Group 4: Amit Sarda|Esha Sharma|Meeta Arya|Swati Sachdeva

High

Better Mousetrap Marketing

High-tech Marketing

Technological Uncertainty

Silkworm Multiprotocol Router

Market Uncertainty Not knowing what the customer wants from the new technology

Low-Tech Marketing Silkworm 3200 Low

Silkworm 12000 Silkworm 3900, 3800 High-fashion Marketing

Low

Technological Uncertainty Not knowing whether the technology or the company can deliver on its promise to meet needs.

Market Uncertainty

High

Function
Whether SMR* will function (Data Migration, Resource Optimization, Consolidation, Isolation) as promised?

Demonstrations, Tests, Communication & benchmarking results, Use-case Fits

Obsolescence
Risk of turning to new technology, technology leap-frogging, Wait-and-see

Delivery
Missed delivery dates, Missed implementation schedules, shortage, financial health

Routers capability could be disruptive to economics of storage OEMs by reducing the need for more storage disks due to higher utilization across SAN

Technological Uncertainty

Better Implementation Schedules, Implementation Expertise, Better Sales force, partnership with OEMs

Side-effects
Unauthorized access to organization-wide computer systems, Data Confidentiality

Quality of Service
Limited info. about new technology & uncertainty about service-time

SMR provides isolation, better routing solutions acc. to business rules

Support through System Engineers, training OEMs and Customer Support

*SMR Silkworm Multiprotocol Router

Segmentation Entry Level

Size: $111mn Growth>100% <5% SAN penetration Brocade market share:80% Benefits sought: High Availability, Easy expandability, Efficient backup Buy from: OEMs

Mid-Range
Size: $500 mn CAGR=1% Brocade market share:67% Constantly expand and refine existing SAN Price decline offset volume increase Early adopters

Enterprise

Size: $811 mn CAGR=18% Brocade market share:27% Build large storage area network with directors

Target

Enterprise Growing market Large segment size Long-term relationship Open to exploring innovative products to increase efficiency

35

Small Medium Large Target Segment

30
25 20 15 10 5 0

For the high-tech enterprises

Competitiv We are the storage solution providers e landscape

Most important benefit

That enhance sharing of resources with the cutting-edge innovative technologies and SAN designs

Reason

Because we understand the importance of managing your organization's critical data.

Brocade as a brand promoted though Brocade User Group, Brocade Connect etc. Intelligent Switches and SAN management software under the SilkWorm brand name

About the product

A new technology for data storage that improves existing technology and has the potential to change the way the firms design their data storage networks

Benefits offered
Allow enterprises to share data between multiple SANs in a flexible manner without causing disruptions to their existing environment, Allow them to charge back to internal customers the resources they actually needed,

Allow simpler management, greater resource utilization and reduce costs

Other products available for managing the storage and retrieval of data

Direct-attached Storage(DAS)

Network attached storage(NAS)

Storage Area Network(SAN)

Promotions platforms
Conferences Geared around providing insight about the features and the benefits of the router Building relationship and Trust among the customers by reducing uncertainty about the product

Trade Shows
Great way to educate customers about the product and Highly valued by the participants as they are a great source of premium technical content Sales Force Promotion of the product to existing OEMs and directly engage with the end-users to create demand for the router that customer could buy through storage OEMs

Brocade Connect
Promotion on the Brocade Connect platform to the online user community - cost effective and targeted way of promotion

Price
Value-based pricing Also, since the router has the potential to reduce the need for more storage disks, the pricing should be such that it does not disrupt the economics of the storage OEMs.

Bargaining power of OEMs is high as they contributed 80% of Brocades revenue on FY2003
Large Customer base Products sold as part of a complete storage bundles Integration testing, healthy mix of product offerings Product promotion based on ease of sale, integration, healthy margins

Reaching out to customers directly would result in

High sales & marketing expenditures due to lack of expertise Lower customer-reach due to limited product offerings & lack of integration Training System Engineers for end-customer support

Suggested Course of Action

Generate demand from end-customer base through advertisements (like Cisco Systems does) Provide Storage OEMs with required technical support & resources to speed up the Integration Test cycle, to build trust in the long-run, facilitate flow of information, serve as beta test sites for new products Create a demand pull from end-customers through pilot testing of products in customer environment Lead customers can also become source of new product ideas (already available in Brocade in positions like Product Planning Managers) Promote Investment Protection Program to create long-term sustainability