At Stanford, Bechtolsheim designed a powerful computer (called a
workstation) with built-in networking called the
SUN workstation, a name derived from the initials for the
Stanford University Network. It was inspired by the
Xerox Alto computer developed at the
Xerox Palo Alto Research Center. Bechtolsheim was a "no fee consultant" at Xerox, meaning he was not remunerated directly but had free access to the research being done there. At the time,
Lynn Conway was using workstations to design
very-large-scale integration (VLSI) circuits. and quickly received funding from
venture capitalists in 1982. Sun Microsystems had its
initial public offering in 1986 and reached $1 billion in sales by 1988. Bechtolsheim formed a project code-named UniSun around this time to design a small, inexpensive desktop computer for the educational market. The result was the
SPARCstation 1 (known as "campus"), the start of another line of Sun products.
Other companies In 1995, Bechtolsheim left Sun to found Granite Systems, a Gigabit Ethernet startup focused on developing high-speed
network switches. In 1996,
Cisco Systems acquired the firm for $220 million, with Bechtolsheim owning 60%. He became vice president and general manager of Cisco's Gigabit Systems Business Unit, until leaving the company in December 2003 to head Kealia, Inc. Bechtolsheim founded Kealia in early 2001 with Stanford Professor
David Cheriton, a partner in Granite Systems, to work on advanced server technologies using the
Opteron processor from
Advanced Micro Devices. In February 2004, Sun Microsystems announced it was acquiring Kealia in a stock swap. Due to the acquisition, Bechtolsheim returned to Sun again as senior vice president and chief architect. Kealia hardware technology was used in the
Sun Fire X4500 storage product.
Investments Bechtolsheim and Cheriton were two of the first investors in
Google, investing
US$100,000 each in September 1998. When he gave the check to
Larry Page and
Sergey Brin, Google's founders, the company had not yet been legally incorporated. Claims that Bechtolsheim coined the name "Google" are untrue. However, he did motivate the founders to officially organize the company under that name. As a result of investments like these, Bechtolsheim was seen as one of the most successful "
angel investors", particularly in areas such as
electronic design automation (EDA), which refers to the software used by people designing computer chips. He has made a number of successful investments in EDA. In one such EDA company,
Magma Design Automation, his stake was valued around $60 million. He was an early investor in another EDA start-up company, Co-Design Automation, which developed
SystemVerilog which is used to design almost all digital hardware. Bechtolsheim invested in
Tapulous, the maker of music games for the
Apple iPhone. Tapulous was acquired by
the Walt Disney Company in 2010. He joined George T. Haber, a former colleague at Sun, to invest in wireless chip company CrestaTech in 2006 and 2008. Bechtolsheim invested in all of Haber's previous startups: CompCore purchased by
Zoran, GigaPixel purchased by
3Dfx and Mobilygen purchased by
Maxim Integrated Products in 2008, as well as
Moovweb, a cloud-based interface for mobile and computer websites in 2009. He was reportedly an early investor in
Claria Corporation, which ceased operating in 2008. From 2015 to 2017, Bechtolsheim invested in PerimeterX, an automated attack mitigation
SaaS.
Awards Bechtolsheim received a Smithsonian Leadership Award for Innovation in 1999 and a Stanford Entrepreneur Company of the year award. He was also elected a member of the
National Academy of Engineering in 2000 for contributions to the design of computer workstations and high-performance network switching. Bechtolsheim gave the opening keynote speech at the
International Supercomputing Conference in 2009. In 2012, he was voted by IT Pros as the person who contributed most to server innovation in the last 20 years.
SEC settlement In 2024, Bechtolsheim settled
insider trading allegations with the
United States Securities and Exchange Commission (SEC), in which he agreed to pay a civil penalty of nearly $1 million, and is prohibited from serving as an officer or director of a public company for five years. The SEC accused him of misusing confidential knowledge of Cisco's proposed acquisition of Acacia Communications, stating that the illegal option trades netted over $400,000 in profits between his associate and relative, to whom he passed the information. ==Personal life==