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Broadcom takeover bid for Emulex about converged Ethernet?

Broadcom is making a $764-million hostile takeover bid for Emulex, a manufacturer of storage networking infrastructure, such as host bus adaptors and I/O controllers. Broadcom, a maker of wireless and wired networking semiconductors, appears to have Emulex’s emergent Fibre Channel over Ethernet (FCoE) converged network adapters in its sites.

Cisco, Brocade and other networking vendors are evangelizing the concept of converged Ethernet for data centers, where storage and data networks are converged on a single network fabric. FCoE is a key element of this movement.  If it takes off, convergenced Ethernet could reduce the number of network connections on servers and simplify data center networking in general.

If Broadcom succeeds in grabbing Emulex, it would be well-positioned to produce the semiconductors that enable this new networking paradigm. Emulex leadership, however, seems uninterested in selling out to Broadcom. Broadcom first approached Emulex about a merger in January, but Exmulex said ‘No thanks.”

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