An overview on history of Compaq (Now HPCOMPAQ)

Nov 13
08:30

2009

Hina Khan

Hina Khan

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This article is about the history of a computer manufacturer company COMPAQ,

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Compaq Computer Corporation was an American personal computer company founded in 1982. Once the largest supplier of personal computing systems in the world,An overview on history of Compaq (Now HPCOMPAQ) Articles Compaq existed as an independent corporation until 2002, when it merged with Hewlett-Packard.

The company was formed by Rod Canion, Jim Harris and Bill Murto former Texas Instruments senior managers. The name "COMPAQ" was derived from "Compatibility and Quality", as at its formation Compaq produced some of the first IBM PC compatible computers.

Prior to its takeover the company was headquartered in northwest unincorporated Harris County, Texas, United States.

Compaq was founded in February 1982 by Rod Canion, Jim Harris and Bill Murto, three senior managers from semiconductor manufacturer Texas Instruments. Each invested $1,000 to form the company. Their first venture capital came from Ben Rosen and Sevin Rosen Funds. The original Compaq PC was first sketched out on a placemat by the founders while dining in a local Houston restaurant, House of Pies.

Two key marketing executives in Compaq's early years, Jim D'Arezzo and Sparky Sparks, had come from IBM's PC Group. Other key executives responsible for the company's meteoric growth in the late 80s and early 90s were Ross A. Cooley, another former IBMer, who served for many years as SVP of GM North America; Michael Swavely, who was the company's chief marketing officer in the early years, and eventually ran the North America organization, later passing along that responsibility to Mr. Cooley, when Swavely retired. In the United States, Brendan A. "Mac" McLoughlin (another long time IBM executive) led the company's field sales organization after starting up the Western U.S. Area of Operations. These gifted executives, along with other key contributors, including Kevin Ellington, Douglas Johns, Steven Flannigan, and Gary Stimac, helped the company with the IBM Corporation in all personal computer sales categories, after many predicted that none could compete with the behemoth.

In November 1982 Compaq announced their first product, the Compaq Portable, a portable IBM PC compatible personal computer. It was released in March 1983 at $2995, considerably more affordable than the Canadian Hyperion. The Compaq Portable was one of the progenitors of today's laptop; some called it a "suitcase computer" for its size and the look of its case. It was the second IBM PC compatible, being capable of running all software that would run on an IBM PC. It was a commercial success, selling 53,000 units in its first year and generating $111 million in sales revenue. The Compaq Portable was the first in the range of the Compaq Portable series. Compaq was able to market a legal IBM clone because IBM mostly used "off the shelf" parts for their PC. Furthermore, Microsoft had kept the right to license the operating system to other computer manufacturers. The only part which had to be duplicated was the BIOS, which Compaq did legally by using clean room reverse engineering for $1 million. Phoenix Technologies were the first to follow their lead, but soon "clone BIOSes" were available from many other companies who reversed engineered IBM's design, then sold their version to the PC clone manufacturers.