Data centers are changing fast and networking companies looking at what to do - eyeing acquisitions or investing in new product research or both. They need to come up with technologies that make the servers, storage and related equipment more robust and easier to manage. Here’s one action that just happened.

On 21 July 2008, Brocade – an industry leader in data center networking solutions and services - announced a definite agreement to buy Foundry Networks for $3 billion. The deal is expected to close in Q4 2008. Brocade has about 2,500 employees and Foundry Networks about 1,000.

TekPlus reckons this is a good move by Brocade. It brings together two firms in a sector where surging growth Internet traffic shows no sign of slowing despite the economic turndown. It means more than just consolidation and the cost savings that follow. Foundry’s embedded security (SecureIron solution) will add capability and competitive advantage to Brocade’s existing portfolio. The enlarged company will be able to offer enterprises alternatives to the similar solutions from competitiors – and in particular pose a direct challenge to Cisco.