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The Zeppelin Eureka

A summer holiday season post (on 4 July 2010)

Airship Ventures have their base at NASA AMES, which is about 5 miles from where we live. Given the offer of a balloon trip as a birthday present, I substituted a Zeppelin trip. The current plan is to go on 11th July, a week from today.

AV Eureka
Photo Janet Beegle

Background information :

Manufactured in Friedrichshafen, Germany by ZLT Zeppelin Luftschifftechnik GmbH & Co KG

"Founded in 2007 in California, Airship Ventures, Inc., operates the only passenger airship operation in the United States, featuring the Zeppelin Eureka, the world’s largest airship. The Zeppelin’s spacious cabin comfortably accommodates one pilot, one flight attendant, and 12 passengers, with panoramic windows, an onboard restroom with window, a 180-degree rear observation window and “love seat” that wraps the entire aft of the cabin. Using helium for lift, and vectored thrust engines for flight, Zeppelin NTs have been flying in Germany and Japan since 1997.
Two lateral and one rear engine provide the flight control and propulsion for the airship. The three engines combine to produce a maximum speed of 78 miles per hour, with typical cruising speed of 35 to 40 mph. Because the engines are mounted far above the cabin the passengers experience low noise level. This position is also responsible for the high performance maneuvering capabilities."

In addition to the Moffett Field base, there are flights from Monterey, Los Angeles and San Diego. European flights start at Friedrichshafen, which is near to the southern border of Germany on Lake Constance (Bodensee).

References
Manufacturing company
Airship Ventures backgrounder
Picture Gallery
Calender for US West coast flights
Calender for German Flights
Shipping from Hamburg to Texas press release

Nanog 49, 14 - 16 June 2010 San Francisco


As it turned out, I didn't go to this Nanog in person, even though it was in the city. I did listen to and watch much of what was made available for remote access.

Summaries of the more interesting topics follow. Refer to the agenda for pdfs of the slides. For more detail, see Matthew Petach's almost verbatim notes.


Google Infrastructure team's approach to network architecture - Vijay Gill


At the scale at which they operate, complexity kills. The overarching mantra is "build simple things" to the extent that it's possible. In particular, don't do complexity twice - keep the network unsophisticated and build the necessary complexity into the services architecture. In order to keep latency of search to users down, they keep the majority of the search index in DRAM. A cluster of 30 racks has 30 TB of DRAM. In parallel with the ordered results of a search, a real time advert auction takes place - both have to be delivered back to the user quickly enough to keep attention. Vijay polled the audience (about 500 people at that point) - one of them, not including Vijay, admitted to having ever clicked on a Google advert. Even given that Nanog meeting attendees are not Google's target audience, there is a reason for the focus on doing search and delivering advertising at huge scale and low cost.
Google storage hierarchy
From Vijay Gill's presentation
They use the highest bandwidth they can to connect datacentres. Recently designed data centers located in reasonable climates have been built without chillers - on the few hot days, they shed the bulk, machine to machine compute and storage load to other locations, and keep only the locally critical systems running. To achieve this cost effectively, they aim to run DWDM integrated with LSR (for MPLS), with the control plane at the IP/MPLS layer. They do not need an additional control plane at the optical layer.

Comment :
As enterprises develop their use of 'the cloud', ie, outsourced data centres, this model is worth bearing in mind. If the great majority of traffic on the fibre is bulk IP traffic (like Google's internal traffic) then an IP only control plane should be cheaper and simpler than a network with control at the optical layer in addition to the IP layer.

Remaining IPv4 addresses - measuring pollution - Manish Karir (Merit, APNIC, University of Michigan)


There are 16 remaining /8s in IPv4. This session reviewed the traffic volume and types on 1.1.1.1/8, which is nominally unallocated, comparing it to 35.0.0.0/8, also unallocated. There is a background level of 130 - 150 Mbps of traffic on 1.1.1.1/8, most of it RTP (audio), compared to 25 Mbps of traffic on 35.0.0.0/8, most of it from scans.

Google's IPv6 implementation - what, how, why, timeline - Lorenzo Colitti, Google


We can't enable IPv6 for www.google.com today, because  ~ 0.1% of users won't reach Google any more, and that's too high a percentage. We can enable IPv6 access for selected networks. Most Google services are available - www, mail, news, docs, youtube, ...
Requirements: Good IPv6 connectivity to Google, production-quality IPv6 network, acceptable user breakage.
This is much harder than it sounds

ARIN update - John Curran


4-byte ASNs are not widely supported - 35 have been issued since 2007, out of 426 initial requests. There will be a new Whois service on 26 June. DNSSEC is being rolled out.


ASICS - what they are, how they have evolved, how they are built - Chang-Hong Wu, Juniper


A high level review of how computing hardware cabability has evolved. There's a review of memory. Nothing about how particular router features (route tables, ACLs) are affected by the hardware.

BGP prefix origin validation - prototype code available  Pradosh Mohapatra, Cisco


Currently, anyone announcing BGP routes can announce anything, and it's up to the neighbours to decide whether to believe or use the announcements. Secure Interdomain Routing group (IETF) proposal is to use RPKI to authenticate routing updates. Prefix hijacking, or more specific path hijacking,which route validation intends to prevent, is usually the result of mistakes, although it could be malicious.
Slides explain BGP mechanism involved, gives policy examples, configuration and show command lists. There is an open test bed. Contact Ed Kern to participate.

Netdot - useful looking open source network documentation and management tool - Carlos Vicente, University of Oregon


  • Discovers devices and topology using SNMP
  • IPv4 and IPv6 Address Management (IPAM)
  • Documents cable plant details
  • Organizes contactinformaton
  • Generates configuraJons for other tools
  • Has role-based access control

Includes visualizations of spanning tree, IP address assignments.  Try it at hdp://netdot.uoregon.edu

IEEE 802.1aq - Shortest Path Bridging. Peter Ashwood-Smith, Huawei Technologies


A detailed description of what it is and what it does - replaces spanning tree, makes it possible to use more bi-sectional bandwidth in data centers or metro areas. Has same goals as TRILL for ECMP, and he'd like to see that work combined with this. Scales to about 1000 devices, uses IS-IS. There's a worked example in slides 34 - 42.

Connecting the Farallon Islands to San Francisco - Tim Pozar, Matt Peterson


50km, 100W maximum power budget. Used 5.8 GHz to keep costs down. On absolutely still days (rare) there's a marine evaporation boundary layer which bends the signal enough to take the link down.

Whatever else is wrong, it's always a cable problem - Tyler Vander Ploeg, JDSU


Layer 0 fibre connectors need to be kept clean; they scratch if rubbed together with dust between. There are handheld microscope probes to be used to inspect before connecting. People who are used to copper cables connecting servers to switches have the wrong reflexes for long haul fibre cable installations.Every time a fibre cable is connected and disconnected the loss goes up.Good pictures and descriptions of the mechanics of assorted connectors.

Outline of a market mechanism for pricing the remaining IP v4 address space - Todd Underwood


This was the most entertaining talk of the entire 3 days.

Thought experiment : allocate unique addresses at high price; allocate non-unique addresses at much lower price, based on probability that someone else will be on same space.
Will massively extend lifespan, by allowing multiplicative reuse of remaining prefixes.
Allows for great derivative market.
There's dirty space, as indicated by the 1.1.1.1/8 talk on Monday - let people who don't mind using dirty space use it.

There were an assortment of smart comments, with people minded to take the notion somewhat seriously.

Last talk - Measuring access connectivity - Nick Weaver, at ISCI

They've built a tool called Netalyzr, for network debugging and diagnostics. Uses Java applets, Javascript. Front end server at ISCI, back end is EC2 (Amazon).
Tests for presence of NAT(s), looks at link properties, finds which TCP and UDP ports are filtered,looks for HTTP proxies, checks DNS behaviour, for IPv6 support, and for clock drift.

Nanog governance changes

It is proposed that Nanog turn itself into a separate 5013(c) - up until now, and currently, it has been run by MERIT. Discussion takes place on the Nanog-futures mailing list - the archive for that list has history.

Next Meeting

Nanog 50 is in Atlanta, October 3-5, 2010

References

Nanog 49 Agenda
Vijay's presentation
Matthew Petach's detailed notes day1, day2 part1, day2 part2, day3
Nanog future - Matthew's notes on the discussion at the meeting

Infrastucture : The Internet is still growing

Despite all of the anxieties about the world economy, some indicators are strongly postive. Akamai operates at least 61,000 servers, very widely distributed, supporting billions of http requests. They publish a 'State of the Internet' quarterly review, with the most recent summarizing information up to the end of 2009. From the viewpoint of their servers, they observed a 4.7% increase (compared to the third quarter of 2009) globally in the number of unique IP addresses connecting to Akamai’s network. Ending 2009 at 465 million unique IPs, the metric grew 16% from the end of 2008, and nearly 54% from the end of 2007. They also report on the changes in the bandwidth of the connections being made to their servers - global connections at rates abouve 5 Mbps increased at 12% in Q4 2009 compared to Q3 2009; connections at less than 256K bps increased 41% over the same time period.

This big increase in comparatively slow speed connections is attributed to growth in mobile connections. This week, Akamai announced the aquistion of Velocitude, which builds a platform for converting content originally intended for viewing on PC screens to content suitable for smaller, lower bandwith mobile screens. Akamai has made only 4 aquisitions in the last 5 years - it has a reputation as a having a very strong 'Not Invented Here' culture. However, according to the press release, Velocitude is being aquired for its technology.

Mary Meeker's Internet Trends report, also out this week, estimates that smartphone shipments will exceed PC shipments worldwide in 2012. Also, it reports that users' expectations of their devices are changing to expect always on access, very fast boot times, low latency access to almost all information, day long battery life and elegant design. Users do not want to have to care whether the CPU, memory and storage they are using are on the device in their hand, or remote in the cloud.

The Akamai numbers predate the iPad launch - it will be interesting to compare the numbers for the first and second quarters of 2010 to the numbers from the end of 2009.

Updated to add : Geoff Huston has instructive opinions on Internet growth in 2009, from the perspective of IP address allocation - he sees the same indicators of growth in mobile service.

References

Akamai 'State of the Internet Q4 2009 pdf
Akamai aquires Velocitude press release
Mary Meeker, Morgan Stanley InternetTrends
Geoff Huston Addressing 2009

Angel investment in Edinburgh, from California

As a result of the EIE'10 event, we are now making a small investment in an early stage Edinburgh company. So we are sorting through the details, finding a local law firm, dealing with the Scottish government grant support process, and so on. Objective being to balance getting the company started, spending as little of the initial investment as possible on the overhead of legal and operational process, while making a structure which will be attractive to additional funding.

There's no local equivalent to the Ycombinator Series AA equity financing documents - the law firms all promote the idea that each company has its own set of unique circumstances. The British Venture Capital Association documents are aimed at a much later stage investment than the one we are making, and are much more investor biased than the Y Combinator docs.

Coincidentally, Don Dodge (now at Google) and Brad Feld (Foundry Group) both posted advice for angel investors this week.
Updated to add - Will Herman posted a good list on 2 June 2010.

Fred Wilson and Chris Dixon made useful comments on termsheets for "quick closing" in 2009.

Updated (13 October 2010) to add a reference to the SeriesSeed documents. Brad Feld said yesterday that it is now cheaper to raise equity than debt, if you can find a lawyer who will use one of the sets of templates for terms.

References

Y Combinator example docs
BVCA example docs
Don Dodge - how to be an angel investor and make money
Brad Feld - suggestions for angels
Will Herman - on Angel Investing
Fred Wilson - first round term sheet
Chris Dixon - first round funding terms
Series Seed (Fenwick & West) documents

Cunning Systems evaluates product and service ideas in computing and communications. If you would like to discuss an idea, contact us at info@cunningsystems.com

Edinburgh EIE'10

The Engage Invest Exploit event put together by Edinburgh Informatics on Wednesday 12 May 2010 : a summary.

At the Informatics Forum building there was an enthusiastic audience to listen to pitches from six startups, with panel discussion on each from potential investors, including Anil Hansjee from Google, and Andrew Nutter from Balderton Capital.

Pitching companies

  • M Power World (microbial fuel cell development)
  • Factonomy (software development tools technology)
  • Spinsight (applying vision analysis to sports coaching and statistics)
  • Mobile Acuity (product recognition using mobile phone camera as input - no barcodes required)
  • Satsis ( mobile phones location indoors with 5m accuracy)
  • Inquisitive Systems (fraud detection)

Big news for another exhibitor, Vibio (secure sales portal system, like Ebay) - they signed a deal for $1m of funding with Archangels, a Scottish angel investment syndicate.

At the after lunch panel session I was one of four Ann(e)s on the Expert panel - exhibiting considerable experience in science, technology, investing and small company success. Prof Macrae moderated. Audience questions were dominated by the issues around intellectual property, use of patents as a proxy for merit by academic funding bodies, and the consequences for university spin out companies. As @ewanmcintosh tweeted "Very little in internet startups has to do with defensible IP. It's about doing something great, quickly & dominating mkt".

Exhibiting companies who found me to say 'see this' included

  • Codeplay (programming tools for multicore processorts)
  • Podfather (a delivery tracking system like FedEx or UPS use, delivered as a service )
  • Blackford Analysis (technology for analysis of huge datasets, originally developed for astrophysics, applicable to oil&gas, 3D medical scans, and other parametric modeling problems)
  • Trivault (de-duplication of encrypted data, backup, recovery)

The day concluded in the underground bar at Revolution on Chambers St, where I caught up with Tom McCallum, Scott Allison, and Maciej Zurawski (Musemantik).

References

Updated to add link to 10 minute video compiled from the day's events

Investor list
Exhibitor list
Preliminary meetings
Vibio deal
Michelle Rodger's summary
Mark Littlewood, BLN blog post

Cunning Systems evaluates product and service ideas in computing and communications. If you would like to discuss an idea, contact us at info@cunningsystems.com

Follow me on twitter at @annejohn and @vcwatch

Edinburgh EIE'10 preliminaries

Here's the first part of the report from the Engage Invest Exploit event in Edinburgh - the pre meeting meetings on Tuesday 11 May 2010.

Informatics Forum
The Informatics Forum (picture Andrew Mitchell)

Enjoyed meeting Ann Budge, one of my fellow panelists; she is now making angel investments, having retired in 2008 from Sopra, which bought her computer services company in 2005.

Immediately after that Alex van Someren talked to the Edinburgh Entrepreneurship Club about his initial approach as a teenager to Acorn, the formation of ANT, and the highlights of getting intial funding for his encryption company, nCipher. Several times in the evolution of his business life he'd faced the decision about whether to take what was on offer at the time, or hold out for something less certain later. Each time he's taken the immediate offer - going directly from high school to work for Acorn rather than going to college at Cambridge; accepting the $1m funding offer even though he gave up a controlling share of nCipher - and it has paid off.

Alex and I were dispatched in a taxi across the city to the dinner organized by Mark Littlewood of the Business Leaders Network, being held in the classic Georgian building in Queen St which is one of the premises of the Scotch Malt Whisky Society. Their attic dining room, up three flights of spiral stairs, has a fine view across the Forth estuary to the Fife hills - there was enough light left to admire it even on a damp grey evening. Dr David Milne, co-founder of Wolfson Microelectronics, was reviewing the investment landscape in Scotland as we arrived. Other participants were from Silicon Valley Bank, Seraphim Capital, Par Equity, Google, Tech Crunch, and the sponsors, Informatics Ventures. There was an instructional whisky tasting, fine food, and a good deal of business networking.

References
Edinburgh Entrepreneur Club
Investor list

Cunning Systems evaluates product and service ideas in computing and communications. If you would like to discuss an idea, contact us at info@cunningsystems.com Follow me on twitter at @annejohn and @vcwatch

Acquisitions - IBM, HP and Microsoft

On recent acquisitions by IBM, HP and Microsoft - the last note was about SAP, Google and Cisco.

IBM
Last week IBM bought Cast Iron " The combination of IBM and Cast Iron Systems will make it easy for clients to integrate business applications, no matter where those applications reside" IBM WebSphere general manager Craig Hayman said.
IBM has a substantial business integrating applications inside a business; Cast Iron has a track record of integrating applications when some part of the application support runs outside the business firewall (ie, in the cloud). "These results can be achieved using a physical appliance, a virtual appliance or a cloud service with attractive entry and pay-as-you-go pricing. "
The previous acquisition, Intelliden, (Feb 2010) offers cloud based network compliance audit. IBM would seem convinced that having solutions which operate in a location independent manner is important to its customers and its business.

HP
HP bought Palm a couple of weeks ago, giving it a mobile operating system which can be used to give the user a similar experience across multiple mobile devices. However, HP Labs, which is a reasonably reliable guide to the longer term strategic direction for HP, is, like IBM, paying a lot of attention to cloud infrastructure. It's been building an open distributed cloud computing test bed, testing federation, for new application support models. HP is hedging its bets about the importance of remote infrastructure.

Microsoft
In contrast, Microsoft's last acquisition (2 Feb 2010) was of Sentilion, a healthcare software provider. The press release mentions context management and single sign on, but says nothing about cloud infrastructure support. Oracle's latest acquisition was also in the health care space - a company called Phase Forward, which makes data management solutions for clinical trials and drug safety. Microsoft is either not getting interest in cloud solutions from its customers, or already has all the infrastructure in place which it needs.

References

IBM Cast Iron press release
HP acquires Palm press release
OpenCirrus paper
Microsoft acquires Sentillion press release
Oracle acquires Phase Forward press release

Cunning Systems evaluates product and service ideas in computing and communications. If you would like to discuss whether an idea is likely to be of interest to a large corporation, contact us at info@cunningsystems.com Follow me on twitter at @annejohn and @vcwatch

SAP, Google, Cisco: Mergers and Acquisitions

Startups need exits, otherwise known as the explanation to investors about how they are going to get a return on their investment. If there isn't a plan for an exit, then the matter under discussion isn't a business, but a hobby.

The IPO market is opening, but the majority of exits are made as a result of an acquisition. Startups can acquire other startups, but this note and at least one more is about why and how acquisitions are made by large corporations. Long established VC firms know this, have ongoing relationships with their counterparts at the corporations, which are part of the value they bring to a deal - this note is for angel investors and startup founders, who want to understand how to position their company for a corporate acquisition.

Earlier this week 2 partners from Sonnenschein hosted a discussion with Mark Gorman (Cisco), Russ Hartz (SAP),and Don Hanson (Google).

Where they find deals

SAP : in the US, (although not in Europe), there's been a recent increase in suggestions from buy side investment bankers. The majority of their deals come from the product groups as a result of their annual reviews - the target may be a specific company, or a technology request. Partners who have integrated their product with SAP improve their visibility; building relationships with the product teams improves the chances of being acquired.SAP works with the middle tier, not the top tier, banking firms. Their industry executives speak at conferences, and lay out what they are looking for - usually, things which are complementary to SAP's existing business. SAP is unlikely to acquire a company which implements things which it regards as its core competence (like ERP). Right now they are looking for cloud computing infrastructure.

Google: looking for companies who have built a great technology with a great team, especially in the mobile and social spaces. Startup CEOs should contact Google engineering leaders, who talk at conferences. Google runs competitive Challenges, which are another way of getting visibility. Plink was just acquired as a result of participating in the 2009 Android Developer Challenge. Google is not usually interested in talking to bankers.

Cisco: Looking at deals which 'move the needle' (ie, have a noticeable effect on Cisco's revenue, market share and/or annual profit numbers). Hence the Tandberg deal which just closed. Historically, Cisco's ideal target has been a company with around 100 employees, sales for revenue, around which a model can be constructed showing how the technology, if sold by Cisco, will return some multiplier to the cost to Cisco of the acquisition (deals like these can be very much smaller). The Corporate Development group is a team of people who have been investment bankers who survey the market for possible targets. They also work with the business units who are aware of gaps in Cisco's product and service offerings, and of companies which might fill those gaps. Often the relationship starts with Cisco licensing technology. Cisco also makes investments to get visibility into potential targets, putting an observer on the board. (Netsys Technologies, acquired 1996, where I was a VP, was an early example of this strategy).

References

Sonnenschein Nath, Rosenthal LLP
Cisco list of acquisitions
Google list of acquisitions
SAP list of acquisitions

Cunning Systems evaluates product and service ideas in computing and communications. If you would like to discuss whether an idea is likely to be of interest to a large corporation, contact us at info@cunningsystems.com Follow me on twitter at @annejohn and @vcwatch

10G Ethernet - the next generation of products

There have been several announcements in the last month, which, when taken together, add up to a significant improvement in possible networked systems performance.

Starting from the inside of the server, and working outwards :

Xeon 5600
Intel announced the Xeon processor 5600 (4 and 6 core) and the i7-980 6 core processor. These support great flexibility in trading off price, frequency, power and cache size. Examples :

Intel Processor frequency Cache Power Cores Price
Xeon® X5680 3.33 GHz 12 MB 130W 6 / 12 $1663
Xeon® E5503 2.00 GHz 4 MB 80W 2 / 2 $188

IBM demonstrated a 40% improvement in operations per watt in a X3650 server using these processors - see the Intel reference below for the benchmark descriptions.

2 x 10GE port Solarstorm SFN 5122F NIC card
Solarflare announced a dual port 10GE NIC card, with hypervisor bypass; Single Root I/O Virtualization (support for thousands of vNICs); stateless offload for iSCSI, RSS, TCP/IP and UDP, LSO/TSO and LRO; 5 - 8 Watts per port; driver support for Microsoft Windows®, Red Hat® and RHEL™ Linux, Solaris™, VMware®, Citrix® XenServer™ and Novell SLES. If the Enterprise Onload application acceleration is used with these NICs, " the SFN 5122F delivers sub-5 microsecond UDP/TCP application latencies, while supporting message rates in the millions. It also significantly reduces latency jitter, making it ideal for high-frequency trading." Price $1,110, due to ship in April 2010. (The press release doesn't say whether this is a one off or quantity price).

384 x 10GE ports switch
Arista announced general availability of the 7500 switch which was shown at the November SC09 supercomputing show in Portland. This is the switch architecture with buffers, so the port to port latency is given as 4.5 microseconds, with power at less than 10W per port. (The lowest latency Arista switch is the 24 x 10GE port 7124S, at 600 nanoseconds and about $500 per port). Pricing for the 7500: starts at $140,000, fully configured at $1,200 per port (which multiplies out to $460,800)

32 x 10GE load balancing, filtering, and measurement
cPacket Networks announced a device, the cVu320G, combining complete packet inspection with Marvell's Prestera™-CX Switch chips. The device will support measurement of the time taken by specific packets to move from one part of the network to another, as well as the time and contents when 10GE links are fully loaded; this kind of information about packet volume and content on the wire can be used to identify bottlenecks and inform decisions about which parts of the systems infrastructure would most benefit from upgrades. The cVu320G is due to ship in April 2010. The press release gave no indication about pricing.

Combining the latest processors with recent dual port 10GE NIC cards and high capacity, compact, low power switches provides the next generation hardware platform, for use in house, or installation in co-location facilities. Fractional shares of these platforms will soon be available from hosting providers.

The securities industry, always searching for lower latency and well as lower power, is an early adopter customer for these capabilities. NYSE Euronext announced early customer testing for "trading in a box", combining market data engines, ordering engines, smart order-routing engines and market access engines inside a single server, at the Mahwah, N.J., data center.

References
Intel Xeon 5600 press release
Solarflare NICs press release
Arista Networks press release
cPacket Networks product brief pdf
Trading in a box article

Don't feed the Patent Trolls

Having been asked about this more than once recently, by companies who don't yet have any users or customers :

Early stage patent applications
If you are contemplating applying for a patent for the first time for your startup company, there are several considerations.

  • Getting a patent awarded typically takes several years of elapsed time.
  • The obvious costs are the fees to be paid to the patent office, and the fees for a patent attorney to help with preparation.
    Search for 'cost of applying for US patent' to get approximate numbers and guidelines.
  • Don't ignore the cost of your time; explaining engineering ideas to attorneys is not easy. Seriously consider whether you'd be adding more value by explaining your ideas to potential customers instead.

Brad Burnam, from Union Square Ventures, has a useful essay; in the comments, he says "In the world of web services, where we invest, you will have succeeded or failed long before a patent is approved, so it often does not make sense to invest in the process."

In addition, the question to ask is not so much what the upfront costs are, but if you could actually afford to defend a patent if you had one. Can you grow the company enough to afford settle a patent suit ?

Cisco Systems had only one patent for several years after the IPO
Cisco's approach to patents was not to spend any time or money with patent lawyers until they were about to do the IPO (in 1990). As part of that process they patented the IGRP routing protocol - and there were no more patent applications for several years, until they got to the point where they needed patents as a currency to exchange with competitors in cross-license agreements. Sequoia Capital did not require them to have applied for a patent as a pre condition of their funding. The thinking was that by the time a competitor had read the patent application and or reverse engineered the hardware, that Cisco would have developed something new and the patented product would have been superseded. Although Cisco is nominally a hardware company, in fact the hardware was perceived internally as a method for packaging software - that was the real added value.

Recently, there's been an upswing in informed opposition to software patents. Brad Feld, at Foundry, is keenly interested in the problems with the patent system and has a series of detailed posts covering the issues.

References
Brad Burnam, USV on software patents
Brad Feld, Foundry Group - series of patent posts
US patent office process chart

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