Henry browsed the American Finance Network and found that the website primarily provided various financial news and deeply examined the economic issues facing the United States. It even featured a commentary section hosted by senior economists. The content appeared quite high-quality!
Steve Case was indeed clever; he had established an economist column, skillfully leveraging the celebrity effect!
After reading it, Henry couldn't help but admire Steve's initiative.
However, if Steve Case naïvely believed he could defeat Henry based on this venture, he was sorely mistaken.
At this point, the American Finance Network had attracted many visitors, fueled by its novelty and the fact that a significant portion of internet users consisted of business professionals. Despite Americans' interest in economic topics, they typically preferred traditional newspapers and television news over online economic reporting. Thus, the numbers weren't as impressive as they seemed. The primary purpose of most online users remained communication—business communication, technical communication, and so on.
Users exchanged information, with emails being the most common medium!
Global Online email had gained widespread recognition! Once users became accustomed to using Global Online Email, they would find changing their email service too troublesome and lazy to bother—unless the new service offered a groundbreaking technological innovation, of course. Otherwise, user habits were incredibly difficult to change!
With an increasing number of internet users becoming less knowledgeable about technical matters, their motives for surfing the web began to shift towards entertainment.
Actually, communication itself could be considered a form of entertainment!
Platforms like ICQ, QQ, and MSN that would later flourish as instant messaging apps provided excellent communication resources. Many users spent entire days chatting online. With the rise of social media platforms like Facebook, communication has evolved into an indispensable component of online entertainment.
AOL had made a wise choice at this stage, but it remained uncertain whether their next moves would maintain their momentum.
Shortly thereafter, AOL lost two lawsuits in quick succession!
In the first case, the judge ruled that AOL had infringed Netscape's graphical browser patent and was ordered to compensate $2 million. AOL also had to modify its browser before going online. The court mandated that Netscape license certain patents related to the AL browser; failure to comply would result in a monopoly charge. Of course, AOL would need to pay Netscape an annual patent fee moving forward.
In the second lawsuit, the situation was quite similar. AOL infringed upon the Global Online Email patent, resulting in a $1 million compensation. However, Global Online was also required to authorize certain patents; otherwise, it would face a monopoly accusation.
Monopoly concerns were taken very seriously in the United States.
In his previous life, when Apple teetered on the brink of bankruptcy and Microsoft dominated without opposition, Microsoft had even thrown a lifeline to help Apple stay afloat!
Similarly, AMD had once faced extinction before Intel extended its support to ensure AMD's survival.
Henry understood the severity of the problems at hand and felt increasingly helpless!
But how could patent fees be ignored?
AOL lamented the exorbitant cost of patent fees, while Henry retorted that it warranted a higher charge given the current circumstances. There were only two graphical interface browsers operating in the market—both monopolizing it. How could they not charge a premium? Furthermore, the steep patent fees ultimately protected everyone. Higher fees would elevate barriers to entry into the browser industry, limiting competition and benefiting established players like Netscape!
Feeling dejected, AOL had no choice but to accept the reality.
As the lawsuits reached resolution, tensions between Henry and AOL reportedly subsided.
AOL became quieter, retreating into its shell once again, though Henry suspected it was merely a tactical retreat.
In Scully's hands, Apple signed two detrimental contracts. First, it granted Microsoft permission to use some Apple system interface patents. Second, it agreed to install the AL browser. The repercussions of these actions were magnified compared to events in Henry's previous life; together, they created a momentum far more powerful.
Apple had entered a precarious situation, hovering on the brink of bankruptcy!
Of course, it would not be immediate.
Perhaps in a year or two, or possibly three or four years down the line. In Henry's previous life, Apple fell into bankruptcy in 1996, losing hundreds of millions in a single quarter! This was largely due to Microsoft's explosive growth, which led to significant market share erosion for Apple. Currently, Apple was primarily suffering loss of vitality rather than being mortally wounded!
A fierce storm raged outside, the rain pouring down. The weather was dreadful!
Henry, weary from his relentless work schedule, dozed off at his desk after reviewing documents. His busyness had intensified recently, with additional complications posed by AOL's actions. Meanwhile, Sequoia Capital had also started to make subtle power moves!
Sequoia Capital actively aided AOL in its attempts against the Nicholas Group, something Henry opted not to engage in. That was a fair deal in and of itself, but the situation escalated in Cisco's direction.
As time progressed, the National Science Foundation's network upgrades would be completed ahead of schedule this year. With this completion, internet access costs would plummet, and speed would drastically improve! Cisco experienced explosive growth during this period, establishing branches across Europe in France and Asia in Hong Kong.
Although establishing a branch in Japan also had great potential, Henry was skeptical of Japan's market. He preferred focusing efforts in Hong Kong first. While Japan's economic power was undeniable, Henry recognized that Hong Kong's strategic location and economy were comparable, if not superior; its smaller geographic size allowed for wider regional influence, benefiting Cisco's Asian operations.
Henry's preference clashed with Sequoia Capital's. They believed establishing a branch in Japan was the best course of action for the company's interests!
Henry staunchly disagreed.
Sequoia Capital, feeling frustrated, began to rally the Bossacks and other management members in an attempt to produce pressure on Henry.
However, the Posacks remained supportive of Henry. John Chambers was one of Henry's key allies and had recently taken over as the company's CEO. Meanwhile, the Posacks shifted to technical roles, with Lerner continuing as the company's financial officer. The upper management at Cisco aligned with Henry's vision, making Sequoia's whispers ineffective.
Unbeknownst to Henry, Sequoia Capital was actively advocating for the company to go public!
Henry had already entertained plans for Cisco's IPO because going public and securing financing would allow Cisco to enhance its position and become a formidable player in the acquisitions market.
However, the timing for an IPO had yet to mature. Henry believed that post-speed enhancement by the National Science Foundation would present an optimal moment for such a move!
Cisco not only developed routers but also switches and modems.
Initially, dial-up modems weren't required to access the internet. However, as the National Science Foundation Network fell under the control of American capitalists, its operations deteriorated, transitioning towards commercialization. Now that it cost money to access the network, the era of dial-up modems truly began, with Cisco among the first companies to manufacture these devices.
Despite the emergence of numerous network equipment manufacturers, Cisco had consistently maintained its position as a market leader.
Nevertheless, various competitors pursued Cisco, with one company particularly standing out as prominent!
While Henry remained engaged in his struggle with AOL, Sequoia Capital injected an additional $50 million into the company. As a former angel investor, Sequoia Capital held a significant stake due to their initial round of investment. Their latest influx indicated that they were exceedingly optimistic about Cisco's future prospects, even aiming to elevate it to the top network equipment provider in the United States and beyond!
In essence, this investment threatened to undermine Cisco's interests!
When Henry learned of this, he began to analyze Sequoia Capital's rush to list Cisco—did they wish to cash out or genuinely support the company's growth?