15. Broadcom Buying Brocade, Channel Uncertainty Ensues

Semiconductor maker Broadcom announced on Nov. 2 an agreement to acquire networking systems supplier Brocade Communications Systems for $5.9 billion. Big news. But Broadcom also said it was buying Brocade for its Fibre Channel SAN switching business and, once the acquisition is complete, will spin off Brocade's IP networking business – including Ruckus Wireless, which Brocade just acquired in May for $1.2 billion.

The result: A business left in limbo and channel partners left bewildered and confused about the future of the Brocade and Ruckus Wireless products and services. Solution providers told CRN that the uncertainty created by Broadcom's public announcement could lead to customers holding off on purchases of Brocade and Ruckus products.

As the year drew to a close, solution providers were holding off on making investments in Brocade, saying they don't know who will own it in three months. Some said competitors were using the uncertainty to muscle in on customers. And some Brocade competitors, including Aerohive, said they were getting calls from Brocade partners seeking a safe harbor.