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Entrepreneurial Capitalism and Innovation:
A History of Computer Communications 1968-1988
By James Pelkey

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Entrepreneurial Capitalism & Innovation:
History of Computer Communications
1968 -1988
By James Pelkey

This history is organized by three co-evolving market sectors and also standards making.
An overview of the schema is presented in the Introduction.

Ch. 1: Emergence
Ch. 3: Competition
Ch. 5: Market Order
Ch. 11: Adaptation

Ch. 2: Vision
Ch. 4: Arpanet
Ch. 6: Diffusion
Ch. 7: Emergence
Ch 8: Completion
Ch. 10: Market Order

Ch. 9: Creation

Ch. 12: Emergence



Chapter 7
Networking: Emergence 1979-1981
LANs and DataPBXs

7.16     Sytek: A Broadband Network and Needing Cash

In February 1981, Sytek began shipping their comparatively inexpensive two-port broadband terminal server: LocalNet 20. A direct consequence of its Lincoln Lab development contract, two LocalNet 20s, costing a total of $2,500, made a network.

Although both Sytek and UB, with its NUI-1, positioned their products as terminal servers, Sytek’s customers tended to be those wanting to build campus-wide networks whereas UB’s wanted departmental networks. In practice, Sytek and UB sold to any customer without thought of niches or market segmentation, for the lack of buying customers dwarfed the annoyances of competition, a condition soon to be exacerbated by an onslaught of companies offering every imaginable means of interconnecting computers and peripherals.

In having diverted resources to LocalNet 20, consulting revenues contracted, and Sytek management had little choice but to raise capital. They began talking to venture capitalists.