HP

The founders of HP

Bill Hewlett and Dave Packard graduated in electrical engineering from Stanford University in 1935. The company originated in a garage in nearby Palo Alto during a fellowship they had with a past professor, Frederick Terman at Stanford during the Great Depression. Terman was considered a mentor to them in forming Hewlett-Packard. In 1939, Packard and Hewlett established Hewlett-Packard (HP) in Packard's garage with an initial capital investment of US$538. Hewlett and Packard tossed a coin to decide whether the company they founded would be called Hewlett-Packard or Packard-Hewlett Packard won the coin toss but named their electronics manufacturing enterprise the "Hewlett-Packard Company". HP incorporated on August 18, 1947, and went public on November 6, 1957.

 

William Reddington Hewlett

 

 

William Reddington Hewlett (May 20, 1913 – January 12, 2001) was an engineer and the co-founder, with David Packard, of the Hewlett-Packard Company (HP). He was born in Ann Arbor, Michigan, only to move with his family to Oak Brook, Illinois when he was two. However, in less than year, his family moved once again to San Francisco when he was three, to where he spent the rest of his life in the San Francisco Bay Area. He attended Lowell High School and was accepted at Stanford University as a favor to his late father, Albion Walter Hewlett, a former faculty member at the Stanford Medical School who had died of a brain tumor in 1925.

Hewlett received his Bachelor's degree from Stanford University in 1934, an MS degree in electrical engineering from MIT in 1936, and the degree of Electrical Engineer from Stanford in 1939. He joined the Kappa Sigma fraternity during his time at Stanford. In 1999, the William R. Hewlett Teaching Center at Stanford was named in his honor. The building is located in the Science and Engineering Quad, adjacent to the David Packard Electrical Engineering Building.

Hewlett attended classes taught by Fred Terman at Stanford and became acquainted with David Packard during his undergraduate work at Stanford. He and Packard began discussing forming a company in August 1937, and founded Hewlett-Packard Company as a partnership on January 1, 1939. A flip of a coin decided the ordering of their names. The company incorporated in 1947 and tendered an initial public offering in 1957. Hewlett was president of the Institute of Radio Engineers in 1954. Also in 1939 he married Flora Lamson, and the couple eventually had five children: Eleanor, Walter, James, William and Mary. There are 12 grandchildren.

He was President of HP from 1964 to 1977, and served as CEO from 1968 to 1978, when he was succeeded by John A. Young. He remained chairman of the executive committee until 1983, and then served as vice chairman of the board until 1987.

A young Steve Jobs, then in grade eight, had called up Hewlett requesting ask a part for a frequency counter that he was building. Hewlett was impressed with Job's gumption and offered him a summer job. Since then, Jobs has considered HP one of the companies that he admired, regarding it among the handful of companies (Disney and Intel were the others) that were built “to last, not just to make money”.

In 1966, Hewlett and his wife founded the William and Flora Hewlett Foundation. Flora Hewlett died in 1977. In 1978, Hewlett married Rosemary Bradford.

He died of heart failure at Portola Valley, California, on January 12, 2001, and was interred at Los Gatos Memorial Park, San Jose, California.

David Packard

 

 

David Packard (September 7, 1912 – March 26, 1996) was a co-founder of Hewlett-Packard (1939), serving as president (1947–1964), CEO (1964–1968), and Chairman of the Board (1964–1968, 1972–1993). He served as U.S. Deputy Secretary of Defense from 1969–1971 during the Nixon administration. Packard was the recipient of the Presidential Medal of Freedom in 1988 and is noted for many technological innovations and philanthropic endeavors.

David Packard was born in Pueblo, Colorado, and attended Centennial High School, where early on he showed an interest in science, engineering, sports, and leadership. He earned his B.A. from Stanford University in 1934, where he earned letters in football and basketball and attained membership in the Phi Beta Kappa Society. Stanford is where he met two people who were important to his life: Lucile Salter and William R. "Bill" Hewlett. Packard then briefly attended the University of Colorado before he left to work for the General Electric Company in Schenectady, New York. In 1938, he returned to Stanford from New York, where he earned a master's degree in Electrical Engineering in 1938. In the same year, he married Lucile Salter, with whom he had four children: David, Nancy, Susan, and Julie. Lucile Packard died in 1987.

"The HP Way"

The founders, known to friends and employees alike as Bill and Dave, developed a unique management style that came to be known as The HP Way. In Bill's words, the HP Way is "a core ideology ... which 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." The following are the tenets of The HP Way:

1. We have trust and respect for individuals.
2. We focus on a high level of achievement and contribution.
3. We conduct our business with uncompromising integrity.
4. We achieve our common objectives through teamwork.
5. We encourage flexibility and innovation.

HP Timeframe

Early Years 

(1930’s)

The company was originally rather unfocused, working on a wide range of electronic products for industry and even agriculture. Eventually they elected to focus on high-quality electronic test and measurement equipment.

From the 1940s until well into the 1990s the company concentrated on making electronic test equipment: signal generators, voltmeters, oscilloscopes, frequency counters, thermometers, time standards, wave analyzers, and many other instruments. A distinguishing feature was pushing the limits of measurement range and accuracy; many HP instruments were more sensitive, accurate, and precise than other comparable equipment.

Following the pattern set by the company's first product, the 200A, test instruments were labelled with three to five digits followed by the letter "A". Improved versions went to suffixes "B" through "E". As the product range grew wider HP started using product designators starting with a letter for accessories, supplies, software, and components.

The garage, 367 Addison Avenue, Palo, California, 1939
Bill and Dave begin part-time work in the rented garage with $538 (U.S.) in working capital, consisting of cash and a used drill press. 

HP 200A audio oscillator
Drawing on Bill’s study of negative feedback, Bill and Dave produce HP's first product, the resistance-capacitance audio oscillator, used to test sound equipment. They name it the HP Model 200A. 

Ad for the HP200B audio oscillator
The Walt Disney Company ordered eight HP Model 200B oscillators to prepare movie theaters to show Fantasia

(1940’s)

HP’s first leased building, 1940
HP moves from the garage to rented buildings in Palo Alto.

HP’s new building, 1942
Construction begins on the first HP-owned building. Its open floor plan—designed for versatility—has the serendipitous effect of sparking creativity.

HP audio signal generator, 1940
HP enters the microwave field, setting the stage for future leadership in signal generators.

(1950’s)

Original 1954 Hewlett-Packard trademark

Al Bagley, head of HP’s Frequency and Time Division, with the HP 524A, 1951

HP invents the 524A high-speed frequency counter, greatly reducing the time required to measure high frequencies. Frequency counters and related products will account for billions in future revenue for HP.

 

Aerial photo of Palo Alto, 1955

The 1950s were a time of tremendous growth for both HP and the city of Palo Alto. The city’s population more than doubled during the decade, and the fruit orchards that characterized the town in the past were cleared to make way for highways, businesses and schools. Palo Alto was on its way to becoming the high-tech center it is today.

Bill looks inside an oscilloscope, 1966 HP produces its first oscilloscopes, which will go on to represent a significant part of HP’s test and measurement product line.

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 as the basis for the HP Way.

HP holds its IPO on November 6, with shares selling for $16 (U.S.). The IPO was issued for two reasons: to help with estate planning for its founders and to enable employees to share in the company.

HP headquarters, 1961
HP begins manufacturing in its first building in the Stanford Industrial Park in Palo Alto. The new site is innovately designed to maximize employee creativity and comfort. 

In 1958, Dave Packard typed up “11 Simple Rules” in preparation for the company’s annual management convention. Discovered in Dave’s correspondence file, these rules show his philosophy of work and life.

1. Think first of the other fellow.
2. Build up the other person's sense of importance.
3. Respect the other man’s personality rights.
4. Give sincere appreciation.
5. Eliminate the negative.
6. Avoid openly trying to reform people.
7. Try to understand the other person.
8. Check first impressions.
9. Take care with the little details.
10. Develop genuine interest in people.
11. Keep it up.

(1960’s)

HWP on the NYSE, 1961
HP is first listed on the New York Stock Exchange on March 17.

HP 2116A, 1966
HP introduces its first computer, the HP 2116A. The world’s first go-anywhere, do-anything computer, it is designed to withstand environmental extremes.

HP 9100A, 1968
HP introduces the world’s first desktop scientific calculator, the HP 9100A. It is ten times faster than most machines at solving science and engineering problems. Ads call it a “personal computer.” on the first documented uses of the term.

(1970’s)

Hewlett-Packard logo, mid-1970s

The HP 3000 introduces distributed data processing.
HP expands into business computing with the HP 3000, which introduces the era of distributed data processing. 

 

The HP-35 handheld calculator was small enough to fit in a shirt pocket.
HP introduces the HP-35, the world’s first scientific hand-held calculator. Small enough to fit in a shirt pocket, it makes the slide rule obsolete. In 2000, Forbes ASAP names the HP-35 one of the “all time products” that changed the world. 

HP-01 wrist instrument
HP introduces the HP-01 wrist instrument, a combination digital wristwatch, calculator and personal calendar. It is one of the world’s first personal information devices.



(1980’s)

HP’s first personal computer, the HP-85, 1980
HP introduces its first personal computer, the HP-85. The unit had input/output modules that allowed it to control instruments, add on more powerful peripherals and even to talk to other computers. 

HP 9000, 1982
HP introduces the HP 9000 technical computer. The first “desktop mainframe,” it’s as powerful as the room-size computers of the 1960s. 

HP’s 150 Touchscreen personal computer
HP introduces the HP-150 Touchscreen PC, allowing users to activate features simply by touching the screen. 

HP LaserJet, 1984
HP introduces the HP LaserJet, which quickly becomes the world’s most popular personal desktop laser printer.

HP Garage, California Historical Landmark 976, Birthplace of Silicon Valley
The birthplace of the company—Bill and Dave’s rented garage—is dedicated as a California Historical Landmark.

(1990’s)

 

HP rolls out a global corporate branding campaign featuring a new logo and brand identity focused on the them of “invent.”

HP OfficeJet, 1994
HP introduces the HP OfficeJet personal printer-fax-copier, the world’s first mass-market all-in-one device. 

Dave Packard
Dave Packard dies at age 83. 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.”

“We have tried to capture the spirit of the original HP in what we call the ‘rules of the garage.’ The garage is a special place for us. It represents that entrepreneurial, inventive spirit that is special about HP.“ –Carly Fiorina, 2000
 

• Believe you can change the world.
• Work quickly, keep the tools unlocked, work whenever.
• Know when to work alone and when to work together.
• Share—tools, ideas. Trust your colleagues.
• No politics. No bureaucracy. (These are ridiculous in a garage.)
• The customer defines a job well done.
• Radical ideas are not bad ideas.
• Invent different ways of working.
• Make a contribution every day. If it doesn’t contribute, it doesn’t leave the garage.
• Believe that together we can do anything.

(2000’s-2011’s)

Bill Hewlett
Bill Hewlett dies at age 87. HP employees, business leaders and friends around the world mourn the loss of a man described as one of the true pioneers and giants of the electronics industry

 

Hewlett-Packard Deskjet 3845 printer

The current two dimensional HP logo used on corporate documents, letterheads, etc.

HP's recent campaign, The Computer is Personal Again, features several celebrity endorsements, including a TV commercial with Gwen Stefani.

HP Presario F700 F767CL

On September 3, 2001, HP announced that an agreement had been reached with Compaq to merge the two companies. In May, 2002, after passing a shareholder vote, HP officially merged with Compaq. Prior to this, plans had been in place to consolidate the companies' product teams and product lines.

In 1998 Compaq had already taken over the Digital Equipment Corporation. That is why HP still offers support for PDP-11, VAX and AlphaServer.

The merger occurred after a proxy fight with Bill Hewlett's son Walter, who objected to the merger. 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. After the merger with Compaq, the new ticker symbol became "HPQ", a combination of the two previous symbols, "HWP" and "CPQ", to show the significance of the alliance and also key letters from the two companies Hewlett-Packard and Compaq (the latter company being famous for its "Q" logo on all of its products.)

In the year 2004 HP released the DV 1000 Series, including the HP Pavilion dv 1658 and 1040 two years later in May 2006, HP began its campaign, The Computer is Personal Again. 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 web site (www.hp.com/personal). Some of the ads featured well-known personalities, including Pharrell, Petra Nemcova, Mark Burnett, Mark Cuban, Alicia Keys, Jay-Z, Gwen Stefani, and Shaun White.

On May 13, 2008, HP and Electronic Data Systems announced that they had signed a definitive agreement under which HP would purchase EDS. On June 30, HP announced that the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 had expired. "The transaction still requires EDS stockholder approval and regulatory clearance from the European Commission and other non-U.S. jurisdictions and is subject to the satisfaction or waiver of the other closing conditions specified in the merger agreement." The agreement was finalized on August 26, 2008, and it was publicly announced that EDS would be re-branded "EDS an HP company." As of September 23, 2009, EDS is known as HP Enterprise Services.

On November 11, 2009, 3Com and Hewlett-Packard announced that Hewlett-Packard would be acquiring 3Com for $2.7 billion in cash. 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 2007, 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. Hewlett-Packard's latest move marked its incursion into enterprise networking gear market dominated by Cisco.

 The 2010s

 
A Hewlett-Packard Mini 1000 netbook computer, a type of notebook computer

On April 28, 2010, Palm, Inc. and Hewlett-Packard announced that HP would be acquiring Palm for $1.2 billion in cash and debt, In the months leading up to the buyout it was rumored that Palm was going to be purchased by either HTC, Dell, RIM or HP. The addition of Palm handsets to the HP product line provides some overlap with the current iPAQ mobile products but will significantly increase their mobile presence as those devices have not been selling well. The addition of Palm brings HP a library of valuable patents as well the mobile operating platform known as webOS. On July 1, 2010, the acquisition of Palm was final.[26] The purchase of Palm, Inc.'s webOS began a big gamble – to build HP's own ecosystem. On July 1, 2011, HP launched its first tablet named HP TouchPad, bringing webOS to tablet devices. On September 2, 2010, won its bidding war for 3PAR with a $33 a share offer ($2.07 billion) which Dell declined to match.

On August 6, 2010, CEO Mark Hurd resigned amid controversy and CFO Cathie Lesjak assumed the role of interim CEO. On September 30, 2010, Léo Apotheker was named as HP's new CEO and President.

Apotheker’s appointment sparked a strong reaction from Oracle chief executive Larry Ellison, who complained that Apotheker had been in charge of SAP when one of its subsidiaries was systematically stealing software from Oracle. SAP accepted that its subsidiary, which has now closed, illegally accessed Oracle intellectual property.
On August 18, 2011 HP announced that it would strategically exit the smartphone and tablet computer business, focusing on higher-margin "strategic priorities of cloud, solutions and software with an emphasis on enterprise, commercial and government markets" They also contemplated spinning off their personal computer division into a separate company. HP's fundamental restructuring to quit the 'PC' business, while continuing to sell servers and other equipment to business customers, was similar to what IBM did in 2005.

On September 22, 2011, Hewlett-Packard Co. named former eBay Inc. Chief Executive Meg Whitman its president and CEO, replacing Léo Apotheker, while Raymond Lane became executive chairman of the company.