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Entrepreneurial Capitalism and Innovation:
A History of Computer Communications 1968-1988
By James Pelkey

Entrepreneurial Capitalism & Innovation:
A
History of Computer Communications
1968 -1988
By James Pelkey

This history is organized by three co-evolving market sectors and also standards making.
An overview of the schema is presented in the Introduction.

DATA COMMUNICATON
Ch. 1: Emergence
Ch. 3: Competition
Ch. 5: Market Order
Ch. 11: Adaptation

NETWORKING
Ch. 2: Vision
Ch. 4: Arpanet
Ch. 6: Diffusion
Ch. 7: Emergence
Ch 8: Completion
Ch. 10: Market Order

STANDARDS
Ch. 9: Creation

INTERNETWORKING
Ch. 12: Emergence

 

 

Chapter 11
Data Communications: WANs 1979-1986
Data Networks Become Wide Area Network

 

11.19     The Yankee Group

In July 1984, a report on modems and multiplexers titled “Building Blocks read:

The multiplexer was first introduced as a network product in order to better utilize and consolidate modem resources. As digital facilities have become more prevalent (private microwave, satellite, and TDS [Terrestrial Digital Services] services from AT&T) the multiplexer’s role has shifted to become a gateway to the wideband digital world. The Yankee Group believes that the multiplexer market will grow to $305 million in 1984. The most significant growth will come in the T-1 multiplexer market segment, which will grow 75% to $68 million in 1984.[17]

In December 1985, a report based on actual case histories titled “Private Network Strategies” identified some of the reasons corporations were beginning to build their own wide area communication networks:

The Yankee Group observed specific trends in the area of communications management:

  • Many users are just beginning to use communications strategically;
  • Planned growth of data communications needs far exceeds that for voice communications;
  • The integration of voice and data, on both a facilities and managerial level, is a top priority among many users;
  • Vendor dissatisfaction is growing.[18]

As for the vendor dissatisfaction, the report further writes:

  • Vendors should interact, not react;
  • Vendors should provide a single point of contact for the user;
  • Vendor contacts should be accessible.

That same month, from another report titled “Network Switching:”

The Yankee Group believes network switches are the key to network communications and control and, hence, are the key to network equipment vendor dominance. In short, whoever controls the network switches, controls the network….the T-1 multiplexer market will be the fastest growing segment of the network switch market……Factors contributing to this growth are:

  • The divestiture of AT&T;
  • The emergence of information as a strategic and operational resource;
  • The growth of electronic data interchange;
  • The PC explosion, and
  • Improved microprocessor technology.[19]

[17]  Yankee Group, Building Blocks, July 1984, p. 87

[18]   Yankee Group, Private Network Strategies, p. i

[19]  Ibid