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3COM

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3Com (NASDAQ: [COMS]) is a manufacturer best known for its computer network infrastructure products. The company was co-founded in 1979 by Robert Metcalfe and is headquartered in Marlborough, Massachusetts. The name 3Com comes from the company's focus on "Computers, Communication and Compatibility".

Contents

History

Robert Metcalfe invented Ethernet at Xerox PARC, and subsequently co-founded 3Com in 1979. 3Com began making Ethernet adaptor cards for IBM PCs and a range of software and PC-based equipment to provide shared services over a LAN using XNS protocols:

3Com's expansion beyond its original base of PC and thin Ethernet products began in 1987 when it merged with Bridge Communications. This provided a range of equipment based on Motorola 68000 processors and using XNS protocols compatibly with 3Com's Etherterm PC software. They acquired: They merged with U.S. Robotics in 1997, which made Dial-up access and included Palm, Inc. The modem business was rapidly shrinking. 3Com attempted to enter the DSL business, but was not successful.

In August 1998, Bruce Claflin was named COO. In March 2000, with stiff competition with Cisco, 3Com exited the high-end router business, upsetting some of its customers.

In the server Network interface card business, the more lucrative part of the NIC business, 3Com remained second in market share, after Intel. 3Com never managed to beat Intel with its own products or even with joint ventures with Broadcom. It started developing Gigabit Ethernet cards in-house but later scrapped the plans. Engineers who worked on the project either left or were fired. Later, it formed a joint venture with Broadcom , where Broadcom would develop the main ASIC component and the NIC would be 3Com branded. The venture fell apart some time later and 3Com had no longer the talent to pursue Gigabit Ethernet on its own.

In July 2000, 3Com spun-off Palm as an independent company. After the IPO, 3Com still owned 80% of Palm but 3Com's market cap was smaller than Palm's. U.S. Robotics was also spun out again as a separate company at this time.

3Com tried to move into the smart consumer appliances business and on June 2000, 3Com acquired internet radio startup Kerbango for $80M. It developed its Audrey appliance, which made an appearance on The Oprah Winfrey Show. It scrapped both products less than a year later.

In January 2001, Bruce Claflin became CEO. At this point, the company's main cash-cow, the Network interface card business, was also shrinking rapidly, mainly because the functionality was integrated into the southbridge chipset. The company started slashing or selling divisions and going through numerous phases of RIFs. The company went from employing more than 12,000 employees to less than 2,000.

In May 2003, the company left its Silicon Valley Santa Clara headquarters for Marlborough, Massachusetts. It also formed a venture with Huawei whereby 3Com will sell and rebrand products under the joint venture.

In 2003, 3Com sold its CommWorks Corporation subsidiary to UTStarcom, Inc. The CommWorks subsidiary was based in Rolling Meadows, Illinois, and developed wireline telecommunications and wireless infrastructure technologies.

In January 2006, Bruce Claflin announced he will be leaving the company.

Note: As of February 2006, the Rolling Meadows and Santa Clara locations will be downsized and then eventually closed before the end of 2006.

Products

See also

References

This article was originally based on material from the Free On-line Dictionary of Computing, which is [Foldoc licenselicensed] under the GFDL.

External links

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