• The PC Revolution c. 1995
• The view from Silicon Valley
• PC manufacturing:
• "IBM Clones" dominate market (Dell, Compaq in Texas; Gateway in North Dakota; etc.)
• 85% built with Intel chips
• Pentium I released (1993); Intel begins "Intel Inside" brand-name marketing
• Apple remains viable, innovative, but a fringe company
• PC Software
• Microsoft controls 85% of PC OS market; similar domination of other PC software niches
• Adobe (founded in 1982) continues to develop innovative graphical software
• Symantec (founded in 1982) and McAfee pioneer virus protection software
• Intuit (founded in 1983) pioneers home business software (Quicken, TurboTax, etc.)
• Defense downsizing shrinks power and influence of Lockheed and other defense industries
• The New New Thing: Networking, the Internet and the World Wide Web
• Computer networking and "ethernet"
• 3Com (founded 1978)
• Bob Metcalfe develops ethernet for the Alto Computer at Xerox PARC (1970-1975)
• Metcalfe founds 3Com to sell PC network hardware and software (1978)
• Novell develops IBM compatible NetWare; quickly captures network market for IBM PCs (1980-1990)
• Microsoft and 3Com discuss alliance to challenge Novell; alliance ends in biiterness
• Metcalfe fired by 3Com Board of Directors (1990)
• 3Com acquires U.S. Robotics (1997), maker of the Palm Pilot Personal Digital Assistant (first released in 1995)
• Palm, Inc, the 3Com spinoff which makes the Palm Pilot, currently controls 75% of the PDA market
• 3Com earned $4.3 billion in revenues in 2000
• Cisco Systems (founded 1984)
• Stanford Connection: company founded after Len Bozack and Shelly Lerner successfully link Stanford University computers
• Key product: router
• Don Valentine and Sequoia Capital (founded 1972) invest in Cisco Systems; Initial Public Stock Offering (IPO) in 1986
• Shelly Lerner fired; Len Bozack resigns (August, 1990)
• Cisco Systems earned $18 billion in revenues in 2000
• Networked computer work stations
• Sun Microsystems (1982)
• Stanford connection: company started by Stanford students on the Stanford campus
• Andreas Bechtolsheim (Stanford Computer science grad student)
• Vinod Khosla and Scott McNealy (Stanford MBA students)
• Bill Joy (UNIX programmer at UC Berkeley)
• Venture Capital funding from John Doerr of Kleiner, Perkins, Caufield, and Byers (founded 1972)
• Open architecture; open software
• Sun earned 15.7 billion in revenues in 2001
• Silicon Graphics (1982)
• Stanford connection: company started by Stanford Computer Science Professor Jim Clark
• Clark used technology developed at Stanford and hired Stanford graduate students as first employees
• Pioneers work stations and softawre for high-end computer graphics
• Birth of the military-entertainment complex?
• SGI earned 2.3 billion in revenues in 2000
• The Internet and the World Wide Web
• The Internet spins off of the ARPANet (1970-1990)
• Rapid Growth: 1981: 213 internet hosts; 1991: 617,000 hosts; today: 109 million hosts.
• Stewart Brand founds The Whole Earth 'Lectronic Link (The WELL) in 1985
• First on-line chat room/bulletin board
• The University of Minnesota launches Gopher, a user-friendly internet file transfer program (1991)
• Tim Berners-Lee develops the World Wide Web at CERN (1994); quickly becomes the internet standard
• The "Browser Wars" begin
• Netscape
• Marc Andriessen develops Mosaic at the University of Illinois, the first "Web Browser" (1993)
• Marc Andriessen and Jim Clark found Netscape Communications (1994)
• Venture Capital funding from John Doerr of Kleiner, Perkins, Caufield, and Byers (founded 1972)
• First Netscape browser appears (1994)
• Netscape IPO sets off "Internet Mania" in Silicon Valley (August, 1995)
• Microsoft
• December 7, 1995: Bill Gates gives "Pearl Harbor Address" to Microsoft employees
• Microsoft Internet Explorer to be included free in Windows 95 OS
• By 1998 Microsoft and Netscape each control roughly half of the browser market
• U.S. Justice Department files anti-trust suit against Microsoft; browser war with Netscape the focus
• America On-Line (AOL) (founded in 1982 by Steve Case) acquires Netscape for $4.3 billion (October, 1998)
• Judge Thomas Penfield Jackson rules in favor of the U.S. Government, declares Microsoft a monopoly (April, 2000)
• AOL acquires Time-Warner Communications to become world's largest media conglomerate (October, 2000)
• Timeline
• AOL-Time Warner has a current market capitalization of $231 billion

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