© 2014 IBM Corporation IBM Integrated Multivendor Support for Brocade Communications Systems, Inc. June 2014

© 2014 IBM Corporation IMS Brocade / Foundry supplier is the only Foundry parts & Smarts Supplier in the USA Your next customer conversation could go like this:  Do you have any networking equipment installed from Brocade – Foundry? –Yes.  Would you be interested in a proposal to lower your maintenance cost? –…By the way, other than Brocade, IBM is the only maintenance provider of Foundry products in the USA. This is an exclusive for IBM Supplier is a subject matter expert in Networking hardware, software and usage 2

© 2014 IBM Corporation Brocade is struggling to grow in a market that requires big technology investments  Brocade’s entry into the networking market began with its acquisition of Foundry Networks in late This acquisition was aimed at transitioning Brocade towards IP based solutions.  Brocade has rebranded all Foundry Networks products as Brocade products.  Almost all original Foundry Network products have been designated End-of-Life (EOL). And most have either reached or will soon reach End-of-Support (EOS).  Brocade revenue has been flat for the last 4 years  Technology transitions to Ethernet switches, virtualized networking and SDN are costly  Brocade is taking actions to reduce cost –Reducing Headcount 9% –Reducing Sales and marketing  Revenue by Route: OEM 70%, Channel/Direct 30%; IBM, EMC, HP, and HDS each accounted for over 10% of revenue (57% combined) …ask if customer has EMC, HP, or Brocade switches, routers or directors installed… they could be Brocade  Brocade’s principle competitors in the networking market are Cisco, F5, Juniper and Dell Force10. 3 Routers and Switches are smaller devices. Directors are large devices.

© 2014 IBM Corporation IMS Brocade/McData/CNT Models Supported 4