PROJECT ON CISCO

An era that fostered Communication

Globally
A Brief History
Len Bosack and Sandy Lerner, a married couple who worked as computer operations staff at
Stanford University, later joined by Richard Troiano, founded cisco Systems in 1984. Lerner
moved on to direct computer services at Schlumberger, moving full time to Cisco in 1987. The
name "Cisco" was derived from the city name, San Francisco, which is why the company's
engineers insisted on using the lower case 'cisco' in the early days. For Cisco's first product,
Bosack adapted multiple-protocol router software
originally written some years before by William Bosack attended La Salle College
Yeager, another Stanford employee who later High School in Wyndmoor,
Pennsylvania, where he graduated in
joined Sun Microsystems.
1969. He then entered the The
Leonard Bosack is, with his ex-wife Sandra Wharton School at the University of
Lerner, co-founder of Cisco Systems. Pennsylvania, where he obtained his
bachelor's degree in 1973. After
graduation, he worked at Digital
Equipment Corporation (DEC),
where he was involved in projects
relating to 36-bit systems. In 1979,
Bosack left DEC for Stanford
University, where he obtained a
master’s degree in computer science
in 1981. There, he met and married
graduate student Sandra Lerner in
1980.

Cisco Systems founders Len Bosack and his then-wife, Sandra Lerner, are credited with making
major design enhancements to one of the technologies that makes the Internet possible—the
router. Bosack, Lerner, and the Stanford colleagues who helped them didn’t invent the first
router. That credit goes to William Yeager, a Stanford Medical School engineer, who wrote the
software to drive a specialized computer controlled by an Internetwork Operating System (IOS).
Bosack and his group took the original router code, enhanced the design, and capitalized on it,
creating the first commercially successful router.
According to Cisco's company legend, Bosack, who managed the computer science
department’s computers, and Lerner, who managed the computer system for the Graduate School
of Business, worked at opposite ends of Stanford University campus. They could send e-mail
MANAGERIAL PROCESS SKILLS 28 February 2009 Page
messages back and forth using the campus Local Area Network (LAN), but their two computers,
which ran on different operating systems, could not communicate directly. Using an updated
version of an IMP (with a networking board designed by future Sun Microsystems founder Andy
Bechtolsheim), Bosack, Lerner, and two Stanford staff members ran network cables between the
buildings and connected them.

Type Public (NASDAQ: CSCO)

San Francisco, California, USA

Founded
Len Bosack's business (1984)
card, ca. 1984.
In fact, both systems (SU-SCORE and SU-GSB) were TOPS-20 systems. The problem was not
that theHeadquarte
systems were incompatible (obviously, being the same, they weren't) but that the SU-
GSB system rs was originallySan
not Jose,
on anyCA
network.
During the networking process, Bosack and Lerner’s team improved the connectivity of the
original device so that John
it T. Chambers,
worked betterChairman and networks, computer systems, and
with unrelated
Key people
protocols. Pretty soon, CEO
word got out, and other universities began asking for these new, improved
devices, which were called multiprotocol routers. Bosack and Lerner realized the commercial
potential Industry
of the new Computer
developmentnetworking
and went to Stanford to propose selling the routers
commercially. Because Stanford is a nonprofit organization, it could not enter into a commercial
venture, and therefore it$87.65 billion
declined USD (Atthe
and forbade market
group from selling the technology.
Market cap
close the
Stanford has also disputed on January
value of 30, 2009) enhancements. It later claimed Bosack and
[1]
Bosack’s
others had usurped its design and improperly profited from the routers. Rather than litigate, in
Revenue
April 1987, ▲$39.540
Stanford licensed billionsoftware
the router USD (2008)
and two computer boards to Cisco in exchange
for $19,300 in cash, $150,000 in royalties, product discounts, and support and the right to use
Operating
other Cisco product improvements made after
▲ $9.442 billion USD Bosack
(2008) left Stanford.
income By the end of 1984, Bosack and
Lerner had formed Cisco Systems
Net income ▲ $8.052 billion USD (2008)
and begun manufacturing routers
in their living room. Cisco was
Employees 66,050 (2008)
named after the city San
Website http://www.cisco.com
Francisco. In 1986, Bosack
resigned from Stanford amid
allegations of impropriety to work
MANAGERIAL PROCESS SKILLS 28 February 2009 Page 1
at Cisco full time. That year, Bosack and Lerner received funding of $2.5 million from Sequoia
Capital after 77 unsuccessful proposals to other venture capitalists.
Between 1984 and 1992, Cisco grew an average rate of 200% per year with little or no
advertising. On August 28, 1990, the management team fired Lerner; upon hearing the news,
Bosack resigned to show his support. The two immediately sold their shares in Cisco for an
estimated $170 million. The following year, Bosack founded his own company XKL, in
Redmond, Washington, where he works today. He has ties to SETI, an organization devoted to
the "Search for Extra-Terrestrial Intelligence".

One of the many buildings on the Cisco Systems campus in San Jose

In 1990, the company was listed on the Nasdaq stock exchange. Lerner was fired and
because of that, Bosack quit but not before receiving $200 million. Most of those profits were
given to charities and the two later divorced. Cisco acquired a variety of companies to bring in
talent and innovation into the company. Several acquisitions, such as Stratacom, were the biggest
deals when they happened. During the Internet boom in 1999, the company acquired Cerent
Corp., a start-up company located in Petaluma, California, for about US$7 billion. It was the
most expensive acquisition made by Cisco at that time. Since then, only Cisco's acquisition
of Scientific-Atlanta has been bigger. Although not every acquisition is successful, Cisco has
more frequently succeeded in integrating and growing the revenue of its acquisitions than its
competitors. Several acquired companies have grown into $1Bn+ business units for Cisco in
LAN switching, Enterprise VOIP, and home networking.

In late March 2000, at the height of the dot-com boom, Cisco was the most valuable
company in the world, with a market capitalization of more than US$500 billion. In January
2009, with a market cap of about US$93 billion, it is still one of the most valuable companies.
CISCO was voted stock of the decade on NASDAQ. The company's 7500 Series router was
MANAGERIAL PROCESS SKILLS 28 February 2009 Page 2
voted 3rd in the product of the decade 1990-2000 behind the Mosaic web browser and the Novell
Training Courses
IP Communications
Routing and Switching
Security
Wireless/Mobility
Learning Locator Training
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Self-Study Options
Partner Education
Connection
Cisco Press
Learning Partner Programs
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Partner
Staff Development &
Education
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instructor-led training and hands-on lab exercises.
Career Certifications
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LAN manager.
Cisco has made inroads into many network
equipment markets outside routing, including Ethernet
switching, remote access, branch office
routers, ATM networking, security, IP telephony, and
others. In 2003, Cisco acquired Linksys, a popular
manufacturer of computer networking hardware and
positioned it as a leading brand for the home and end user
networking market.The company's first two CEOs are
John Morgridge and John Chambers (active). The
Corporate Headquarters is on East Tasman Drive in San
Jose, California, between Zanker Road and Cisco Way.
The company was a 2002-03 recipient of the Ron Brown
Award.
Cisco's vision is "Changing the Way We Work, Live, Play
and Learn." Cisco's current tagline is "Welcome to the
human network."
PRODUCTS AND SERVICES
Training Resources
Cisco Networking Academy
Our global e-learning program offers students an
opportunity to pursue IT curricula through online
28 February 2009 Page 3
Acquisition
Acquisition Value
Company Business Country
date (USD)

December 8, United $120,000,00

LightStream LAN switching
1994 States 0

August 10, Remote desktop United $114,200,00

Combinet
1995 software States 0

September 6, United
Internet Junction Gateway $5,500,000
1995 States
January 23, United $115,000,00
TGV Software Web applications
1996 States 0

United $4,000,000,0
April 22, 1996 StrataCom LAN switching
States 00

United $200,000,00
July 22, 1996 Telebit Modems
States 0

August 6, United $100,000,00

Nashoba Networks LAN switching
1996 States 0

September 3, United $220,000,00

Granite Systems Computer networking
1996 States 0

October 14, United

Netsys Technologies Network simulation $79,000,000
1996 States
Synchronous optical
June 9, 1997 Skystone Systems Canada $66,500,000
networking
Global Internet United
June 24, 1997 Firewall $40,250,000
Software Group States
March 11, United
Precept Software Internet television $84,000,000
1998 States

May 4, 1998 CLASS Data Systems Computer networking United $50,000,000

States

MANAGERIAL PROCESS SKILLS 28 February 2009 Page 4

 United $116,000,00
July 28, 1998 Summa Four LAN switching
States 0

August 21, United

American Internet Computer networking $56,000,000
1998 States
October 14, Voice over Internet United $145,000,00
Selsius Systems
1998 Protocol States 0

December 2, Synchronous optical United $126,000,00

Pipelinks
1998 networking States 0

GeoTel Voice over Internet United $2,000,000,0

April 13, 1999
Communications Protocol States 00

Voice over Internet United $170,000,00

April 28, 1999 Amteva Technologies
Protocol States 0

TransMedia United $407,000,00

June 17, 1999 Gateways
Communications States 0

StratumOne Synchronous optical United $435,000,00

June 29, 1999
Communications networking States 0

November 9, Aironet Wireless United $799,000,00

Wireless LAN
1999 Communications States 0

November United $128,000,00

V-Bits Digital video
11, 1999 States 0

December Worldwide Data Information technology United $25,500,000

16, 1999 Systems consulting States
December Internet Engineering Synchronous optical United $25,000,000
17, 1999 Group networking States
December Fiber-optic United $2,150,000,0
Pirelli Optical Systems
20, 1999 communication States 00

January 19, Virtual private United $317,000,00

Compatible Systems
2000 networking States 0

January 19, Virtual private United $250,000,00

Altiga Networks
2000 networking States 0

February 16, United $355,000,00

Growth Networks Chipsets
2000 States 0
March 1, $180,000,00
Alantech Technologies Network management Scotland
2000 0
March 16, JetCell Mobile telephones $200,000,00
United
MANAGERIAL PROCESS SKILLS 28 February 2009 Page 5
2000 States 0
March 16, Information United $301,000,00
infoGear Technology
2000 management States 0

March 29, United $800,000,00

SightPath Content delivery
2000 States 0

United $118,000,00
April 11, 2000 PentaCom LAN switching
States 0

April 12, 2000 Seagull Semiconductor Computer networking United $19,000,000

States

United $127,000,00
June 5, 2000 HyNEX Internet access
States 0

United $210,000,00
July 7, 2000 Netiverse LAN switching
States 0

United $150,000,00
July 11, 2000 AuroraNetics Computer networking
States 0

Voice over Internet United $175,000,00

July 25, 2000 Komodo Technology
Protocol States 0

NuSpeed Internet United $450,000,00

July 27, 2000 iSCSI
Systems States 0

August 1, United $425,000,00

IPmobile Mobile software
2000 States 0

August 31, Media player United $369,000,00

PixStream
2000 (application software) States 0

September Voice over Internet United $200,000,00

IPCell Technologies
28, 2000 Protocol States 0

September Voice over Internet United $169,000,00

Vovida Networks
28, 2000 Protocol States 0

November United $295,000,00

Radiata Wireless networking
13, 2000 States 0

December United $155,000,00

ExiO Communications Wireless networking
14, 2000 States 0

United $181,000,00
July 27, 2001 Allegro Systems Virtual private networks
States 0

Hammerhead United $100,000,00

May 1, 2002 Computer networking
Networking States 0
MANAGERIAL PROCESS SKILLS 28 February 2009 Page 6
May 1, 2002 Navarro Networks Computer networking United $73,000,000
States

United $113,000,00
July 25, 2002 AYR Networks Computer networking
States 0

August 20, United $2,500,000,0

Andiamo Systems Data storage
2002 States 00

October 22, United

Psionic Software Intrusion detection $12,000,000
2002 States
January 24, United $154,000,00
Okena Intrusion detection
2003 States 0

March 19, United

SignalWorks Echo cancellation $13,500,000
2003 States
March 20, United $500,000,00
Linksys Computer networking
2003 States 0

November Latitude United

Web conferencing $80,000,000
12, 2003 Communications States
March 12, United
Twingo Systems Computer security $5,000,000
2004 States
March 22, United
Riverhead Networks Computer security $39,000,000
2004 States

June 17, 2004 Procket Networks Routers United $89,000,000

States

June 29, 2004 Actona Technologies Data storage United $82,000,000

States

July 8, 2004 Parc Technologies Routers United $9,000,000

States
August 23, Service Delivery United $200,000,00
P-Cube
2004 Platform States 0

September Communication United

dynamicsoft $55,000,000
13, 2004 software States
December 9, United
BCN Systems Routers $34,000,000
2004 States
December United
Protego Networks Network security $65,000,000
20, 2004 States
MANAGERIAL PROCESS SKILLS 28 February 2009 Page 7
 Topspin United $250,000,00
April 14, 2005 LAN switching
Communications States 0

Voice over Internet United

April 26, 2005 Sipura Technology $68,000,000
Protocol States

June 27, 2005 Netsift Computer networking United $30,000,000

States
Entertainment United
July 22, 2005 KISS Technology $61,000,000
technology States

July 26, 2005 Sheer Networks Service management United $97,000,000

States
September United
Nemo Systems Computer networking $12,500,000
30, 2005 States
November United $6,900,000,0
Scientific-Atlanta Digital cable
18, 2005 States 00

November United
Cybertrust Information gathering $14,000,000
29, 2005 States
March 7, United
SyPixx Networks Surveillance $51,000,000
2006 States
Voice over Internet United
June 8, 2006 Metreos $28,000,000
Protocol States
Voice over Internet United
June 8, 2006 Audium $19,800,000
Protocol States

July 6, 2006 Meetinghouse Computer security United $43,700,000

States
August 21, United
Arroyo Video Solutions Video on demand $92,000,000
2006 States
October 25, United
Orative Mobile software $31,000,000
2006 States
January 4, United $830,000,00
Ironport Computer security
2007 States 0

March 15, United $3,200,000,0

WebEx Web conferencing
2007 States 00

October 23, United $330,000,00

Navini Networks Wireless LAN
2007 States 0
November 1, Securent management $100,000,00
2007
MANAGERIAL PROCESS SKILLS 28 February 2009 United Page 8 0
April 8, 2008 Nuova Systems, Inc. Computer networking $678,000,00
United 0
June 10, 2008 DiviTech A/S management —
Denmark
September United
Jabber Presence —
19, 2008 States

January 27, Richards-Zeta Building United

Building Intelligence —
2009 Intelligence States

CISCO PARTNER
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provide products, services, or solutions, a partnership with Cisco is a major step forward in
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By becoming a Cisco partner, you can:
• Gain credibility: Capitalize on the Cisco brand, which commands recognition
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• Acquire credentials: Market your certified Cisco expertise as a competitive
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• Catch the momentum: Join the value-add partner program that is setting the
pace in the industry.
• Reap rewards: Team with the best to add value for customers and drive
growth and profitability with Cisco.
• Strengthen your relationship with Cisco and its sales organization: Position
your company to take advantage of more sales opportunities than ever
before.

MANAGERIAL PROCESS SKILLS 28 February 2009 Page 9

References
• Harvard Business Review,2007 June ,pg 121.

• Michael J.Martin, “Understanding the Network”, 2000, Techmedia.

• Vishal Nagraj, “Team Leader”, 2004,Hathway Cables & Datacom.

• http://en.wikipedia.org/wiki/List_of_acquisitions_by_Cisco_Systems

• http://www.cisco.com/en/US/products

• http://www.cisco.com/web/learning/index.html

• http://en.wikipedia.org/wiki/Cisco

• http://www.cisco.com/web/partners/index.html

MANAGERIAL PROCESS SKILLS 28 February 2009 Page 10