WEBVTT - The Origins of Cisco Systems

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<v Speaker 1>Get in touch with technology with tech Stuff from how

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<v Speaker 1>stuff works dot com. Hey there, and welcome to tech Stuff.

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<v Speaker 1>I am your host, Jonathan Strickland. I'm an executive producer

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<v Speaker 1>with how Stuff Works and I love all things tech,

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<v Speaker 1>and today we are going to do a listener request

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<v Speaker 1>tech Stuff. Listener Gauge asked that I do uh an

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<v Speaker 1>episode or two about a big, big company in technology.

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<v Speaker 1>Once upon a time it was the biggest company in technology.

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<v Speaker 1>That would be Cisco, also known as Cisco Systems. This

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<v Speaker 1>is a company that many of you probably have heard about, uh,

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<v Speaker 1>but maybe you don't know too much about it. The

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<v Speaker 1>company's mission statement is pretty humble all things considered. It

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<v Speaker 1>is quote shape the future of the Internet by creating

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<v Speaker 1>unprecedented value and opportunity for our customers, employees, investors, and

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<v Speaker 1>ecosystem partners end quote. So, you know, just shaping the

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<v Speaker 1>future of the Internet. As it turns out, Cisco and

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<v Speaker 1>the Internet are deeply connected. The the company would not

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<v Speaker 1>exist without network computers. That's the whole core of what

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<v Speaker 1>the company was about, especially from a hardware perspective. Early on,

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<v Speaker 1>So Cisco Systems, particularly back when it was called Cisco Systems,

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<v Speaker 1>really made its fortune through creating the equipment that serves

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<v Speaker 1>as the infrastructure for various computer networks, including the network

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<v Speaker 1>of networks we call the Internet. It's mainly a business

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<v Speaker 1>to business corporation, meaning its customers tend to be other

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<v Speaker 1>big businesses. It did kind of dip its toe in

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<v Speaker 1>the consumer market, where it sold some products meant for

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<v Speaker 1>the average person such as myself, but it doesn't really

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<v Speaker 1>do that anymore. However, Today the company employs more than

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<v Speaker 1>seventy thousand people and it generates more than forty eight

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<v Speaker 1>billion dollars in revenue. But that's not how it all started.

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<v Speaker 1>Way back in and actually, Cisco Systems origin story is

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<v Speaker 1>one that has over time been somewhat oversimplified and romanticized.

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<v Speaker 1>This should come as no surprise to anyone who has

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<v Speaker 1>ever followed any companies in the tech sphere, really any

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<v Speaker 1>company at all. A lot of companies oversimplify their origins

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<v Speaker 1>because the truth of the matter tends to get pretty

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<v Speaker 1>complicated and sometimes it requires a whole lot of explanation. Now,

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<v Speaker 1>a lot of Silicon Valley companies have a similar mythic

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<v Speaker 1>origin story. Typically, you hear stories about how young engineers

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<v Speaker 1>turned into entrepreneurs. Sometimes they're fresh out of college. Sometimes

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<v Speaker 1>they drop out of school in order to pursue a

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<v Speaker 1>business opportunity, and they're almost always seems to be a

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<v Speaker 1>garage involved in some pivotal part of the early business history,

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<v Speaker 1>and after some vague amount of time, the company's profile

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<v Speaker 1>skyrockets and the entrepreneurs become gazillionaires. See also Microsoft, Apple, Google,

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<v Speaker 1>et cetera. Cisco Systems origin, or at least the version

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<v Speaker 1>of the origin story that tends to be told, is

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<v Speaker 1>not that far off from that particular archetype. However, instead

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<v Speaker 1>of students, the founders were employees of Stanford University. They

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<v Speaker 1>were computer scientists who are managing various computer departments at Stanford.

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<v Speaker 1>In fact, at the time they were a husband and

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<v Speaker 1>wife team. They headed up different computer labs essentially at Stanford,

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<v Speaker 1>and instead of a garage, they operated outside of their

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<v Speaker 1>or in their living room in San Jose, California. That's

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<v Speaker 1>where Cisco Systems got its start, was in their living room.

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<v Speaker 1>They named their company after the sister city of San Francisco,

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<v Speaker 1>so Cisco Systems. Also, if you look at the logo,

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<v Speaker 1>it's these the lines of vertical dashes. Uh, those vertical

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<v Speaker 1>dashes are an abstract of the Golden gate Bridge. Now,

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<v Speaker 1>the simplified story of the origin of Cisco Systems has

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<v Speaker 1>two protagonists. There's Sandy Lerner, she was in charge of

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<v Speaker 1>the computers for the Graduate School of Business at Stanford,

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<v Speaker 1>and there was her then husband that they've since gotten divorced,

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<v Speaker 1>Leonard Bozak, who oversaw the computers in the computer science department.

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<v Speaker 1>Now back, as the story goes, the two were frustrated

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<v Speaker 1>that despite working for the same university and having offices

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<v Speaker 1>five yards apart from each other, they could not send

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<v Speaker 1>emails to each other. Their respective accounts were on different

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<v Speaker 1>computer networks and there was no intercommunication channel between those

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<v Speaker 1>two networks. The Business school had its network, the computer

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<v Speaker 1>science division had its network, and the two were kind

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<v Speaker 1>of autonomous and step brit entities. Then, as the story goes,

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<v Speaker 1>the two decided to create a multi protocol router to

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<v Speaker 1>connect the two systems together and allow this couple to

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<v Speaker 1>communicate via email. And then they saw how useful their

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<v Speaker 1>technology was and decided that they should turn it into

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<v Speaker 1>a product, asking Stanford to do so. Stanford said that

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<v Speaker 1>they they the the university could not really do that.

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<v Speaker 1>So then they decided to launch their own company called Cisco,

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<v Speaker 1>and the rest is history. But again that's an oversimplification.

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<v Speaker 1>The reality is that a lot of different people were

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<v Speaker 1>working on a solution to this problem of facilitating communication

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<v Speaker 1>between disparate computer and networks. But before I detail that history,

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<v Speaker 1>I thought it might be helpful to talk about what

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<v Speaker 1>the heck a multi protocol router is, why are they necessary?

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<v Speaker 1>And that means that we need to define a few

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<v Speaker 1>different terms like land when, and explain the purposes of

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<v Speaker 1>protocols in general and what a multi protocol technology does

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<v Speaker 1>in particular. So first of all, let's talk about lands.

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<v Speaker 1>So a land L a N is a local area network.

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<v Speaker 1>This is a computer network that covers a limited area.

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<v Speaker 1>It could be a single home. You could have a

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<v Speaker 1>local area network set up in your home, and you

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<v Speaker 1>may very well have this. If you have a router

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<v Speaker 1>connected to a modem in your home, then you have

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<v Speaker 1>a local area network. It could also be an office,

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<v Speaker 1>it could be an office building, it could be a

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<v Speaker 1>university campus. So the scale of a local area network

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<v Speaker 1>can get quite large, but it's still confined to a

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<v Speaker 1>geographic region. So let's say your office has a local

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<v Speaker 1>area network and your office purchased all the equipment to

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<v Speaker 1>run and maintain this network. So while some other companies

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<v Speaker 1>made the actual uh the components of the infrastructure, the

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<v Speaker 1>infrastructure is owned by your company because they bought those

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<v Speaker 1>products and then installed them. So there's no connect ativity

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<v Speaker 1>to any other network, So you don't have a channel

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<v Speaker 1>out to the Internet. This is all self contained. Anyone

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<v Speaker 1>who connects to that network and they have privileges on

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<v Speaker 1>that network, they have the ability to communicate with others

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<v Speaker 1>on that same network, or they can store and retrieve

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<v Speaker 1>files on the network whatever system has been set up.

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<v Speaker 1>But that's the extent of the reach on that local

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<v Speaker 1>area network. And these technologies really begin to emerge in

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<v Speaker 1>the early nineteen seventies, particularly with the invention of Ethernet

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<v Speaker 1>out of Xerox Park. I'll talk a little bit more

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<v Speaker 1>about that in a in a second. A WHEN or

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<v Speaker 1>w a N is a wide area network. These networks

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<v Speaker 1>cover larger geographic regions and also tend to rely upon

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<v Speaker 1>telecommunications circuits that are owned by some other entity. So

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<v Speaker 1>there's some company that owns the actual infrastructure that a

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<v Speaker 1>wide area network is relying upon. Typically it doesn't have

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<v Speaker 1>to be that case, but that's typically what happens. So

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<v Speaker 1>that means there has to be some sort of agreement

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<v Speaker 1>between the administrators of the wide area network and the

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<v Speaker 1>companies that actually own the infrastructure, the actual fiber and

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<v Speaker 1>the switches that the network relies upon. A wide area

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<v Speaker 1>network might connect numerous local area networks together, which allows

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<v Speaker 1>for a channel of communication between those local area networks.

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<v Speaker 1>But that's easier said than done because back in the

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<v Speaker 1>early early days when everyone was trying to start creating

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<v Speaker 1>local area networks, there were a lot of different companies

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<v Speaker 1>that were developing their own proprietary approaches to creating these

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<v Speaker 1>local area networks, with their own proprietary hardware and software

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<v Speaker 1>and their own protocols. So if you like analogies, like

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<v Speaker 1>I do because it was an English lit major, just

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<v Speaker 1>imagine again that you are in a big office building,

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<v Speaker 1>and each floor of that office building has an office

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<v Speaker 1>where people speak a single language and only that language.

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<v Speaker 1>And let's say that the first floor is all French speakers,

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<v Speaker 1>the second floor is all German speakers, the third floor

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<v Speaker 1>is all Finnish speakers, the fourth is Swahili, and the

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<v Speaker 1>fifth is English. People within a single office have no

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<v Speaker 1>problem communicating with each other. Right, if you're one of

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<v Speaker 1>the people who speaks English and you're on the fifth floor,

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<v Speaker 1>you can speak to everyone else on the fifth floor.

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<v Speaker 1>They can understand you, you can understand them, because you're

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<v Speaker 1>all communicating within that same language. However, communication between offices

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<v Speaker 1>is much more challenging because the inhabitants of those different

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<v Speaker 1>offices speak different languages and they do not speak other ones.

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<v Speaker 1>This is where protocols come in. So a communications protocol

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<v Speaker 1>is similar to a language, but a communications protocol is

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<v Speaker 1>really a set of rules that computer systems have to

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<v Speaker 1>follow in order to send and receive data right to

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<v Speaker 1>send data to other computers and received data from other

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<v Speaker 1>computers or other devices that are connected to the network.

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<v Speaker 1>It's not just computer systems. It could be things like

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<v Speaker 1>handheld devices, or it could be printers, could be lots

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<v Speaker 1>of different stuff. These protocols dictate the form or syntax

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<v Speaker 1>that the data has to take in order for it

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<v Speaker 1>to transmit across this network, and there are also rules

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<v Speaker 1>that govern what to do in case and error occurs.

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<v Speaker 1>How do you recover data in that in that instance,

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<v Speaker 1>or how do you synchronize data between different components on

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<v Speaker 1>the network. And these protocols often will depend both upon

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<v Speaker 1>hardware and software, and because you have different companies creating

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<v Speaker 1>these different local area networks, it could mean you have

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<v Speaker 1>different incompatible protocols that are making up all these rules. So,

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<v Speaker 1>again going back to that office building analogy, think of

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<v Speaker 1>each office floor not as having people who speak different

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<v Speaker 1>languages on every floor, but different computer networks that are

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<v Speaker 1>working on a different prietary protocol in each floor. That

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<v Speaker 1>means that computer systems on a single floor can communicate

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<v Speaker 1>with each other easily because they're following the same set

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<v Speaker 1>of rules, but computer systems on different floors can't communicate

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<v Speaker 1>easily they are each following a different set of rules,

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<v Speaker 1>so you have this disconnect. This is where the concept

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<v Speaker 1>of multi protocol infrastructure comes in. In the case of Cisco,

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<v Speaker 1>it was a multi protocol router. Now, a router is

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<v Speaker 1>a device that sits between networks. It's kind of a

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<v Speaker 1>connecting point. Sometimes we call them gateways, although for a

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<v Speaker 1>while there was a differentiation between router and gateway. Today

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<v Speaker 1>they are largely one and the same. But these are

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<v Speaker 1>connecting points between one network and another network. It could

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<v Speaker 1>be two local area networks, so you could have a

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<v Speaker 1>router between those two. It could be a router between

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<v Speaker 1>a local area network and a wide area network, include

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<v Speaker 1>being a local area network and the Internet. So your

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<v Speaker 1>typical home router sits between a residential networks such as

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<v Speaker 1>one that covers one household. Let's say that it's your

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<v Speaker 1>personal router, and it sits between that and the Internet

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<v Speaker 1>at large. Routers direct traffic on the Internet, so when

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<v Speaker 1>data flies across the Internet, it does so in packets.

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<v Speaker 1>I've talked about data packets many many times. I won't

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<v Speaker 1>go into it here, but packets can hop from one

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<v Speaker 1>router to another until they arrive at their intended destination.

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<v Speaker 1>At different packets from the same file can travel very

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<v Speaker 1>different pathways to get to that destination. Multi protocol routers,

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<v Speaker 1>as the name suggests, are able to communicate through more

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<v Speaker 1>than one set of rules, so they're kind of like interpreters, right.

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<v Speaker 1>They can kind of interpret in one language and translate

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<v Speaker 1>it into another language, So they can accept data following

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<v Speaker 1>one set of protocols and send it in a different

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<v Speaker 1>set acceptable to the recipient and vice versa. So if

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<v Speaker 1>you have two local area networks and a multi protocol

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<v Speaker 1>router in between the two, it can accept data from

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<v Speaker 1>network number one and then translate it into a form

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<v Speaker 1>that network number two can facilitate. So it's an important

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<v Speaker 1>component if you want to have communication between networks. So

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<v Speaker 1>now we recognize that computer networks communicate through various protocols,

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<v Speaker 1>and that those protocols can be different from one another,

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<v Speaker 1>especially in the early days of networks, and that necessitates

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<v Speaker 1>some sort of component between the networks to facilitate communication.

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<v Speaker 1>But back in this wasn't something you could just pick

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<v Speaker 1>up off the shelf yet, at least not until Cisco

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<v Speaker 1>came into being. People had to suss out how it

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<v Speaker 1>would work. So the story of Cisco's origins are tied

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<v Speaker 1>together with that process. When we come back, we'll look

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<v Speaker 1>at the people and events that led to Cisco becoming

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<v Speaker 1>a company. But first let's take a quick break to

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<v Speaker 1>thank our sponsor. Before Cisco was launched in nineteen eighty four,

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<v Speaker 1>a few years of work went into the development of

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<v Speaker 1>the technology that would give the company it's real start,

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<v Speaker 1>and while Lerner and Bozak were involved, so were a

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<v Speaker 1>lot of other people. First, Stanford's connection to the Internet,

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<v Speaker 1>both figuratively and literally, stretches back to before there was

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<v Speaker 1>an internet, way back in nineteen sixty nine, Stanford was

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<v Speaker 1>the site of one of the four original Interface Message processors.

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<v Speaker 1>Those were special mini computers that were part of the

0:14:31.840 --> 0:14:35.520
<v Speaker 1>experimental ARPA Net. That was the computer network that would

0:14:35.560 --> 0:14:38.640
<v Speaker 1>serve as a stepping stone toward the development of the Internet.

0:14:38.680 --> 0:14:40.960
<v Speaker 1>A lot of the protocols that would be used on

0:14:40.960 --> 0:14:44.600
<v Speaker 1>the Internet were developed for the Arpanet first. The other

0:14:44.680 --> 0:14:47.880
<v Speaker 1>three imps. By the way, those are the the interface

0:14:47.920 --> 0:14:51.760
<v Speaker 1>message processors. The other three were at the University of California,

0:14:51.800 --> 0:14:55.440
<v Speaker 1>Los Angeles, the University of California Santa Barbara, and the

0:14:55.520 --> 0:14:59.600
<v Speaker 1>University of Utah. Back around late nineteen eighty or early

0:14:59.680 --> 0:15:04.000
<v Speaker 1>nineteen eighty one, Stanford received some Alto workstations from the

0:15:04.160 --> 0:15:09.000
<v Speaker 1>Xerox Palo Alto Research Center better known as Xerox Park.

0:15:09.840 --> 0:15:12.680
<v Speaker 1>If you listen to my episodes about Xerox, you might

0:15:12.720 --> 0:15:15.760
<v Speaker 1>remember the Alto. It was the computer system that would

0:15:15.760 --> 0:15:19.360
<v Speaker 1>inspire Steve Jobs to return to Apple and push for

0:15:19.400 --> 0:15:23.160
<v Speaker 1>the Macintosh and the Lisa systems to incorporate a graphic

0:15:23.280 --> 0:15:27.200
<v Speaker 1>user interface or gooey. It was bigger than a computer

0:15:27.240 --> 0:15:29.920
<v Speaker 1>desktop would be these days, but smaller than a lot

0:15:30.000 --> 0:15:33.440
<v Speaker 1>of other mini computer systems. Xerox only reduced a couple

0:15:33.480 --> 0:15:36.560
<v Speaker 1>of thousand of these machines. Mostly they used them internally

0:15:36.720 --> 0:15:40.200
<v Speaker 1>at Xerox, but they did distribute around five hundred of

0:15:40.200 --> 0:15:44.400
<v Speaker 1>them to various universities and research facilities, including Stanford and

0:15:44.440 --> 0:15:47.520
<v Speaker 1>The Alto was pretty cool, especially since Xerox first started

0:15:47.520 --> 0:15:50.480
<v Speaker 1>producing them in the early nineteen seventies, more than a

0:15:50.600 --> 0:15:54.440
<v Speaker 1>decade before we would see gooey based computers in the

0:15:54.480 --> 0:15:58.160
<v Speaker 1>consumer marketplace, stuff like the Macintosh and then later still

0:15:58.480 --> 0:16:03.040
<v Speaker 1>the Microsoft Windows operating system. But the technology that really

0:16:03.080 --> 0:16:07.560
<v Speaker 1>got computer scientists excited that was incorporated into the Alto

0:16:07.880 --> 0:16:11.880
<v Speaker 1>was ethernet. I mentioned it earlier while Bob Metcalf over

0:16:11.960 --> 0:16:16.360
<v Speaker 1>at Xerox, pioneered ethernet development in nineteen seventy three. Over

0:16:16.440 --> 0:16:19.040
<v Speaker 1>at Park he was working on a way to connect

0:16:19.080 --> 0:16:23.080
<v Speaker 1>auto computers to printers initially, and he developed a networking

0:16:23.120 --> 0:16:25.960
<v Speaker 1>platform and cabling system in order to do so. See,

0:16:26.360 --> 0:16:30.160
<v Speaker 1>printers were really, really expensive, so it didn't make a

0:16:30.160 --> 0:16:32.200
<v Speaker 1>whole lot of sense to get a printer for every

0:16:32.240 --> 0:16:35.080
<v Speaker 1>single computer system. It made more sense to set up

0:16:35.120 --> 0:16:38.680
<v Speaker 1>a system where multiple computers could share the printer as

0:16:38.720 --> 0:16:41.560
<v Speaker 1>an asset. After all, you're not sending jobs to the

0:16:41.600 --> 0:16:45.440
<v Speaker 1>printer all the time, so most of the time the

0:16:45.480 --> 0:16:47.680
<v Speaker 1>printer would just sit idle, which mean it wasn't a

0:16:47.760 --> 0:16:51.720
<v Speaker 1>very efficient use of technology. By allowing multiple computers to

0:16:51.760 --> 0:16:55.400
<v Speaker 1>share the single printer and meant that you have you

0:16:55.440 --> 0:16:58.560
<v Speaker 1>have boosted the efficiency of the printer. It's in operation

0:16:58.640 --> 0:17:02.400
<v Speaker 1>more frequently and it's not just sitting there. So it

0:17:02.520 --> 0:17:05.960
<v Speaker 1>was an interesting approach to this problem, not just connecting

0:17:05.960 --> 0:17:09.040
<v Speaker 1>a computer to a printer, but a way of making

0:17:09.040 --> 0:17:14.040
<v Speaker 1>a printer a more effective asset for the team at large.

0:17:14.240 --> 0:17:17.359
<v Speaker 1>So he developed the networking platform and the cabling system

0:17:17.400 --> 0:17:19.760
<v Speaker 1>in order to do this, and he designed the standards

0:17:19.760 --> 0:17:23.879
<v Speaker 1>that would guide communication across the cable. The Ethernet standard

0:17:24.320 --> 0:17:26.440
<v Speaker 1>either NEET made it easier to create a system in

0:17:26.520 --> 0:17:29.960
<v Speaker 1>which computers and other devices like printers could communicate with

0:17:30.000 --> 0:17:34.200
<v Speaker 1>each other. But how would you connect disparate networks, particularly

0:17:34.280 --> 0:17:38.280
<v Speaker 1>ones that relied on other protocols besides the Ethernet standard.

0:17:38.880 --> 0:17:41.720
<v Speaker 1>The director of Computer Facilities at Stanford at the time,

0:17:42.080 --> 0:17:46.080
<v Speaker 1>Ralph Goren, made a general request. He said, I kind

0:17:46.080 --> 0:17:49.560
<v Speaker 1>of want some form of technology that could serve as

0:17:49.600 --> 0:17:53.639
<v Speaker 1>something like a network extension cord to create networks between

0:17:53.640 --> 0:17:56.640
<v Speaker 1>computers that are more distant from one another. So while

0:17:56.640 --> 0:18:00.960
<v Speaker 1>we're pretty good at linking computers that are fairly close

0:18:01.000 --> 0:18:03.679
<v Speaker 1>to each other, I went a way to extend that

0:18:04.000 --> 0:18:07.399
<v Speaker 1>to beyond just the computers that are all within the

0:18:07.440 --> 0:18:10.760
<v Speaker 1>same room or same building. A group of Stanford computer

0:18:10.840 --> 0:18:15.280
<v Speaker 1>scientists tackled this problem, actually pretty big group, and there

0:18:15.280 --> 0:18:18.199
<v Speaker 1>were some that were contributing hardware. There were some who

0:18:18.240 --> 0:18:21.399
<v Speaker 1>were creating software for this, and they were all working

0:18:21.400 --> 0:18:24.240
<v Speaker 1>to try and make a thing possible. One of those

0:18:24.280 --> 0:18:28.399
<v Speaker 1>people was Andy Bechtelsheim, who would later go on to

0:18:28.480 --> 0:18:33.840
<v Speaker 1>found a little company called Sun micro Systems, and he

0:18:33.960 --> 0:18:37.760
<v Speaker 1>developed the computer board that would sit inside this router.

0:18:38.320 --> 0:18:42.480
<v Speaker 1>William Yeager, who was a research engineer, wrote the software

0:18:42.560 --> 0:18:46.120
<v Speaker 1>for the multi protocol router. He had previously found success

0:18:46.160 --> 0:18:49.680
<v Speaker 1>in networking machines between the medical center computers and the

0:18:49.720 --> 0:18:53.359
<v Speaker 1>computer science department, so this was sort of taking that

0:18:54.040 --> 0:18:57.359
<v Speaker 1>approach and then making it more flexible to allow for

0:18:57.520 --> 0:19:01.000
<v Speaker 1>even more types of local area works to communicate with

0:19:01.040 --> 0:19:04.600
<v Speaker 1>one another. Now. I didn't find a full list of

0:19:04.720 --> 0:19:07.679
<v Speaker 1>all the people who contributed to working on this multi

0:19:07.680 --> 0:19:11.000
<v Speaker 1>protocol router. I suspect more than a dozen people made

0:19:11.080 --> 0:19:14.480
<v Speaker 1>some sort of contribution throughout the whole process, because this

0:19:14.600 --> 0:19:16.919
<v Speaker 1>was not something that was, you know, a couple of

0:19:16.960 --> 0:19:20.040
<v Speaker 1>weeks in the works. This was a project that lasted

0:19:20.160 --> 0:19:22.600
<v Speaker 1>quite some time as people began to develop hardware and

0:19:22.680 --> 0:19:25.920
<v Speaker 1>software for it, tested out, tweak it, make changes, make

0:19:25.920 --> 0:19:29.960
<v Speaker 1>another addition, and it was definitely a collaborative effort. The

0:19:30.000 --> 0:19:34.120
<v Speaker 1>result was what the computer scientists called the blue box.

0:19:34.840 --> 0:19:37.359
<v Speaker 1>The blue box, it's because the device was inside a

0:19:37.359 --> 0:19:40.679
<v Speaker 1>blue case. Goren would later say that while he asked

0:19:40.680 --> 0:19:43.480
<v Speaker 1>for an extension cord, what he actually got was more

0:19:43.600 --> 0:19:46.600
<v Speaker 1>like a power outlet strip. It was much more versatile

0:19:46.720 --> 0:19:49.679
<v Speaker 1>than a simple long distance connection between two different lands.

0:19:49.960 --> 0:19:52.600
<v Speaker 1>It was a device that could allow for communication across

0:19:52.800 --> 0:19:58.040
<v Speaker 1>lots of different networks and Yeager software, while being fairly unsophisticated.

0:19:58.080 --> 0:20:01.760
<v Speaker 1>According to one Stay and Ford employee who would later

0:20:01.800 --> 0:20:06.119
<v Speaker 1>go on to work for Cisco, it was incredibly adaptable,

0:20:06.320 --> 0:20:11.639
<v Speaker 1>so maybe not terribly you know, seamless or sophisticated, but

0:20:12.040 --> 0:20:15.880
<v Speaker 1>easy to tweak so that you could incorporate different protocols.

0:20:16.560 --> 0:20:21.280
<v Speaker 1>Bozak and a learner founded Cisco Systems in December four

0:20:21.320 --> 0:20:24.160
<v Speaker 1>with the intent to market these routers for the burgeoning

0:20:24.200 --> 0:20:28.560
<v Speaker 1>network industry, as well as networking cards for computers. They

0:20:28.560 --> 0:20:32.439
<v Speaker 1>didn't get started right away. Stanford officials decided in nineteen

0:20:33.040 --> 0:20:36.880
<v Speaker 1>to undertake a comprehensive networking project to connect the various

0:20:36.960 --> 0:20:40.520
<v Speaker 1>networks across campus together, and as part of that initiative,

0:20:40.760 --> 0:20:43.800
<v Speaker 1>the officials wanted the project to rely solely upon the

0:20:43.840 --> 0:20:47.119
<v Speaker 1>Internet Protocol as a communications protocol. So, in other words,

0:20:47.440 --> 0:20:52.159
<v Speaker 1>simplify matters by settling on one standard for protocols and

0:20:52.240 --> 0:20:56.080
<v Speaker 1>not allow anything else. This is it turns out, is foreshadowing,

0:20:56.160 --> 0:21:00.000
<v Speaker 1>but we'll get to that later. Bozak and an engineer

0:21:00.080 --> 0:21:03.080
<v Speaker 1>named Kirk low Feed approached Yeager and asked him for

0:21:03.200 --> 0:21:06.440
<v Speaker 1>his software. They said, can we get your software for

0:21:06.840 --> 0:21:10.560
<v Speaker 1>multi protocol routers and they planned on modifying that for

0:21:10.600 --> 0:21:16.160
<v Speaker 1>the new Stanford project whether solely Internet protocol as the

0:21:16.160 --> 0:21:19.800
<v Speaker 1>communications protocol in question. So Yeager agreed, He handed over

0:21:19.800 --> 0:21:23.359
<v Speaker 1>his software, and Bozak and lo Feed made changes to

0:21:23.400 --> 0:21:25.640
<v Speaker 1>that software. They stripped it of its ability to route

0:21:25.640 --> 0:21:28.000
<v Speaker 1>other communication protocols because that was not part of the

0:21:28.000 --> 0:21:32.160
<v Speaker 1>Stanford project, and they enhanced the Internet capabilities of the device,

0:21:32.560 --> 0:21:34.960
<v Speaker 1>And in other words, they did make substantive changes to

0:21:34.960 --> 0:21:38.400
<v Speaker 1>the technology as part of the Stanford project. But apparently,

0:21:38.440 --> 0:21:41.960
<v Speaker 1>according to Yeager, they did not reveal that they had

0:21:42.000 --> 0:21:45.160
<v Speaker 1>also gone through the process of incorporating a new company

0:21:45.200 --> 0:21:48.960
<v Speaker 1>and that Bozak had an outstanding request to Stanford to

0:21:49.040 --> 0:21:52.080
<v Speaker 1>allow this new company to sell a version of this

0:21:52.200 --> 0:21:56.920
<v Speaker 1>blue box router. Stanford is a non profit university, and

0:21:56.960 --> 0:22:00.000
<v Speaker 1>as such they could not legally enter into the manufact

0:22:00.080 --> 0:22:04.960
<v Speaker 1>during business, but the router had undeniable utility. However, the

0:22:05.080 --> 0:22:08.040
<v Speaker 1>university did not see eye to eye with Bozak and Learner,

0:22:08.080 --> 0:22:11.760
<v Speaker 1>and they said no way san Jose. But that didn't

0:22:11.760 --> 0:22:15.240
<v Speaker 1>stop Bozak and Learner from building routers and network cards

0:22:15.280 --> 0:22:17.920
<v Speaker 1>out of their home in San Jose and selling them

0:22:17.960 --> 0:22:22.880
<v Speaker 1>by late night or by some accounts, early What's more,

0:22:23.400 --> 0:22:26.040
<v Speaker 1>other members of the staff of Stanford got all head

0:22:26.119 --> 0:22:29.679
<v Speaker 1>up because of the couple and some of the stuff

0:22:29.720 --> 0:22:32.639
<v Speaker 1>they were doing. First, it seemed pretty clear that at

0:22:32.680 --> 0:22:36.560
<v Speaker 1>least some of the development for Cisco's router product happened

0:22:36.600 --> 0:22:40.359
<v Speaker 1>on Stanford's time when Bozak and law Feed and Learner

0:22:40.400 --> 0:22:43.480
<v Speaker 1>were supposed to be working for the university. The Learner,

0:22:43.520 --> 0:22:46.760
<v Speaker 1>by the way, would leave Stanford first before anyone else

0:22:46.800 --> 0:22:50.520
<v Speaker 1>would second, and more to the point the Cisco router

0:22:50.720 --> 0:22:54.119
<v Speaker 1>appeared to contain work that came from other members of

0:22:54.119 --> 0:22:59.040
<v Speaker 1>Stanford's computer science community, as did the network cards. Nick Vezad,

0:22:59.440 --> 0:23:01.840
<v Speaker 1>who worked with Yeager, claimed that there was no real

0:23:01.960 --> 0:23:05.280
<v Speaker 1>difference between the router Cisco sold and the ones that

0:23:05.359 --> 0:23:09.480
<v Speaker 1>Stanford was using on their own systems, and that there

0:23:09.560 --> 0:23:13.680
<v Speaker 1>might have been some theft if you're if you're being

0:23:13.800 --> 0:23:17.400
<v Speaker 1>really you know, stickler for it. There were those who

0:23:17.600 --> 0:23:22.080
<v Speaker 1>essentially were accusing Bozak and Learner of stealing intellectual property

0:23:22.119 --> 0:23:25.280
<v Speaker 1>that belonged to other people without compensating them for it.

0:23:25.840 --> 0:23:29.399
<v Speaker 1>Bozak and Learner said that they had taken the technologies

0:23:29.440 --> 0:23:32.960
<v Speaker 1>and they had made substantial changes to them, and also

0:23:33.119 --> 0:23:37.840
<v Speaker 1>Stanford was not going to sell them. Stanford wasn't going

0:23:37.840 --> 0:23:40.040
<v Speaker 1>to get into the manufacturing business. It couldn't as a

0:23:40.040 --> 0:23:45.600
<v Speaker 1>nonprofit utility or university, I should say, so they did

0:23:45.640 --> 0:23:47.680
<v Speaker 1>what they had to do in order to actually make

0:23:47.680 --> 0:23:51.000
<v Speaker 1>it a working product. Meanwhile, Bozak was still working for

0:23:51.040 --> 0:23:54.760
<v Speaker 1>Stanford at that time. By early he was given the

0:23:54.840 --> 0:23:58.280
<v Speaker 1>choice to either work for Stanford or just work for Cisco,

0:23:58.440 --> 0:24:00.399
<v Speaker 1>but he could not do both of the same time,

0:24:01.200 --> 0:24:04.240
<v Speaker 1>and he was also accused of operating Cisco during his

0:24:04.280 --> 0:24:07.320
<v Speaker 1>hours of working at Stanford, and therefore Cisco's routers were

0:24:07.359 --> 0:24:11.840
<v Speaker 1>being made at the university's expense. So this was a

0:24:11.840 --> 0:24:16.879
<v Speaker 1>pretty tough accusation, and on July eleven, Len Bozak and

0:24:16.960 --> 0:24:20.320
<v Speaker 1>Kirklawfeed both resigned from Stanford. Learner, as I had said,

0:24:20.480 --> 0:24:23.800
<v Speaker 1>had already left the university at that point. Cisco also

0:24:23.920 --> 0:24:28.439
<v Speaker 1>hired on two other Stanford employees, Greg Satz, who joined

0:24:28.520 --> 0:24:33.360
<v Speaker 1>Cisco as a programmer, and Richard Troyano, who would oversee sales.

0:24:33.640 --> 0:24:39.600
<v Speaker 1>So this group of former Stanford employees start Cisco Systems. Now. Eventually,

0:24:39.640 --> 0:24:42.560
<v Speaker 1>Stanford and Cisco would come to a settlement agreement to

0:24:42.600 --> 0:24:46.960
<v Speaker 1>resolve the problem that Stanford technology was incorporated into Cisco's router.

0:24:47.480 --> 0:24:50.600
<v Speaker 1>The university chose the settlement as the best option out

0:24:50.600 --> 0:24:54.199
<v Speaker 1>of a bunch of not totally awesome choices. So the

0:24:54.240 --> 0:24:56.919
<v Speaker 1>other choices they essentially had was they could pursue a

0:24:56.960 --> 0:25:00.399
<v Speaker 1>court case, which ultimately might have stopped sis sco, but

0:25:00.440 --> 0:25:03.679
<v Speaker 1>it wouldn't accomplish much else, or or they could have

0:25:03.720 --> 0:25:06.240
<v Speaker 1>done nothing at all and just allowed Cisco to operate

0:25:06.400 --> 0:25:10.760
<v Speaker 1>and not even objected. The settlement saw Cisco pay Stanford

0:25:10.760 --> 0:25:14.200
<v Speaker 1>about twenty thousand dollars in cash, with another hundred fifty

0:25:14.280 --> 0:25:18.359
<v Speaker 1>thousand dollars promised in royalty fees from Cisco sales, and

0:25:18.480 --> 0:25:21.840
<v Speaker 1>also in agreement to sell routers to Stanford a discounted

0:25:21.920 --> 0:25:28.280
<v Speaker 1>rate and to provide essentially free I T support less Earnest,

0:25:28.320 --> 0:25:31.800
<v Speaker 1>who was Bozak's former supervisor, alleged that Bozak had also

0:25:31.920 --> 0:25:35.439
<v Speaker 1>done business with Xerox using some of Stanford's technology in

0:25:35.520 --> 0:25:39.000
<v Speaker 1>networking boards. That charge also didn't go so far as

0:25:39.000 --> 0:25:41.880
<v Speaker 1>a court case. Cisco would settle out of court for

0:25:41.960 --> 0:25:46.040
<v Speaker 1>a seven thousand dollar cash settlement and two routers. Those

0:25:46.160 --> 0:25:50.600
<v Speaker 1>routers each cost about four thousand dollars, So Cisco's origins

0:25:50.640 --> 0:25:53.280
<v Speaker 1>were somewhat troubled. Now, when we come back, we'll take

0:25:53.280 --> 0:25:55.280
<v Speaker 1>a closer look at the co founders and then talk

0:25:55.320 --> 0:25:57.479
<v Speaker 1>a little bit more about what the company did in

0:25:57.520 --> 0:26:01.119
<v Speaker 1>its early years. But first, let's take another quick break

0:26:01.359 --> 0:26:11.880
<v Speaker 1>to thank our sponsors. Al Right, Well, here's a closer

0:26:11.920 --> 0:26:15.639
<v Speaker 1>look at the co founders of Cisco Systems. Leonard Bozak

0:26:15.760 --> 0:26:19.280
<v Speaker 1>was born in nineteen fifty two in Pennsylvania and graduated

0:26:19.280 --> 0:26:22.679
<v Speaker 1>from the University of Pennsylvania in nineteen seventy three, he

0:26:22.760 --> 0:26:27.000
<v Speaker 1>became a hardware engineer at Digital Equipment Corporation, better known

0:26:27.040 --> 0:26:29.480
<v Speaker 1>as d e C. D e C would later be

0:26:29.560 --> 0:26:32.240
<v Speaker 1>acquired by Comback in nineteen ninety eight. By the way,

0:26:32.800 --> 0:26:36.600
<v Speaker 1>in the late nineteen seventies, Bozak was accepted into Stanford

0:26:36.680 --> 0:26:40.359
<v Speaker 1>University and studied computer science. He met Sandy Lerner sometime

0:26:40.400 --> 0:26:44.360
<v Speaker 1>around nineteen seventy seven while both were pursuing postgraduate studies

0:26:44.720 --> 0:26:47.320
<v Speaker 1>and both of them were working on the mini computers

0:26:47.440 --> 0:26:50.800
<v Speaker 1>in Stanford's labs, and he became a staff engineer at

0:26:50.840 --> 0:26:57.160
<v Speaker 1>Stanford around nineteen eighty one. Sandy Lerner grew up in California.

0:26:57.240 --> 0:26:59.359
<v Speaker 1>She was born in nineteen fifty five, and she was

0:26:59.400 --> 0:27:03.040
<v Speaker 1>mostly raised by two of her aunts. Her parents divorced

0:27:03.080 --> 0:27:04.960
<v Speaker 1>when she was four years old, and she ended up

0:27:05.000 --> 0:27:07.000
<v Speaker 1>living with her aunts mostly when she was growing up.

0:27:07.160 --> 0:27:09.720
<v Speaker 1>She grew up partly on a cattle ranch and even

0:27:09.760 --> 0:27:13.000
<v Speaker 1>started making money raising and selling cattle. She bought her

0:27:13.000 --> 0:27:16.320
<v Speaker 1>first steer when she was just nine years old, and

0:27:16.400 --> 0:27:18.480
<v Speaker 1>she sold it for a profit when she was eleven.

0:27:18.960 --> 0:27:21.200
<v Speaker 1>In fact, her cattle business would end up funding her

0:27:21.240 --> 0:27:25.320
<v Speaker 1>college tuition. She got an undergraduate degree in political science

0:27:25.320 --> 0:27:29.240
<v Speaker 1>at California State University. Then she pursued a master's degree

0:27:29.359 --> 0:27:33.800
<v Speaker 1>in econometrics at Claremont College. She joined Stanford's program for

0:27:33.840 --> 0:27:36.760
<v Speaker 1>Statistics and Computer Science, and that's where she met Bozak,

0:27:36.840 --> 0:27:40.520
<v Speaker 1>and the two were married in nineteen eighty. They found

0:27:40.520 --> 0:27:43.959
<v Speaker 1>success very early on in their business venture once they

0:27:44.040 --> 0:27:47.240
<v Speaker 1>left Stanford and focused on Cisco. Within the first month

0:27:47.280 --> 0:27:49.840
<v Speaker 1>of operating, they had landed more than two hundred thousand

0:27:49.880 --> 0:27:53.320
<v Speaker 1>dollars worth of contracts. Now, I should say that's a

0:27:53.320 --> 0:27:56.800
<v Speaker 1>contract for two hundred thousand dollars or contracts worth two

0:27:56.880 --> 0:27:59.360
<v Speaker 1>hundred thousand dollars. That didn't mean that they earned two

0:27:59.400 --> 0:28:01.760
<v Speaker 1>hundred dollars in the first month. They still had to

0:28:01.800 --> 0:28:05.960
<v Speaker 1>deliver upon the promise of that contract in order to

0:28:06.000 --> 0:28:09.520
<v Speaker 1>get that payment. Learner would later tell Forbes that quote

0:28:09.560 --> 0:28:12.520
<v Speaker 1>we suspected that Procter and Gamble in Des Moines was

0:28:12.560 --> 0:28:14.359
<v Speaker 1>going to want to talk to Proctor and Gamble in

0:28:14.400 --> 0:28:17.640
<v Speaker 1>San Francisco end quote, meaning she could see a business

0:28:17.640 --> 0:28:21.399
<v Speaker 1>case for the networking products right away. She said, these

0:28:21.520 --> 0:28:24.640
<v Speaker 1>are going to be components that every large business and

0:28:24.760 --> 0:28:29.200
<v Speaker 1>ultimately middle sized businesses and maybe even small businesses down

0:28:29.240 --> 0:28:33.159
<v Speaker 1>the road. Will all need, but that would require the

0:28:33.200 --> 0:28:35.919
<v Speaker 1>business to scale up. They couldn't just work out of

0:28:36.000 --> 0:28:37.680
<v Speaker 1>their living room. They were never going to be able

0:28:37.720 --> 0:28:41.000
<v Speaker 1>to meet the demand and they would always be behind

0:28:41.320 --> 0:28:44.080
<v Speaker 1>if they didn't scale up. That would require more capital

0:28:44.120 --> 0:28:47.320
<v Speaker 1>than what they had at their disposal. Bozak and Learner

0:28:47.360 --> 0:28:49.760
<v Speaker 1>had already maxed out their credit cards. They also took

0:28:49.760 --> 0:28:52.360
<v Speaker 1>out another mortgage on their home, and they did this

0:28:52.440 --> 0:28:54.440
<v Speaker 1>all to keep the business afloat while they tried to

0:28:54.480 --> 0:28:58.080
<v Speaker 1>deliver upon those contracts. Learner had also taken a job

0:28:58.120 --> 0:29:02.400
<v Speaker 1>as a manager for the Research Computing Systems group over

0:29:02.480 --> 0:29:06.840
<v Speaker 1>at Schlumburger Computer Aided Systems Laboratory, and it was clearly

0:29:06.960 --> 0:29:08.960
<v Speaker 1>just not going to be enough. They started to look

0:29:09.000 --> 0:29:13.320
<v Speaker 1>around for investors. Originally it didn't go so well. Bozak

0:29:13.360 --> 0:29:16.000
<v Speaker 1>would later say, quote, we must have talked to eighty

0:29:16.160 --> 0:29:19.239
<v Speaker 1>or ninety different venture firms. We got turned down by

0:29:19.280 --> 0:29:23.120
<v Speaker 1>just about every one end quote. In January, the co

0:29:23.200 --> 0:29:26.920
<v Speaker 1>founders decided to hire on William Graves as president and

0:29:27.000 --> 0:29:31.240
<v Speaker 1>chief executive officer. Graves it previously were for Bell Aerospace

0:29:31.320 --> 0:29:36.040
<v Speaker 1>Textron where his job was I don't know, it says

0:29:36.080 --> 0:29:42.480
<v Speaker 1>classified on LinkedIn. I don't have classification. Back in six

0:29:42.840 --> 0:29:45.720
<v Speaker 1>Cisco's revenue was a hundred twenty nine thousand dollars, which

0:29:45.760 --> 0:29:49.080
<v Speaker 1>sounds not bad. Nine thousand dollars now, that's revenue for

0:29:49.120 --> 0:29:53.440
<v Speaker 1>the whole company, and the two were able to well,

0:29:53.520 --> 0:29:56.560
<v Speaker 1>really more than two. The five virginal employees were able

0:29:56.560 --> 0:29:58.520
<v Speaker 1>to land contracts that were worth more than a hundred

0:29:58.560 --> 0:30:02.200
<v Speaker 1>twenty nine dollars, but delivering upon those contracts was a challenge,

0:30:02.680 --> 0:30:05.800
<v Speaker 1>and once you took the expenses for the company into account,

0:30:06.200 --> 0:30:09.080
<v Speaker 1>they were essentially kind of breaking even, and the following

0:30:09.200 --> 0:30:12.280
<v Speaker 1>year saw some improvement. By the end of Cisco's fiscal

0:30:12.360 --> 0:30:15.280
<v Speaker 1>year in nineteen eighty seven, by the way Cisco's fiscal

0:30:15.400 --> 0:30:19.720
<v Speaker 1>years end in July, Cisco would achieve revenues of one

0:30:19.840 --> 0:30:22.640
<v Speaker 1>and a half million dollars with a ten percent net

0:30:22.680 --> 0:30:25.240
<v Speaker 1>income before taxes, which meant the company was able to

0:30:25.280 --> 0:30:28.360
<v Speaker 1>make enough money to stay afloat while looking for an investor.

0:30:28.400 --> 0:30:32.000
<v Speaker 1>They didn't have to take out even more loans. Sequoia

0:30:32.120 --> 0:30:36.520
<v Speaker 1>Capital and Investment Firm eventually stepped up to invest in

0:30:36.560 --> 0:30:39.760
<v Speaker 1>the company, but Donald Valentine, who was the backer at Sequoia,

0:30:40.280 --> 0:30:42.880
<v Speaker 1>he was ready to invest in late nineteen eight seven,

0:30:42.880 --> 0:30:45.800
<v Speaker 1>but felt that Larner and Bozak lacked the experience to

0:30:45.800 --> 0:30:48.960
<v Speaker 1>grow a company and lead it effectively, and apparently he

0:30:49.160 --> 0:30:52.840
<v Speaker 1>felt that Graves just didn't cut it either, so he

0:30:52.920 --> 0:30:57.240
<v Speaker 1>insisted in n on installing a new chief executive officer

0:30:57.320 --> 0:31:00.160
<v Speaker 1>to take the reins and lead the company. After ast

0:31:00.200 --> 0:31:04.920
<v Speaker 1>installing an interim president. Valentine ultimately chose John Mortgaridge in

0:31:05.040 --> 0:31:09.160
<v Speaker 1>October nine. Sequoia would also get a thirty two percent

0:31:09.240 --> 0:31:13.040
<v Speaker 1>ownership of the company, and in return, Cisco would get

0:31:13.080 --> 0:31:16.360
<v Speaker 1>two and a half million dollars in investment capital. Bozak

0:31:16.440 --> 0:31:19.680
<v Speaker 1>and Learner would retain thirty percent ownership of the company,

0:31:19.840 --> 0:31:23.800
<v Speaker 1>which would vest over the course of four years. Mortgridge

0:31:23.880 --> 0:31:27.640
<v Speaker 1>was an NBA graduate from Stanford, but he graduated in

0:31:27.720 --> 0:31:31.560
<v Speaker 1>nineteen fifty seven, so he preceded Bozak and Learner's time

0:31:31.560 --> 0:31:33.520
<v Speaker 1>at Stanford by a couple of decades. They did not

0:31:33.600 --> 0:31:37.200
<v Speaker 1>cross over. He had worked for Honeywell Information Systems and

0:31:37.240 --> 0:31:39.800
<v Speaker 1>then later on he was the chief operating officer of

0:31:39.800 --> 0:31:43.160
<v Speaker 1>a company called Grid Systems. According to Learner, the first

0:31:43.160 --> 0:31:45.840
<v Speaker 1>time she met Mortgadge, he had already been hired on

0:31:45.960 --> 0:31:49.520
<v Speaker 1>to be CEO of Cisco. So there was a little

0:31:49.560 --> 0:31:54.440
<v Speaker 1>bit of acrimony between the co founders and John Mortgadge

0:31:54.480 --> 0:31:58.320
<v Speaker 1>because they didn't really have any say and who was

0:31:58.360 --> 0:32:01.720
<v Speaker 1>going to lead the company they had founded. But if

0:32:01.760 --> 0:32:03.720
<v Speaker 1>they didn't go along with this, they wouldn't get the

0:32:03.720 --> 0:32:06.160
<v Speaker 1>investment money they would need in order to scale up.

0:32:06.920 --> 0:32:09.480
<v Speaker 1>At the end of the fiscal year Night, which was

0:32:09.600 --> 0:32:12.600
<v Speaker 1>just a few months before Mortgage was officially installed as

0:32:12.640 --> 0:32:16.160
<v Speaker 1>president and CEO, Cisco was on the upswing with five

0:32:16.160 --> 0:32:19.240
<v Speaker 1>and a half million dollars in sales. Mortgage would take

0:32:19.240 --> 0:32:22.080
<v Speaker 1>the company even higher, and Valentine would end up becoming

0:32:22.080 --> 0:32:25.600
<v Speaker 1>the chairman of the board of directors. This, however, did

0:32:25.640 --> 0:32:28.400
<v Speaker 1>not mean everything was going smoothly at Cisco. So while

0:32:28.480 --> 0:32:32.040
<v Speaker 1>Cisco continued to create network infrastructure hardware for clients, the

0:32:32.120 --> 0:32:35.720
<v Speaker 1>co founders were clashing with their new management. In February,

0:32:36.600 --> 0:32:39.400
<v Speaker 1>Cisco held its initial public offering or i p O.

0:32:39.640 --> 0:32:41.640
<v Speaker 1>This is when a company goes from being a privately

0:32:41.640 --> 0:32:46.040
<v Speaker 1>held company to a publicly traded company. According to invest Opdia,

0:32:46.320 --> 0:32:49.479
<v Speaker 1>a one thousand dollar investment would have netted you fifty

0:32:49.520 --> 0:32:53.440
<v Speaker 1>five point five five shares of Cisco stock, which by

0:32:53.560 --> 0:32:56.120
<v Speaker 1>my math means the stock price must have been somewhere

0:32:56.120 --> 0:32:58.840
<v Speaker 1>around eighteen dollars per share. By the end of the

0:32:58.880 --> 0:33:01.600
<v Speaker 1>first day of trading, the share price had risen twenty

0:33:01.640 --> 0:33:05.600
<v Speaker 1>four percent and the company's valuation was was estimated to

0:33:05.640 --> 0:33:10.040
<v Speaker 1>be two twenty four million dollars. The company found much

0:33:10.040 --> 0:33:13.320
<v Speaker 1>of his success early on in overseas markets. It was

0:33:13.320 --> 0:33:17.160
<v Speaker 1>selling network infrastructure hardware to tons of clients. Things were

0:33:17.160 --> 0:33:20.560
<v Speaker 1>going great, except that the co founders were still not

0:33:20.680 --> 0:33:23.040
<v Speaker 1>really happy with the way the company was being led.

0:33:23.400 --> 0:33:28.880
<v Speaker 1>In August, Sandy Lerner, co founder of Cisco, was fired

0:33:29.000 --> 0:33:32.160
<v Speaker 1>from her job, and in a show of solidarity, Lynn

0:33:32.160 --> 0:33:35.160
<v Speaker 1>Bozak resigned from the company as well. The co founders

0:33:35.440 --> 0:33:38.160
<v Speaker 1>had left, and they sold off their shares in the

0:33:38.200 --> 0:33:44.240
<v Speaker 1>company for around a hundred seventy million dollars. Their marriage, unfortunately,

0:33:44.320 --> 0:33:47.080
<v Speaker 1>had taken some hard bumps along the way. They had

0:33:47.080 --> 0:33:49.360
<v Speaker 1>been working endlessly on the company, and they found that

0:33:49.400 --> 0:33:52.280
<v Speaker 1>they were no longer really working well as a married couple,

0:33:52.600 --> 0:33:54.960
<v Speaker 1>and so in the ninet nineties the two would divorce.

0:33:55.520 --> 0:33:58.960
<v Speaker 1>Sandy Lerner would go on to fund several other ventures,

0:33:59.120 --> 0:34:03.080
<v Speaker 1>including the Urban Decay cosmetics line that was her project.

0:34:03.280 --> 0:34:07.160
<v Speaker 1>She also headed some philanthropic efforts. Bozac would go on

0:34:07.280 --> 0:34:10.600
<v Speaker 1>to found a company technology company called x k l

0:34:10.960 --> 0:34:14.960
<v Speaker 1>l C. In Now. In the next episode, I'm going

0:34:15.040 --> 0:34:17.880
<v Speaker 1>to cover more of Cisco's history, how it grew to

0:34:17.960 --> 0:34:20.600
<v Speaker 1>be the most valuable company in the world, and how

0:34:20.640 --> 0:34:23.520
<v Speaker 1>it lost more than three quarters of that value as

0:34:23.560 --> 0:34:26.640
<v Speaker 1>a result of the dot com bubble burst, and then

0:34:26.719 --> 0:34:29.960
<v Speaker 1>how it was able to recover after the wake of

0:34:30.000 --> 0:34:33.080
<v Speaker 1>the bubble bursting. That will be in the next episode.

0:34:33.120 --> 0:34:35.960
<v Speaker 1>If you guys have any suggestions for future episodes of

0:34:35.960 --> 0:34:39.000
<v Speaker 1>tech Stuff, like Gauge did, send me an email. The

0:34:39.040 --> 0:34:42.080
<v Speaker 1>address is tech Stuff at how stuff Works dot com,

0:34:42.200 --> 0:34:43.960
<v Speaker 1>or you can drop me a line on Facebook or

0:34:43.960 --> 0:34:46.360
<v Speaker 1>Twitter to hand over both of those is tech Stuff

0:34:46.520 --> 0:34:49.640
<v Speaker 1>H s W. Don't forget. You can follow us on

0:34:49.719 --> 0:34:53.600
<v Speaker 1>Instagram and I will talk to you again really soon

0:34:59.520 --> 0:35:01.960
<v Speaker 1>for more on this and thousands of other topics because

0:35:02.000 --> 0:35:12.800
<v Speaker 1>at how stuff Works dot com. M