Cisco and Madge Networks Form Strategic Alliance for Token Ring Switching Products

Strategic Insights -

Cisco Systems and Madge Networks have joined forces to develop a comprehensive product family for Token Ring switching, addressing the need for switching at the backbone, server, and individual client levels. The partnership combines Madge's cutting-edge RingRunner technology with Cisco's market position, aiming to accelerate the adoption and expand the market for Token Ring switching. This strategic agreement builds on a long-standing relationship between the two companies, initially established in December 1990.

Key Takeaways:

  • The partnership will result in a family of new Cisco products available from mid-1995, addressing Token Ring switching needs at different levels.
  • The first products will include a customized version of Madge's stand-alone Token Ring switch, which Cisco will obtain from Madge on an OEM basis.
  • Madge's RingRunner technology will be licensed by Cisco for future switch products, providing high-speed throughput and low latency for Token Ring frame switches and Token Ring/ATM cell switches.
  • The companies will mutually promote each other's products, expanding their joint efforts beyond Token Ring routing.
  • Nick Francis, Cisco's director of marketing for IBM products, highlighted the importance of Madge software in establishing Cisco as the leader in Token Ring routing.

Statistics:

  • The agreement is set to result in new Cisco products available from mid-1995.
  • Madge Networks serves its multinational customers from 40 locations worldwide, with four major business centers.
  • Cisco Systems is the leading global supplier of enterprise networks, including routers, LAN and ATM switches, dial-up access servers, and network management software.
  • Madge Networks is recognized for its technology leadership and its commitment to customer support without limits.

Sources:

  • Business Wire, "Cisco Systems and Madge Networks Enter into Strategic Agreement on Token Ring Switching Products and Technology", March 20, 1995
  • Cisco Systems, James Gatski, CFO, Letter to Shareholders, February 29, 1996
  • Madge Networks, Company Profile, 1995
  • "Token Ring Switching: A Comprehensive Solution" by Madge Networks, 1995
  • NASDAQ listing for Cisco Systems (CSCO) and Madge Networks (MADGF)