Extreme Looks for Calm After Turbulent Times

By Jeffrey Burt  |  Posted 2015-05-11 Print this article Print
Extreme CEO

Internally, Extreme has had to deal with instability in the executive ranks, and is still working to get Enterasys Networks solidly into the fold, Meyercord said. Meyercord is the Extreme’s third CEO in five years. Extreme bought Enterasys in 2013 for $180 million. In the conference call, Meyercord conveyed mixed feelings about the deal.

"If you look at it on paper, you'd say that wasn't a very good deal," he said. "There's no doubt, there were some execution issues. And it was harder for the teams to put the companies together than anticipated."

However, the CEO said there also were multiple benefits, including the acquisition of wireless networking and network analytics capabilities plus adding talented people to the staff and customers to the installed base.

Throughout the call, both Meyercord and Rice were careful not to divulge details about the strategic plan being worked out. However, they talked about some shifts the company will undergo, particularly in how it will have a more solutions-oriented approach in what it sells to customers. Extreme has strengths in such areas as campus networks, wired and wireless capabilities, network analytics and software-defined networking (SDN), he said.

"So it's really a function of us getting our engineering resources into alignment with our go-to-market strategy with sales and marketing," Meyercord said. "It's a little bit different when I talked about the old model, where we would invest dollars in building a new box that is going to be faster and more efficient, etc., that we're going to push onto the market. Instead what we're finding is that the market today is more solutions-oriented. And that's how we're looking at combining all the elements, hardware and software into a combined solutions offering."

Rice agreed.

"The data center business continues to be something that's a strong foundation for our company," he said. "Typically, we look to sell solutions to our customers that reach to our entire portfolio, whether it's driven through the data center or it's driven through other areas, such as the access layer."



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