Open Standards Success

Open Standards Success

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In the 1970s, one of the main arguments in favor of using closed  technologies focused on economics: companies asked how they could make  money if other companies could build the same products. Look online and  compare the histories of Cisco Systems, one of the first companies to  build products using the open Internet standards, and Digital Equipment  Corporation, a company that sold proprietary DECNET protocols. Which was  most successful?

Comer, Douglas E.. The Internet Book : Everything You Need to Know about Computer Networking and How the Internet Works, CRC Press LLC, 2018. ProQuest Ebook Central, http://ebookcentral.proquest.com/lib/apus/detail.action?docID=5502790.
Created from apus on 2025-06-11 06:29:12.

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Open Standards Success

Open Standards Success: A Comparative Case of Cisco and DEC

The evolution of networking technologies in the 1970s and beyond reveals the critical role. This open standards played in shaping the success or failure of major tech companies. A comparison between (CS) and(DEC) highlights how embracing interoperability through open protocols can create lasting competitive advantages. Cisco thrived by building products around open Internet standards like TCP/IP, while DEC eventually declined due to its reliance on proprietary systems like DECnet.

1. Business Strategy and Market Adaptability
Cisco’s early commitment to open standards allowed it to integrate easily with other systems, rapidly expand its market, and foster innovation through collaboration. In contrast, DEC’s proprietary model limited compatibility and market scalability, making it less adaptable to changing industry trends.

2. Technological Ecosystem and Innovation
By aligning with organizations like the Internet Engineering Task Force (IETF), Cisco remained at the forefront of innovation. Its products could evolve with the growing Internet. DEC, however, invested in closed ecosystems that required customers to buy into its entire stack, reducing flexibility and customer choice.

3. Long-Term Outcomes
Cisco emerged as a global leader in networking, while DEC, despite its initial dominance, was acquired by Compaq in 1998. This demonstrates that open standards not only drive technical innovation but also ensure long-term market viability.