Chip maker Broadcom wants to buy storage vendor Brocade Communications Systems, stripping out its Fibre Channel business and selling the rest.
Broadcom has agreed to pay around $5.5 billion for Brocade, it said Wednesday.
But it doesn’t want all of it: After the deal closes — between May and October 2017, Broadcom hopes — it plans to sell off Brocade’s IP-based wireless and campus networking, data center switching and routing, and software networking products.
The bit Broadcom wants to keep, Brocade’s Fibre Channel SAN business, is in for a challenging time as enterprises turn to cloud storage and hyperconverged infrastructures. Fibre Channel doesn’t play well in the virtualized SANs that hyperconvergence entails.