Network General
{{Short description|Defunct American networking company}}
{{Use mdy dates|date=August 2023}}
{{Infobox company
| name=Network General Corporation
| logo=Network General logo.svg
| type=Public
| founders={{ubl|Harry Saal|Len Shustek}}
| founded={{start date and age|1986|05|13}} in Menlo Park, California, United States
| defunct={{end date and age|2007}}
| fate=Acquired by McAfee Associates in 1997; assets spun-off in 2004; said assets acquired by NetScout Systems in 2007
| former_name=Network Associates (1997–2004)
| industry=Computer networking
| num_employees=≈ 1,000 (1995, peak)
}}
Network General Corporation was an American technology company active between 1986 and 2007 and based in Silicon Valley. Founded in 1986 by Harry Saal and Len Shustek to develop and market network packet and protocol analyzers, the company's flagship product, the Sniffer was the market leader in its field for many years. In 1997, Network General was acquired by McAfee Associates (MCAF) for $1.3 billion, and the two companies merged to form Network Associates. In 2004, Network Associates sold off most of the patents originally belonging to Network General to a group of investors including Saal, who founded a new Network General Corporation. In 2007, NetScout Systems acquired the new Network General for $205 million.
History
Network General Corporation was founded in May 1986 by Harry Saal and Len Shustek to develop and market network protocol analyzers.{{cite book | last=Segal | first=Rick | date=1992 | url=https://books.google.com/books?id=RHwrAQAAMAAJ | title=Insider's Guide to Personal Computing and Networking | publisher=Sams Publishing | page=389 | isbn=9780672301803 | via=Google Books}} Saal, the company's primary founder, president, and CEO,{{cite journal | date=February 24, 1992 | url=https://link.gale.com/apps/doc/A12050555/GPS?sid=wikipedia | title=Who's who in networking | journal=The Business Journal | volume=9 | issue=45 | page=S26 et seq | via=Gale}} had previously worked at IBM as a software engineer before founding Nestar Systems, his first startup dedicated to computer networking, in October 1978 with three others, including Shustek, Jim Hinds and Nick Fortis.{{cite journal | last=Freiberger | first=Paul | date=April 16, 1990 | url=https://www.newspapers.com/article/the-san-francisco-examiner-ipo-success-s/130430479/ | title=IPO success stories offer insight to high-tech trends | journal=The San Francisco Examiner | page=C-9 | via=Newspapers.com}}{{cite journal | last=Hendren | first=John | date=July 15, 1990 | url=https://www.newspapers.com/article/centre-daily-times-ad-ventures-of-entr/130430027/ | title=Ad-'ventures' of entrepreneurship | journal=Centre Daily Times | page=7D | via=Newspapers.com}}{{cite web | last=Hendrie | first=Gardner | date=July 16, 2002 | url=https://www.computerhistory.org/collections/catalog/102635811 | title=Shustek, Len (Leonard J.) oral history | publisher=Computer History Museum | archiveurl=https://web.archive.org/web/20230825002029/https://www.computerhistory.org/collections/catalog/102635811 | archivedate=August 25, 2023}} Although successful at first, Nestar eventually floundered and was sold off in 1986. Deciding they wanted another go at a computer networking company, Saal and Shustek founded Network General in Menlo Park, California, in 1986.
In the year of the company's founding, Network General introduced the Sniffer.{{cite journal|last=Petrosky|first=Mary|url=https://books.google.com/books?id=aR0EAAAAMBAJ&pg=PA15|title=Network General smells success with Sniffer|volume=4|issue=25|pages=15–16|journal=Network World|date=June 22, 1987|publisher=International Data Group}} The inspiration behind the Sniffer was an internal test tool that had been developed within Nestar.{{Cite journal|last=Prins|first=G. A.|date=November–December 1979|title=Distributing computing at the personal level|url=https://ieeexplore.ieee.org/document/5198054|journal=Electronics and Power|volume=25|issue=11|pages=765|doi=10.1049/ep.1979.0422|issn=0013-5127|url-access=subscription}} Between the company's inception and the end of 1988, the Sniffer became Network General's flagship product, and the company sold $8.9 million worth of Sniffers and associated services, earning them $1.8 million in net profit.{{cite journal | last=James | first=Ellen L. | date=May 1, 1989 | url=https://www.newspapers.com/article/the-baltimore-sun-alex-browns-bold-str/130430192/ | title=Alex. Brown's Bold Stroke | journal=The Baltimore Sun | page=16, [https://www.newspapers.com/article/the-baltimore-sun-alex-browns-bold-str/130430211/ 17], [https://www.newspapers.com/article/the-baltimore-sun-alex-browns-bold-str/130430236/ 18], [https://www.newspapers.com/article/the-baltimore-sun-alex-browns-bold-str/130430247/ 19] | via=Newspapers.com}}{{rp|18}} Financing was initially provided only by the founders until an investment of several million by TA Associates in late 1987.{{cite journal | last=Bermar | first=Amy | date=February 27, 1989 | url=https://link.gale.com/apps/doc/A7091236/GPS?sid=wikipedia | title=Network General finds favor in Fortune 100 | journal=PC Week | publisher=Ziff-Davis | volume=6 | issue=8 | page=S24 | via=Gale}} The company grew from having only two employees in 1986 to 15 employees in 1988.{{cite journal | last=Krey | first=Michael | date=March 5, 1990 | url=https://link.gale.com/apps/doc/A8968699/GPS?sid=wikipedia | title=Its stock is hot, but Network General can't overlook Novell | journal=The Business Journal | volume=7 | issue=46 | page=5 | via=Gale}} In February 1989, the company raised $17.5 million with a public stock offering of 1.90 million shares on the Nasdaq as NETG, underwritten by Alex. Brown & Sons.{{rp|17}} In August 1989, they sold an additional 1.27 million shares in a secondary offering,{{cite journal | date=August 3, 1989 | url=https://www.proquest.com/docview/427348484/ | title=Debt | journal=The New York Times | page=D15 | via=ProQuest}} and in April 1992, an additional 2.22 million shares in a third offering.{{cite journal | date=April 6, 1992 | url=https://www.proquest.com/docview/398348500/ | title=Securities Offering Calendar | journal=The Wall Street Journal | publisher=Dow Jones & Company | page=C1 | via=ProQuest}}
By December 1989, Network General employed 68 people. In the same month the company bought Legend Software, a one-person company in New Jersey that had been founded by Dan Hansen. Their product was a network monitor called LAN Patrol, which was enhanced, rebranded, and sold by Network General as WatchDog,{{cite journal|journal=InfoWorld|volume=12|issue=35|page=54|first=Peter|last=Taft|url=https://books.google.com/books?id=7zsEAAAAMBAJ&pg=PT55|title=The Watchdog Sniffs Out LAN Traffic Statistics|date=August 27, 1990|publisher=IDG Publications|language=en|via=Google Books}} introduced in April 1990. The WatchDog sold only half as well as investors had anticipated within a quarter-year of its introduction, and Network General was forced to buy back $175,000 worth of back-stock to avoid a glut in the company's distribution networks.{{cite journal | last=Greenstein | first=Irwin | date=February 3, 1991 | url=https://link.gale.com/apps/doc/A10385601/GPSsid=wikipedia | title=Network General's Saal believes success comes from addressing basic network needs | journal=Networking Management | publisher= PennWell Publishing | volume=9 | issue=3 | page=16 | via=Gale}} In August 1991, the company acquired Progressive Computing, a manufacturer and supplier of equipment for wide area networks.{{cite journal | date=November 8, 1991 | url=https://link.gale.com/apps/doc/A11772113/GPS?sid=wikipedia | title=Network General Corp. | journal=San Francisco Business Times | volume=6 | issue=10 | page=27 | via=Gale}} The company then grew to have 225 total employees in its workforce across 19 worldwide offices. Progressive Computing was kept around as an independent subsidiary of Network General; they released a handheld WAN protocol analyzer, the LM1 PocketScope, in early 1992.{{cite journal | last=Busse | first=Tortsen | date=January 27, 1992 | url=https://books.google.com/books?id=8j0EAAAAMBAJ&pg=PA41 | title=Mini protocol analyzer tests WAN on the run | journal=InfoWorld | publisher=IDG Publications | volume=14 | issue=4 | page=41 | via=Google Books}}
By 1995 Network General had sold $631 million worth of Sniffer-related products. It had almost 1,000 employees and was selling about 1,000 Sniffers a month.{{Cite web|date=1995|url=https://archive.org/details/1993-network-general-annual-report/1995_NetworkGeneral_Annual_Report|title=Network General Corporation 1995 Annual Report|publisher=Network General Corporation|via=the Internet Archive}} Hewlett-Packard, which had introduced packet analyzers several years after the Sniffer was introduced, was Network General's largest rival, according to Saal.{{cite journal | last=Krey | first=Michael | date=May 10, 1993 | url=https://link.gale.com/apps/doc/A13919940/GPS?sid=wikipedia | title=Harry Saal: philanthropy is a way of life to boss of software firm | journal=The Business Journal | volume=11 | issue=4 | page=12 | via=Gale}}
In December 1997 Network General merged with McAfee Associates (MCAF) to form Network Associates, in a stock swap deal valued at $1.3 billion.{{Cite web|title=McAfee, Network General to merge|url=https://www.cnet.com/tech/tech-industry/mcafee-network-general-to-merge/|access-date=July 30, 2023|website=CNET|language=en}} Weeks later, Network Associates bought Pretty Good Privacy, Inc. (PGP), the encryption company founded in 1991 by Phil Zimmerman, for $35M in cash.{{Cite web|last=Kerstetter|first=Jim|title=Network Associates acquires PGP|url=https://www.zdnet.com/article/network-associates-buys-pgp/|access-date=July 30, 2023|website=ZDNet|language=en}} Saal and Shustek left the company shortly thereafter.{{cite journal | last=Liedke | first=Michael | date=January 28, 2005 | url=https://www.newspapers.com/article/santa-cruz-sentinel-a-lesson-in-tech-mer/130430849/ | title=A lesson in tech mergers gone wrong | journal=Santa Cruz Sentinel | page=D-6 | via=Newspapers.com}}
In 2002, much of the PGP product line was sold to the newly formed PGP Corporation for an undisclosed amount.{{Cite web|last=Savage|first=Marcia|date=August 19, 2002|title=Network Associates Sells PGP Products To New Company|url=https://www.crn.com/news/security/18838233/network-associates-sells-pgp-products-to-new-company.htm|access-date=February 16, 2021|website=CRN}} It was subsequently acquired by Symantec in 2010.
In mid-2004, Network Associates sold off the Sniffer technology business to investors led by Silver Lake Partners and Texas Pacific Group for $275 million in cash, creating a new Network General Corporation.{{Cite web|last=Roberts|first=Paul F.|date=July 16, 2004|title=Sniffer relaunched as Network General Corp.|url=https://www.networkworld.com/article/2323685/sniffer-relaunched-as-network-general-corp-.html|access-date=February 16, 2021|website=Network World|language=en}} That same year, Network Associates readopted its founder's name and became McAfee Inc. In September 2007, the new Network General was acquired by NetScout Systems for $205 million.{{Cite web|last=Dubie|first=Denise|date=September 20, 2007|title=NetScout buying Network General for $205 million|url=https://www.networkworld.com/article/2285846/netscout-buying-network-general-for--205-million.html|access-date=February 16, 2021|website=Network World|language=en}} NetScout marketed Sniffer products as late as 2009, with the Sniffer Global network analysis suite of software;{{cite web | date=January 29, 2009 | url=https://www.channelfutures.com/new-products-services/netscout-releases-sniffer-network-analyzer | title=NetScout Releases Sniffer Network Analyzer | work=Channel Futures | publisher=Informa Tech | archiveurl=https://web.archive.org/web/20220123000558/https://www.channelfutures.com/new-products-services/netscout-releases-sniffer-network-analyzer | archivedate=January 23, 2022}} in 2018 they divested their handheld network test tool business, including the Sniffer, to StoneCalibre.{{Cite web|title=Support for Divested HNT Portfolio|url=https://www.netscout.com/support-divested-hnt-portfolio|access-date=August 25, 2023|website=NetScout Systems|language=en|date=n.d.|archiveurl=https://web.archive.org/web/20200930070509/https://www.netscout.com/support-divested-hnt-portfolio|archivedate=September 30, 2020}}
References
{{reflist|colwidth=30em}}
External links
- {{webarchive|url=https://web.archive.org/web/20050107014210/http://www.networkgeneral.com/|date=January 7, 2005|title=Official website}}
Category:1986 establishments in California
Category:2007 disestablishments in California
Category:American companies established in 1986
Category:American companies disestablished in 2007
Category:Computer companies established in 1986
Category:Computer companies disestablished in 2007
Category:Defunct computer companies of the United States
Category:Defunct computer companies based in California
Category:Defunct computer hardware companies