NetSpeed
NetSpeed was a United States broadband Internet access company whose DSL technology was deployed by US West before the business was acquired by Cisco Systems in 1998.
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Overview
NetSpeed was a United States broadband Internet access company focused on digital subscriber line technology and related equipment. Its principal historical significance was the production deployment of DSL equipment at US West, a major American telecommunications provider. The deployment covered both the service-provider side of the network and customer-premises equipment, making NetSpeed's products among the earliest DSL systems to be used in a major U.S. service-provider environment. The company was founded by John McHale, an entrepreneur with earlier experience in networking hardware. McHale had founded NetWorth, Inc. in 1989, a manufacturer of 10BASE-T Ethernet equipment; Compaq acquired NetWorth in 1994. After establishing NetSpeed, McHale continued to create networking and security companies, including NetPliance, TippingPoint, and BreakingPoint Systems. This wider entrepreneurial history places NetSpeed within a broader lineage of early networking, broadband-access, and network-security ventures. NetSpeed's business centered on enabling broadband access over existing telephone infrastructure. DSL was strategically important because it allowed telecommunications operators to offer substantially faster data connections without replacing the entire access network. NetSpeed's work with US West provided a commercial and operational proof point for DSL service-provider deployment, at a time when broadband access was still developing in the United States. Cisco Systems acquired NetSpeed on March 10, 1998. Following the acquisition, the independent NetSpeed brand and company ceased to operate as a standalone business. The transaction also became a talent and technology transition point for the networking industry. Former NetSpeed employees subsequently founded or helped establish several other technology companies, including BroadJump, General Bandwidth, Surgient Networks, and UControl. NetSpeed is therefore remembered less as a continuing consumer brand than as an early DSL pioneer and a source of entrepreneurial and engineering talent in broadband networking.
History
NetSpeed emerged during the development of commercial broadband Internet access in the United States. Its principal technology was digital subscriber line, or DSL, a family of access methods that uses existing copper telephone lines to deliver data services at speeds substantially above traditional dial-up connections. The approach was attractive to incumbent telecommunications operators because it could extend broadband service without requiring a completely new last-mile network. The company was founded by John McHale, who had already built experience in communications hardware. In 1989, McHale founded NetWorth, Inc., a company that manufactured 10BASE-T Ethernet equipment. Compaq acquired NetWorth in 1994. McHale subsequently founded NetSpeed, applying his networking background to the emerging DSL market. The available historical record does not specify NetSpeed's incorporation year, initial financing, or original headquarters beyond identifying it as a United States-based company. NetSpeed's most important technical and commercial achievement was the production deployment of its DSL products at US West, a major American service provider. The deployment was notable because it involved both service-provider equipment and customer-premises equipment. At a time when DSL was moving from experimentation toward commercial broadband service, deployment at a large telecommunications operator provided evidence that the technology could be integrated into a real provider network and supplied to customers at scale. NetSpeed was consequently associated with an early transition from narrowband Internet access toward always-on broadband connectivity. The company was acquired by Cisco Systems on March 10, 1998. The acquisition ended NetSpeed's independent corporate life and placed its technology and personnel within Cisco, then a major supplier of Internet and networking infrastructure. The available sources do not provide the purchase price, transaction structure, or detailed post-acquisition product roadmap, so those aspects cannot be stated reliably. NetSpeed's legacy extended beyond its products. After the Cisco transaction, former employees founded or helped found several technology companies. Kip McClanahan and Kenny VanZant founded BroadJump in 1998. Brendon Mills, Paul Carew, Ron Lutz, and Steve Raich founded General Bandwidth in 1999, a company later known as GenBand. Cliff Hall and Bob Locklear were founding members of Surgient Networks in 2000, while Jim Johnson founded UControl in 2005. John McHale also continued founding companies, including NetPliance, TippingPoint, and BreakingPoint Systems. These later ventures connected NetSpeed's alumni network to broadband provisioning, network security, application delivery, and related infrastructure markets. Because it was acquired in 1998, NetSpeed is no longer an active standalone brand. Its historical importance rests on its early role in commercial DSL deployment and on the subsequent influence of its founders and employees across the networking and security industries.
- 2005
Jim Johnson founds UControl
[1]Former NetSpeed employee Jim Johnson founded UControl.
- 2000
Former NetSpeed employees join the founding of Surgient Networks
[1]Cliff Hall and Bob Locklear became founding members of Surgient Networks.
- 1999
General Bandwidth is founded by former NetSpeed employees
[1]Brendon Mills, Paul Carew, Ron Lutz, and Steve Raich went on to found General Bandwidth, later known as GenBand.
- 1998
Cisco Systems acquires NetSpeed
[1]Cisco Systems acquired NetSpeed on March 10, ending the company's independent operation.
- 1994
Compaq acquires NetWorth
[1]Compaq acquired NetWorth, Inc., the earlier networking-equipment company founded by John McHale.
- 1989
John McHale founds NetWorth, Inc.
[1]Before NetSpeed, John McHale founded NetWorth, Inc., a manufacturer of 10BASE-T Ethernet equipment.
DSL products are production-deployed by US West
[1]NetSpeed's DSL service-provider and customer-premises equipment became the first such products to be production deployed at a major U.S. service provider, US West.
Products and positioning
An early broadband-access technology company positioned around production-grade DSL deployment for telecommunications service providers and their customers.
Telecommunications infrastructure
DSL service-provider equipment
NetSpeed developed DSL equipment for deployment within a telecommunications provider's network. The systems supported the provider-side delivery of broadband access over existing telephone infrastructure and were production deployed by US West, making them an early example of commercial DSL equipment used by a major U.S. operator.
Broadband access equipment
Customer-premises DSL equipment
NetSpeed also produced DSL equipment installed at customer premises. Together with its provider-side systems, this equipment formed part of an end-to-end DSL access offering and helped connect subscribers to early commercial broadband services delivered through telephone networks.
Brand decisions
1998
Cisco acquires NetSpeedM&ABackground
NetSpeed had developed DSL products that achieved production deployment at US West, while Cisco was expanding its networking infrastructure capabilities.
Action taken
Cisco Systems acquired NetSpeed on March 10, 1998.
Aftermath
NetSpeed ceased to operate as an independent company. Its technology and personnel became part of Cisco, and several former employees subsequently founded or joined other networking companies.
Sources1 sources
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