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Executives

Ananda Rajagopal – VP, Product Management and Strategy

Analysts

Keith Bachman – BMO Capital Markets

Brocade Communications Systems, Inc. (BRCD) BMO 2013 Technology, Media & Entertainment Conference December 10, 2013 11:30 AM ET

Keith Bachman – BMO Capital Markets

Okay great, sorry about that guys. I had to duct to the restroom really quick between meetings. First of let me introduce Ananda and let why don’t we level set just to kind of give folks what your job description is, just in case there is questions from the audience and then I’ll launch into my questions.

Ananda Rajagopal

Sure. Thank you, Keith. Good morning, everybody. My name is Ananda Rajagopal, and I’m Vice President of Product Management and Strategy in Brocade’s Data Center, Switching and Routing business.

Keith Bachman – BMO Capital Markets

Okay. So the Data Center certainly gets a lot of controversy around Brocade or actually all my companies that I cover. Maybe you can talk a little bit about why customers want Ethernet Fabrics and what’s the objective of a company moving to an Ethernet Fabric is question number one. And then maybe move into, let’s take it at a high level and what really is Brocade have relative to some of the competition in terms of its competitive advantage or disadvantage?

Ananda Rajagopal

Sure, yes, perhaps I’ll answer the second question first. So if you take a step back and the Brocade strategy is about empowering the On-Demand Data Center, right. And the way we’re going to do that is by interconnecting all the resources inside the Data Center and across Data Centers using three key principles. The first one is automation, the second one is efficiency and the third one is agility, which are best delivered over a fabric-based infrastructure. And I think that answers the first part of your question in terms of why fabrics, because we believe that it’s not just about CapEx anymore, it’s also about OpEx, it’s also about efficiency.

What has happened in the world of network in the last 20 years is that it’s been a very static network architecture; it’s not been a dynamic network architecture, right. And there has been a lot of interest in the market over the last few years, I would say or perhaps the last couple of years. How do you expose and open up APIs, Application Programmer Interfaces, so that perhaps your IT organization could have programmers who could make use of those APIs to do more things with the network. Certainly, this is a merit to that, as long as you’ve got good programmers in your IT infrastructure, in your IT organization.

Keith Bachman – BMO Capital Markets

Right.

Ananda Rajagopal

We think there is even more profound question to be answered and that is, what can you automate in the network automatically - what can the network automate for you, right? So perhaps that there are a lot of choice that your IT staff is doing today that the network can automatically offload from them. Our estimate saw that over 45% of the networking TCO is spend on day-to-day choice and by using a fabric-based architecture you can cut down the cost of deployment by 50% and there can be a 5x increase in terms of deployment of new network capacity. Those are the key reasons why we think apart from the efficiency benefits of course, of making better use of network capacity, why we think fabric architecture is better.

Keith Bachman – BMO Capital Markets

And so it’s a trick to get more people convert that fabric or trying to stand out from your competition relative in other words, in other words as more of a market adoption trend or is it a competitive issue in terms of the of the pace of adoption?

Ananda Rajagopal

It’s actually both, right. So I think one of the heartening things if you noticed, in a research report that came out by - from Gartner in October of this year, was that they estimate that in the next 12 to 24 months by the end of 2015, they estimate that over 25% of the owners of mid-size and large Data Centers would be converting their physical Ethernet Switching infrastructure to Fabrics. So that’s a great opportunity for Brocade and when you look at the traction that we’ve had with the Fabric platforms over 1,500 customers, so we’ve been deploying in production environment for the last - in three years now almost.

And the most recent addition that we had to our VDX switching product line, with the VDX 6740 that was introduced in Q4, in our fiscal Q4. It was perhaps the fastest adoption in - among all the products in the VDX product line. So I think it’s a good indicator of the adoption of fabrics by our customer base.

Keith Bachman – BMO Capital Markets

I want to ask about the VDX and I will come back to competition, but VDX actually had what, an okay quarter last quarter, was actually down in the - slow down in the recent quarter not down on an absolute basis, but certainly a slow down, is that was part of that presumably. But was there anything else that we should take away from the slowdown in terms of growth rate of VDX in the last quarter?

Ananda Rajagopal

Yeah, first of all for the whole year we still grew by 57%, for Q4 specifically we grew by 20% for that product line.

Keith Bachman – BMO Capital Markets

Right.

Ananda Rajagopal

Certainly this is slightly below what we had expected at the beginning and about couple of reasons. Number one was, what you mentioned about the federal slowdown, the other key reason was we had not anticipated as forecasted I would, say as click in adoption of VDX 6740, which has been used, which that we introduced at the beginning of the quarter.

Keith Bachman – BMO Capital Markets

Great.

Ananda Rajagopal

So some of that adoption happened much faster and so we had, but actually we were not able to fulfill all the demand that we could in Q4.

Keith Bachman – BMO Capital Markets

So those growth rate accelerate here in Q1, Q2 on the VDX side?

Ananda Rajagopal

Yeah we’re pretty happy with the pipeline that we have, now it’s about the closure of that pipeline.

Keith Bachman – BMO Capital Markets

Okay. Is there a way to think about VDX going into fed versus other, in other words just fed just for portion amount of VDX sales…

Ananda Rajagopal

Not necessarily. I think if you look at the top verticals, the cloud service providers had a big one, I would say that systems integrators and sales through systems integrators are the key one, because all of these folks they valued the operational benefits, of not having to had as much in OpEx investment in managing the network, so it’s more about that - the CapEx.

Keith Bachman – BMO Capital Markets

Okay. Well maybe the last question and then we’ll move to our favorite subject is the SAN. Why is the VDX specifically when you go out on customer engagement, Cisco is a much bigger company than you have massive dollars relative to your spend levels on marketing R&D. Why is Brocade going to win an Ethernet Fabric area over the next two years and why wouldn’t Juniper or Cisco or somebody along those lines that has a much bigger company?

Ananda Rajagopal

Yeah, so a couple of things one is, the last - if you try to market the last 12-24 months, there has been a fairly big shift in terms of the taught process of customers. So and that’s really been the big effect of SDN, Software Defined Networking along with NFV. The customers are expecting more agility and efficiency from the network than what it ever done before. And if you look at the portfolio of one of our top competitors, that’s a big amount of churn right now, its four different architectures from one single company. So customers get confused and so they look for alternators and we are pretty well positioned there.

When it comes specifically to fabric-based architectures, there are only two companies that are out there, which really have a fabric solution.

Keith Bachman – BMO Capital Markets

Yeah.

Ananda Rajagopal

One is Cisco and the other is Brocade, we differentiate by offering much more automation that is built into the fabric as oppose to our prime competitor. Now this doesn’t mean that you only get those benefits, in addition to this which is the reason why the VDX 6740 had such high adoption in the market, when we introduced it, is because in August at VMware, we announced support for a VXLAN Gateway which allows us to connect to network virtualization that’s being done in the VMware NSX architecture.

So think about this not only you get the benefits as a customer of network virtualization, you are also able to connect to physical workloads which do not understand this new work product like VXLAN. And in addition to that you are also able to get the benefits of fabrics automation efficiency and the evolutionary way of building only as much capacity as you need and growing linearly over time as opposed to kind of hitting some kind of asymptotic limit.

Keith Bachman – BMO Capital Markets

Okay, perfect. Let’s go to SAN for a second, I think one of the reason why Brocade has a multiple that say, hovers around 10 is, but pervasive and certainly common view is that SAN is there and that your SAN switching business is ex-growth, you’ve had a fantastic year this year, maybe just help us think about what you think is the opportunities around SAN for growth and in calendar year 2014 and I’ll break that into a couple of parts is, what percent of running 16 gig versus less than 16 gig and how we should think about the upgrade cycle to 32 gig, does that impact growth or that does not matter? And then finally the competition was Cisco who candidly is been in my opinion a little bit of laagered here in your market on SAN. They’re out how that can impact the math at least of calendar year 2014, so talk a little bit about SAN growth as we look calendar year 2014?

Ananda Rajagopal

So first of all we still see that SAN is a very healthy market. And if you look at the adoption of 16 gig fibre channel, which we call as a Gen 5, because of the ability trying to multiple 16 gig ports into 64 gig. We’ve been shipping that over two years and as you’ve mentioned Cisco has been laagered to that space, they started shipping their product recently. However, we still offer much more operational benefits, we have a technology called Fabric Vision, which has got immense operational benefits beyond just the speed bump from an 8 gig to 16 gig.

Overall, the Data Center Virtualization plays very well in terms of the relevance of fibre channel as far as an ongoing technology is concerned. At the end of day, we look at ourselves as not just a fibre channel expert, but also - but overall a storage networking expert, which means its fibre channel, its iSCSI it is, its flash.

So when you look at the portfolio of Fibre Channel Fabrics or Ethernet Fabrics to connect scale out storage that actually gives us choice that we can offer to our customers. The second thing to note here is that 16 gig and or I should say Gen 5 is not to be all - and all, we are already investing in Gen 6, which is 32 gig fibre channel and 128 gig fibre channel, standards for that expected to ratified, sometime in 2014 and we expect products for that to be coming out in the early part of 2016.

So, we continue to keep investing there and I think we’re going to set the pace there as far as the - as far as the evolution is concerned. The question in terms of the adoption rate, it’s a little bit difficult for us to measure that because of the indirect route to market that we have with the OEMs.

Keith Bachman – BMO Capital Markets

Yes.

Ananda Rajagopal

I think the way you should look at this is, if you look at the overall footprint of all the fibre channel ports that we have sold that’s about 10 billion. How much of Gen 5 have we sold that’s about 1 billion. This is not to suggest that 90% of it is still not converted, because some of them will never get converted.

Keith Bachman – BMO Capital Markets

Right.

Ananda Rajagopal

But, I think there is a good chunk of that is still not converted and by the time that gets converted Gen 6 would be out.

Keith Bachman – BMO Capital Markets

And so is your assumption there, as you think about calendar year 2014 that customers upgrade, because they want 16 gig or they upgrade because they are just on a natural replacement cycle, in other words the 16 gig cause behavioral changes to help your growth rate in calendar year 2014?

Ananda Rajagopal

I would say it’s not necessarily 16 gig that cause the behavioral changes it actually the underlined trends and on the move towards SSV for example, the move towards storage virtualization, which causes the dynamic of, okay now they need a higher speed connectivity to that storage network and that in turn causes the movement towards fibre channel, towards to meet and exceed fibre channel.

Last thing that I should mention also is that we also see that when it comes to emerging markets, there are actually some good opportunities there as far as an upgrades to this is concerned.

Keith Bachman – BMO Capital Markets

We’ve certainly seen a much higher than market rate and traction there in the emerging markets.

Keith Bachman – BMO Capital Markets

Well that’s going to be one of my last questions if I just think about SAN is, what percent is upgrade versus new installs, what greenfields, I would assume it, 90% upgrades, but what percent do you think is greenfield versus new install, I mean replacements rather?

Ananda Rajagopal

Yeah, I would say that a majority of that would be refresher. However, we both have seen good traction in terms of our ability to break into non-incumbent territory as well.

Keith Bachman – BMO Capital Markets

None, none -- what?

Ananda Rajagopal

Non-incumbent territory. So for example, places where Brocade is not installed for instance the number three player decided to exit the market, which is going to be a net benefit for Brocade. And in spite of the fact that, Cisco came out with the Gen 5 fibre channel. We’re still seeing customers, our customers as well as other prospects who are not customers before see the value in terms of the overall package that we have - and that we have. The fact that we are a taught leader that we are setting the pace with Gen 6 and also technologies like Fabric Vision which allows them to take - make better use of that network once it is installed.

Keith Bachman – BMO Capital Markets

If I look at calendar year 2014 given the share, I think you’re going to end up taking the share, it’s hard for me to believe that you are going to take share in calendar year 2014. But it sounds like you - because, Cisco now has 16, so even if they sell some of their installed base, mathematically you may actually lose a little bit of share, what’s wrong with my thinking?

Ananda Rajagopal

Yeah, I think you should at this is the overall, portfolio suppose to individual components of it. So think about this from the point of view of not just the products, but the partner ecosystem that we have. EMC who proceeded us was - is what clearly a key partner there for us. We’ve got the great products with Gen 5 and a strategy towards, and the strategy in execution plan towards Gen 6, things around emerging markets and the potential that we see that all of them are going to help us in terms of…

Keith Bachman – BMO Capital Markets

So you guys think you’re going to grow your fibre channel business, sorry your SAN business in calendar year 2014?

Ananda Rajagopal

Yes.

Keith Bachman – BMO Capital Markets

Let’s go to SDN, we’ll do SDN and Cloud - let’s take a step back and talk about your SDN strategy, when do you guys think SDN will start to ramp and what are the catalyst to get customers to adopt?

Ananda Rajagopal

Yeah, so that’s a very good question, I think fundamentally we have ask the question why is there so much of interest in SDN. I would say that the single overwriting reason why SDN is capturing so much of attention is because of the desire to see more agility in the networks. How much time does it take to fire up the new compute resource matter of minutes, storage same thing, networking well it depends.

So I think the fact that we want to kind of shorten that it depends to a few minutes and we’re doing that today, is kind of an eye opener for many folks. So our Software Defined Networking strategy is actually pretty pervasive, but the drivers for that will be driven by why is it that customers would be forced to do that. If it’s a service provider it’s often times the need deliver new revenue generating services as well as cut cost out of the network, right.

For example, if you look at how much time does it take to provision an MPLS circuit in your enterprise, it’s probably going to take about a month or two months, two months actually in this day and age.

Keith Bachman – BMO Capital Markets

Right.

Ananda Rajagopal

So that’s clearly not an acceptable way of doing business, enterprises don’t expect that from their service provider and service providers also know that they can’t keep doing the same things. The other key driver here is mobility, right and the transition from 3G to 4G as far as NPE is concerned means that there is going to be huge influx in terms of data and the traditional way of doing business as far as building hot networks that’s not going scale for the future. That’s the reason why about a year back the top 20 telcos in the world came and put - came there to put this paper on NFV, network functions virtualization which, I kind of call at the short that was heard around the world.

And those are key reasons which would enable the deployment of both SDN and NFV. And when it comes to enterprises many times they may - they may want to have a hybrid cloud strategy, where in they want to burst resources in the public cloud and securely connect it back into their - into their own private data center.

Keith Bachman – BMO Capital Markets

All right.

Ananda Rajagopal

This could be seized well it could be because of, load related, but they want to have that flexibility to do that. So those would be the prime drivers in terms of how one would start moving towards.

Keith Bachman – BMO Capital Markets

So if it starts to take-off, why isn’t that bad for your business?

Keith Bachman – BMO Capital Markets

It wouldn’t be bad for our business, in fact it like to be good for our business.

Keith Bachman – BMO Capital Markets

All right.

Ananda Rajagopal

Because, it allows us to offer more agility that we could not do before or competitors could not do before, and great examples of that are, what has happened with some of the first OpenFlow-based wire data networks diplomats which have happened. So Internet2, this is a publicly announced customer of ours has deployed the world’s first 100 Gigabit Ethernet OpenFlow-based network infrastructure and they chose Brocade as one of the vendors for that.

Prior to that Brocade was not in the network, come OpenFlow and SDN, we’re in that network. So you see these are kind of drivers which actually allow us to participate in opportunities, because any time the customer is thinking about a new network upgrade or refresh, they typically take a look at all the things that are available as far as choices are concerned and look at the best choice. So, net-net it’s actually going to be beneficial for us. I should also mention that when you look at our software networking portfolio, we don't have any incumbency with which we should view that as a fact.

Keith Bachman – BMO Capital Markets

Right.

Ananda Rajagopal

And specifically referring to the Vyatta virtual router here. So we can actually go at this very strongly without any concern about cannibalization of a switching or routing portfolio, because there is zero overlap there. Contrast that with the position of some of our competitors, where there to worry about what’s the cannibalization effect on that portfolio.

Keith Bachman – BMO Capital Markets

Right. Do you guys need more M&A, you’ve obviously engaging some M&A to sure up your capabilities here in SDN, do you feel like you have the portfolio? And then if you could compare and contrast with the competitive landscape on SDN where as Brocade versus Nicira or some other competition that you want to reference?

Ananda Rajagopal

Yes, so from the point of view of the portfolio that we have, we’re pretty happy with the focus that we have which is very much squarely around data centers and public sector.

Keith Bachman – BMO Capital Markets

Yes.

Ananda Rajagopal

But as Lloyd, our CEO mentioned in the analyst call, as well as the Analyst Day, we’ll continue to keep looking at technology tuck-ins as he termed it. Now specific to the question of, how we stand with respect to the industry and folks like we invite, as I mentioned the offer of VXLAN Gateway capability that’s built into a Fabric product line, the VDX product line.

Keith Bachman – BMO Capital Markets

Yeah.

Ananda Rajagopal

And that allows us to play within that VMware and NSX Ecosystem. Now you might say well so do a dozen of the vendors.

Keith Bachman – BMO Capital Markets

Yes.

Ananda Rajagopal

What they don't have however is the fabric capability. So look at, in this particular situation you look at fabric as a differentiator on top of the network virtualization capabilities that we get to play in.

Keith Bachman – BMO Capital Markets

Why would if, I ask EMC a question like this, but, if you thought about next year’s numbers, I mean how meaningful would SDN type of revenues be to your profile as you just thought conceptionally about calendar year 2014?

Ananda Rajagopal

Yeah, so we should I think break this into two parts, one has SDN capabilities that have built into the hardware products that we sell, for example OpenFlow capabilities built into our switches and routers.

Keith Bachman – BMO Capital Markets

Right.

Ananda Rajagopal

And then you’ve got kind of the pure software networking portfolio, which is the Vyatta Virtual Router portfolio. For the second part which is the Vyatta Virtual Router portfolio it’s not going to be material in terms of revenues, it’s more of a footprint expansion at this point in time.

Keith Bachman – BMO Capital Markets

Okay.

Ananda Rajagopal

I guess that’s still beyond the cloud service providers have started deploying this, it’s still relatively new concept for many people. Think about this and the networking is always being done on embedded hardware that is been shipped by the vendors. So, the fact that, now we can actually do networking on X86 servers, can be from Dell, HP, anybody IBM, anybody or and it can also be running on hypervisor, that’s a very, very radical - radically different thought.

And by the way, you’ve got more than 10 times higher performance than the other option that you have from Cisco using 1/4th the number of course. So it’s a little bit too good to believe, right?

Keith Bachman – BMO Capital Markets

All right.

Ananda Rajagopal

The customers want to trial it, keep the task [ph] understand the benefits of it and see the overall value that they get before they decide to make the architectural change, so that will be more of a footprint expansion thing. When it comes to some of the embedded capabilities around SDN for example like OpenFlow that will be, part of the refresh cycles that we have and I look at that as more of an evolutionary model of [indiscernible] portfolio.

Keith Bachman – BMO Capital Markets

Okay, all right, fair enough. Let’s move to the Cloud for a second, and how does the growth of the Cloud, I think about public and private causes very different things, so private cloud is respectively, probably a consistent IT rollout, but more centralization doing delivery model, but probably the same product and service, public cloud where data is going, I think is a very different aggregation of product and service, where a different customer said different products being used. When Brocade thinks about the public cloud, the Google, the Facebook, the Amazon web services, do you sell into those types of companies and what products are you selling there?

Ananda Rajagopal

Yes. So we do sell into the public cloud providers, they include both the traditional switches and routers as well as the virtual routers, right. So for example our virtual router can be used by a customer of Amazon or Rackspace or SoftLayer which is now IBM and NS Solutions, those are the kinds of customers through which you could use that. Now, the reason why these public cloud providers have begin to start using software routers here, or virtual routers you would say, is because at the end of the day they are providing a utility service.

Keith Bachman – BMO Capital Markets

Right.

Ananda Rajagopal

In the utility service you don't care about the brand that is behind it, you care about the brand that is offered to the end user.

Keith Bachman – BMO Capital Markets

Right.

Ananda Rajagopal

And so it means that you have to rethink a lot of ways in which how the infrastructure gets built out, and these folks have figured out that the best way to do that is actually by using the benefits for virtual router in addition to the other parts of the infrastructure that they have. In addition to that there are, internal services, or I should say internal infrastructure that is built out by the web route serials in which we are a part of and that is using the traditional switching and routing product line.

Keith Bachman – BMO Capital Markets

Let me ask question in a different way, if you have a hundred dollars of revenue to a large enterprise like DEMO, part of our data storage or data center starts going to a cloud, are you going to get the same dollars and revenue to that new cloud providers you would had gotten the DEMO, is that kind of capacity migrates, first I would assume, it would be less?

Ananda Rajagopal

Yes, I think it’s little hard to estimate right now. You’re probably right that it may be less, because of kind of the different model with which you consume it from a public cloud provider. One thing to note, however is that when it comes to adoption with cloud service providers, it’s actually doing pretty well both that the - the fabric products as well as with to the Vyatta Virtual Router.

Keith Bachman – BMO Capital Markets

Okay. Let me take a pause and see if there is questions from the field before I - we finish up here, anything from the audience, I suppose to look online, but, I’m probably not going to. Okay, well let’s consider on with the fed, how do you think about your opportunity with the fed and there is a question, these things but how do you think about the opportunity from the fed if you normalize for a revenue growth rate on a share basis, particularly is the fed again migrate to a little bit to the - at least conceptually to cloud-based activities as well?

Ananda Rajagopal

Right. So overall, our focus is on the public sector, not exclusively in fed.

Keith Bachman – BMO Capital Markets

Yes.

Ananda Rajagopal

On U.S. Federal but on the public sector, so that includes taken local government, municipalities, education and to some extent healthcare as well. So, even though sequestration is kind of impactful in the near-term, in the long-term what is happening is that it forces agencies to rethink the way which they build out networks.

Keith Bachman – BMO Capital Markets

Yeah.

Ananda Rajagopal

And there is actually a interesting dynamic here, if you compare how much of the budget gets spent on CapEx versus OpEx in federal versus a commercial enterprise. In the commercial enterprise almost 30% to 35% of it, of a budget gets spent on new investments, new CapEx and the remaining 65% to 70% gets spent on kind of the maintenance and OpEx benefit.

Unidentified Analyst

Yeah.

Ananda Rajagopal

When you look at it from - of U.S Federal perspective, about - just about 10% to 20% of fed is actually spent on new initiatives and the remaining 80% to 90% is on kind of the OpEx benefit. In other words, they are spending about 80% to 90% of the investments of the dollar and just in terms of running the old networks; when sequestration hits, it becomes the forcing function for breathing that, clearly that’s not going to happen overnight, it takes a little bit of time for that to happen.

Keith Bachman – BMO Capital Markets

Yeah.

Ananda Rajagopal

But you begin start seeing, agencies beginning to question, hey why we always just, kind of just doing kind of a resubmit or expansion of what we had done in the past, maybe we should rethink this. And when you look at, the fact that it’s long, the modernization of federal IT networks is long overdue that’s actually a good opportunity for Brocade. So this clearly an underserved section of the market, we believe that we are very positioned in the US Federal space because, we go through very rigorous certifications.

Keith Bachman – BMO Capital Markets

Right.

Ananda Rajagopal

In order to make sure that products are qualified and, unlike many other international markets, you don’t have to worry about the Chinese competitors here. So overall, it’s a good space for us to be in, in terms of capitalizing that and last but not the least we got a great account - set of account teams there with a very strong leadership which is why we feel confident about - that as a long run.

Keith Bachman – BMO Capital Markets

We’re about out of time, but I want to throw, interject one more question and Brocade has undergone restructuring I think successfully, and I think the management has done a good job, identifying, implementing it, how is it impacting you and we’re always left as investors trying to tease out what the benefit is the OpEx versus the sacrifice if you will the longer term growth. Tell me a little bit how it’s impacted your organization and what you see in front of you, as you think about your sales pipeline?

Ananda Rajagopal

Yeah, so I think one of the big things which as happened I would say in the last 11 months, right since - since Lloyd and the new leadership team came in as, there is a much bigger focus on operational discipline than ever before.

Keith Bachman – BMO Capital Markets

Yeah.

Ananda Rajagopal

So when we look at the markets we want to serve, everybody in the company knows that its data centers and its public sector, when you say data centers by the way it includes both enterprise and service provider data centers.

Keith Bachman – BMO Capital Markets

Yes.

Ananda Rajagopal

When it comes to building new products, this is a very strong focus and making sure that it stands out, it’s got good differentiation in addition to serving these key markets. And I think there is also a culture of achievement and accomplishment, in the sense that when a metric exist, the expectation is that we need to exceed that.

Keith Bachman – BMO Capital Markets

Right.

Ananda Rajagopal

And that’s a very hard thing culturally to insert, it’s not just about revenues and expenses. And a great example is, last week we had a kind of a food drive, right, were in we set a goal at in all hands and we are falling behind that a couple of days into it and so Lloyd sent out an email and said, we got to meet that and exceed that and low and behold by the end of that we were 128% of that goal. So I think that’s a good cultural thing to have in the company in terms of when you set a goal, you got to meet and exceed it.

Keith Bachman – BMO Capital Markets

I would say from an investor perspective, we cover Brocade for a long time Ananda, there was always some volatility around the quarters that people would hold their breath for to the extent that consistency becomes a hallmark of Brocade it certainly only going to favor your stock at least.

With that we will take a wrap, we are over time in Ananda, Brocade. Thank you very much for participating today. We appreciate your time.

Ananda Rajagopal

Thank you, Keith. Thank you.

Keith Bachman – BMO Capital Markets

Thank you very much.

Question-and-Answer Session

[No formal Q&A for this event]

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