cisco

The ups & downs of the entrepreneur & cisco

Along with Co-founding Cisco Systems in 1986, Bosack is largely responsible for first pioneering the widespread commercialization of local area network (LAN). He and his fellow staff members at Stanford were able to successfully link the university's 5,000 computers across a 16-square-mile (41 km2) campus area. This contribution is significant in its context, because at that time, technology like that which LAN used was unheard of. Their challenge had been to overcome incompatibility issues, in order to create the first true LAN system.

Leonard Bosack has also held significant technical leadership roles at AT&T Bell Labs, and Digital Equipment Corporation. After earning his Masters Degree in computer science from Stanford University, he became Director of Computer Facilities for the university's Department of Computer Science. He became a key contributor to the emerging network technology driven by the U.S. Department of Defense (ARPAnet), that was the beginning of today's Internet.

Bosack's most recent technological advancements include his creation of new in-line fiber optic amplification systems that are capable of achieving unprecedented data transmission latency speeds of 6.071 milliseconds (fiber plus equipment latency) over 1231 kilometers of fiber, which is roughly the distance between Chicago and New York City. Bosack was inspired by his belief that by leveraging the inherent, but often untapped, physics of fiber optic components, data transmission speeds can be increased with devices that use less power, less space and require less cooling.

The controversy surrounding Bosack and ex-wife Sandy Lerner involves the legitimacy of the claim that the couple invented the multiprotocol router and started Cisco in their living room, using their own credit cards for financing. Many feel that this claim omits many people who helped develop the multiprotocol router, a device which was critical to the early Internet, as well as a battle with Stanford that almost killed Cisco at its conception over charges that Bosack and Lerner used technology that belonged to Stanford when starting their business. The controversy is that while Bosack and Lerner are credited solely, others feel as though it was actually a group effort, and one can't define who did what during the cooperative effort. However, as of December 2001, a Mercury News article cited that a Stanford web site credits only Bosack and Lerner with developing the device that allowed computer networks to communicate intelligently with one another, despite Cisco spokeswoman Jeanette Gibsons claim that it was obviously a group effort.

Led by Chambers, Cisco focused on acquiring start-up companies that were working on emerging technologies with a promising future in the networking business. As Cisco was a highly de-centralized company, managers were empowered to take decisions on acquiring companies. 

However, it was made necessary to follow a standard procedure for acquisitions and ensure uniformity in execution all across the company. Cisco employed a three step process. This began with making an evaluation of the target company and convincing its management regarding the benefits of merging together.

Several analysts and media reports expressed doubts over the manner in which the acquisitions were evaluated and the pace at which the deals were closed. Though the company officials boasted of a high success rate for all acquisitions, analysts expressed doubts. Cisco mostly acquired start-ups that were yet to come out with a product. The revenues obtained from those products could not be known until they were fully developed and marketed.