Brocade Deepens IBM Ties, Steps Up Attack On Cisco

JORDAN ROBERTSON

SAN FRANCISCO (AP) — Brocade Communications Systems Inc. is deepening its ties with a powerful ally, IBM Corp., forging a new distribution deal for Internet routers and switches at a time when bigger rival Cisco Systems Inc. is straining some of its old relationships.

Brocade and IBM are set to announce Tuesday that IBM will help sell more Brocade products by re-branding them with IBM's own logo and pushing them out through IBM's sales force — a common arrangement among technology companies that gives the smaller one (Brocade) access to better distribution and the bigger one (IBM) access to products it didn't pay to manufacture.

IBM has resold Brocade products — specifically, switches that connect servers and data storage machines — in this way for over a decade. Tuesday's announcement is an expansion of that partnership, in which IBM will resell the Internet routers and switches that Brocade picked up as part of its $3 billion acquisition last year of Foundry Networks, a small Cisco rival.

In that sense, the announcement is incremental for IBM, which as a one-stop technology shop has to play both sides of the fence when it comes to reselling competitors' products, but is major for Brocade, which is looking to step up its attacks on Cisco, the market leader, and benefits from IBM's reputation.