Compaq

Compaq was a personal computer company founded in 1982 by Rod Canion, Jim Harris and Bill Murto. During the 1980s Compaq produced some of the first IBM PC compatible computers at a low-cost. The term "COMPAQ" is an acronym for "Compatibility and Quality". It existed as a standalone entity until 2002 when it was merged with Hewlett-Packard.

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1980s

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 partners. It is often told that the architecture of the original Compaq PC was first sketched out on a table napkin by the founders while dining in a Houston restaurant.

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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 competitors at the time. The Compaq Portable was one of the progenitors of today's laptop. 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 it's first year. The Compaq Portable was the first in the range of the Compaq portable series. Compaq were able to market a legal IBM clone because IBM mostly used "off the shelf" parts for their PC, furthermore Microsoft had also 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 reverse-engineering for $1 million. Numerous other companies soon followed their lead.

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In 1985 Compaq released the Compaq Deskpro 286, a 16-bit desktop computer using an Intel 80286 microprocessor running at 6Mhz and capable of 7MB RAM, it was considerably faster than an IBM PC and was, like the Compaq Portable, also capable of running IBM software. It cost $2000 for the 40MB hard disk model. It was the first of the Compaq Deskpro line of computers.

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After making half a billion dollars turnover, in 1986 Compaq released the Compaq Portable II. The Portable II was significantly lighter and smaller than it's predecessor, featuring a revised design with an 8Mhz processor and 10MB hard disk. It was cheaper than the IBM PC/AT at $3199, or $4799 with a hard disk. A year later in 1987, Compaq introduced the first PC based on Intel's new 80386 microprocessor, with the Compaq Portable 386 and Compaq Portable III. IBM was not yet using this processor, and subsequently Compaq established what is known disparagingly as the PC clone business.

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1990s - Present

In the early-1990s, Compaq entered the retail computer market with the Presario, and was one of the first manufacturers in the mid-1990s to market a sub-$1,000 PC. In order to maintain the prices it wanted, Compaq became the first first-tier computer manufacturer to utilize CPUs from AMD and Cyrix. The price war resulting from Compaq's actions ultimately drove numerous competitors, most notably IBM and Packard Bell, from the marketplace.

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In 1997, Compaq bought Tandem Computers, known for their NonStop server line. This acquisition instantly gave Compaq a presence in the higher end business computing market. In 1998, Compaq acquired Digital Equipment Corporation, the leading company in the previous generation of computing during the 1970s and early 1980s. This acquisition made Compaq, at the time, the world's second largest computer maker in the world in terms of revenue.

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In 2002, Compaq engaged in a merger with Hewlett-Packard. Numerous large HP shareholders, including Walter Hewlett, publicly opposed the deal. Michael Capellas, then HP CEO, left the company soon after. Carly Fiorina became the new CEO of HP and was in charge of the combined company. Fiorina helmed Compaq for nearly three years after Capellas left. During that time, HP laid off thousands of former Compaq employees, its stock price generally declined, profits did not perk up, and it continued to lose market share to Dell. Facing dismissal from a hostile Board of Directors, Fiorina opted to leave in February 2005 before the board could fire her. Many Compaq products were re-branded with the HP nameplate, while the Compaq brand remained on other product lines.

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1982: 1982 is a common year starting on Friday of the Gregorian calendar....

Rod Canion: Rod Canion co-founded Compaq with Jim Harris and Bill Murto in 1982, investing $1000 in the company. Before co-founding Compaq Canion worked at Texas Instruments....

Jim Harris: More than one notable individuals have been named Jim Harris:...