Many in the industry were surprised by Broadcam’s recent $5.9 billion acquisition of Broadcade and Ruckus.
As reported by technology news source CRN:
“Semiconductor maker Broadcom’s $5.9 billion acquisition of Brocade Communications Systems including Ruckus Wireless has left solution provider partners of the highly-prized networking business dazed and confused.
Partners said Broadcom’s decision to publicly announce plans to divest the Brocade and Ruckus IP networking business has opened the door for customers to hold off on purchases. They said the divestiture creates uncertainty that is sure to impact the channel.
‘The way they handled this could stop sales dead in their tracks,” said the CEO for a top Ruckus partner who did not want to be identified. “The issue becomes if you are hotel buying a mission-critical wireless solution, you just had the company say it doesn’t know what they are going to do with the networking business. I am surprised. If this was Ruckus I am sure we would have gotten some information on this. I am not sure why, but they don’t seem to be concerned about what the market is going to do with the lack of information on Ruckus and Brocade. If they cared about the asset, I would have thought they would have treated it with more respect.'”
You can read the full article here.
Are you, like many others, concerned with the uncertainty surrounding this acquisition? Contact CHI Corporation to speak to a knowledgeable industry expert who can provide guidance.