Well Steve you made a good educated guess by naming Netsys, Cisco just announced it's intentions:
  SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 14, 1996--Cisco Systems, Inc. today announced it has signed a definitive agreement to acquire privately held Netsys Technologies through a stock purchase.
  Why have a R&D dept. When you can just aquire technology. Cisco are making great tracks in the Networking world, over 80% of the Internet is made up of Cisco kit. I am just a engineer but Cisco is the best product by far. People like to make noise about new products being developed by Cisco's competition but ask any IT manager if the already have a $500,000 doller network made up of almost one companys product there is now way they will try new things. In the real world differant products from differant comapanys in the router/switching buisness do not mix well. People are asking questions about new features like implementing RSVP, TAG Switching, Packet Encryption all these are  features being added and developed for the Internet by Cisco, Bay and 3Com. Cisco already has the biggest foot in door so it has this huge headstart.
  In response to Cisco domination Bay, 3COM and IBM  have got together to create the NIA. 
  The best description I read was from Nick Lipps:
  This past May, Cisco's top three challengers (3Com, Bay Networks and IBM) erected a roadblock in the path of the Cisco steamroller by forming the Network Interoperability Alliance (NIA).  Xylan is the latest member to join the group, with more to follow as the alliance picks up steam.
  What is NIA?  NIA is an endorsement of a set of pre-existing standards, combined with independent conformance testing of these standards.  NIA proposes a simple network architecture framework of low-cost, simple network devices at the desktop and workgroup, with more functionality and complexity centralized at the backbone and campus levels of the network. It also defines common network management applications and agents among alliance vendors.
  NIA promises to deliver a framework made up of four parts:
  1)  Desktops and servers.  These "end nodes" in the network will become more intelligent by adding special capabilities such as quality of service (QoS) and network management features to NIA members' NICs, drivers, hub ports and switches.  This is where the combined muscle of IBM, 3Com and Bay Networks comes into play, since these three vendors control over one-third of the nearly 200 million network connections (NICs plus hub and switch ports).  Cisco weighs in with a paltry 1% share overall, but is nearly neck-and- neck with 3Com in shipping switch ports -- the largest growing segment of the computer connection market.
  2)  "Edge" networking.  NIA's wish is to provide low-cost, effective networking at the network periphery via standards for switching, switching with routing, short-cut routing via zero hop routing protocol and QoS.
  3)  Core networking.  At the center of the network, NIA proposes to support existing backbone routers and routing protocols, such as OSPF.  In addition, it will make use of ATM Forum standards LANE and Bay Networks' technology called I-PNNI (Integrated Private Network-to-Network Interface).  I- PNNI provides a single, network-wide topology or view of routers, frame switches and cell switches.  I-PNNI would become the backbone protocol in NIA's architecture, much like IGRP is the backbone protocol within Cisco's routers.
  4)  Network management.  The vision is for NIA vendors' management applications to monitor each others' products.  To accomplish this, NIA promises to align existing enterprise MIBs, promote the development and standardization of MIBs for new features and functions, foster development of Java tools for network management and jointly develop a topology protocol.
  For example, today, only Bay Networks has a topology protocol which allows its management applications to view the entire network from behind router ports into switches, hubs and desktops.  By adopting this topology protocol, NIA members' suite of network management applications (e.g. Optivity, Transcend or NetView) could provide detailed views of the shared, switched and routed infrastructure -- allowing network managers to finally see and measure their entire network infrastructure.  If NIA is successful on this piece of the architecture alone, it will move the industry a giant step forward.
  The Soul of NIA
  So what's in NIA for its member vendors?  Multi-billion dollar site, campus and backbone networks are on the line here.  What NIA is attempting to do is to level the playing field and tilt the balance of power away from Cisco.  In short, NIA is aimed at putting a stake in IOS' heart by developing an "open IOS" which its members hope will lure customers away from Cisco and into their camp.  NIA is approaching this by attacking Cisco's weak spot:  desktop connections. Hence, its inclusion of smart desktop and server connections in its architecture.
  Will NIA Succeed?
  Although this motherhood, apple pie and open standards talk sounds good, we've heard this pitch ad nauseam (without much substance to follow or gold stars to point to).  As it stands now, I believe NIA is doomed if it gets entrenched in an anti-Cisco posture.  It's too reminiscent of the Open System Foundation (OSF) which was clearly aimed at Sun's leadership in distributed processing and its large share of the UNIX market.  OSF also had a multivendor, interoperability and portability spin to it, but in the end, customers chose to stay with proprietary implementations from Sun and others. For all of the hand-waving, few vendors ever really adopted OSF technology -- most gave it lip service and hedged their bets with their own propriety implementations.
  A lot of work must be done in switched enterprise internetworking standards.  NIA has taken a novel approach to standardization by choosing existing technologies -- some from the ATM Forum, some from the IEEE, some from the IETF and others from members' own internal development.  There is no precedent in the industry for success with such a broad range of technologies.  The most triumphant efforts have focused on a single technology rather than an architecture or overall approach to computer networking.
  The four most laudable standards efforts our industry has seen are the IETF, IEEE, Frame Relay Forum and ATM Forum. The IETF and IEEE are official standards bodies.  The Frame Relay and ATM Forums each accomplished its goal of setting standards for one emerging technology.  Both of these forums started with only four vendors and were chartered to move technology into the market quickly.  In fact, these forums were doing pre-standards work so that when proposals got to the IEEE or IETF, the standard was essentially rubber stamped.
  To prevail, NIA must become the IETF for switched enterprise internets.  In this model, the technology selection process is open -- not pre-selected -- with the market choosing winners and losers.  NIA should take the IETF approach to standards building/setting by organizing working groups around technologies where contributions are open to the industry at large.
  Secondly, NIA must enlarge its pool of vendor expertise and also include user representation as well.  For example, to deliver true QoS between desktops and servers Microsoft, Netscape, Novell and Sun must come on board and offer up key technologies such as links into Winsoc 2 and Java.  The goal is to ensure that no one firm dominates and that it is managed as a truly independent entity that is open to the industry.
  Thirdly, getting an independent interoperability lab established post-haste will go a long way to putting money where NIA's mouth is by demonstrating the real goal of this alliance:  multivendor interoperability.  This lab should brand an NIA logo that can be affixed to products showing its conformance to NIA interoperability standards.  These accomplishments should be demonstrated at all major trade shows such as NetWorld+Interop.
  NIA's Impact
  So, will NIA slow down the Cisco steamroller?  Clearly not in 1996.  But if NIA members are able to compete and lead with NIA on the sales front and if sales has hard facts to back up their interoperability and performance claims then, yes, NIA will impact Cisco's growth.  NIA may not take market share away from Cisco, but it might slow it down a few percentage points.
  This could be the relief and credibility that Bay needs to further develop its open internetworking story and move off its current next-hot-box corporate strategy.  For 3Com, NIA will showcase that it is indeed an enterprise networking systems vendor.  In IBM's case, NIA will demonstrate that it can influence the internetworking industry -- giving it some regained confidence and notoriety to carry into its next endeavor.
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