QLogic, which earlier this month marked the tenth consecutive year as the largest vendor of Fibre Channel (FC) adapters by market share, is investing heavily to sustain its edge over the competition. Defying the weakening demand for the technology, the Aliso Viejo, California-based manufacturer recently acquired Brocade’s converged adapter business as part of a broad alliance that also encompasses joint development of SAN solutions based on the newly released Gen 6 FC standard.

The agreement was signed off by interim chief exec Jean Hu, who just handed over the reins to former EMC engineering head Prasad Rampalli, a favorite guest on theCUBE with even bolder expansion plans than his predecessor. As we’ve learned on Tuesday, the industry veteran’s first major move as CEO was a milestone patent deal with Broadcom valued at approximately $147 million in cash.

The purchase includes certain 10/40/100Gb Ethernet controller-related assets and non-exclusive licenses to intellectual property relating primarily to the communication chip maker’s programmable NetXtreme II Ethernet controller family. Broadcom will become an ASIC supplier to QLogic in support of the product line, and also intends to license $62 billion worth of the firm’s FC patents under a non-exclusive contract that is expected to receive board approval in the near future. The transactions kick off Rampalli’s efforts to diversify his firm into new high-growth segments, leveraging its formidable Fibre Channel portfolio as a launchpad.

“QLogic is well positioned for the flexibility and scalability that is required for data centers today and tomorrow,” wrote Wikibon senior analyst Stu Miniman. “There will be continued competitive pressure for design wins and for brand recognition against some big competitors, but if QLogic can continue to focus on both OEM and end-user requirements, there is a lot of growth opportunity.”

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