Acquired by SageNet in 2014, Spacenet, Inc. was a provider of VSAT satellite-based data network services as well as hybrid satellite/terrestrial networks and network management services. Spacenet was headquartered in Tysons Corner , Virginia in the United States .
81-469: Spacenet's primary business was providing VSAT and hybrid/terrestrial data network services to government and enterprise customers under the Connexstar brand. Spacenet's enterprise/government VSAT services are used for a wide range of applications such as primary broadband or narrowband networks, disaster recovery/backup networks and multicast file delivery. Beginning in 2006, it partnered with Cisco Systems as
162-436: A general glut in the job market. University enrollment for computer-related degrees dropped noticeably. Aeron chairs , which retailed for $ 1,100 each, were liquidated en masse. As growth in the technology sector stabilized, companies consolidated; some, such as Amazon.com , eBay , Nvidia and Google gained market share and came to dominate their respective fields. The most valuable public companies are now generally in
243-448: A 2009 purchase of mobile specialist Starent Networks . Cisco continued to be challenged by both domestic competitors Alcatel-Lucent , Juniper Networks , and an overseas competitor Huawei . Due to lower-than-expected profit in 2011, Cisco reduced annual expenses by $ 1 billion. The company cut around 3,000 employees with an early-retirement program who accepted a buyout and planned to eliminate as many as 10,000 jobs (around 14 percent of
324-640: A cash-and-equity deal. Dot-com bubble The dot-com bubble (or dot-com boom ) was a stock market bubble that ballooned during the late-1990s and peaked on Friday, March 10, 2000. This period of market growth coincided with the widespread adoption of the World Wide Web and the Internet , resulting in a dispensation of available venture capital and the rapid growth of valuations in new dot-com startups . Between 1995 and its peak in March 2000, investments in
405-410: A cloud API platform that simplifies the addition of real-time communications and collaboration capabilities within applications. On June 30, 2015, Cisco acquired privately held OpenDNS , the company best known for its DNS service that adds a level of security by monitoring domain name requests. On August 6, 2015, Cisco announced that it has completed the acquisition of privately held MaintenanceNet,
486-565: A decade virtually unchanged. The company was quick to capture the emerging service provider environment, entering the SP market with product lines such as Cisco 7000 and Cisco 8500. Between 1992 and 1994, Cisco acquired several companies in Ethernet switching , such as Kalpana , Grand Junction and most notably, Mario Mazzola 's Crescendo Communications, which together formed the Catalyst business unit. At
567-543: A definitive agreement to acquire Sourcefire for $ 2.7 billion. On August 14, 2013, Cisco Systems announced it would cut 4,000 jobs from its workforce, which was roughly 6%, starting in 2014. At the end of 2013, Cisco announced poor revenue due to depressed sales in emerging markets, caused by economic uncertainty and by fears of the National Security Agency planting backdoors in its products. In April 2014, Cisco announced funding for early-stage firms to focus on
648-690: A great deal of overcapacity as many Internet business clients went bust. That, plus ongoing investment in local cell infrastructure kept connectivity charges low, and helped to make high-speed Internet connectivity more affordable. During this time, a handful of companies found success developing business models that helped make the World Wide Web a more compelling experience. These include airline booking sites, Google 's search engine and its profitable approach to keyword-based advertising, as well as eBay 's auction site and Amazon.com 's online department store. The low price of reaching millions worldwide, and
729-734: A market capitalization of $ 224 million, and was listed on the NASDAQ stock exchange. On August 28, 1990, Lerner was fired. Upon hearing the news, her husband Bosack resigned in protest. Although Cisco was not the first company to develop and sell dedicated network nodes, it was one of the first to sell commercially successful routers supporting multiple network protocols. Classical, CPU-based architecture of early Cisco devices coupled with flexibility of operating system IOS allowed for keeping up with evolving technology needs by means of frequent software upgrades. Some popular models of that time (such as Cisco 2500 ) managed to stay in production for almost
810-480: A meaningful share of the packet-optical market, revenues were still not on par with US$ 7 billion price tag paid in 1999 for Cerent . Some of acquired technologies (such as Flip from Pure Digital) saw their product lines terminated. Cisco announced on March 15, 2012, that it would acquire NDS Group for $ 5bn. The transaction was completed on July 30, 2012. In January 2013, Cisco Systems acquired Israeli software maker Intucell for around $ 475 million in cash,
891-530: A move to expand its mobile network management offerings. In the same month, Cisco Systems acquired Cognitive Security, a company focused on Cyber Threat Protection. Cisco also acquired SolveDirect (cloud services) in March 2013 and UK -based Ubiquisys (mobile software) in April 2013 for $ 310 million. Cisco acquired cyber-security firm Sourcefire , in October 2013. On June 16, 2014, Cisco announced that it has completed
SECTION 10
#1732855645829972-421: A much-hyped company that had backing from Amazon.com, went out of business only nine months after completing its IPO. By that time, most Internet stocks had declined in value by 75% from their highs, wiping out $ 1.755 trillion in value. In January 2001, just three dot-com companies bought advertising spots during Super Bowl XXXV . The September 11 attacks accelerated the stock-market drop. Investor confidence
1053-881: A price–earnings ratio of 200, dwarfing the peak price–earnings ratio of 80 for the Japanese Nikkei 225 during the Japanese asset price bubble of 1991. In 1999, shares of Qualcomm rose in value by 2,619%, 12 other large-cap stocks each rose over 1,000% in value, and seven additional large-cap stocks each rose over 900% in value. Even though the Nasdaq Composite rose 85.6% and the S&;P 500 rose 19.5% in 1999, more stocks fell in value than rose in value as investors sold stocks in slower growing companies to invest in Internet stocks. An unprecedented amount of personal investing occurred during
1134-513: A product design consulting firm that helped develop Cisco's Flip video camera. Also in 2010, Cisco became a key stakeholder in e-Skills Week . In March 2011, Cisco completed the acquisition of privately held network configuration and change management software company Pari Networks. Although many buy-ins (such as Crescendo Networks in 1993, Tandberg in 2010) resulted in acquisition of flagship technology to Cisco, many others have failed—partially or completely. For instance, in 2010 Cisco occupied
1215-415: A profit. But despite this, the Internet continued to grow, driven by commerce, ever greater amounts of online information, knowledge, social networking and access by mobile devices. The 1993 release of Mosaic and subsequent web browsers during the following years gave computer users access to the World Wide Web , popularizing use of the Internet. Internet use increased as a result of the reduction of
1296-486: A revenue restatement due to aggressive accounting practices. Its stock price, which had risen from $ 7 per share to as high as $ 333 per share in a year, fell $ 140 per share, or 62%, in a day. The next day, the Federal Reserve raised interest rates, leading to an inverted yield curve , although stocks rallied temporarily. Tangentially to all of speculation, Judge Thomas Penfield Jackson issued his conclusions of law in
1377-469: A sister company to Sprint , providing satellite links for voice connections. The company was acquired by GTE in 1983 and grew into a worldwide satellite operator and services provider (including launching the first North American K u band satellite, Spacenet 1). It went through several acquisitions over the next 15 years, absorbing AT&T Tridom and Contel ASC. GTE Spacenet was sold to General Electric American Communications in 1994. AT&T sold
1458-450: A variety of companies to spin products and talent into the company. In 1995–1996 the company completed 11 acquisitions. Several acquisitions, such as Stratacom , were one of the biggest deals in the industry when they occurred. During the Internet boom in 1999, the company acquired Cerent Corporation , a start-up company located in Petaluma, California , for about US$ 7 billion. It was
1539-448: A widely read article that stated: "It's time, at last, to pay attention to the numbers". On Friday, April 14, 2000, the Nasdaq Composite index fell 9%, ending a week in which it fell 25%. Investors were forced to sell stocks ahead of Tax Day , the due date to pay taxes on gains realized in the previous year. By June 2000, dot-com companies were forced to reevaluate their spending on advertising campaigns. On November 9, 2000, Pets.com ,
1620-854: Is also included in the S&P 500 , Nasdaq-100 , the Russell 1000 , and the Russell 1000 Growth Stock indices. Cisco Systems was founded in December 1984 by Sandy Lerner along with her husband Leonard Bosack . Lerner was the director of computer facilities for the Stanford University Graduate School of Business . Bosack was in charge of the Stanford University computer science department's computers. Cisco's initial product has roots in Stanford University's campus technology. In
1701-693: The Dulles Technology Corridor in Virginia, governments funded technology infrastructure and created favorable business and tax law to encourage companies to expand. The growth in capacity vastly outstripped the growth in demand. Spectrum auctions for 3G in the United Kingdom in April 2000, led by Chancellor of the Exchequer Gordon Brown , raised £22.5 billion. In Germany, in August 2000,
SECTION 20
#17328556458291782-401: The Internet of things (IoT), domain security , videoconferencing , and energy management with products including Webex , OpenDNS , Jabber , Duo Security, Silicon One, and Jasper . Cisco Systems was founded in December 1984 by Leonard Bosack and Sandy Lerner , two Stanford University computer scientists who had been instrumental in connecting computers at Stanford. They pioneered
1863-1002: The OpenFog Consortium , to promote interests and development in fog computing . In January 2016, Cisco invested in VeloCloud, a software-defined WAN (SD-WAN) start-up with a cloud offering for configuring and optimizing branch office networks. Cisco contributed to VeloCloud's $ 27 million Series C round, led by March Capital Partners. In February 2017, Cisco launched a cloud-based secure internet gateway, called Cisco Umbrella, to provide safe internet access to users who do not use their corporate networks or VPNs to connect to remote data centers. Immediately after reporting their fourth-quarter earnings for 2017, Cisco's price-per-share value jumped by over 7%, while its earnings per share ratio increased from 60 to 61 cents per share, due in part to Cisco's outperformance of analyst expectations. In September 2017, Chambers announced that he would step down from
1944-400: The quaternary sector of the economy and confidence that the companies would turn future profits created an environment in which many investors were willing to overlook traditional metrics, such as the price–earnings ratio , and base confidence on technological advancements, leading to a stock market bubble . Between 1995 and 2000, the Nasdaq Composite stock market index rose 400%. It reached
2025-527: The " digital divide " and advances in connectivity, uses of the Internet, and computer education. Between 1990 and 1997, the percentage of households in the United States owning computers increased from 15% to 35% as computer ownership progressed from a luxury to a necessity. This marked the shift to the Information Age , an economy based on information technology , and many new companies were founded. At
2106-739: The "Silicon One" ASIC chip with the G100 model reaching a speed of 25.6 Tbit/s. The Silicon One competes against the Tomahawk series by Broadcom the Nvidia Spectrum , the Marvell Teralynx and the Intel Tofino. In 2023, the Silicon One G200 will offer a speed of 51.2 Tbit/sec. In March 2020, SVP and GM of Enterprise Networking David Goeckeler left to become CEO of Western Digital . and
2187-582: The 73,400 total employees before curtailment). During the 2011 analyst call, Cisco's CEO John Chambers called out several competitors by name, including Juniper and HP. On July 24, 2012, Cisco received approval from the EU to acquire NDS (a TV software developer) for US$ 5 billion. In 2013, Cisco sold its Linksys home-router unit to Belkin International Inc., signaling a shift to sales to businesses rather than consumers. On July 23, 2013, Cisco Systems announced
2268-427: The Federal Reserve , raised interest rates several times; these actions were believed by many to have caused the bursting of the dot-com bubble. According to Paul Krugman , however, "he didn't raise interest rates to curb the market's enthusiasm; he didn't even seek to impose margin requirements on stock market investors. Instead, [it is alleged] he waited until the bubble burst, as it did in 2000, then tried to clean up
2349-721: The Internet of Things. The investment fund was allocated to investments in IoT accelerators and startups such as The Alchemist Accelerator , Ayla Networks and EVRYTHNG . Later that year, the company announced it was laying off another 6,000 workers or 8% of its global workforce, as part of a second restructuring. On November 4, 2014, Cisco announced an investment in Stratoscale . On May 4, 2015, Cisco announced CEO and Chairman John Chambers would step down as CEO on July 26, 2015, but remain chairman. Chuck Robbins , senior vice president of worldwide sales & operations and 17-year Cisco veteran,
2430-714: The NASDAQ composite stock market index rose by 800%, only to fall 78% from its peak by October 2002, giving up all its gains during the bubble. During the dot-com crash , many online shopping companies, notably Pets.com , Webvan , and Boo.com , as well as several communication companies, such as Worldcom , NorthPoint Communications , and Global Crossing , failed and shut down. Others, like Lastminute.com , MP3.com and PeopleSound remained through its sale and buyers acquisition. Larger companies like Amazon and Cisco Systems lost large portions of their market capitalization, with Cisco losing 80% of its stock value. Historically,
2511-503: The Nasdaq fell 2.6%, but the S&P 500 rose 2.4% as investors shifted from strong performing technology stocks to poor performing established stocks. On March 20, 2000, Barron's featured a cover article titled "Burning Up; Warning: Internet companies are running out of cash—fast", which predicted the imminent bankruptcy of many Internet companies. This led many people to rethink their investments. That same day, MicroStrategy announced
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2592-561: The Reactivity team and product portfolio under its Datacenter Switching and Security Technology Group, which reported to the company's then senior vice president Jayshree Ullal . Throughout the mid-2000s, Cisco also built a significant presence in India, establishing its Globalization Centre East in Bangalore for $ 1 billion. Cisco also expanded into new markets by acquisition—one example being
2673-578: The Rome Call for AI ethics at the Vatican, endorsing the document's principles for responsible and ethical AI use. For the fiscal year 2023, Cisco reported earnings of US$ 12.6 billion, with an annual revenue of US$ 57 billion, an increase of 10.6% over the previous fiscal cycle. Cisco's shares traded at over $ 43 per share, and its market capitalization was valued at US$ 213.2 billion in September 2018. Cisco acquired
2754-547: The Tridom Corporation to Spacenet in 1997. In 1998, GE Americom sold Spacenet's North American operations to VSAT terminal manufacturer Gilat Satellite Networks for $ 227.5 million in stock and spun the satellite assets off into GE Americom (which later became part of SES ). In March 2005, Gilat wholly acquired StarBand , the first two-way consumer satellite ISP in the United States, and merged StarBand's operations into Spacenet. Andreas Georghiou became CEO of Spacenet
2835-550: The US-based company best known for its cloud-based contract management platform ServiceExchange. On the same month, Cisco acquired Pawaa, a privately held company in Bangalore, India that provides secure on-premises and cloud-based file-sharing software. On September 30, 2015, Cisco announced its intent to acquire privately held Portcullis Computer Security, a UK-based company that provides cybersecurity services to enterprise clients and
2916-481: The Web to be a useful and profitable additional channel for content distribution, and an additional means to generate advertising revenue. The sites that survived and eventually prospered after the bubble burst had two things in common: a sound business plan, and a niche in the marketplace that was, if not unique, particularly well-defined and well-served. In the aftermath of the dot-com bubble, telecommunications companies had
2997-588: The acquisition of ThreatGRID, a company that provided dynamic malware analysis and threat intelligence technology. On June 17, 2014, Cisco announced its intent to acquire privately held Tail-f Systems, a leader in configuration management software. On April 2, 2015, Cisco announced plans to buy Embrane, a software-defined networking startup. The deal will give Cisco Embrane's software platform, which provides layer 3–7 network services for things such as firewalls, VPN termination, server load balancers and SSL offload. On May 7, 2015, Cisco announced plans to buy Tropo,
3078-454: The auctions raised £30 billion. A 3G spectrum auction in the United States in 1999 had to be re-run when the winners defaulted on their bids of $ 4 billion. The re-auction netted 10% of the original sales prices. When financing became hard to find as the bubble burst, the high debt ratios of these companies led to bankruptcy . Bond investors recovered just over 20% of their investments. However, several telecom executives sold stock before
3159-501: The boom and stories of people quitting their jobs to trade on the financial market were common. The news media took advantage of the public's desire to invest in the stock market; an article in The Wall Street Journal suggested that investors "re-think" the "quaint idea" of profits, and CNBC reported on the stock market with the same level of suspense as many networks provided to the broadcasting of sports events . At
3240-521: The case of United States v. Microsoft Corp. (2001) and ruled that Microsoft was guilty of monopolization and tying in violation of the Sherman Antitrust Act . This led to a one-day 15% decline in the value of shares in Microsoft and a 350-point, or 8%, drop in the value of the Nasdaq. Many people saw the legal actions as bad for technology in general. That same day, Bloomberg News published
3321-531: The company's product lines. Limits of IOS and aging Crescendo architecture also forced Cisco to look at merchant silicon in the carrier Ethernet segment. This resulted in a new ASR 9000 product family intended to consolidate the company's carrier Ethernet and subscriber management business around EZChip -based hardware and IOS-XR . In March 2007, Cisco acquired Reactivity Inc, a privately held XML gateway provider based in Redwood City, California . Cisco placed
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3402-479: The concept of a local area network (LAN) being used to connect distant computers over a multiprotocol router system . The company went public in 1990 and, by the end of the dot-com bubble in the year 2000, had a market capitalization of $ 500 billion, surpassing Microsoft as the world's most valuable company. Cisco stock (CSCO) was added to the Dow Jones Industrial Average on June 8, 2009, and
3483-519: The crash including Philip Anschutz , who reaped $ 1.9 billion, Joseph Nacchio , who reaped $ 248 million, and Gary Winnick , who sold $ 748 million worth of shares. Nearing the turn of the 2000s, spending on technology was volatile as companies prepared for the Year 2000 problem . There were concerns that computer systems would have trouble changing their clock and calendar systems from 1999 to 2000 which might trigger wider social or economic problems, but there
3564-744: The crash; 48% of dot-com companies survived through 2004, albeit at lower valuations. Several companies and their executives, including Bernard Ebbers , Jeffrey Skilling , and Kenneth Lay , were accused or convicted of fraud for misusing shareholders' money, and the U.S. Securities and Exchange Commission levied large fines against investment firms including Citigroup and Merrill Lynch for misleading investors. After suffering losses, retail investors transitioned their investment portfolios to more cautious positions. Popular Internet forums that focused on high tech stocks, such as Silicon Investor , Yahoo! Finance , and The Motley Fool declined in use significantly. Layoffs of programmers resulted in
3645-444: The dot-com boom can be seen as similar to a number of other technology-inspired booms of the past, including railroads in the 1840s, automobiles in the early 20th century, radio in the 1920s, television in the 1940s, transistor electronics in the 1950s, computer time-sharing in the 1960s, and home computers and biotechnology in the 1980s. Low interest rates in 1998–99 facilitated an increase in start-up companies. In 2000,
3726-642: The dot-com bubble burst, and many dot-com startups went out of business after burning through their venture capital and failing to become profitable . However, many others, particularly online retailers like eBay and Amazon , blossomed and became highly profitable. More conventional retailers found online merchandising to be a profitable additional source of revenue. While some online entertainment and news outlets failed when their seed capital ran out, others persisted and eventually became economically self-sufficient. Traditional media outlets (newspaper publishers, broadcasters and cablecasters in particular) also found
3807-402: The early 1980s students and staff at Stanford, including Bosack, used technology on the campus to link all of the school's computer systems to talk to one another, creating a box that functioned as a multiprotocol router called the "Blue Box". The Blue Box used circuitry made by Andy Bechtolsheim , and software that was originally written at Stanford by research engineer William Yeager . Due to
3888-467: The executive chairman role at the end of his term on the board in December 2017. On December 11, 2017, Robbins was elected to succeed Chambers as executive chairman while retaining his role as CEO, and Chambers was given the title of "Chairman Emeritus". Reuters reported that "Cisco Systems Inc's (CSCO.O) product revenue in Russia grew 20 percent in 2017, ahead of Cisco's technology product revenue growth in
3969-611: The following year, in 2006. Under Georghiou, Spacenet acquired Chantilly, Virginia -based managed network services provider CICAT Networks in 2011. In 2012, president and chief operating officer Glenn Katz became CEO of Spacenet, replacing Andreas Georghiou. Following a loss of $ 2 million on $ 77 million in revenues in 2012 and faced with uncertainty about future spending by the U.S. Department of Defense, Gilat Satellite Networks sold Spacenet Inc. to Tulsa, Oklahoma-based managed network solutions provider SageNet for $ 16 million in 2013. SageNet CEO Daryl Woodard replaced Glenn Katz as CEO of
4050-493: The government sectors. On October 26, 2015, Cisco announced its intent to acquire ParStream, a privately held company based in Cologne, Germany, that provides an analytics database that allows companies to analyze large amounts of data and store it in near real-time anywhere in the network. On October 27, 2015, Cisco announced that it would acquire Lancope , a company that focuses on detecting threat activity, for $ 452.5 million in
4131-670: The height of the boom, it was possible for a promising dot-com company to become a public company via an IPO and raise a substantial amount of money even if it had never made a profit—or, in some cases, realized any material revenue or even have a finished product. People who received employee stock options became instant paper millionaires when their companies executed IPOs; however, most employees were barred from selling shares immediately due to lock-up periods . The most successful entrepreneurs, such as Mark Cuban , sold their shares or entered into hedges to protect their gains. Sir John Templeton successfully shorted many dot-com stocks at
SECTION 50
#17328556458294212-686: The impossibility of re-exporting. In February 2023, Cisco also wrote off the debt of the Russian mobile operator MTS in the amount of 1.234 billion rubles. As expected, these are unpaid amounts for previous equipment deliveries. In 2023, Cisco announced plans to begin manufacturing equipment in India. On 15 February 2024, Cisco announced it would lay off more than 4,000 employees, or 5% of its global workforce, and lowered its annual revenue forecast due to economic challenges and reduced demand from telecom and cable service providers. On 24 April 2024, Chuck Robbins, CEO of Cisco, met with Pope Francis and signed
4293-484: The launch of a new product or website, a company would organize an expensive event called a dot-com party . In the five years after the American Telecommunications Act of 1996 went into effect, telecommunications equipment companies invested more than $ 500 billion, mostly financed with debt, into laying fiber optic cable, adding new switches, and building wireless networks. In many areas, such as
4374-473: The mess afterward". Finance author and commentator E. Ray Canterbery agreed with Krugman's criticism. On Friday March 10, 2000, the NASDAQ Composite stock market index peaked at 5,048.62. However, on March 13, 2000, news that Japan had once again entered a recession triggered a global sell off that disproportionately affected technology stocks. Soon after, Yahoo! and eBay ended merger talks and
4455-404: The mid-to-late 1990s. Cisco introduced products ranging from modem access shelves (AS5200) to core GSR routers, making them a major player in the market. In late March 2000, at the height of the dot-com bubble , Cisco became the most valuable company in the world, with a market capitalization of more than $ 500 billion. As of July 2014, with a market cap of about US$ 129 billion, it
4536-557: The migration to new high-end hardware CRS-1 and software architecture IOS XR . As part of a rebranding campaign in 2006, Cisco Systems adopted the shortened name "Cisco" and created "The Human Network" advertising campaign. These efforts were meant to make Cisco a "household" brand—a strategy designed to support the low-end Linksys products and future consumer products. On the more traditional business side, Cisco continued to develop its routing, switching and security portfolio. The quickly growing importance of Ethernet also influenced
4617-596: The most expensive acquisition made by Cisco to that date, and only the acquisition of Scientific Atlanta has been larger. In 1999, Cisco also acquired a stake for $ 1 billion in KPMG Consulting to enable establishing Internet firm Metrius founded by Keyur Patel of Fuse. Several acquired companies have grown into $ 1Bn+ business units for Cisco, including LAN switching, Enterprise Voice over Internet Protocol (VOIP) platform Webex and home networking . The latter came as result of Cisco acquiring Linksys in 2003 and in 2010
4698-468: The mottos "get big fast" and "get large or get lost". These companies offered their services or products for free or at a discount with the expectation that they could build enough brand awareness to charge profitable rates for their services in the future. The "growth over profits" mentality and the aura of " new economy " invincibility led some companies to engage in lavish spending on elaborate business facilities and luxury vacations for employees. Upon
4779-672: The new combined company in 2014, with Brad Wise becoming president. Spacenet was wholly absorbed into SageNet by the end of 2014 and became solely a brand name for SageNet's satellite services. Cisco Systems Cisco Systems, Inc. (using the trademark Cisco ) is an American multinational digital communications technology conglomerate corporation headquartered in San Jose, California . Cisco develops, manufactures, and sells networking hardware , software , telecommunications equipment and other high-technology services and products. Cisco specializes in specific tech markets, such as
4860-503: The new entrepreneurs had experience in business and economics, the majority were simply people with ideas, and did not manage the capital influx prudently. Additionally, many dot-com business plans were predicated on the assumption that by using the Internet, they would bypass the distribution channels of existing businesses and therefore not have to compete with them; when the established businesses with strong existing brands developed their own Internet presence, these hopes were shattered, and
4941-496: The newcomers were left attempting to break into markets dominated by larger, more established businesses. The dot-com bubble burst in March 2000, with the technology heavy NASDAQ Composite index peaking at 5,048.62 on March 10 (5,132.52 intraday), more than double its value just a year before. By 2001, the bubble's deflation was running full speed. A majority of the dot-coms had ceased trading, after having burnt through their venture capital and IPO capital, often without ever making
SECTION 60
#17328556458295022-457: The other so-called BRIC countries of Brazil , China and India ." On May 1, 2018, Cisco Systems agreed to buy AI-driven business intelligence startup Accompany for $ 270 million. As of June 2018, Cisco Systems ranked 444th on Forbes Global 2000 list, with $ 221.3 billion market cap. In 2019, Cisco acquired CloudCherry, a customer experience management company, and Voicea, an artificial intelligence company. In 2019, Cisco also introduced
5103-579: The peak of the bubble during what he called "temporary insanity" and a "once-in-a-lifetime opportunity". He shorted stocks just before the expiration of lockup periods ending six months after initial public offerings, correctly anticipating many dot-com company executives would sell shares as soon as possible, and that large-scale selling would force down share prices. Most dot-com companies incurred net operating losses as they spent heavily on advertising and promotions to harness network effects to build market share or mind share as fast as possible, using
5184-481: The possibility of selling to or hearing from those people at the same moment when they were reached, promised to overturn established business dogma in advertising, mail-order sales, customer relationship management , and many more areas. The web was a new killer app —it could bring together unrelated buyers and sellers in seamless and low-cost ways. Entrepreneurs around the world developed new business models, and ran to their nearest venture capitalist . While some of
5265-448: The same time, a decline in interest rates increased the availability of capital. The Taxpayer Relief Act of 1997 , which lowered the top marginal capital gains tax in the United States , also made people more willing to make more speculative investments. Alan Greenspan , then- Chair of the Federal Reserve , allegedly fueled investments in the stock market by putting a positive spin on stock valuations. The Telecommunications Act of 1996
5346-565: The service provider for the Cisco IP VSAT Satellite Network WAN Module in the United States. It held around 25% market share in the enterprise VSAT marketplace, according to the Comsys 2005 industry study. As of 2007, Spacenet equipment and services were in use at about 100,000 enterprise, government, residential and small office sites. The company was founded in 1981 as Southern Pacific Communications Corporation (SPCC),
5427-412: The technology sector. In a 2015 book, venture capitalist Fred Wilson , who funded many dot-com companies and lost 90% of his net worth when the bubble burst, said about the dot-com bubble: A friend of mine has a great line. He says "Nothing important has ever been built without irrational exuberance ." Meaning that you need some of this mania to cause investors to open up their pocketbooks and finance
5508-435: The time, the company envisioned layer 3 routing and layer 2 ( Ethernet , Token Ring ) switching as complementary functions of different intelligence and architecture—the former was slow and complex, the latter was fast but simple. This philosophy dominated the company's product lines throughout the 1990s. In 1995, John Morgridge was succeeded by John T. Chambers . The Internet Protocol (IP) became widely adopted in
5589-545: The underlying architecture, and its ability to scale well, Yeager's well-designed invention became a key to Cisco's early success. In 1985, Bosack and Stanford employee Kirk Lougheed began a project to formally network Stanford's campus. They adapted Yeager's software into what became the foundation for Cisco IOS , despite Yeager's claims that he had been denied permission to sell the Blue Box commercially. On July 11, 1986, Bosack and Lougheed were forced to resign from Stanford and
5670-417: The university contemplated filing criminal complaints against Cisco and its founders for the theft of its software, hardware designs, and other intellectual properties. In 1987, Stanford licensed the router software and two computer boards to Cisco. In addition to Bosack, Lerner, Lougheed, Greg Satz (a programmer), and Richard Troiano (who handled sales), completed the early Cisco team. The company's first CEO
5751-463: Was Bill Graves, who held the position from 1987 to 1988. In 1988, John Morgridge was appointed CEO. 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 its early years. The logo is intended to depict the two towers of the Golden Gate Bridge . On February 16, 1990, Cisco Systems went public with
5832-649: Was announced as the next CEO. On July 23, 2015, Cisco announced the divestiture of its television set-top-box and cable modem business to Technicolor SA for $ 600 million, a division originally formed by Cisco's $ 6.9 billion purchase of Scientific Atlanta . The deal came as part of Cisco's gradual exit from the consumer market, and as part of an effort by Cisco's new leadership to focus on cloud-based products in enterprise segments. Cisco indicated that it would still collaborate with Technicolor on video products. On November 19, 2015, Cisco, alongside ARM Holdings , Dell , Intel , Microsoft and Princeton University , founded
5913-594: Was expected to result in many new technologies from which many people wanted to profit. As a result of these factors, many investors were eager to invest, at any valuation, in any dot-com company , especially if it had one of the Internet-related prefixes or a " .com " suffix in its name. Venture capital was easy to raise. Investment banks , which profited significantly from initial public offerings (IPO), fueled speculation and encouraged investment in technology. A combination of rapidly increasing stock prices in
5994-804: Was further eroded by several accounting scandals and the resulting bankruptcies, including the Enron scandal in October 2001, the WorldCom scandal in June 2002, and the Adelphia Communications Corporation scandal in July 2002. By the end of the stock market downturn of 2002 , stocks had lost $ 5 trillion in market capitalization since the peak. At its trough on October 9, 2002, the NASDAQ-100 had dropped to 1,114, down 78% from its peak. After venture capital
6075-534: Was integrated into the Cisco Security business unit. Ironport's Senderbase was renamed as Sensorbase to take account of the input into this database that other Cisco devices provide. SensorBase allows these devices to build a risk profile on IP addresses, therefore allowing risk profiles to be dynamically created on http sites and SMTP email sources. In 2010, Cisco bought Starent Networks (a mobile packet core company) for $ 2.9 billion and Moto Development Group,
6156-442: Was no longer available, the operational mentality of executives and investors completely changed. A dot-com company's lifespan was measured by its burn rate , the rate at which it spent its existing capital. Many dot-com companies ran out of capital and went through liquidation . Supporting industries, such as advertising and shipping, scaled back their operations as demand for services fell. However, many companies were able to endure
6237-617: Was replaced by Todd Nightingale, head of Cisco Meraki . In October 2022, Cisco announced a partnership adding the Microsoft Teams app to its meeting devices. In 2022, Cisco completely curtailed sales of its equipment in Russia due to Russian invasion of Ukraine , and completely discontinued service for already-sold devices. In April 2023, it became known that the company had destroyed equipment, spare parts, and even vehicles and office furniture worth 1.86 billion rubles (about $ 23 million) due to
6318-576: Was still one of the most valuable companies. The perceived complexity of programming routing functions in silicon led to the formation of several startups determined to find new ways to process IP and MPLS packets entirely in hardware and blur boundaries between routing and switching. One of them, Juniper Networks , shipped their first product in 1999 and by 2000 chipped away about 30% from Cisco SP Market share. In response, Cisco later developed homegrown ASICs and fast processing cards for GSR routers and Catalyst 6500 switches. In 2004, Cisco also started
6399-509: Was supplemented with new product line dubbed Cisco Valet . Cisco announced on January 12, 2005, that it would acquire Airespace for US$ 450 million to reinforce the wireless controller product lines. Cisco announced on January 4, 2007, that it would buy IronPort in a deal valued at US$ 830 million and completed the acquisition on June 25, 2007. IronPort was best known for its IronPort AntiSpam, its SenderBase email reputation service and its email security appliances. Accordingly, IronPort
6480-400: Was the largest to date and was questioned by many analysts. Then, on January 30, 2000, 12 ads of the 61 ads for Super Bowl XXXIV were purchased by dot-coms (sources state ranges from 12 up to 19 companies depending on the definition of dot-com company ). At that time, the cost for a 30-second commercial was between $ 1.9 million and $ 2.2 million. Meanwhile, Alan Greenspan , then Chair of
6561-439: Was virtually no impact or disruption due to adequate preparation. Spending on marketing also reached new heights for the sector: Two dot-com companies purchased ad spots for Super Bowl XXXIII , and 17 dot-com companies bought ad spots the following year for Super Bowl XXXIV . On January 10, 2000, America Online , led by Steve Case and Ted Leonsis , announced a merger with Time Warner , led by Gerald M. Levin . The merger
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