Laurel Networks

About Laurel Networks

Laurel Networks, founded in 1999, was a telecommunications equipment provider that specialized in developing and marketing high-performance service edge routers for service providers. The company was established in the Pittsburgh area by a team of six founders, many of whom were veterans of Fore Systems (later Marconi Networks): Atul Bansal, who served as CEO, Jeffrey Prem, Dmitri Varotsis, Robert Rennison, Steve Vogelsang, and Robert Warden. This founding team brought together extensive experience in data communications, software and hardware engineering, and routing technology, which was pivotal in shaping the company's product strategy.

The company's core business was centered on providing IP/MPLS multiservice edge routers to telecommunications carriers, enabling them to manage internet traffic more efficiently and deliver a range of services. Laurel Networks' primary products were the ST-series service edge routers, including the ST200 and the smaller ST50, which were designed to allow service providers to offer advanced broadband applications like Voice over IP (VoIP) and video on demand. A key feature of their technology was the ability to perform complex traffic shaping, monitoring, and Quality of Service (QoS) at line rate, giving carriers greater control over their network services. The business model focused on selling this specialized hardware and its accompanying ShadeTree system software to major telecommunications clients, such as Level 3 Communications, Korea Telecom, and Grande Communications.

Laurel Networks secured significant venture capital funding across several rounds, totaling approximately $118 million from investors including New Enterprise Associates (NEA), Trinity Ventures, Worldview Technology Partners, and Ciena Corp. This capital fueled the development of its sophisticated router technology. In May 2005, after establishing a customer base and generating annual sales of around $18 million, Laurel Networks was acquired by the Israeli telecommunications equipment supplier ECI Telecom for $88 million in cash. Following the acquisition, the company was integrated into ECI and became its Data Networking Division. The Pittsburgh office was eventually closed in 2012.