Tuesday, September 15, 2009

Broadcom v. Emulex: The Jilted Suitor Takes His Revenge

After the busted Broadcom-Emulex hostile takeover of a couple of months ago. Emulex probably thought it had seen the last of this aggressive boyfriend. Emulex had said throughout the takeover process that its prospective business in the fibre channel over ethernet (FCOE) world made it a much more attractive prospect than Broadcom thought it was.

Now, Broadcom apparently thinks that, if Broadcom can't have Emulex, then no one else can, either and has sued Emulex for infringing Broadcom's patents on high speed data and storage networking technology.

According to the Wall Street Journal, both Broadcom and Emulex see FCOE as the "next big thing," but, because of a lack of standards, this technology hasn't taken off yet. Emulex, however, has started to get design wins at some of those big customers, including IBM, that Broadcom would like to get.

How do you slow down Emulex and make it less attractive to the other boys? Sue them and make the other suitors think they may get sued, too.

Broadcom is no stranger to using the courts for competitive ends, so this is undoubtedly the right strategy for them.

And, who knows, Emulex might even see that hanging out with Broadcom isn't so bad, after all

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