The development of Local Area Networks (LANs) began in the late 1960s when the use of computers increased rapidly in universities, research laboratories, and large organizations. As more computers were installed, there was a growing need to connect them so that users could exchange information, share files, and use common resources. In 1970, a report from the Lawrence Radiation Laboratory describing the growth of the Octopus Network highlighted the increasing importance of computer networking.
During the 1970s, several experimental and commercial LAN technologies were introduced. One of the most significant developments was Ethernet, which was created at Xerox PARC between 1973 and 1974. Ethernet later became the most widely used LAN technology in the world. Around the same time, the Cambridge Ring network was developed at the University of Cambridge in 1974. In 1976, Datapoint Corporation developed ARCNET, which was officially introduced in 1977. The first commercial ARCNET installation took place in December 1977 at Chase Manhattan Bank in New York.
Another important milestone came in 1979 when the European Parliament implemented one of the world’s largest Local Area Networks. The network connected 420 microprocessor-controlled voting terminals to a central control unit using approximately 10 kilometers of unshielded twisted-pair cable, which was similar to the cable used in telephone systems. This network was installed inside the European Parliament buildings in Strasbourg and Luxembourg.
The rapid growth of personal computers (PCs) during the late 1970s and early 1980s further increased the demand for LANs. Many organizations began installing dozens or even hundreds of computers within the same building. Initially, these networks were mainly used for sending messages between computer operators, but they soon became important for sharing files, printers, software, and other resources. During the early 1980s, networking became so popular that many experts referred to the coming years as “The Year of the LAN.”
Competing Standards
Although Local Area Networks became increasingly popular, early networking systems faced several compatibility problems. Different manufacturers developed their own network cards, cables, communication protocols, and network operating systems. As a result, equipment produced by one company often could not communicate with equipment from another company, making network management difficult.
A major solution to this problem came with the introduction of Novell NetWare in 1983. NetWare supported many different types of network cards and cables, making it compatible with hardware from multiple vendors. It also offered a more advanced network operating system than most of its competitors, making it the preferred choice for many organizations.
According to a survey of LAN users conducted in 1989, NetWare was used by 38% of organizations. Other networking systems included IBM (17%), 3Com (11%), AT&T (7%), AppleTalk (6%), Banyan VINES (3%), while the remaining 24% used other networking solutions.
Several companies attempted to compete with NetWare. 3Com introduced 3+Share, while Microsoft developed MS-Net. Microsoft and 3Com later worked together to create LAN Manager, and IBM introduced LAN Server. However, none of these products achieved the long-term success of NetWare, which remained the leading LAN operating system until the mid-1990s when Microsoft Windows NT became widely adopted.
Another major development occurred in 1983, when the TCP/IP protocol suite successfully demonstrated its ability to support real-world defense applications on a Defense Communication Agency LAN test network in Virginia. The network successfully supported services such as Telnet, FTP, and military teleconferencing. This proved that TCP/IP could be used for reliable communication between military command centers across the United States.
At the same time, UNIX workstations also adopted TCP/IP for networking. Although the workstation market later declined, the networking technologies developed for UNIX systems became highly influential. Today, TCP/IP has replaced older protocols such as IPX, AppleTalk, and NBF, and has become the standard networking protocol for Local Area Networks and the Internet.
Another networking technology developed during this period was Econet, introduced by Acorn Computers in 1981. It was a low-cost LAN system designed mainly for schools and small businesses and was initially used with Acorn Atom and Acorn System computers.
Further Development
The 1980s saw the introduction of several new LAN technologies, including Token Ring networks. IBM released its own Token Ring implementation in 1985, operating at a speed of 4 Mbit/s. IBM claimed that Token Ring performed better than Ethernet, especially when the network was heavily loaded. However, these claims were widely debated within the networking industry.
While IBM promoted Token Ring, AppleTalk remained a popular networking technology for Apple Macintosh computers because it was simple and inexpensive. During the late 1980s, no single LAN technology completely dominated the market, although Ethernet and Token Ring became the leading competitors.
IBM’s Token Ring technology later became the basis for the IEEE 802.5 networking standard. In 1989, a faster 16 Mbit/s version of Token Ring was officially standardized. By 1990, IBM had become the leading supplier of Token Ring networking equipment.
Another important LAN technology introduced during the early 1990s was Fiber Distributed Data Interface (FDDI). FDDI used fiber-optic cables and provided data transfer speeds of 100 Mbit/s, which was much faster than the 10 Mbit/s Ethernet and 4 or 16 Mbit/s Token Ring networks available at that time. Because of its high speed, FDDI became a popular choice for connecting university campuses and large organizational networks.
By the mid-1990s, Ethernet technology improved significantly with the introduction of Fast Ethernet, making it faster, more affordable, and easier to deploy. As a result, FDDI networks were gradually replaced by Ethernet, which eventually became the worldwide standard for Local Area Networks.