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Contributing Writer

What about Extreme Networks?

Oct 27, 20091 min
Cisco SystemsComputers and PeripheralsData and Information Security

With all of the industry consolidation, Extreme Networks seems like a logical target.

First, full disclosure. I’ve worked with Extreme Networks (EXTR) for a long time. That said, I was saddened to see that the company announced a re-organization this week and laid off 70 people.At this point, Extreme Networks’ market cap is less than $200 million so the obvious questions is: Why isn’t someone buying the company? I wish I knew because it seems like a steal to me. Yes, Extreme Networks is small compared to other vendors but the company has a strong operating system, core to edge networking coverage, and some unique functionality that eases network operations. Oh and by the way, Extreme Networks offers high-end networking gear at near commodity networking prices. The logical suitor in my view is HP (HPQ). HP ProCurve networking has tons of momentum but lacks a high-end aggregation and/or core switch. Purchase Extreme Networks and that problem goes away.In spite of the setback, Extreme continues to do well in vertical industries like education and hospitality. I hope that Extreme can ultimately benefit from the re-organization and emerge stronger or end up somewhere where its innovation and feistiness are appreciated.

Contributing Writer

Jon Oltsik is a distinguished analyst, fellow, and the founder of the ESG’s cybersecurity service. With over 35 years of technology industry experience, Jon is widely recognized as an expert in all aspects of cybersecurity and is often called upon to help customers understand a CISO's perspective and strategies. Jon focuses on areas such as cyber-risk management, security operations, and all things related to CISOs.

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