Wednesday, November 23, 2011

Should You Store Stock in QLogic or Brocade?

A basic business day of memos and PowerPoint presentations add up to lots of
data that companies need to store and retrieve across far-flung computer
networks. To keep up, companies need to buy so-called network storage. But does
this growth in demand warrant investor interest in two of the biggest network
storage vendors, Brocade Communications Systems (NASDAQ: BRCD ) and QLogic
(NASDAQ: QLGC )? The network storage industry is big and growing fast. According
to Infonetics Research, in the first quarter of 2011, the so-called Storage Area
Network (SAN) switch-and-adapter market grew 9.8% from the previous year to $755
million. Infonetics cites the tremendous demand for cloud storage in estimating
the market will grow at a 20% annual rate through 2015 and ending that year at
three times its 2011 revenues. And Brocade and QLogic are significant players
there. Brocade claims to have 70% of the SAN

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