The Cisco System - Essay Example

Cisco System was started in 1984 by Lerner Sandy and Bosack Len both of Stanford University. The couple was computer scientists and they began their enterprise through the connection of disconnected networks in their compass buildings. During the infancy stages of the company, the company faced a lot of teething problems. They even attempted to sell technology on networking that they had developed different companies dealing with computers; however, none of them seems to be interested. It is at this juncture that they decided to begin their business. One other major huddle they face a business was a demand by Stanford University to obtain 11 million dollars as the licensing fee during the company registration. This was because; the duo had developed the technology when still working as an employee of the university (Edwards, 25). Later on, the university accepted 150, 000 dollars together with free support services and routers.

The duo had a vision of enabling dissimilar networks to communicate with one another and engage in information sharing to enhance reliability. However, for the full connection of networks, there was a need for a technological invention that would deal according to the separated local area modus operandi. To fill this gap, they decided to try different processes which gave birth to the multi-procedure router. Other product that the company produces includes; devices for remote access, switches, devices for internet access, protocol translators, and software for managing networks. All its devices and equipment are used to link geographically LANs and WANs i.e. Local Area Networks and The Wide Area Networks together with the internet.
The company has majorly three market segments that it serves (Kahawatte, 80). These include big organizations such as government bodies, corporations, and learning institutions such as universities. These organizations need sophisticated networking processes and the usually require connection of several locations. The other category is those involved in service provision to their customers. These include; telephone companies, internet services providers and companies selling cables, and those providing wireless communication services. Besides, there are medium and small businesses whose wants are network operations, internet connection, or connection with other business partners. To meet this huge demand for expertise, the company is growingly developing its human resource capital in the fields such as fiber-optic networks together with attendant experts in the diverse networks that produce audiovisual capabilities in conjunction with the previous data available. This also triggered the development of the DNS- Domain Name Systems to aid the process.

Cisco did market its products to higher learning institutions such as universities and colleges, research institutions, aerospace companies, and government departments and institutions. This was done by communicating with software engineers through ARPANET which turned into being called the Internet. The conversation most involved the use of TCP protocols or UNIMIX computers. Later on, in 1988, Cisco Systems began the networking of routers within the major corporations that were separated by some distance e.g. different branches. During this period, routers were used in all communications as they could support other protocols than the ones from different manufacturing companies and when the internetworking market began expanding, Cisco’s high-quality routers were preferred by most customers in the marketplace within the emerging competition (Dryburgh, 54).
Within the business fraternity, internet connection has brought myriad benefits simplifying trade transactions. One major benefit is the availability of information useful to prospective buyers for online tractions. This has created cheaper means for businessmen and women to transact freely with costs just being incurred only during the chain supply process. The other benefit is the opportunity for market selection through which an individual will only focus on the area of interest leaving the rest. The internet service transactions also save time and it’s also flexible and has 24 hours operation time.
To increase its revenue base, Cisco has been involved in strategic alliances with different companies including Hewlett Packard Company, Intel Corporation, Chamber, and Microsoft among other giants. This increased the company’s revenue to more than $ 50 billion by 2005 (Cisco, 54). The has increased its influence in almost all networking sectors. This is a precursor of its proven capability in the absorption and expansion of the company and undisputed leadership in the provision of trustworthy equipment in the networking industry. Read More