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Broadcom Gets Green Light From Feds To Buy San Jose's Brocade For $5.9 billion (bizjournals.com)

Chipmaker Broadcom on Monday won approval from the U.S. Federal Trade Commission to purchase San Jose-based Brocade Communications Systems for $5.9 billion. From a report: To land U.S. approval, Broadcom had to promise federal regulators not to use information from the acquisition to hurt Cisco Systems. At issue with U.S. regulators was possible impacts on Cisco, since Cisco buys chips from Broadcom, but competes with Brocade. On the flip side, regulators worried Broadcom might use its position as supplier and competitor to raise the prices on fiber channel switches, a niche networking segment that's owned completely by Brocade and Cisco. To assuage those concerns, Broadcom agreed to set up an operations "firewall" internally, so that competitive information that might hurt Cisco won't be shared internally. It also agreed to submit to regulatory oversight for five years after the deal is completed.

27 comments

  1. Re: Surely I'm not the only one who sees the probl by Anonymous Coward · · Score: 1

    It says for 5 years, which doesn't mean after 5 years

    based on that other article, if you were in Florida, I'd challenge your reading comprehension classes

  2. set up an operations "firewall" internally by turkeydance · · Score: 1

    until the new owner doesn't

  3. Bro Adcom buys Bro Cade, bro force assemble n/t by Anonymous Coward · · Score: 0

    n/t

  4. Re:Surely I'm not the only one who sees the proble by GumphMaster · · Score: 1

    It does not say, "regulatory oversight after five years," but rather, " regulatory oversight for five years after the deal is completed." For five years after finialising the deal they will be subject to oversight from the regulator. Whether such oversight has any teeth is a separate issue: anything the company does not agree with will be litigated until the five years expires.

    --
    Patent litigation: A doctrine of Mutually Assured Destruction... in which everyone seems willing to push the button
  5. umh... by Anonymous Coward · · Score: 0

    hahahahahahahahahaHAHAHAHAHA .....
    (catches breath)
    HAHAHAHAHAHA!!!!!!111111one one one....

  6. FibreChannel can die ASAP by williamyf · · Score: 2, Insightful

    iSCSI is the future for your block delivery over a network, and NFS/SMBv3 is where the most of the workloads are going. (I am deliverately leaving out things like HDFS, Gluster, Swift, etc).

    Even though FibreChannel has a latency advantage over eth*, eth has price and speed advantages over FibreChannel. And besides, if you want low latency, Infiniband is where is at.

    What's more, most VMs and databases nowadays (except a few holdouts** like oracle or VMware) recomend NAS over SAN (administrative advantages trump speed advantages). See the _latest_ manuals from Databases like MS-SQL server, DB2, Informix, Syabase (yes, it still exists), and you'll see, most recomend to put the DB on an FS instead of a raw partition nowadays...

    Fibrechanel is a Duopoly (more like a 1,5poly now). The prices were high to begin with, now, they are going to go through the roof! It made sense when it debut, but nowadays, pretty much has only inertia moving it.

    *And some others, yes, FibreChannel is kind of a rolls-royce, but one that not only has huge markups, but needs special roads, and specialy trained drivers
    **Granted, these companies are top dogs in their trade, but, nonetheless, going the way of the IBM mainframe...

    --
    *** Suerte a todos y Feliz dia!
    1. Re:FibreChannel can die ASAP by Anonymous Coward · · Score: 0, Informative

      iSCSI and other IP-addressable storage technologies are fine for hobbyist computing, backup targets and of course is required for IAAS beyond a certain scale.

      In the middle, where most businesses of 30 users plus live, application level redundancy is brittle and expensive, many interactive services have tight performance requirements (ie: XenApp/XenDesktop/RDS) and iSCSI is complete trash. It's not like webapps where you can scale resources up/down without much user impact and backend IOPS isn't a huge concern. Even with proper storage hardware (3PAR, EMC, NetApp) the difference in performance is noticeable. Trying to fix some of the issues by bringing storage-grade IP switching in is often more expensive than simply using FC (don't even get started on FCoE). NFS has some reasonable supporters (eg, NetApp) where it works well and exposes a lot of cool features, but it still suffers from network-layer problems unless you have deep pockets. Every L2 segment is a point of failure, every L3 hop adds latency and complexity, and failover when you need it, often doesn't. FC on reasonable kit is easy to deterministically validate or test and delivers hard performance guarantees in the connectivity layer.

      I'm not sure what you're talking about with NAS vs SAN - you're not running any databases over a network share. But you are correct, I haven't seen a lot of raw LUNs used by DBs for a while. Block storage presented to the OS and used by it as a local disk means you've got a SAN. If you're using iSCSI, it's a SAN. If you're mounting disk images over NFS, kind of a hybrid SAN - it's just using NFS for block-storage access. A NetApp with a Filer attached is a NAS sitting on top of a SAN.

      Once you hit large IAAS or cloud clusters, you're either enjoying extremely poor I/O performance or there's some local I/O caching in compute nodes, reducing the amount of IOPS having to head across the datacentre to the storage clusters. Here, iSCSI and related technologies are brilliant, you can just keep packing in storage and spreading load across compute resources.

    2. Re:FibreChannel can die ASAP by jabuzz · · Score: 2, Informative

      Except that iSCSI sucks compared to fibre channel. There is a reason why FCoE required data centre bridging and if you don't understand why they you are not qualified to comment on the issue.

      The price of a DCB capable network is around the same price as a FC network.

    3. Re: FibreChannel can die ASAP by KGIII · · Score: 1

      I've been retired for a while, but a quick Google seems to indicate that Juniper has products in this niche. If this is correct, I'm not sure why they'd be saying it is a duopoly.

      Trivially related: We used a lot of Juniper kit. The feature set was on par with Cisco and the prices were much better. I have no idea how much of that remains true.

      --
      "So long and thanks for all the fish."
  7. Great by 50000BTU_barbecue · · Score: 4, Insightful

    Another company that will require registration to get their datasheets?

    --
    Mostly random stuff.
  8. Re:Surely I'm not the only one who sees the proble by Nutria · · Score: 1

    they will be subject to oversight from the regulator

    If Cisco upper management has any sense, they've started looking for a new source of chip designs.

    --
    "I don't know, therefore Aliens" Wafflebox1
  9. Re:Surely I'm not the only one who sees the proble by Desler · · Score: 1

    It doesn't say AFTER five years. It says FOR five years AFTER the deal completes.

    Reading comprehension ftw.

  10. Re: Bro Adcom buys Bro Cade, bro force assemble n/ by Anonymous Coward · · Score: 0

    SJWs are going to boycott them for sure.

  11. Re: Surely I'm not the only one who sees the probl by Anonymous Coward · · Score: 0

    Broadcom already does hundreds of millions of business with Cisco. They won't screw over Cisco for a little gain and endanger the big deals. Broadcom will probably chop up Brocade and sell off the troublesome divisons anyway.

  12. "operations firewall"? Used to be "Chinese walls" by Bearhouse · · Score: 1

    Which were easy to spot, since they were full of chinks...

    *ducks*

  13. Re: Surely I'm not the only one who sees the probl by Anonymous Coward · · Score: 0

    sell off the troublesome divisons anyway.

    Already happening. The ethernet business acquired from Foundry, wireless business acquired from Ruckus, and the virtual router business acquired from Vyatta are all being sold to third parties. Broadcom is only keeping the Fibre Channel SAN business. None of that information is new or surprising.

  14. The problem with such deals is... by evolutionary · · Score: 1

    when someone gets tempted to make extra profits by violating the agreement quietly. Self-Regulation on something that potentailly reduces profit is kinda like a child telling your mother to leave the cookie jar in their reach after he/she promises they will only have one a day after diner. Unless this is one amazing kid, sooner or later they will be tempted to have, "just one more" after lunch or as a snack, or after breakfast. "It's harmless, who will notice"? Some 3-8 cookies a day, 1-2 month later, with signs of unhealthy weight gain the parent wonders where it came from. Deals like this are just begging to be broken.

    --
    "Imagination is more important than knowledge" - Einstein
  15. Dont hurt Cisco. by Revek · · Score: 1

    But... but... free market?

  16. Why??? by midifarm · · Score: 1

    Why is the US government protecting the monopoly that is Cisco?

  17. Another company bought by a Signaporean magnate by Anonymous Coward · · Score: 0

    Yet another round of employee shedding coming up. Having been through the Broadcom bloodletting, my Spidey sense tells me that the Brocade folk are about to feel the burn...

  18. Re:Every one of you has a GREEN LIGHT by Anonymous Coward · · Score: 0

    I imagine you can pay someone enough money to do it, but to find your balls would require an electron microscope.

  19. Marketing by Lorens · · Score: 1

    I hope they fire a particular person from their marketing... but it's probably already done.

    I was waiting for a super important call (read: production is down, four levels of management in my office, SevMax ticket open with support that costs USD 500k+/year that is going to call you back immediately promise promise), and I get this gal peddling Broadcom. I tell her sorry-I-don't-have-time-and-I'm-not-the-right-contact-for-network-equipment-in-any-case-goodbye. Thirty seconds later the phone rings again and a different girl wants to know if I am Lorens (duh) and then says Well you hung up on my colleague, that's not nice, we can hang up too - click.

    Several years later that's all I can think of when I hear the name Broadcom.

    At least the four levels of management in my office got some comic relief from the speakerphone, and one of them was the boss-boss of the guy who would have been the right contact for peddling network equipment (of which he probably bought maybe $1M/year)... we never did buy any Broadcom.

    1. Re:Marketing by Lorens · · Score: 1

      Brocade, dammit, no editing your posts on Slashdot, and you probably won't believe me now... umm, let's just say that I have a psychological block against the name Broadcom^WBroadwaaaay^WBrocade^D

  20. Re:Surely I'm not the only one who sees the proble by tattood · · Score: 1

    I think the OP's point was, that they can play nice for 5 years while the oversight is in place, but then after 5 years, they could do whatever they want with no oversight.

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