The History Behind D-Link, Ken Kao and Their Roots

Since its creation in 1986, D-Link has spearheaded developing, producing, and distributing networking, broadband, digital, data communications, and voice solutions. Its cutting-edge products and services continuously adhere to its corporate principle of “Building Networks for People.” The company covers the needs of digital home consumers, small office professionals, small to medium-sized corporations, and enterprise environments.

D-Link grew primarily after focusing on selling consumer items through retail channels. One of its best decisions is to expand into the small office and home office (SOHO) and the small to medium-sized organization (SME) sectors. Most people know the brand for spurring home networking with reliable but affordable equipment.

D-Link’s Launch with Ken Kao

Ken Kao founded the D-Link Group and served as its chairman and CEO. Born in 1950 in Taiwan, he studied at the National Chiao-Tung University in Hsinchu. Kao graduated with a Bachelor of Science in Electro-Physical Engineering in 1972. With several engineers in 1986, he founded Datex Systems, Inc. in Taipei, Taiwan.

Kao wanted to create a company that manufactured high-quality and affordable networking devices. He also envisioned an organization that specialized in producing these devices without depending on an original equipment manufacturer (OEM). The brand he founded used the name Datex, a combination of the terms “data” and “exchange.” When the firm changed its name to D-Link, it kept the “D” from Datex Systems and added the word “Link,” referring to the network, the core of the business.

A Humble Start with Large Potential

Datex Systems began as a company that marketed network adapters. While its first product was a network interface card with a 1-Mbps rating, the brand released the first Ethernet adapter for the PC in 1987, the DE-001. This product was a card that users plugged into a PC motherboard so their computers could access the Ethernet network or LAN.

Within a year, Datex launched the LANSmart Network Operating System. It was the first peer-to-peer structure that facilitated the user’s control of complex network systems. It made an impact on the networking scene because of how easy using these systems became with LANSmart.

With Kao’s leadership, the organization became the top networking equipment provider in the Asia Pacific. This success was primarily attributed to it being one of the first enterprises to enter the PC networking business while it was in its infancy. Kao received the “ROC Model Entrepreneur of the Year” Award in 1991. That same year, Datex Systems expanded internationally, establishing branches in the North American and European markets.

Datex Systems, Inc. became the D-Link Corporation in 1992, in time with the release of the DE-5000. It’s the first chassis-based network switch for enterprises. They are multi-layer LAN devices for more extensive networks, like businesses and campuses.

The firm took home the “Premier Award of Contemporary Business Leaders in Taiwan” three years later. It proved that the company was not only one of the best networking groups but also a principal Taiwanese brand that shifted the limelight to its country.

D-Link’s Stock Market Listing

In 1992, the business delivered five million units annually, generating $150 million in revenues. D-Link developed further when it became the first provider of networking equipment in the Republic of China to list on the Taiwan Stock Exchange, using the ticker code 2332. It became public on October 17, 1994. However, the firm had low brand recognition among consumers. It was because its network interface cards and other components were already found within completed PCs. Consumers didn’t see the point of buying the firm’s products when they were already pre-installed on their computers.

Forbes Magazine named D-Link one of the “Top 300 Companies” in 1998 after years of continuous growth. A year later, the firm stood among the world’s “Top Ten Most Productive Networking Companies,” profiled by Network World Magazine. The networking brand also became one of the “Top 100 Information Tech Companies” in 2002. All these awards boosted the brand’s trustworthiness among consumers. It increased its sales, reputation, and drive to pursue excellence.

D-Link’s Continuous Progress in India

K.R. Naik set up a subsidiary based in Goa, India, the Smart-Link Network Private Limited, in 1993. Naik was a former designer at IBM India. In 1995, D-Link saw the prospect his company offered and bought a 19% stake. Later, this Goa-based operation became D-Link (India) Private Limited.

D-Link India’s presence in 1990s India has the best timing. It was the era when the nation began embracing the Internet. It pushed D-Link India to dominate the local market by manufacturing dial-up modems that offer internet access via computer. The venture also launched several joint initiatives in 2000. This led Taiwanese companies to outsource equipment manufacturing to India. Two are projects with Gigabyte Technology to create motherboards and Lanner Electronics to develop products for the industrial market.

D-Link: Highs and Lows

D-Link and Its NTP Abuse Case

Network Time Protocol (NTP) vandalism brought unwanted attention to D-Link in 2006. It began when Poul-Henning Kamp noticed that the brand’s routers were sending many time requests to an NTP server based in Denmark. The huge traffic increased bandwidth costs and server load, pushing the Danish Internet Exchange (DIX) to request Kamp pay a connection fee of 54,000 DKK or $9,920 yearly. Without the high traffic, the server would’ve been free to the general public.

The problem deepened when D-Link refused to accept responsibility. Eventually, the story blew up online, and people found that its other products also abused other time servers. Only then did the company fix the issues and make a settlement with Kamp.

Ken Kao’s Death

The first Wi-Fi Certified 802.11n from the D-Link Corporation came out in 2007. It was one of the most efficient and best-selling routers. However, all highs come with lows, and D-Link’s occurred on April 2, 2008, when the networking label’s founder and CEO, Ken Kao, died at 58.

His death led to Roger Kao’s undertaking of the position of Chairman. It also pushed D-Link to enter a new age. The brand emphasizes software-developed Cloud services, leading to the creation of Cloud routers, cameras, and more.

THE HNAP Controversy

In 2010, some routers had vulnerabilities linked to Home Network Administration Protocol (HNAP). It meant that some routers let hackers access the device’s administrative settings. The firm’s vague response made people further criticize its next steps.

The company also downplayed the seriousness of the problem. It had even blamed SourceSec, the organization that put a light on their router issues. “By publicizing their tool… the authors of the report have publicly outlined how the security can be breached, which could have had serious repercussions for our customers,” D-Link stated.

After other sources spread the news, D-Link was forced to mend their router problems.

D-Link and ZynOS

ZynOS is a firmware used in several routers. However, in January 2015, it was found to be vulnerable to DNS hijacking. DNS hijacking is a cyberattack that manipulates DNS queries and redirects users to malicious sites. ZTE and TP-Link also got dragged into the controversy because they used the same firmware.

D-Link phased out the affected models and launched a firmware patch to fight the security vulnerabilities posed by ZynOS for consumers who still use them.

D-Link and the Pandemic

At the 2021 Consumer Electronics Show, the D-Link Corporation presented its mydlink smart home solutions. These solutions provided AI-enabled protection, improved security, better manageability, and the mydlink cloud that lets users access their files anywhere. Together with these solutions, D-Link released a complete home smart Wi-Fi water sensor kit and an outdoor Wi-Fi camera to keep families connected and safe during the global crisis.

The digital, broadband, and networking group also became a key player in India during the pandemic. D-Link India reacted by committing Rs. 60 lacs or almost $73,500 to the country’s initiatives against COVID-19. The funds went in three directions: PM Care Fund, CM COVID Fund, and the TATA Memorial Hospital.

D-Link Today

For a networking company with a variety of experiences spanning over twenty years in the industry, D-Link still continues to progress and evolve with the changing times. In 2020 alone, the brand received four awards: CES Innovation Award, iF Design Award, iOT Breakthrough Award, and the Taiwan Excellence Award. These attest to the firm’s constant development to serve its consumers and partners better.

It provides a variety of networking systems, like Wi-Fi routers, range extenders, switches, adapters, and Wi-Fi hotspots for mobile. The brand also offers cameras, smart plugs, hubs, sensors, smart home ecosystems, and apps. These consumer-focused products boost the user’s connectivity, security, and convenience.

For businesses, D-Link provides switches, surveillance, wireless, network security, and network infrastructure products. These enterprises can also use the label’s offered cloud solutions and tools, boosting each organization’s productivity and efficiency.