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Good post. Specifically regarding the routers, there were a couple of mistakes that Wellfleet product management made that provided key opportunity to Cisco circa mid 90's (And I dont really think site manager contributed).
1. Large Enterprise IBM Integration. The IBM/IP integration business was just getting off the ground. Channel attachment was the logical way to reduce cost and integrate IP but Wellfleet just wouldnt do it. This decision significantly contributed to the loss of larger enterprise customers which had been the strong hold.
2. Emerging ISP Market. ISP's we just getting started and those who ended up (through merger and aquistion) as the big guys wanted Packet over SONET. Wellfleet just kept pushing an ATM SONET strategy while Cisco gave the customers what they wanted. Add a poor BGP implemention. Not that the engineers were bad developers, the OS used in 7 series was a bit unique and did not have pre-emption, therefore complex, long running state machines (like BGP) did not work well. This stopped Wellfleet establishing a position in the ISP router market.
As for business management, well lets say Paul checked out and Andy wouldnt listen to bad news.