Unwinding Cisco's Not-So-Simple Beginnings 151
saridder writes: "There's a saying that behind every fortune is a crime, and
as we have learned with Apple, Microsoft, and others, Cisco is no
different. The SJ Mercury
has an article outlining and debunking the myth of Cisco's
founding."
Obligitory quote: (Score:2, Funny)
Wyatt Earp: I've already got a guilty conscience... I might as well have the money too.
who gets the blame? (Score:1)
i call it payback.
Capitalism works! (Score:3, Interesting)
Bickering, fighting, and arguing (er, I mean, competition) between intelligent grownups DOES lead to people making millions!
Well, there it is. I guess I havn't anything left to complain about
This might be very bad for them. (Score:2, Funny)
They'll be smitten and crushed for were lies the root of evil there will be destruction and chaos.
Perhaps the downfall of the internet is the beginning of the doom of Cisco. Perhaps in the future will nobody need any routers from Cisco anymore because everyone will use XIP and
And someday the sinners will find themselves in the gutter together with some old Cisco routers.
Repent brothers ! Repent your wikked ways !
The woman sure seemed like a witch on nerds 2.0. (Score:1)
Nice crowd at Stanford.
Re:This might be very bad for them. (Score:2)
Doesn't seem like a very strong company to me. Perhaps, your sarcasm aside, they won't do so well in the long term. Cheap knockoff routers can unseat Cisco easily.
Re:This might be very bad for them. (Score:3, Insightful)
When you think of routers, don't just think of the cheap toys sold in CompUSA and BestBuy for mom and pop at home. A major corporation, ISP, web company, financial institution, etc., is not going to base their critical network infrastructure on a cheap knock off, nor could a cheap knock off handle a high load. Imagine an ISP running off of a Linksys.
And even of a company made a cheap alternative to compete with a 7000 series router (never mind an optical router), once all the R&D is done to make the big router, create all the software to comply with RFC's, create all the hardware to handle the different networking technologies, create innovative switching technology to handle the high load of packets, the router isn't cheap any more. (Look at Juniper, ArrorwPoint, etc,.) And if it works, Cisco will just buy them, paint the box blue and call the Cisco 54000 or something J.
Routers and switches do more than just route. There are many technologies that just can't be implemented cheaply. When I think of a major network, even enterprise, there is a huge need for a Catalyst 6500, especially when there are a ton of users on that floor. Buying cheap 24 port 3coms won't scale, and can't route between Vlan's. Plus there's a ton of other technologies that a company needs - gig backbones, multilayer switching, STP, layer 4-7 load balancing, high speed backbones, DiffServ and COS QoS, and ton of others. Let's see a cheap toy do that.
What crime did Woz commit? (Score:2)
Signing a contract [insanely-great.com] with MS was a crime, certainly. But Apple's fortune already existed before any alleged crime may have occurred.
Re:What crime did Woz commit? (Score:3, Informative)
it wasn't woz... (Score:2)
I'm not sure if Woz attended, but I can't see him passing it up...
Cheers,
- RLJ
Re:it wasn't woz... (Score:2)
Re:What crime did Woz commit? (Score:1)
Apple's crime?? (Score:1, Redundant)
Microsoft was the one who decided to grab the ideas for free.
Re:Apple's crime?? (Score:2, Informative)
Re:Apple's crime?? (Score:2)
Re:Apple's crime?? (Score:1)
Re:Apple's crime?? (Score:1)
The exception was Adele Goldberg (creator of Smalltalk)who insisted on a written instruction from the management before she would participate.
This is not a goatsex link. (Score:4, Informative)
Re:This is not a goatsex link. (Score:3, Interesting)
In the same way this article then credits Berners-Lee with the founding of the WWW concept. Again, from thin air? Ah, no. I've heard that groups at DEC pitched WWW like system for Notes to Tim, and I'm sure there are others that I've never seen credited.
In these reworkings of history we seem to like to back up just one step previous to some rich/famous/infamous person and say "Ah hah!". Is that really helping? I guess so. Maybe it is better to just credit the guy who made a name for himself/herself off the thing, wink, and be done with it.
- ordinarius
Every big company has a Creation Myth (Score:2)
When a company grows big and successful, they usually build a "sanitized" and romanticized version of their startup story. In it, all the big battles are edited out, the people who wound up on the outs disappear from the history rolls, and everything is edited to make them look like a small, humble company that did well.
So Apple and HP get the myth of the garage story, Cisco hides their battles with Stanford, and Microsoft sells Gates as a Harvard dropout (conveniently leaving out the family connections he used to get Microsoft in all the right places). The creation myth is what you get when you read Fast Company - but the true stories are out there and easy to find. It's just not what the companies themselves are trumpeting.
Remember, in business as well as politics, history is written by the winning side.
And this is earth-shattering because..... (Score:5, Interesting)
Re:And this is earth-shattering because..... (Score:1)
Re:And this is earth-shattering because..... (Score:3, Interesting)
Of course - that's less impressive when you realise his parents home was worth about 6 Million Quid! But still...
Re:And this is earth-shattering because..... (Score:2)
But then the article where I learned about that left out the part about his family being well able to provide start-up capital...
Re:Xerox paradox (Score:1)
I think it's because they're decent people that won't double-cross anyone. History has shown that you don't get rich by being nice.
Re:[offtopic] Sorry but... (Score:1)
On The Shoulders of Giants (Score:2)
Let's remember that when we argue for the necessity of patents.
Re:On The Shoulders of Giants (Score:2)
Re:On The Shoulders of Giants (Score:3, Insightful)
Do I argue for patents or against? If you believe what I just stated, which do you think?
Cisco is just one example getting a little more light than usual.
I'm damned if I can guess... (Score:2)
Yeah, that's the point of patents: to make sure good ideas get spread around and seed more good ideas, instead of being hidden and exploited to lesser profit in secret; it's also a major ideological objection to granting monopoly power to any one entity. It cuts both ways.
Are you sure you know which side you're arguing?
We're all damned (Score:2)
Is that why companies spend thousands on each patent; so the ideas can spread around and seed more good ideas? Sounds like an opportunity for a shareholder lawsuit.
Stop believing the 4 color PR brochures. The USA's founding fathers' intent is not the same as todays intellectual monopoly reality. Patents keep you and me from leveraging ideas.
Good luck reading up on existing patents to seed new ideas. US courts have created a catch 22 where you are advised not to read them:
1. You can be sued for patent infringement even if you did not infringe. This is done when the competition knows it has more money to spend in court than you do.
2. If you lose a patent infringement case, the punitive damages are several factors larger IF it can be shown that you read the existing patents. Your opinion of the existing patent has no bearing on this punishment.
3. US courts have established that only Patent Attorney's are authorized to form an legitimate opinion regarding probable patent infringement. (See #2 above.)
Is this what the founding fathers intended? This is what we have. "Invent" something useful and then patent it for kicks. Let us know how it goes. If a big company feels threatened by your product, they will take care of you. The patent system is their big stick, not yours.
Clearly (Score:1)
Spin-offs and the big payoff (Score:3, Troll)
MIT seems to have excelled the best at making "spin-off" projects. I suppose they probably feel they've been burned by some of their startups, too. The same with NCSA.. heh.
When Standford lost their cherry in this game, they should have laid down again and found new partners.
I dont know the status of Stanfords holdings today, but rejecting as a matter of policy founder shares in Cisco was just plain bad for business. Seems they could have been giving away alot more free education today, and that would have been the best payoff imaginable.
Re:Spin-offs and the big payoff (Score:1)
Re:Spin-offs and the big payoff (Score:1)
Re:Spin-offs and the big payoff (Score:1)
Re:Spin-offs and the big payoff (Score:5, Interesting)
Disclaimer: I'm a Stanford alum and sometime-studier of silicon valley lore.
MIT's spinoff list is all well and good but if you add up Stanford's it'd eat them alive:
Hewlett-Packard, SGI, Sun, Cisco (regardless of what you believe from this story), Yahoo, Intuit, IDEO just for starters. You could even probably find a way to argue Intel (as an offspring of Fairchild, which settled in SV because of Bob Noyce, and probably indirectly because of Fred Terman and David Starr Jordan), but it'd be a stretch.
Fred Terman was the Dean of the Engineering school when Hewlett and Packard were at Stanford, he was their mentor and encouraged them strongly to start a company. It's well-documented.
Stanford has been highly entwined with the venture capital community in silicon valley since the 70's (perhaps even earlier, I can't be definitive). If you wander around the campus you can see the synergy just in the names on the buildings (Gates, Allen, Hewlett, Packard, Clark), much less the buildings built with money from the Stanford Engineering Venture Fund, which is run by any number of top-tier VCs.
That quote in the story is from Tom Reindfleisch if I recall, in an internal university memo. Like they wouldn't have axes to grind internally, or want to influence future policy. Always, always remember the context of quotes, especially in media-driven stories like this one.
Stanford these days takes equity holdings or cash. The Office of Technology Licensing happens to hold the licensing rights for the DNA polymerase chain reaction (PCR) which is the basis for most biotech. They make millions/billions of dollars for the university endowment every year. I wouldn't fault them for guessing wrong 20 years ago about the potential of two wackos who were (apparently at the time) bilking the university for some intellectual property.
Re:Spin-offs and the big payoff (Score:1)
The article was pretty pathetic in some places, and it was actually hard to imagine Stanford not rakin' it in.
It was a good stab at at an historical accounting, I guess, but Cisco will live on. Business is business.
Stanford and PCR (Score:2)
No they don't. Hoffman-LaRoche and Applied Biosystems, Inc., hold the patents for all of the commercially/experimentally important parts of PCR. And PCR was invented at Cetus, a private research house.
Re:Stanford and PCR (Score:1)
Not worth nearly as much, sadly as the PCR patent would have been.
Stanford does have some DNA-related patents/technologies in the area of gene splicing which brought in ~$40M in revenue in 1998 (according to the OTL). Goes to show that I should shut up about biotech in detail though and stick to microprocessors.
Here [stanford.edu] is the general report for 1999-2000 from the OTL.
Re:Spin-offs and the big payoff (Score:2)
Of course, the real difference between Stanford and MIT is that MIT got net 18, and Stanford had to settle for net 36 (and appears to have given it back to IANA since then).
Of course, what would you expect from the university whose spinoff BBN built the ARPANET [bbn.com], built routers before Cisco [bbn.com], and brought us the use of @ for email addresses [bbn.com]?
Seriously, though, both Stanford and MIT have had a real impact. One study [mit.edu] ranked the total economic value of MIT's spinoffs as the 24th largest economy in the world for 1994 (between Thailand and South Africa).
But I gotta thank Stanford for Google.
Re:Spin-offs and the big payoff (Score:2)
Nerds 2.0.1 (Score:5, Informative)
It was a good series that is defiantly worth checking out if its on your local PBS station.
Argh! Stanford declined Cisco stock! (Score:4, Funny)
Reminds me of that devil sketch by Rowan Atkinson ("Mr Bean") in which he tell the atheists in the audience:
You must be feeling a right bunch of nitwits! [rowanatkinson.org]
It could have been different (Score:4, Interesting)
Back in 1986 the first router company sent a vice president to California to check out some companies there as canidates for a buy out. After much thought the executive decided that Cisco was going nowhere, and they bought a slightly larger router company down the street from Cisco.
Long timers at Network System [network.com] belive that if the executive had decided to buy Cisco instead of the other company, you wouldn't have heard of Cisco today, instead that other company would have been dominate. How things change, Network Systems no longer makes routers, having realised that Cisco won the market long ago.
Re:It could have been different (Score:2)
I know nothing about net.com. network.com (the company I work for) was started in the 1970s (74 I think), and made a bunch of networking products, mostly for mainframes. I'm not sure if they were multi-protocol before Cisco, but I suspect so. The company was bought out by StorageTek a few years back.
Cisco should give up their intellectual property (Score:2, Interesting)
I'm very happy about cisco's success. But none the less, Stanford recieves a huge amount of public money - and the intellectual property that Cisco has should rightly belong to the public domain.
I really have no objection of them using it, or being successfull becaus of it, but locking everyone else out is what I really have a problem with. (especially since I probably paid for it)
Re:Cisco should give up their intellectual propert (Score:1)
Re:Cisco should give up their intellectual propert (Score:2)
Umm, the intellectual property that Cisco used has long since been mutated into something that doesn't even resemble the original code. Sorry, I think you're beating a dead horse here. 15 years ago maybe you could have made that argument, but not today.
AHH, but the intellectual property that they started with was used as the foundation for all their new R&D. The fact that the public provided the seed, should entitle them to this equity. It would be like if I robed the Fed, kept 15 years worth of interest, and then returned it back expecting nothing of it. No - it's doubtfull that intellectual property should be as omnipresent as it is to begin with, but that the taxpayers should plant the seed is outrageous.
Ironic (Score:2)
cisco is dead anyway... (Score:1, Troll)
I called my dad on a 'vaporware' phone. (Score:1)
My dad's who work uses these things. Plug them into into any cisco router and there's you office extentions. Isn't that an IP phone or am I missing something?
Re:cisco is dead anyway... (Score:1)
As far as the IP phones are concerned, I have one on my desk and I can assure it works quite well. I really like having the ring tone being a recording of a Gene Wilder saying "I thought I told you never to interrupt me while I'm working!".
Re:cisco is dead anyway... (Score:1)
Like Windows?
sure.. a CCIE - yeah righ.. (Score:1)
an Anonymous Coward who
1. is ignorant of the reality of IP Phones
2. is biting the hand that feeds him
3. claims to be a CCIE !! - yeah right...
Remember, you always have the option of running rock solid GD code, and forgoing fancy new s/w features.
Most ISP's run GD releases of SP code, that is 11.2.x , where x is large number - ie > 20
Darren Kruse CCNP CCDP
WAN/LAN Networking Consultant
mailto://darren_kruse@hotmail.com
www.geocities.com/darren_kruse [geocities.com]
Re:cisco is dead anyway... (Score:1)
none of the features that you mention seem vital to running an ISP
I made this claim after being told last week the UUNET (in Oz) are running 11.2 SP code.
I was try to get them to to do RFC 1483 ATM half bridging.- no go ....
so, sorry, I don't work for an ISP, so I can't give you a sh ver..
IOS 11.2 why NOT ? - you tell me a feature that IS vital to an ISP in 12.x !!
Darren Kruse CCNP CCDP
WAN/LAN Networking Consultant
mailto://darren_kruse@hotmail.com
www.geocities.com/darren_kruse [geocities.com]
Re:Ask Slashdot: Are Photomasks Art? (Score:2, Insightful)
I certainly could not fathom a more terrible fate than this. Makes having your family killed off, and left with only a C64 and 56K access look like Christmas!
JUN15
Re:Ask Slashdot: Are Photomasks Art? (Score:2)
Cisco's corporate culture (Score:1)
And lets not forget Cisco employees on IRC with hostnames like "ph33r.cisco.com"
Looks like a fairly interesting place to work
Re:Cisco's corporate culture (Score:1)
Re:Cisco's corporate culture (Score:1)
What is even worse... (Score:3, Insightful)
Universities engage in scientifically uninteresting joint projects with the industry to raise money. They employ students as free labor. The students get units, the lab gets unearmarked funds and the industry gets cheap software.
The head of our lab called it prostitution. Since most students don't have a choice, you might as well call it forced prostitution.
Re:What is even worse... (Score:2, Interesting)
Having worked for a University's computing department for a number of years as a student, both general computing and for the business school - I can tell you it is very common for schools to gobble up the technology created by students and in turn look for business opportunities
OTOH, I definitely used "work-time" to work on outside projects (thanks telnet), so I guess it goes both ways.
Give the University due credit (Score:1)
Drug companies are especially guilty of this crime, greatly inflating their research costs and downplaying the fact that most basic research is done through highly efficient government and private grants at the public research institutions.
Cisco's name (Score:1)
I was guessing Computer Information Systems COmpany, or it could have just been as simple as crisco spelled incorrectly.
Cisco Connection (Score:1)
Let's play devil's advocate for a moment ... (Score:2)
Giving Yeager public credit is all fine and good and well deserved, however he DID receive money from Cisco in 1986 (85% of $150,000 as far as I can tell) and gave it away! IMO, he (or anyone else) is not allowed to comment about not being adequately paid for his efforts.
A few of the people involved even admitted that Cisco's success was questionable. To get a lump sum of money like that from a company that could very well be vapour in a short amount of time is quite an accomplishment.
Now just think that if he had used his technical knowledge to invest that cheque in 2 dozen or so hi-tech companies of that time, he could have been a rich man.
All he gets out of the deal is a clear conscience and thereby revokes his license to complain about the fact he didn't get paid for it.
</devils-advocate>
That said, it's obvious that his contributions were large and he will be forever known as one of the few 'good guys' of the 'Internet Revolution'. A little bit of humility and hard work can go a long way. Let's just hope that more people are motivated by technology instead of corporate greed in the future. Yeager sets quite an example for all of us.
SOURCE: e:Let's play devil's advocate for a ... (Score:1)
Cisco is overrated. (Score:1)
Then they don't look so great to me, I think they have "watered out" their name by buying all kind of companies and then slapping their logo on a lousy product.
Re:Cisco is overrated. (Score:2, Insightful)
The beauty behind cisco's products isn't their performance. Anyone who is into networking hardcore knows that extreme switching, juniper routing, etc is tonnes faster. That's irrelevant. The beauty is the cisco is the only company in the world with an end-to-end integrated, manageable solution. The only company. Nobody else can lay claim that their products are integrated as well as cisco's are. IBM couldn't (and ultimately gave up on networking. Nortel can't. Cabletron couldn't. There's nobody else.
And therein is the beauty of this cisco systems products. Are they the fastest? No. Do they offer the lowest price to most features? No. Do they have a fully integrated and manageble end-to-end, WAN-to-LAN enterprise solution? Yes.
Manufacturing Riches (Score:2, Insightful)
The Astor family of the Waldorf-Astor Hotels, etc. started off as tenement owners, including more than one building that collapsed or burned killing, in at least one instance, hundreds. But now they're ligit.
The Kennedy's we all know sold liquor during prohibition. Went ligit.
Bush's (No Bush bashing here) grandfather (no the other) sold Nazi war bonds in the US and were busted for it. Went ligit (some disagree).
The list can be much longer, those are just the big ones. Cisco is no exception nor are nearly all industries in Germany that existed in World War II (no German industrialist, no matter how bad they treated slaves were tried at Nuremberg).
The point being? If you can make enough money, and prove that you are more valuable to society (so that means A LOT of money) and you turn over a new leaf (or just quit cheating, stealing, cultivating) you win, as do you children. Sure maybe some guy will write a book or post a message on Slashdot but who cares, you won't have to ever work again.
Don't let anyone tell you otherwise, being immoral and unethical does OFTEN pay off. Don't be stupid, be Good and wait till the benefit is great enough, then make you move. Risk big, win big.
Ian says "Reward good behavior, Punish poor behavior"
Some history (Score:3, Insightful)
First, all the major network developers saw the need for routers. Xerox PARC had had PUP/XNS routers for a while, based on Alto machines. PDP-11/34 minicomputers running Dave Mills's "fuzzball" code had been routing IP datagrams since 1981 or so. BBN had several routers. I built an IP router myself at Ford Aerospace in 1985, using a VMEbus cage with a Motorola 68000 and some Ethernet boards. I'd previously had a VAX doing routing in its spare time. So how to do it was understood.
I knew about the Stanford routers, but felt that their Multibus card cages weren't solidly enough built for deployment. (Remember, I was at an aerospace company.) Commercial VMEbus stuff was starting to appear, and that seemed the way to go, even though it cost more.
We were trying to get away from multiprotocol routers, which add an extra layer to everything. We were thinking "TCP/IP everywhere", rather than routing SNA, DECnet, XNS, X.25, and TP4 (all of which have been forgotten) over the same wires.
But a mass market for routers seemed a long way off. Ford Aerospace had built some big digital networks for DoD in the past, and they typically had 10 to 100 switching points. Management didn't see a case for a volume product. (Ford Aerospace had been badly burned on some previous products that were too early, like a really nice projection TV in the 1970s).
The major vendors were all fighting TCP/IP in favor of their proprietary network protocols. This was the era of the "PC LAN". Ungermann-Bass, Network Systems, and 3COM all had incompatible PC LANs. IBM had three PC LANs which wouldn't talk to each other.
Cisco was more of a marketing success than a technical one. There was no real obstacle to building a router by 1984 or so. But selling lots of them looked hard.
Re:boring (Score:2)
I'm pretty sure you can set you account up so that Slashdot only shows you stupid bullshit that doesn't matter.
Re:This was a different era, not a crime (Score:3, Insightful)
Re:This was a different era, not a crime (Score:2)
Most university IT staff and faculty have the skills to work elsewhere, and in many cases they could make more money doing research for a private firm. But they don't. Why not?
Universities are an excellent source of research because there are lots of smart people with free time, resources and interesting problems to solve. I doubt that most of these people are interested in founding startups because that involves a lot of hard, boring work. If these folks really wanted to make a ton of dough all they needed to do was move to the private sector.
While I do think that the original Blue Box team should get credit for the invention there is nothing wrong with taking a university research project and making a product out of it. This is how useful technology moves from the exclusive confines of the school system into the world.
Re:This was a different era, not a crime (Score:1)
ah yeah, the good old days. Too bad there weren't any. Oppurtinity lies in the future. Don't believe the hype... you are buying that hype hook line and sinker, no offense intended.
+1 Funny! Re:This was a different era, not a crime (Score:2)
ROTFLMAO
Re:Makes you wonder... (Score:2, Funny)
I was trying to make a funny, but apparently some moderators mistook my smiley for a picture of a troll. Oh well. I should be more careful with jokes that could be mistaken for Linux critism.
Makes me wonder what really happened five years ago in Germany though, when KDE started.