Grid Computing and Networking
Grid computing and networking are very similar technologies. Networks consist of nodes connected together by a medium like copper, fiber optics, or even air in the case of wireless communications. The main difference between grid computing and networking is that in grid computing all of the nodes are computers, usually high powered servers, mainframes, or even supercomputers. In networking, the nodes can be anything from routers, switches, hubs, or gateways. Any node that is addressable on the network is considered to be a “host”.
The company most responsible for bringing computer networking the masses is Cisco Systems, which is based in San Jose California. They cornered the market on routers and switches which were required to build out the TCP/IP based Internet in the late 80’s and early 90’s. Back then, if you wanted to expand your corporate network to accommodate more computer users you had to call Cisco and buy their products. This situation is depicted well in their stock chart where you can see a 50 fold increase in the per share price during the 1990’s.
Technology entrepreneurs saw how wildly successful Cisco was and soon started their own networking companies in an attempt to get a share of the growing market. Companies like Juniper Networks, Extreme Networks, and Foundry Networks all began offering similar products. The competition forced Cisco to lower prices and eroded their profit margins. As the other networking company’s technology caught up to Cisco’s, the routers and switches they all produced became a commodity. That is the main reason why Cisco’s stock is about the same price it was 10 years ago.
During the boom times in the 90’s and the tough times in the 2000’s, Cisco has been able to put away a massive amount of cash. Today the amount is in excess of 40 billion dollars. The investment portfolio itself generates a great deal of income to support the company’s bottom line. VP at Cisco, Inder Singh is the person entrusted with safeguarding and growing this war chest. He is responsible for Corporate Portfolio Management and is involved in many of Cisco’s acquisitions. Cisco is one of the most active acquirer of companies having purchased over 20 notable companies in the past decade.
Prior to joining Cisco, Mr. Singh worked at the Clinton Foundation and at Lehman Brothers covering the telecom and networking industries. He also held VP posts at AT&T and Lucent so he seems to have the perfect mix of finance and technology to be successful in his current role at Cisco.
