They have over $250 million in cash versus almost no debt and are free cash-flow positive, so working capital and capex are not valid reasons, says Dan Renouard, vice president of research at Robert W. Baird & Co. Inc.
The only logical thing we can conclude is that an acquisition
is either in the works or soon to be in the works -- that may have to include
cash as a component, Renouard asserts.
So what does Brocade need? [Ed note: apart from a sense of humor! -- see Greg Reyes, Chairman and CEO, Brocade and Brocade CEO in Tick-Top Form.]
If [Brocade] is looking toward an acquisition, it has no iSCSI or InfiniBand products yet, which are significant holes in the portfolio, says Harsh Kumar, storage analyst at Morgan Keegan & Company Inc.
Other analysts say that incurring debt to make an acquisition is very risky, and Brocade is more likely to use its stock to buy companies, given its high valuation.
To realize the benefits of cloud-native software, an application must actually be cloud-native—designed to run in the cloud, interacting with disaggregated cloud services, fully manageable as code—to deliver the expected benefits.
By combining resources and expertise, the AI-Enabled ICT Workforce Consortium will offer a blueprint for how industries can adapt to an AI-dominated future.
IT leaders should heed the guidance of cybersecurity insurance providers who think businesses should prioritize security education, incident preparedness, regular internal audits, and ongoing vulnerability scanning and patching.
