Extreme-ly Interesting Times In Networking

If you’re a fan of Extreme Networks, the last few months have been pretty exciting for you. Just yesterday, it was announced that Extreme is buying the data center networking business of Brocade for $55 million once the Broadcom acquisition happens. Combined with the $100 million acquisition of Avaya’s campus networking portfolio on March 7th and the purchase of Zebra Wireless (nee Motorola) last September, Extreme is pushing itself into the market as a major player. How is that going to impact the landscape?

Building A Better Business

Extreme has been a player in the wireless space for a while. Their acquisition of Enterasys helped vault them into the mix with other big wireless players. Now, the rounding out of the portfolio helps them complete across the board. They aren’t just limited to playing with stadium wifi and campus technologies now. The campus networking story that was brought in through Avaya was a must to help them compete with Aruba, A Hewlett Packard Enterprise Company. Aruba owns the assets of HPE’s campus networking business and has been leveraging them effectively.

The data center play was an interesting one to say the least. I’ve mused recently that Brocade’s data center business may end up lying fallow once Arris grabbed Ruckus. Brocade had some credibility in very large networks through VCS and the MLX router series, but outside of the education market and specialized SDN deployments it was rare to encounter them. Arista has really dug into Cisco’s market share here and the rest of the players seem to be content to wait out that battle. Juniper is back in the carrier business, and the rest seem to be focusing now on OCP and the pieces that flow logically from that, such as Six Pack, Backpack, and Whatever Facebook Thinks The Next Fast Switch Should Be Called That Ends In “Pack”.

Seeing Extreme come from nowhere to snap up the data center line from Brocade signals a new entrant into the data center crowd. Imagine, if you will, a mosh pit. Lots of people fighting for their own space to do their thing. Two people in the middle have decided to have an all-out fight over their space. Meanwhile, everyone else is standing around watching them. Finally, a new person enters the void of battle to do their thing on the side away from the fistfight that has captured everyone’s attention. This is where Extreme finds itself now.

Not Too Extreme

The key for Extreme now is to tell the “Full Stack” story to customers. Whereas before they had to hand off the high end to another “frenemy” and hope that it didn’t come back to bite them, now Extreme can sell all the way up and down the stack. They have some interesting ideas about SDN that will bear some watching as they begin to build them into their stack. The integration of VCS into their portfolio will take some time, as the way that Brocade does their fabric implementation is a bit different than the rest of the world.

This is also a warning call for the rest of the industry. It’s time to get off the sidelines and choose your position. Arista and Cisco won’t be fighting forever. Cisco is also reportedly looking to create a new OS to bring some functionality to older devices. That means that they can continue and try to innovate while fighting against their competitors. The winner of the Cisco and Arista battle is inconsequential to the rest of the industry right now. Either Arista will be wiped off the map and a stronger Cisco will pick a new enemy, or Arista will hurt Cisco and pull even with them in the data center market, leaving more market share for others to gobble up.

Extreme stands a very good chance of picking up customers with their approach. Customers that wouldn’t have considered them in the past will be lining up to see how Avaya campus gear will integrate with Enterasys wireless and Brocade data center gear. It’s not all the different from the hodge-podge approach that many companies have picked for years to lower costs and avoid having a single vendor solution. Now, those lower cost options are available in a single line of purple boxes.


Tom’s Take

Who knew we were going to get a new entrant into the Networking Wars for the tidy sum of $155 million? Feels like it should have cost more than that, but given the number of people holding fire sales to get rid of things they have to divest before pending acquisition or pending dissolution, it really doesn’t come as much surprise. Someone had to buy these pieces and put them together. I think Extreme is going to turn some heads and make some for some interesting conversations in the next few months. Don’t count them out just yet.