Redback Networks

Redback Networks was a telecommunications equipment company established in August 1996 by Gaurav Garg, Asher Waldfogel, and William M. Salkewicz, with initial funding from Sequoia Capital. The firm specialized in providing hardware and software that enabled Internet Service Providers (ISPs) to manage broadband services. The company's business model revolved around the sale of its networking hardware and the licensing of its sophisticated software to a global client base of telecommunications carriers and service providers.

The company's product portfolio included multi-service edge routers (MSER) and subscriber management systems designed to deliver interactive content and manage IP-based data, voice, and video services. Key product lines were the SMS (Subscriber Management System), SmartEdge, and SmartMetro. The SmartEdge router platform, in particular, was developed to integrate Ethernet aggregation, subscriber management, and full routing on a modular operating system, a response to the increasing demand from carriers for converged, all-IP networks. This allowed carriers to offer bundled services like broadband, telephone, and TV from a single core network.

Redback experienced rapid growth during the dot-com bubble, going public in May 1999 with shares soaring 266% on the first day of trading. The company made strategic acquisitions, including Siara Systems for $4.3 billion in stock in November 1999 and Abatis Systems in August 2000. Despite a significant downturn after the dot-com bubble burst, which led to bankruptcy in 2003, Redback underwent a recovery. By late 2006, it served over 700 carrier customers in more than 80 countries, including 15 of the top 20 telephone carriers worldwide.

In December 2006, Ericsson announced its intention to acquire Redback Networks for approximately $2.1 billion. The acquisition was completed in January 2007, and Redback became a wholly-owned subsidiary of Ericsson, forming a cornerstone of Ericsson's IP routing platforms. The deal provided Redback with the global reach and financial resources to accelerate its technology development and expand its market share against competitors like Cisco and Juniper. Following the acquisition, Redback retained its management team and continued its operations in San Jose, California.

Keywords: Redback Networks, Ericsson, telecommunications equipment, edge router, broadband remote access server, subscriber management system, internet service provider, IP networking, SmartEdge router, multi-service edge routing, network hardware, telecom infrastructure, broadband services, converged networks, voice over IP, IPTV, Gaurav Garg, Asher Waldfogel, Sequoia Capital