Brocade's strategies, product development and services roadmap continue to rely on a premise laid down a few years ago as we entered the end-to-end networking space -- that in the future, applications and data will reside anywhere and at any time in the network. Our Brocade One unifying network architecture and strategy is centred on removing network layers, simplifying management and protecting existing technology investments.
Our Brocade Network Subscription has re-defined the way enterprises acquire technologies to align network capacities to their changing business needs with minimal risk and no capital investment. We will see an increased uptake of this innovative procurement model in 2012 and will be introducing other initiatives targeted at potential customers within the Asia Pacific region.
We have been consistently increasing market leadership in Fibre Channel (FC), which will continue to be an important component of our business. We did a global survey of our customers in July. Eighty percent of respondents said they expect to maintain or increase their FC spending over the next three years. We will continue to leverage this and make sure that we are not only growing but growing quickly in Ethernet Fabric. By combining both our strengths in the IP and SAN space, we have brought the whole Ethernet Fabric solution into the market and will use this as an accelerant to help companies move their businesses to the cloud. We will also continue to preserve our heritage in terms of our existing revenue stream in the storage business.
Brocade is also looking to expand its partnership model through channels and technology alliances. Our commitment to our partners has begun to reap benefits. We are continuously looking to add sales, marketing and technology expertise to benefit our customers and bring out optimised business and processes to support these new models. In our pipeline for next year, we have a groundbreaking programme that will be launched for businesses in the Asia Pacific which are considering moving into the cloud.
4) How do you see demand and offerings in cloud shaping up in 2012?
IT budgets have been increasing in Asia over the past 18 months, indicating that companies understand the benefits of investing in the cloud, especially the ability to convert capital expenditure (CAPEX) to operational expenditure (OPEX). We expect to see more sophisticated and integrated solutions entering the market, with the total cost of ownership (TCO) being reduced considerably.
One issue that continues to hinder the adoption of a cloud strategy is the security and privacy of data for the enterprise. Vendors are working very hard with technology partners to ensure a smooth and safe transition for the customer's requirements. Although it is likely that next year will make a significant leap in cloud security with breakthrough innovations, businesses will continue to adopt private or hybrid cloud models rather than shift to a public cloud infrastructure. Partially, enterprises want to wait and see how the industry responds to fully public clouds before considering it for adoption.
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