What is Cisco? Its History and Rise

Cisco Systems is a US multinational technology conglomerate located in the center of Silicon Valley that develops, manufactures, and sells network hardware, telecommunications equipment, and other services and products. The company specializes in specific technology markets such as the Internet of Things, space security, and power management through many purchased subsidiaries such as OpenDNS, WebEx, Jabber, and Jasper.

What is Cisco?

What is Cisco Systems Inc?

In December 1984, Cisco Systems pioneered a local area network (LAN) concept used by two computer scientists from Stanford University, Leonard Bosack and Sandy Lerner, to connect different computers geographically with a multi-protocol router system. When the company went public when quoted from NASDAQ in 1990, Cisco’s market value was $224 million. The company then became the world’s most valuable company in 2000, with a market value of more than $500 billion.

Cisco History

The company was founded in December 1984 by Leonard Bosack, who was responsible for computers at Stanford University, and his wife, Sandy Lerner, who managed computers at the Institute of Business.

Despite the establishment of Cisco in 1984, Bosack continued to work on his first product at Stanford with Kirk Lougheed. It consisted of complete copies of the Stanford “Blue Box” router and a stolen copy of the University’s multi-protocol router software. The software was first written a few years ago by research engineer William Yeager at Stanford Medical School.

Bosack and Lougheed made it the basis of IOS. On July 11, 1986, Bosack and Lougheed had to resign from Stanford, and the University considered filing a criminal complaint against the company and its founders for theft of software, hardware designs, and other intellectual property. In 1987, Stanford authorized the router software and two computer cards.

The name “Cisco” was derived from the name of the city of San Francisco, so company engineers insisted on using the small “Cisco” in its early years. The logo is designed to represent the two towers of the Golden Gate Bridge.

Between 1992 and 1994, Cisco bought several companies on Ethernet switching, such as Kalpana, Grand Junction, and above all, Crescendo Communications, by Mario Mazzola, who created the switching catalyst business unit. At that time, the company visualized the orientation of layer 3 and layer 2 (Ethernet, Token Ring) as complementary functions of different intelligence and architecture; the first was slow and complex, and the second was fast but simple. This philosophy dominated the company’s product lines in the 1990s.

The extraordinary growth of the internet in the mid-1990s quickly changed the telecommunications environment. Since the Internet Protocol (IP) is widely accepted, the importance of routing multiple protocols has been reduced. However, the company managed to catch the Internet wave with products ranging from modem access racks (AS5200) to central GSR routers, which became vital for Internet service providers, and in 1998, it gave Cisco an actual monopoly segment in this critical area.

At the end of March 2000, according to dot-com statistics, it became the world’s most valuable company with a market value of more than $ 500 billion. It continues to be one of the most valuable companies, with a market value of approximately $129 billion in July 2014.

In February 2017, it launched a secure cloud-based Internet gateway to address security risks in the cloud and mobile devices. Umbrella is designed to provide fast Internet access for users who do not use corporate networks or VPNs to connect to remote data centers.


As of 2017, Cisco Systems shares are primarily held by institutional investors (Vanguard group, BlackRock, State Street Corporation, and others).

Products and Services

Its products and services focus on three market segments: business and service provider, small business, and home.

VoIP Services

Cisco has become a primary Voice-over IP provider for businesses and is currently moving to the home user market by purchasing Scientific Atlanta and Linksys. Provides VoIP equipment to cable service providers such as Scientific Atlanta, Time Warner, Cablevision, Rogers Communications, UPC, and others; Linksys has partnered with companies such as Skype, Microsoft, and Yahoo to integrate consumer VoIP services with cordless and cordless phones.

Hosted Collaboration Solution

Cisco partners can deliver cloud-based services based on the Virtualized Unified Computing System (UCS). Unified Communications Manager (UCM) is part of Unified Service Delivery Solution, which includes Unified Contact Center, Unified Mobility, Unified Presence, Unity Connection (Unified Messaging) and Webex Meeting Center editions.

Network Emergency Response

As part of the Tactical Operations initiative, there are several Emergency Response Vehicles on the network. Employees protect and deploy their vehicles during natural disasters and other public crises. Vehicles are autonomous and wired via an approximately 1.8-meter satellite antenna with audio and radio interoperability, audio over IP, network-based video monitoring, and guaranteed high-definition video conferencing for leaders and first responders in crisis areas up to 3 Mbit/s and provide wireless services.

Case Against Huawei

Cisco, Huawei Technologies Co. Ltd., and its subsidiaries Huawei America Inc. for illegal copying of intellectual property on January 23, 2003. and FutureWei Technologies Inc. sued. The case accuses Huawei of “illegally copying and abusing IOS software” in violation of numerous Cisco patents. ” Cisco suspended the law violation case on October 1, 2003, after which Huawei agreed to replace some of its products.

Awards and Honors of Cisco Systems

Secretary of State Hillary Clinton was awarded the Foreign Minister Institutional Excellence Award to Cisco in 2010 by Ambassador James B. Cunningham to Cisco Senior Manager Zika Abzuk in Jerusalem.

He received the US presidential honor, the Ron Brown Prize, for his relations with employees and communities, which are considered exemplary.

Final Word

According to a report by a LexInnova technology consultant, it is one of the leading patent buyers in network security. It has the most extensive portfolio of other companies (6,442 security-related patents). Thanks for following us!

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