(DELL) Dell to Resell Brocade Communications Systems’ Networking Gear

As per a recent agreement between Dell Inc. (DELL) and Brocade Communications Systems Inc. (BRCD), the former gains access and will be able to sell Brocade network switches and gear. These products are targeted at large corporate data centers. Under this agreement, both companies will share revenues, which Dell generates through sales of the designated products. Other than this third party agreement, Dell also sells other third party networking gears from Cisco Systems Inc. (CSCO) and software from Scalent Systems Inc., which helps in the coordination of network switches and server computers. We believe this is an additional source of revenue for the company and a business model, which will support its long-term growth. This is a counter move from Dell, as big networking companies like Cisco Systems are entering