Madge Networks
It was a global leader and pioneer of high-speed networking solutions in the mid-1990s, and also made significant contributions to technologies such as Asynchronous Transfer Mode (ATM) and Ethernet.
Under a deal with Network Technology PLC, the company acquired the rights and copyright to Madge's products, brand and website, as well as the remaining inventory.
The company's products ranged from ISA/PCI network adapters for personal computers to work group switching hubs, routers, and ISDN backbone carriers.
Madge focus was to provide convergence solutions in Ethernet, Token Ring, ISDN, and the then emerging ATM networking technologies.
In the late 1990s Madge Networks had taken a leading role in developing the standards and first implementations of emerging High-Speed Token Ring (HSTR) technology.
This newer protocol provided for a dramatic increase in data transmission bandwidth, while remaining compatible with first-generation Token Ring technology.
Madge produced switching, routing and WAN-LAN interfacing equipment to facilitate both intracorporate and intercorporate video conferencing.
One-time horseback riding instructor, Robert Madge entered the computer industry with Britain's Intelligent Software Ltd., designing computer-driven chess games.
The company's expanding product line soon included the hubs and switching components needed to route data and allow the adapter cards to communicate.
Overall, IBM's market share quickly dropped below 50 per cent – a movement aided in part by licensing agreements between Madge and networking specialist Cisco Systems.
The Lannet merger enhanced Madge's portfolio of LAN switches, needed to connect Ethernet and Token Ring stations to corporate ATM installations.
The company's entry into 1996 continued its expansion efforts, including adding to its Israeli manufacturing capacity with a new $10 million plant in Jerusalem.
At the end of 1996 Madge rolled out a new line of products to enhance its portfolio and bring the company into a new and increasingly important market: video conferencing.
Madge's products placed the company in position to offer bridge solutions between the formerly independent data and video transmission technologies.
During the mid-1990s, Madge had attempted to transfer the bulk of its headquarters operations to the United States, building up employee capacity around its San Jose offices.
After denying early reports that it was looking to divest its Ethernet business, Madge agreed to sell Lannet to Lucent Technologies for $117 million in July 1998.
[5] But abandoning Ethernet marked the beginning of the end for Madge Networks, a move capped by the zero return on extensive ATM investment, something they would never recover from.
