History 2005: Reyes Out!

Here’s a real bolt out of the blue within the industry: Greg Reyes, chairman and CEO of Brocade Communications since 1998, will henceforth serve only as a “strategic advisor” and company director on the board.

He was replaced as CEO by Michael Klayko, who simultaneously joined the board of the company, to which Dave House was appointed executive chairman.

Klayko came to Brocade in January 2003, with the acquisition of Rhapsody Networks, where he was CEO and president. Before founding Rhapsody, he held positions in executive management with McData, and senior sales and marketing management positions with EMC, HP, and  IBM.

There wasn’t a single word of gratitude for Reyes in Brocade’s press release announcing his abrupt eviction.

Although clearly not intended, the communique even included the following statement, heavy with subtext: “Brocade said that a previously announced internal review by the firm’s audit committee, related to the issuance and recording of stock options, has been completed.”

Reyes’ departure also coincided with McData’s acquisition of CNT, both of which are major Brocade rivals.

This article is an abstract of news published on issue 205 on January 2005 from the former paper version of Computer Data Storage Newsletter.