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HEWLETT-PACKARD
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The Hewlett-Packard Company (NYSE: HPQ), commonly known as HP, is one of the world's largest information technology corporations. Headquartered in Palo Alto, California, United States, it has a global presence in the fields of computing, printing, and digital imaging, and also sells software and services.
Company history
Founded in 1939
HP was founded as a manufacturer of test and measurement instruments with a US$538 investment in a Palo Alto, CA garage in 1939 by Bill Hewlett and Dave Packard. They had both graduated from Stanford University in 1934. Their first product was a precision audio oscillator, the Model 200A. Their innovation was the use of a small night-light bulb as a temperature dependent resistor in a critical portion of the circuit. This allowed them to sell the Model 200A for $54.40 when competitors were selling less stable oscillators for over $200. Their company's name, Hewlett-Packard, was derived from their last names and had Bill not won a coin toss, the company today could have been known as Packard-Hewlett. One of the company's earliest customers was Walt Disney Productions, who bought eight Model 200B oscillators (at $71.50 each) for use in testing the Fantasound stereophonic sound system for the movie Fantasia.
The sixties and seventies
HP is recognized as the symbolic founder of Silicon Valley, although it did not actively investigate semiconductor devices until a few years after the "Traitorous Eight" had abandoned William Shockley to create Fairchild Semiconductor in 1957. Hewlett-Packard's HP Associates division, established around 1960, developed semiconductor devices primarily for internal use. Instruments and calculators were some of the products using these devices.
HP is acknowledged by Wired magazine as the producer of the world's first personal computer, in 1968, the Hewlett-Packard 9100A. HP called it a desktop calculator because, as Bill Hewlett said, "If we had called it a computer, it would have been rejected by our customers' computer gurus because it didn't look like an IBM. We therefore decided to call it a calculator, and all such nonsense disappeared." An engineering triumph at the time, the logic circuit was produced without any integrated circuits; the assembly of the CPU having been entirely executed in discrete components. With CRT readout, magnetic card storage, and printer the price was around $5000.
The company earned global respect for a variety of products. They introduced the world's first handheld scientific electronic calculator in 1972 (the HP-35), the first handheld programmable in 1974 (the HP-65), the first alphanumeric, programmable, expandable in 1979 (the HP-41C), and the first symbolic and graphing calculator HP-28C. Like their scientific and business calculators, their oscilloscopes, logic analyzers, and other measurement instruments have a reputation for sturdiness and usability (the latter products are now part of spin-off Agilent's product line). The company's design philosophy in this period was summarized as "design for the guy at the next bench".
The eighties and beyond
In 1984, HP introduced both inkjet and laser printers for the desktop. Along with its scanner product line, these have later been developed into successful multifunction products, the most significant being single-unit printer/scanner/copier/fax machines. Interestingly, HP's tremendously popular LaserJet line of laser printers depends almost entirely on Canon's components (print engines), which in turn use technology developed by Xerox.
In the 1990s, HP expanded their computer product line, which initially had been targeted at university, research, and business customers, to reach consumers. HP also grew through acquisitions, buying Apollo Computer in 1989, Convex Computer in 1995, and Compaq in 2002. Compaq itself had bought Tandem Computers in 1997 (which had been started by ex-HP employees), and Digital Equipment Corporation in 1998. Following this strategy HP became a major player in desktops, laptops, and servers for many different markets.
In 1987, the Palo Alto garage where Hewlett and Packard started their business was designated as a California State historical landmark.
In July of 1999, HP appointed Carly Fiorina as CEO. Fiorina was the first woman ever to serve as CEO of a company included in the Dow Jones Industrial Average. Fiorina was forced to resign on February 9, 2005.
Technology and Products
HP has a successful line of printers, scanners, digital cameras, calculators, PDAs, servers, workstations, and home-small business computers. HP today promotes itself as not just being a hardware and software company, but also one that offers a full range of services to architect, implement and support today's IT infrastructure.
Imaging and Printing
According to HP's 2005 U.S. SEC 10-K filing[1], HP's Imaging and Printing Group is "the leading imaging and printing systems provider in the world for printer hardware, printing supplies and scanning devices, providing solutions across customer segments from individual consumers to small and medium businesses to large enterprises."
Products and Technology associated with the Imaging and Printing Group include:
Personal Systems Group
HP's Personal Systems Group is "one of the leading vendors of personal computers ("PCs") in the world based on unit volume shipped and annual revenue."[2]
Personal Systems Group products/technology include:
- Consumer PCs including the HP Pavilion and Compaq Presario series.
- Workstations for Unix, Windows and Linux systems.
- Handheld Computing including iPAQ Pocket PC handheld computing devices
- Digital Entertainment including DVD+RW drives, HP Movie Writer and HP Digital Entertainment Center. HP resold the Apple iPod from HP until November 2005.[3]
Technology Solutions Group
In HP's financial reporting, HP groups its Enterprise Storage and Servers, HP Services and Software under Technology Solutions Group.
HP's Enterprise Storage and Servers Group has product/technology including:
- the ProLiant entry line of x86 based servers (from Compaq)
- the BladeSystem x86 based blade servers
- the Integrity line using the Itanium processor architecture (with Intel) running on several operating systems including HP-UX (a UNIX implementation)
- the HP AlphaServer productline using the Alpha processor (from DEC) and running on both:
- the NonStop high-reliability architecture and operating system (from Tandem Computers)
- MIPs based Nonstop fault-tolerant server products
- the PA-RISC processor architecture
- the HP 9000 line of Servers and workstations
- the StorageWorks [4] product line, which includes business class and enterprise class data storage and protection products.
- the ProCurve [5] family of network switches, wireless access points, and routers.
HP's Software division has products/technologies including:
HP Labs
HP Labs (or HP Laboratories) is the research arm of HP. Founded in 1966, HP Labs' function is to deliver breakthrough technologies and to create business opportunities that go beyond HP's current strategies. An example of recent HP Lab technology includes the Memory spot chip.
Partnerships
Hewlett-Packard is a supporter of FOSS and Linux. Some HP employees, such as Linux CTO and former Debian Project Leader Bdale Garbee actively contribute and have official Open Source job responsibilities. Many others participate in the Open Source community as unpaid volunteers. HP is also known in the (GNU/)Linux community for releasing drivers for many of their printers under the GNU GPL.
Hewlett-Packard also works extensively with Microsoft and uses technology from most major software and hardware vendors. Until November 2005, HP offered a re-branded version of Apple's famous iPod.[6]
Culture
The founders, known to friends and employees alike as Bill and Dave, developed a unique management style that has come to be known as the HP Way. In Bill's words, the HP Way is "a core ideology . . . [that] includes a deep respect for the individual, a dedication to affordable quality and reliability, a commitment to community responsibility, and a view that the company exists to make technical contributions for the advancement and welfare of humanity." [7]
The HP Alumni Association maintains a tribute to Bill and Dave's version of the HP Way, circa 1992. [8]
Management
History
Diversity
Hewlett-Packard received a 100% rating on the Corporate Equality Index released by the Human Rights Campaign starting in 2003, the second year of the report. In addition, the company was named one of the 100 Best Companies for Working Mothers in 2004 by Working Mothers magazine.
Hewlett-Packard is also involved in the NEPAD e-school program to provide all schools in Africa with computers and internet access.
Ad campaigns
Hewlett-Packard has used a number of innovative commericals to sell its products.
You + HP: digital photography
A television ad campaign for Hewlett-Packards digital photography (titled "You + HP: digital photography") has been noted for its simple special effects and choice of music. It won "Campaign of the Year" from Adweek magazine in 2004[9]
Songs used in "You + HP" Campaign:
Acquisitions
- Data Systems, Inc.
A small 5-person company called Data Systems, Inc. Owned by a chemical manufacturer, Union Carbide, who failed in their diversification efforts, HP bought the group and this helped to launch the HP 2116A in 1966. A computer designed to automate the collection and processing of data from the company’s test and measurement devices, it marked HPs entry into the growing computer industry.
- Apollo
In 1989, HP Acquired Apollo computer for $476 million. HP was able to achieve a growth in market share after the merger; with the market at the time valued at $4.1 billion and the fastest-growing area of the market.
- Compaq
In 2002, Hewlett-Packard merged with Compaq, a controversial move intended to make the company the personal computing leader. The merger opposition was led by Walter Hewlett, son of original founder William Hewlett.
- AppIQ
In October of 2005, Hewlett-Packard acquired the private company AppIQ (short for "Application IQ"). The company was founded in 2001 by Ash Ashutosh and David Chang, and offered several digital storage solutions. The company had employed up to 235 people by June 2005.
- Mercury Interactive
On July 25, 2006, HP announced plans to acquire Mercury Interactive (MERQ.PK), a company that provides Business Technology Optimzation software (ie software that helps a company govern, develop and maintain its technology stack). This acquisition is expected to occur in Q4 2006 and will result in an HP software business of around $2 billion.
Competitors
Major competitors of HP in the computer business include Apple Computer, Dell, Gateway, Lenovo (Purchased IBM's Non-server Personal Computer Business), Sony and Toshiba. Major competitors of HP in the server business include Sun Microsystems, IBM and Dell. Major competitors of HP in the printer business include Brother, Canon, Epson, Lexmark and Dell (who rebrands and repackages Lexmark products)
Criticism
Legacy
It is a fact that Agilent Technologies, not HP, bears the product legacy of the original company founded in 1939. Agilent's current portfolio of electronic instruments are descended from HP's very earliest products. HP entered the computer business only after its instrumentation competencies were well-established. Similarly, the history of HP's printer products today can be traced back to the invention of the ThinkJet and LaserJet printers in the early 80's. Agilent was spun off from HP in 1999 and took everything related to instrumentation with it. The merger with Compaq drives HP even farther from its roots in instrumentation. Some include HP's original culture, embodied in the HP Way, in the definition of legacy. Critics claim the HP Way is no longer practiced at HP today.
Calculators
In March 2002, HP announced that it would no longer manufacture financial and scientific calculators – a product line and, indeed, a market, that HP had started thirty years before.Template:Needscitation HP later recanted and stated in a press release, "The bottom line is that HP calculators are here to stay and they are going to be better than ever, giving our customers more than ever."[10] The extremely popular HP-12C financial calculator, introduced in 1981, still remains in production today.
Iraq
During the Iran-Iraq war, HP was among the companies shipping militarily useful technology to Iraq through its Ohio branch according to the Financial Times [11].
Outsourcing
In 1994, HP decided to outsource its manufacturing to third-party vendors and oversea countries to lower costs and raise profits. Today, desktop computers are assembled in Guadalajara, Mexico where HP employs approximately 1,500 workers. Notebook computers are assembled in China from third-party vendors. Servers and workstations are still assembled in the United States.
In 2003, HP had 140,000 employees world wide. Under HP's current restructuring program, HP began reducing its workforce to lower its costs. By 2006, HP experienced a record profit of $1.5 billion in just one quarter.
HP and the Environment
HP have been criticized by Greenpeace, among others. Greenpeace and other environmental groups have alleged HP of poor environmental standards, specifically in relation to the elimination of hazardous substances from products as specified by the European Union's RoHS guidelines for brominated flame retardants and PVC. Greenpeace is also alleging HP of not doing enough to recycle computers and other technology equipment.
Greenpeace's criticism of the technology industry is not limited exclusively to HP, as competitors such as Dell and Apple have also come under fire for alleged similar practices.
See also
- List of Hewlett-Packard products
- Packard Bell - A similarly named radio and TV manufacturer, with no connection to either HP or the Bell System. The name was resurrected in 1986 as a manufacturer of personal computers. Now owned by NEC.
- Packard Instrument - A similarly named nuclear instrumentation company with no connection to HP. Now owned by PerkinElmer.
- DeskJet printers
External links
- HP
- HP-sponsored Open Source Projects
- Company Information & History
- Alumni Associations
- HP Alumni Association Non-profit; independent of HP. Open to current employees within three months of their last working day.
- Digital Alumni Share the memories of the past as well as the adventures of the future
- Third Party Technology sites
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