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Brocade Communications Systems Inc. (BRCD) said on Tuesday it would buy rival McData Corp. (MCDT) in a $713 million stock deal, bolstering its line of equipment for data storage networks to compete against Cisco Systems Inc. (CSCO). Both companies sell equipment that boosts the efficiency of corporate communications networks used for data storage, with Brocade best known for mid-range products known as data switches, while McData's market share is strongest in directors, which are high-end versions of data switches. "It's made sense for them to come together to take on Cisco for a long time," said Glenn Hanus, an analyst...

EMC Corp. said Friday it plans to eliminate 1,000 positions but added that it will see a net gain in total employment by year's end as the company moves to emphasize data services and software amid pressure to cut costs in the data storage hardware business. EMC, whose shares fell about 2 percent Friday, announced the cuts affecting about 4 percent of its work force as it raised its fourth-quarter revenue estimate. The company also said a total $269 million in charges from the job moves and other expenses will reduce its quarterly and full-year 2005 earnings, to be announced...