- Fibrechannel competition is reduced to two suppliers, Cisco & Brocade.
- The merged Broadcom/Avago is silicon-first company that manufactures and designs ASICs as a core business
- I believe that Cisco outsources some part of its silicon design to third parties.
- Cisco outsources the manufacturing of silicon to third parties including Broadcom.
- Cisco now buys fibre channel silicon from its only competitor.
Brocade and Cisco are the only two competitors in the worldwide market for fibre channel switches, and Broadcom supplies both companies with ASICs to make fibre channel switches. The complaint alleges that Broadcom’s acquisition of Brocade could harm worldwide competition in the fibre channel switch market because as Cisco’s supplier, Broadcom has extensive access to Cisco’s competitively sensitive confidential information.
Probably because no one actually cares about Fibrechannel I guess. Margins are good, customers are suckers and its time to make stupid money from stupid customers.
FTC Accepts Proposed Consent Order in Broadcom Limited’s $5.9 Billion Acquisition of Brocade Communications Systems, Inc. | Federal Trade Commission : https://www.ftc.gov/news-events/press-releases/2017/07/ftc-accepts-proposed-consent-order-broadcom-limiteds-59-billion