Hewlett-Packard
Evolving into HP
Hewlett-Packard or more fondly known as HP is a home and office by-word that refers to various computing and printing devices. But it’s more than that. It has evolved over the years to become the largest technology-based corporation in the world operating in just about every country on earth.
A Bit of History
HP’s name comes form the two men who founded the company in 1939. William Hewlett and David Packard were electrical engineering graduates of Stanford University who, with an initial capitalization of $538, established the HP Co. in Packard’s garage.
From its early days up until the 90s, HP has focused on high precision electronic test equipment and instrumentation. Its oscilloscopes were highly sought after for their accurate measurements and have made a name for the company. It’s interesting to note that among HP’s earliest customers was The Walt Disney Company which acquired oscillators used to certify the fantasound surround systems it installed in theaters for the Fantasia movie.
Its focus made them an industry pillar for electronic test equipments as well as medical appliances and instrumentation used for various chemical processes which were spun off under the Agilent Technologies company back in 1999.
It was in 1966 that HP decided to enter the computer making business when it made a decision to build its own rather than get a Digital Equipment minicomputer for its instrumentation requirements. The very first computers came out under the HP 2100 line which were in the market for roughly 20 years. HP’s computing focus was on business, science research and industrial markets that it failed to recognize an employee named Steve Wozniack who presented to its management the Apple designs in the late 70s.
The rest is history, as they say. HP went on to produce some of the best laser printers that have become standard company printers in time. After an acquisition binge in the 90s that included rival Compaq, HP has grown to be the largest PC maker in the world with the 1 and 2 slot alternating with Dell Computers.
Compaq
The Once Mighty Compaq
The Texas-based Compaq brand has been a successful US computer brand from the last 20 years of the 20th century until it was bought and absorbed into the HP brand. It was formed by former Texas Instrument managers, Rod Canon, Jim Harris and Bill Murto with the name standing for Compatibility and Quality, thus Compaq.
A Storied Past
Compaq started out making IBM PC compatible machines and became one of the largest PC makers in the world by the end of the 20th century. Before it got merged with HP in 2002, losing much of its identity, Compaq had been on a buying binge that saw them acquiring Tandem Computers, known for its high end servers with continuous non-stop availability in 1997 which was followed the year after with Digital Equipment, a leading minicomputer maker of the 70s and 80s.
Unfortunately, the then Compaq CEO Eckhard Pfeiffer who had engineered the buyouts failed to synergize its corporate acquisitions to give the Compaq name any lasting edge in its markets. As a result, it went into financial distress that made it easy for HP to acquire the company and merge its successful product line with its own. The merging was plagued with controversy as Compaq stockholders offered resistance while alluding to some improprieties in the deal. But it eventually went through and Compaq suffered laying off thousand of employees worldwide with HP only retaining some and assuming the helm.
Compaq under HP
HP effectively assumed manufacturing and marketing control of Compaq, Tandem and DEC product lines in addition to its own, making it the largest PC maker in the world despite declining stocks, dwindling profits and finally losing out to Dell as the world’s leading PC maker at that time. But HP eventually regained its stellar prestige in the market with a slew of products that capitalized on its acquisitions and by 2005, HP is back to number one.
Some Compaq products like the ProLiant line of servers that have been quite successful, were re-branded with the HP name. The Compaq name remains on a few consumer PCs like the Presario line. HP’s business-targeted PC line was later discontinued to favour the Compaq Evo PC line that was re-branded HP Compaq. The Jornada PDA line from HP was replaced by the superior Compaq iPAQ PDAs which were eventually re-branded as HP iPAQ.
