Curry expects Brocade to be purchased by a larger vendor. "I would predict that Brocade is acquired by a major player in the future, which will make them stronger and position them to be more competitive with Cisco," he said.

Brocade executives wouldn't spell out what type of management software and services they expect to bring out over the next year, but the company's latest strategy follows in the footsteps of top storage vendors such as EMC Corp. and Network Appliance Inc.

Late last month, Brocade Chief Technology Officer Dan Crain said the company wants to increase software and services revenue from 1 percent of its total revenue to 10 percent over the next couple of years. Without offering specifics, Crain said Brocade plans to add storage management software created through a mix of internal development and partnerships.

The bulk of the management software will support Brocade's Tapestry intelligent switch platform, he said.

Brocade's realignment plans come after a year of declining revenue, the resignations of CEO Greg Reyes and CFO Tony Canova, the restatement of financial reports and word of an investigation by the U.S. Securities and Exchange Commission into accounting practices involving stock options.