Main arguments in favor of using closed technologies focused on economics

• • Key Products: Minicomputers (VAX), servers, and networking equipment that relied on DECnet.  
  • Growth Strategy: Primarily focused on selling integrated hardware and software solutions within its own ecosystem.

2. Which was most successful?

• Cisco Systems:

  • Dominated the Networking Market: Cisco's embrace of open standards proved to be a far more successful strategy. The company became a dominant force in the networking industry, with its products widely adopted across various industries and organizations worldwide.  
  • Interoperability and Innovation: The open nature of its products fostered innovation and competition, leading to continuous advancements in networking technology.
  • Long-term Sustainability: Cisco's commitment to open standards ensured the long-term sustainability and adaptability of its products in a constantly evolving technological landscape.

• DEC:

  • Limited Growth and Market Share: DEC's reliance on proprietary technology ultimately limited its growth and market share. As open internet standards gained traction, DEC struggled to compete effectively.
  • Vendor Lock-in: The closed nature of DECnet created vendor lock-in for customers, making it difficult and expensive to migrate to other platforms.
  • Declining Market Share and Eventual Acquisition: DEC's market share gradually eroded, and the company eventually faced financial difficulties and was acquired by Compaq in 1998.  

Key Takeaways:

• The success of Cisco Systems demonstrates the significant advantages of open standards in the networking industry.
• Interoperability, flexibility, and adaptability are crucial factors for long-term success in the rapidly evolving technology market.
• Proprietary technologies can create vendor lock-in and limit innovation, ultimately hindering long-term growth and competitiveness

Cisco Systems vs. Digital Equipment Corporation (DEC)

• Cisco Systems:

  • Focus on Open Standards: Cisco embraced open internet standards like TCP/IP, Ethernet, and other industry-standard protocols. This allowed for interoperability between different vendors' equipment, creating a more flexible and adaptable networking ecosystem.  
  • Key Products: Routers, switches, network security appliances, and other networking hardware.  
  • Growth Strategy: Leveraged the power of interoperability to build a vast and interconnected network of customers and partners.

• Digital Equipment Corporation (DEC):

  • Proprietary DECnet: DEC relied heavily on its proprietary DECnet protocol suite for its networking solutions. This created a closed ecosystem where customers were largely locked into using DEC hardware and software.