In March the company announced that it would spin off these operations as an independent company by mid in order to sharpen its focus on its computer operations.
William Hewlett and David Packard, graduates of Stanford University's electrical engineering program, were encouraged by Professor Frederick Terman to start their own business in California. The two men worked in the garage behind Packard's rented house in Palo Alto, California. After assembling several models--baking paint for the instrument panel in Packard's oven--they won their first big order, for eight oscillators, from Walt Disney Studios, which used them to develop and test a new sound system for the animated film Fantasia.
On January 1, , Hewlett and Packard formalized their venture as a partnership, tossing a coin to decide the order of their names. Hewlett won. In , with a product line of eight items, the two men moved their company and its three employees to a building in downtown Palo Alto.
During World War II, Terman, who was then in charge of antiradar projects at Harvard, contracted his former students to manufacture microwave signal generators for his research. When the war ended, HP took full advantage of the growth in the electronics sector, particularly in the defense and industrial areas.
The founders also decided at that time what their respective roles would be in the company: Hewlett would lead technological development, and Packard would be in charge of management. Hewlett-Packard Company was incorporated in HP introduced a revolutionary high-speed frequency counter, the HPA, in This device, which reduced the time required to measure radio frequencies from ten minutes to about two seconds, was used by radio stations to maintain accurate broadcast frequencies, particularly on the newly established FM band.
The company maintained stable and impressive growth through the end of the decade. In November Hewlett-Packard offered shares to the public for the first time. It also moved into a larger complex in the Stanford Research Park.
Moseley Company of Pasadena, California, a manufacturer of graphic recorders. The company's expansion continued in with the establishment of a marketing office in Geneva, and a manufacturing facility in Boeblingen, West Germany.
After adding another factory in Loveland, Colorado, in , Hewlett-Packard purchased the Sanborn Company, a medical instruments manufacturer based in Waltham, Massachusetts, in The company gained wider public recognition when it was listed on the Pacific and New York stock exchanges in and in the Fortune a year later. In Hewlett-Packard developed a cesium-beam "flying clock," accurate to within one-millionth of a second.
Company engineers embarked on a day, 35,mile world tour to coordinate standard times. In the company opened its central research laboratory, which became one of the world's leading electronic research centers.
Though primarily a manufacturer of instruments for analysis and measurement, Hewlett-Packard developed a computer in The HPA was developed specifically for HP's own production control; the company had no plans to enter the computer market. Two years later, however, HP introduced the HPA, the first desktop calculator capable of performing scientific functions. In David Packard was appointed deputy secretary of defense in President Richard Nixon's administration. Packard returned to his company as a director in During this time, HP developed a handheld scientific calculator called the HP, known as the "electronic slide rule.
Hewlett-Packard made its first decisive move into business computing, a field dominated by IBM and Digital Equipment Corporation, with the HP minicomputer, introduced in This signalled a major change in company strategy. In the spring of Hewlett and Packard decided, despite record earnings, that the company was growing too fast. Refocusing on product leadership, the founders established a new, highly decentralized structure, letting each of the company's divisions conduct its own research and development.
In Bill Hewlett relinquished the presidency to John Young, a career HP man determined to make the company successful in the computer market. Although he was chosen by Hewlett and Packard, Young was virtually unknown to the company's customers and 37, employees. Nonetheless, he replaced Hewlett as chief executive officer a year later.
Hewlett-Packard introduced its first personal computer, the HP, in The s were a time of tremendous growth for both HP and the city of Palo Alto. Palo Alto was on its way to becoming the high-tech center it is today. The IPO was issued for two reasons: to help with estate planning for its founders and to enable employees to share in the company. All employees at all levels with six months of service receive an HP stock grant and become eligible for a stock option program.
HP introduces its corporate objectives to empower decentralized decision making. Spanning seven categories—profit, customers, fields of interest, growth, people, management and citizenship—the principles help distinguish HP from the top-down management style of most companies and serve as the basis for the HP Way.
The new site is innovatively designed to maximize employee creativity and comfort. HP establishes a division structure, with each product group becoming a self-sustaining organization responsible for developing, manufacturing and marketing its products.
HP goes global, establishing a marketing organization in Geneva and a manufacturing plant in Boeblingen, Germany. Through an acquisition of Sanborn Company, HP enters the medical field. Medical equipment will become a significant source of revenue for HP before being spun off in HP introduces the HP A frequency synthesizer.
One of the most complex instruments developed to date by the company, the HP A is used in deep-space vehicles. HP celebrates its 25th anniversary. The highly accurate HP A atomic clocks set the new standard for international time. HP's first spectrum analyzer, the , becomes indispensable for RF and microwave workbenches. Barney Oliver is the founding director. HP's first computer, the HP A, is introduced. It is developed as a versatile instrument controller for HP's growing family of programmable test and measurement products.
In an early version of "plug and play," it interfaces with a wide number of standard laboratory instruments, allowing customers to computerize their instrument systems. The first go-anywhere, do-anything computer, the first A is sold to Woods Hole Oceanographic Institute and used aboard a research vessel in a salt-air environment for more than 10 years. Applications include alphanumeric displays such as indicator lights and traffic signals. HP's cesium-beam atomic clocks set the world's time standards, coordinating international time to within a millionth of a second.
The clocks, which grow more accurate over the decades, are used in a host of time-critical applications that include avoiding airplane collisions, running telecommunications systems and even operating space shuttles. First programmable scientific desktop calculator: The HP A — virtually the first PC — stores programs on a magnetic card and can solve science and engineering problems 10 times faster than most other machines.
It paves the way for the company's workstation business. Ads call it a "personal computer" in the first documented uses of the term. Dave Packard is appointed U. Deputy Secretary of Defense and serves from to HP produces a laser interferometer capable of taking infinitesimal measurements.
The device becomes the tool of choice in microchip manufacturing. Similar technology also produces a laser instrument that becomes the first electronic surveying tool. HP expands into business computing with the HP , which introduces the era of distributed data processing. Small enough to fit in a shirt pocket, it makes the slide rule obsolete. HP is the first company in the United States to institute flextime, designed to allow employees more time for family, leisure or personal business.
This interactive approach came to be known as "management by walking around. HP simplifies instrument systems by creating a standard interface. The electronics industry adopts the HP-IB interface bus as an international standard to allow one or more instruments to connect easily to a computer.
HP becomes a global company. HP introduces the HP wrist instrument, a combination digital wristwatch, calculator and personal calendar. In the s, journalists began using the term "Silicon Valley" to describe the countless electronics firms proliferating in Santa Clara County.
HP Labs researchers create fused silica capillary columns for gas chromatography, which revolutionizes chemical analysis. HP introduces its first personal computer, the HP HP introduces the HPC business calculator. Yokogawa-Hewlett-Packard wins the prestigious Deming Prize for quality. HP introduces the HP technical computer. It marks the success of HP Labs in miniaturizing inkjet technology to deliver superior quality, quieter operation and lower-power consumption over dot-matrix printers.
HP becomes the first major computer company to introduce a precision architecture based on reduced instruction set computing RISC , making computers faster and less expensive. RISC executes instructions faster and does more work than previous generations of chips. The device helps HP become a leading graphics workstation vendor. Bill Hewlett retires as vice chairman of the HP board and is named director emeritus.
Customers can achieve PC-like economics and flexibility for their server environments with the first x86 server built on industry standards. The Compaq SystemPro ushers in a new era of computing in enterprise server reliability, capacity and performance. HP Labs scientists create fundamental color sRGB , compression and half-toning algorithms for the DeskJet C, dramatically reducing the cost of color printing.
Roughly the size of a pocket calculator, it boasts as much computing power as a desktop PC. Dave Packard retires as chairman of the board. Lew Platt is elected to replace him. HP introduces the 3-pound 1.
Proliant line of servers is introduced by Compaq later acquired by HP. The Proliant is the first rack-mounted server in the market. Rack-mounting simplifies physical deployment and improves data center security.
HP becomes one of the first companies to encourage telecommuting, designed to increase job satisfaction, lower stress and improve employee retention.
Building on work that began in HP Labs in , researchers team with Intel engineers to develop what eventuallybecomes Intel's next-generation Itanium architecture, launched in It advances computing from 32 to 64 bits. Teams from HP businesses and HP Labs develop standard telecommunications computing platforms to replace the inflexible proprietary equipment of the time. Today, these technologies are found in the Open Call family of products.
Dave Packard dies at age Flags fly at half-staff across Silicon Valley and at HP offices around the world for the man headlines describe as "a Silicon Valley founding father and guiding spirit. HP Labs provides a pipeline of imaging innovations like adaptive lighting, color balance and automatic red-eye removal that add a "custom photo lab" to HP products and services. These machines used a version of the BASIC programming language which was available immediately after they were switched on, and used a proprietary magnetic tape for storage.
HP computers were similar in capabilities to the much later IBM Personal Computer, although the limitations of available technology forced prices to be high. In , HP introduced both inkjet and laser printers for the desktop. HP develops the hardware, firmware, and software that convert data into dots for the mechanism to print. In , the Palo Alto garage where Hewlett and Packard started their business was designated as a California State historical landmark.
In the s, HP expanded their computer product line, which initially had been targeted at university, research, and business users, to reach consumers. Later in the decade, HP opened hpshopping. In , all of the businesses not related to computers, storage, and imaging were spun off from HP to form Agilent. Fiorina served as CEO during the technology industry downturn of the early s.
During her tenure, the market value of HP halved and the company incurred heavy job losses. On September 3, , HP announced that an agreement had been reached with Compaq to merge the two companies. In May, , after passing a shareholder vote, HP officially merged with Compaq. In , Compaq had already taken over Digital Equipment Corporation. Compaq itself had bought Tandem Computers in which had been started by ex-HP employees , and Digital Equipment Corporation in Following this strategy, HP became a major player in desktops, laptops, and servers for many different markets.
The campaign was designed to bring back the fact that the PC is a personal product. The campaign utilized viral marketing, sophisticated visuals, and its own website www. The acquisition is one of the biggest in size among a series of takeovers and acquisitions by technology giants to push their way to become one-stop shops. Since the beginning of the financial crisis in , tech giants have constantly felt the pressure to expand beyond their current market niches.
Dell purchased Perot Systems recently to invade into the technology consulting business area previously dominated by IBM. On April 28, , Palm, Inc. The addition of Palm brought to HP a library of valuable patents as well as the mobile operating platform known aswebOS. On July 1, , the acquisition of Palm was final. The purchase of Palm, Inc. This is a painful decision for me to make after five years at HP, but I believe it would be difficult for me to continue as an effective leader at HP and I believe this is the only decision the board and I could make at this time.
I want to stress that this in no way reflects on the operating performance or financial integrity of HP. I expect that the company will continue to be successful in the future. SAP accepted that its subsidiary, which has now closed, illegally accessed Oracle intellectual property. However, after a brief review, HP decided their PC division was too integrated and critical to business operations, and the company reaffirmed their commitment to the Personal Systems Group.
On September 22, , Hewlett-Packard Co.
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