@dangoodin I was a university sysadmin (University of Toronto) at the time SSH was released, and my memory is that we jumped on it basically immediately because it was clearly better than rsh/rlogin. Not only was it more secure, it also had X forwarding over SSH (a big help if you worked from Unix workstations, as was the case for us) and I think various other conveniences.
(We built it ourselves from source on our Unix machines, as was common at the time.)