocade is enabling the company to further penetrate the FC (or fiber channel) SAN market. Notably, per Technavio report, data center SAN market is envisioned to grow at a CAGR of 22% by 2020. We believe that Broadcom’s expanding product portfolio will help it in gaining competitive edge over its peers in the longer haul.

Zacks Rank & Key Picks

Broadcom carries a Zacks Rank #3 (Hold).

Twitter, Inc. (NYSE:TWTR) , Upland Software (NASDAQ:UPLD) and Intel (NASDAQ:INTC) are a few stocks worth considering in the broader technology sector. All the three stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term earnings growth rate for Twitter, Upland Software and Intel is currently pegged at 22.1%, 20% and 8.4%, respectively.

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