Feeds

Cisco's SAN biz bores McData CEO

Ho-hum

  • alert
  • submit to reddit

Protecting against web application threats using SSL

Despite its best efforts to crack the storage switch market, Cisco Systems' performance doesn't have one of its main rivals terribly concerned in the near term.

"I don’t want to minimize their growth in the last quarter, but it was a ho-hummer for a company the size of Cisco,” said John Kelley, the CEO of McData, in an interview with Byte and Switch.

Cisco and ho-hummer don't usually go together in the same sentence, but in this case Kelley has a point. Out of the $5.4bn in sales reported by Cisco in the second quarter only $40m came from SAN (storage area network) switches. And that is with a 70 percent rise in orders from the first quarter. Cisco can now claim 540 customers in this market dominated by McData and Brocade.

At the time of its second quarter announcement, earlier this month, Cisco tried to put a good spin on the small revenue total.

"After a slow start, our storage networking business picked up dramatically in Q2, with revenue of approximately $40m, a 120 per cent increase over Q1," Cisco said, adding component shortages and "some channel issues" hurt the previous quarter's numbers.

Cisco's SAN switch revenue falls well short of Brocade's $145 million and McData's $114 million. But while Cisco's results don't do all that much for Kelley, the McData CEO does admit Cisco has him scared. The biggest concern being that three is a crowd in the SAN market.

“It’s going to be a tough, slug-it-out environment,” Kelly told Byte and Switch. “As aggressive as all three of us are, there’s probably not enough to execute what we all want to do."

Given Cisco's size and past success it's hard to imagine the SAN newcomer being the odd man out should the market squeeze. ®

Related link

Kelley interview

Related stories

Brocade and Quantum toot their own horns
IBM out-performs HP and EMC (says IBM)
EMC confirms low-end storage charge

Choosing a cloud hosting partner with confidence

More from The Register

next story
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
Seagate's triple-headed Cerberus could SAVE the DISK WORLD
... and possibly bring us even more HAMR time. Yay!
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.