Feeds

Emulex to QLogic: Adapter biz is shrinking, but we're still swimming

InfiniBand and direct-attached flash hit server connectivity market

Protecting against web application threats using SSL

Emulex's latest results show it overtaking QLogic in the traditional server storage connectivity market – despite the fact that the pie which they're divvying up is becoming increasingly smaller.

The fourth fiscal 2013 Emulex quarter finished at the end of June and saw revenues of $120.4m – showing the usual seasonal fourth quarter bounce, at three per cent up on the previous quarter. But the revenues were still 22.4 per cent less than those of a year ago. And profits? What profits: Emulex made a loss of $4.6m, but that's still a whole lot better than the year-ago quarter's $27.6m loss.

So the overall picture is one of declining revenues but improving profits/losses.

The full year's numbers were $478.6m in revenues, 4.6 per cent less than the 2012 figure, with a loss of $5.2m; better than the 2012 loss of $11m.

If we compare this with fellow server storage connectivity supplier QLogic's quarterly revenue numbers, we get this chart:

Emulex revenues overtake QLogic

Emulex revenues overtake QLogic

Emulex has overtaken QLogic revenues and the gap is widening. How about comparing their quarterly profits and losses?

Emulex and QLogic profit trend

Emulex and QLogic profit/loss trends

Emulex is catching up with its arch-rival there and another overtake is possible.

Fibre Channel and Ethernet-connected storage arrays are now finding some of their primary (high access-rate) data storage responsibilities transferred to directly-attached server flash storage and fast-access flash storage arrays connected to servers by high-speed links such as InfiniBand. Oracle's engineered systems, which use acquired Xsigo technology for server I/O virtualisation, is just one example of this.

Emulex's get-out-of-SAN-connectivity card is called Endace, its Ethernet network inspection technology, and this could be an Endace in the hole, so to speak - eventually.

QLogic's prospective ace is its Mount Rainier flash cache-enabled Ethernet/Fibre Channel storage host bus adapters. It's not going to be generating significant revenue for a while, and QLogic is winding down its switch business. The odds are that Emulex is going to carry on doing better than QLogic, which is looking for a new CEO, both revenue and profit/loss-wise.

Just an idea, but wouldn't there be some logic in Brocade acquiring QLogic and integrating its server storage adapters to Brocade's switches and directors, thus enabling Brocade to actually make something of its foray into server-storage connectivity? Or Brocade could maybe buy Emulex and get Endace, which could mesh nicely with its existing Ethernet business? ®

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
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.