Cascade Communications
Encyclopedia
Cascade Communications was a Westford, Massachusetts
Westford, Massachusetts
Westford is a town in Middlesex County, Massachusetts, United States. The population was 21,951 at the 2010 census.-History:Originally a part of neighboring Chelmsford, West Chelmsford soon grew large enough to sustain its own governance, and was officially incorporated as Westford on September 23,...

 based manufacturer of communications equipment.

Product

Cascade made a compact Frame Relay
Frame relay
Frame Relay is a standardized wide area network technology that specifies the physical and logical link layers of digital telecommunications channels using a packet switching methodology...

 and Asynchronous Transfer Mode
Asynchronous Transfer Mode
Asynchronous Transfer Mode is a standard switching technique designed to unify telecommunication and computer networks. It uses asynchronous time-division multiplexing, and it encodes data into small, fixed-sized cells. This differs from approaches such as the Internet Protocol or Ethernet that...

 communication switches that were sold to telecommunication service providers worldwide. Frame Relay service was the primary data service used by companies in the mid-1990s to create secure internal communication networks between separate sites, and Cascade's equipment carried an estimated 70% of the world's Internet traffic during this time.

Their most important direct competitor was StrataCom
StrataCom
StrataCom, Inc. was founded in Cupertino, California, USA, in January 1986 by 26 former employees of the failing Packet Technologies, Inc. StrataCom produced the first commercial cell switch, also known as a fast-packet switch. Its product was the working proof of the technology which became...

, which was acquired by Cisco Systems
Cisco Systems
Cisco Systems, Inc. is an American multinational corporation headquartered in San Jose, California, United States, that designs and sells consumer electronics, networking, voice, and communications technology and services. Cisco has more than 70,000 employees and annual revenue of US$...

 in 1996 for US $4B.

Acquisition

In 1997, Ascend Communications
Ascend Communications
Ascend Communications was an Alameda, California-based manufacturer of communications equipment that was later purchased by Lucent Technologies in 1999....

 acquired Cascade Communications for US $3.7 Billion, to move into ATM
Asynchronous Transfer Mode
Asynchronous Transfer Mode is a standard switching technique designed to unify telecommunication and computer networks. It uses asynchronous time-division multiplexing, and it encodes data into small, fixed-sized cells. This differs from approaches such as the Internet Protocol or Ethernet that...

 and Frame Relay
Frame relay
Frame Relay is a standardized wide area network technology that specifies the physical and logical link layers of digital telecommunications channels using a packet switching methodology...

 markets. Ascend was later acquired by Lucent Technologies
Lucent Technologies
Alcatel-Lucent USA, Inc., originally Lucent Technologies, Inc. is a French-owned technology company composed of what was formerly AT&T Technologies, which included Western Electric and Bell Labs...

 in 1999 in one of the largest mergers in communications equipment history (US $24 Billion). The Cascade portion of Ascend's business was more interesting to Lucent than the modem termination business that comprised the rest of Ascend.

The seed of startups

Both Desh Deshpande and CEO Dan Smith profited handsomely from the acquisition, as did hundreds of Cascade employees. In addition, Cascade was notable for invigorating the telecommunications startup culture in Massachusetts in the mid 1990s. Cascade alumni were founders or key contributors to many other financially successful Boston area telecom companies in the late 1990s:
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