How Brocade CEO Lloyd Carney Energized a Tired Company
NEWS ANALYSIS: During Carney’s 17 months on the job, the company has increased its profit margins and built its market cap up to $4.05 billion.Brocade Communications Systems has a tidy and highly profitable $2.3 billion Fibre Channel and Ethernet fabric business. It also has doubled its stock price from $5.25 to nearly $10 in the last 12 months. However, it also has been chasing data networking market share leader Cisco Systems for longer than it cares to remember--which is more than a decade. Ostensibly, it’s new CEO Lloyd Carney’s job to either close that gap and grow the business, or else to wrap up the company and sell it for the highest price possible. But if you sit down and talk with Carney, a personable 52-year-old native of Kingston, Jamaica, you don’t get the notion at all that he’s interested in selling, even though that’s exactly what he has done with his last two companies--virtual I/O provider Xsigo to Oracle in 2012 and Micromuse to IBM in 2006. That being said, if the right offer were to come along, and the board of directors and stockholders in the company were to agree, then a sale certainly could happen; it could to any company. During Carney’s 17 months on the job, the 19-year-old company has increased its profit margins and built its market cap up to $4.05 billion--from $2.54 billion at the end of 2012. The numbers have improved steadily as Carney has focused the company on larger enterprise customers and rolled out new software-defined networking and storage systems for users in 160 countries. Software-Defined Networking and Storage
SDN and SDS is infrastructure that is managed and automated by intelligent software as opposed to the hardware itself. The concept underlying this is to offer customers a way to retain the value of the current storage infrastructure while building out storage capabilities that reflect the developing cloud storage models without having to abandon previous storage investments.