UPFRONT Editor: Brad Whitworth HP oroorucs play a heavy ro le An director: Annette Yatovltz In box-office smash

Associate editors: Betty Gerard Joanne Engelhardt

Contributors: mput 1 . -( u r u y ts maktng could view the overall effect of the pro­ Gregg Piburn h dltn ' r li n d the world. [Sl.'<­ posed graphics display at any given Karen Gervais C . t ory o n I I ~ • 16 by staffer Betty point in the script Gerard about HP's own efforts Il1 the The final images were' all created on a Circulation: field. J But HP also helped dramatize single design station using a desktop Kathleen Gogarty the problem through a supporting role computer connected wi th an HP 9874A in the movie "WarGaml.'s .. digitIzer on which the drawings were In the spectacular closing scenes of done. The large size (up to 18 feel) of the movie, rcnston builds in (he make­ the war-room screens meant the com­ believe U S defense command post puter graphics had to be photographed MEASURE Wall screens and computer terminals from a very high-resolution vector dis­ play (the HP 1345Al driving an HP "Man Is the measure of all thtngs ­ around the room !lash with Ihe chang­ 1336Adisplay lube, The huge mass of -Protagoras (circa 481·411 B.C.) ing pattern of approachlnu enern.... nuclear rnisstles drawings was stored on an HP flexible It's all a skillful illusion created bv disc drive. then played bark-s-one Measure IS published six times a frame at a time-bv three other desk­ year for employees and associates computer graphics consultant Colin top computers, each connected to a of Hewlett-Packard Company. Pro­ Cantwell, ustru; four HP 98-l5C desk­ motion picture camera by a 16-bil duced by Corporate Public Rela­ top computers along with other HI> iruerface. lions. Internal Communication equtpmern. These computer-corurolled camera Department. Gordon Brown. Colin and his firm . Crystal Chip. stations usually filmed three to four manager. Address correspon­ spent 10 months on the project. which frames a minute. 24 hours a dav, seven dence to Measure. Hewlett-Pack­ was a critical pari of the film's dramatic days a week-slowly exposmg the ard Company 20BR. PO Box 1030 l. act ion HfO designed and programmed Palo Alto. California. 94303-0890 haifa million frames of cornpuu-r 17.000 frames ofcomputer graphiCS required for each minute of action USA . Report change of address to graphics. which were then reproduced on the sound s tage. your local personnel department. on film and projected onto screens be­ hind the actors on the war-room set. "Un d er the gun of such lime pres­ Hewlett-Packard Company de­ What appeared to be l21argl.' ani­ sun'. it was important to use a com ­ puter system that was trouble-free and signs and manufactures comput­ mated wall maps were actually images could evolve the perfect version ofa pic­ ers, electronic test equipment. beamed from a battery ofsynchrontzed t ure as rapidly as possible."Colin savs. handheld calculators. electronic movie projectors located off-camera Colin, who designed t he ortginal mod­ components. medical electronic The many small terrninal screens els for "Star Wars" among his at her equipment and instrumentation showed similar images that had been screen credits, has long been an admi­ for chemical analysis. Manufac­ transferred to videotape. rer of the 9845C As a consultant to HP. turing facilities are located in 23 The mull tple images had to mesh he did the graphiC'S for the original U.S. cities in eight states and in with the dramatic action, so Colin first used the computer to draw 100 pages of demonstration package for the desktop 10 cities in nine countries In the rest of the world. HP sales and ser­ storyboard in order that the director when It was introduced in 1980 M vice offices can be found in more than 80 U.S. cities and ltncludtng distributorships) In approxi­ mately 200 cities in 70 countries around the world ON THE COVER Meet the HP 150 ... the company 's newest entry in a busy personal computer markel. The machine's mosl dramaticIeature is its touch­ sensitive screen which lets you poinl your way lhrough a corn­ puterprogram. Measure looks in­ side rIP's CompwerGroups at the changes the machine hascQused in the organization Cover photo by Tom Upton.

Hew1eff-Packard computergraphlC$ were usedIn a splashyway In '"NarGames" war room.

MEASURE HP's newest per­ sonal office com­ puter, featuring a touch-sensitive screen, puts the company in a fiercely com­ petitive market wherethere have already been casualties. But HP people around the world are betting that the new machineand the changes in the HP organization will provide just

When HP unveiled the HP 150 personal computer in September, the companyfound itselfin a market filled with uncertainty, competition and pitfalls the likes of which it had never seen before. HP tackled the challenges as if the company's future depends on it. In many ways itdoes. "Success in personal computers is absolutely essen­ tial to continuing in the business we are already in," says John Young, HP president. It's much like a set of falling dominoes. IfHP isn't successful in the personal computer market, itwon't be successful in the entire computer market. And ifHP

January-February 1984 lar for the HP label. knowing that it for HP's new machine. stands for quality and superior tech­ "Ou r objecuve in designing the HP nology. Market research had been in­ 150 was not to build another IBM per­ formal. based lar,gely on HP engineers' sonal computer look-alike." explains opinions of whether customers engi· TDm Anderson. general manager of the neers would accept a product under Personal Dtvisron in Santa consideration. Clara California The personal computer market has One important difference was HP's changed that With 1983 sales of about choice to USl' tWI n 3 1/. ·in ch floppy disc 7 million machines. the personal com­ drtves as the HP 150 '5 standard instead puter IS much more ofa mass con­ of an IBM compatible 5 1,.;-in ch drrve. sumer product But to the casual con­ The reason was simple The 3 1• ~ - i n c h sumer, there's a fuzzy line di\'idll1g drrves. made bv Sonv and mt roduced personal cornpu t ers for t he home (the by' HP more th ~n a year ago. are less ex­ Ataris , Colecos. Smclatrs and Comrno­ pensive than their larger cousins. use doresl from personal computers for It'S5 space. and have had a failure rate business lthe Il3M PCs. Apples and one-fourth that of the 5 'l,-inch drives. doesn't succeed in computers (now DECs). Part of the reason : More than Yet both dISCS hold the same amount of more than half the company's revenueI. 200 American companies now manu­ informat ion . it would hamper the company's overall facture personal computers. double the Hut the feature which most dearly performance. number ofonly two years ago. Dozens sets the HP 150 apart from the IBM PC Paul Ely. exe cutive vice president of of European and Asian companies han­ is its touchscreen the Computer Groups. puts it another also jumped into the market. Jim Sulton. an R&D secuon man­ way. "At some point toward the end of ager at the Personal Software Division the decade. personal computers will be ex plains that the touchscreen was ortgt­ our primary business if we are a suc­ More than 200 American com­ nally designed as an option. "Over the cessful computer company " course of the development of the prod­ To be sure. HP has had offerings in panies now manufacture per­ uct. we convinced ourselves first of the the personal computer market before. sonal computers double the value of the touchscreen and second of In 1977. HP established its commrt­ number ot only two veers ago our abilitv to manufacture it for a cost ment to the young industry by creating low enough to make it a standard fea­ the Personal Computer Operation in ture of the product, " the Corvallis {Ore~on) Division That Invisible beams of infrared light group's Series 80 computers. intro­ HP is aiming the HP 150 for the busi­ crisscross the HP 150's screen. When duced in 1980. have become one of the ness market. "Companies will put a your fingertip breaks both a vertical most popular in the technical and engi­ computer on every desk long before and a horizontal beam. it sends a srgnal neertng markets and serve as work­ there'll be a computer in every home." to the computer.just as if you d horse controllers for many instrumen­ says Srini Nageshwar. manager of touched a kev on the keyboard tation systems PeG's retail marketing program. One Industry observer reds HP's But confusion has overshadowed Despite the luzzmess in both the touchscreen goes bevond other point­ such successes, In addition to Corval­ company and the marketplace, ing devices such as the mice and light lis' Series 80. the Data Terminals Dlvi ­ Hewlett-Packard has had a .good track pens. "lts alrnost as If the touchscreen sion in Sunnyvale. California. was record. "We had more than 8500 mil ­ turns your finger into a conduit be­ cranking out the 100 series of personal lion in sales in [he personal computer tween'vour mind and the computer." office computers. while people in Fort market in 1982." C~TiI points oUL To take advanrage of the touch­ Collins. Colorado. were responsible for But to focus its efforts. HP set about screen. most of the software packages the 200 series of desktop computers for in early 1983 to revamp its product for the new computer were written with the technical market. thinking, modify the Computer fingertip control in mind. "We had several organizations in the Groups' organization. improve its For example. the first screen you're company that were somehow address­ dealer program a n d begin consumer llkelv to see when vnu [urn on the HP ing the market." says Cyril Yansourn. advertistng (see boxes about dealers 150 belongs to PA~1 (for Personal Appli­ now general manager of the Personal and advertising on pages 5 and 71 cat ions Manaaer). This software Computer Group (PeG). "but none of PCG decided to build [he HI' 150 to shields vou from rnernorlziria the doz­ them had it as their major focus. . microcomputer industry standards: ens of n'itty-gritty commands needed to In some ways. it was as if HP's the MS· DOS operating system and the run the computer's operating system. strengths were working against the Inte18088 microprocessor. both popu· With the touch of the finger. you can company. HP had become successful by lartzed bv Il3M's PC That decision choose programs to run. can copy files selling from engineer to engineer, Cus­ made it relatively easy for outside soft­ and discs and can load software, tomers had been willing to pay top dol ­ ware writers to rewrite their packages A Personal Card File program puts

4 MEASURE the familiar desktop rolling card file in­ side the HI' 150 computer, A~ you touch the on-screen "knobs..'1I1p card file spins to t he proprr spot in the alpha­ bet. Touch ('SSiOIlS in Septernbrr place- orders through local dealers. Trainers from Padfjc Southwest Atr­ StanII1g early this year the liP 150 lmes. who normally teach passenger will be tntroduced to markets outside agents how to handle irate I ravelers, lhe US 'Wu h the HI' 150. we CClIl enter showed HI' pr-oph- how [0

6 MEASURE LET'S MAKE A DEAL U'S a fact: Most personal computers for bustness are sold through retail stores. With the introduction of the HP 150 came a heightened interest in establishing a second-to-none dealer program for Hewlett-Packard. "In the past. the dealer channel was not essential to us," says Cyril Yanscunt. general manager of the Personal Computer Group (PCG]. "When we had to make a trade-off, it was always in the direction of our direct sales force ." HP had 420 outlets in its dealer network at the end of 1982. " Bu t many of them were not the optimal. mainstream dealers," says Alan Nonnenberg, former manager of the retail program and now major accounts manager for the Personal Computer Group. "Ofcourse, at the time. we didn't have a mainstream product either." Retail computer stores,like this one In Los Gatos , California, playan Important role In HP's The HP 150 helped change that. personal computer markellng plan, Today the machine can be found on the shelves of more than 600 retalI • Dealer training. HP now offers for all of HP's personal computer outlets in the U.S. The dealers range product and service training to the products. In size from small specialty com­ dealer's sales and technical staffs. • Stocking the HP 150. A new floor­ puter shops to international chains • DistributiOD, HP established a ing plan lets dealers work on a pay­ like ComputerLand. new central distribution center in as-you-sell basis with a third-party The presence ofthe HP 150 on Sunnyvale. California. The new dis­ credit company. The new plan also dealers' shelves has solved a problem tribution center's goal Is to have lets dealers stock systems free for 60 many HP salespeople were facing smaller orders on the dealer's door­ days, then pay interest on them for when they called on customers. "Our step one week after the order arrives. up to 180 days. Demo systems are direct sales people would calion the • Cooperative selliDg. HP will con­ ava ilable on consignment. people 1 0m. k the l!"cisions on centrate its direct personal com­ There's also a new mechanism In which r - nal eorupu ers to buy for puter sales efforts on about 150 place to improve the improvements. theircom pnn '. ~ I lnlnsAlan. "And large, national accounts. In those or­ Once each quarter. a group of 10 to those dec ision-makers would say, ganizations. HP will offer employee 12 dealers will meet with company 'I was in a computer store over the purchase programs run by local representatives to provide feedback weekend and I didn't see HP repre­ dealers. In all other companies. HP on products, promotions, HP's ad­ sented. How do you comparewith.. . sales reps will work with dealers. An vertising and other topics. This new "Wehad ignored the fact that incentive program encourages coop­ organization is called the HP Dealer those people were also normal con­ eration over competilion. Advisory Council. sumers on Saturdays and that • Dealer hotline. Technical ques­ "Werecognize that the dealer sales theyvisited computer stores. On tions from dealers about personal channel Is a major driving force in Mondays they carry those ideas computers. peripherals, software the personal-computer market today back to work with them." and operatlng systems come to a and in the future," says John Young, To earn shelfspace alongside the new toll-free hotline at PCG head­ HP's president. "With this new Apples. 18Ms and Dtgttals of the quarters in Cupertino, California. A dealer program, Hewlett-Packard is world, HP revamped its arrange­ second toll-free hotline (I-800-FOR­ striving to establish a Widespread. ments with dealers. Among the HPPC) handles general inquiries full-service dealer presence." improvements: about advertising and pre-sales data

January-February 1984 7

~w COIIII'Hl l l,_ ' w 'II lil t 111 II lill11 feat ured t h i- n ow-Iamou s light -bulb s fncethe p rodu ct w as introduce d lIlb Ih r 2001\ a nd th« 2ooc6have b't'e Jl Tile 2 0 0A audio oscillator. nanu-rl ])iJlt'II'JHT ~ us id«. t hr :200f\ unrl t lu­ usr- rl !o dt 'sign, produr« nnd mauua ui bv Bill Hewlct ( and Dave Packard s o It :lOneD s vru uo liz« excTJl t'!H (' III the au ­ u-lephones. s [efl'OS, rud io s a n d ot lu-r sou n ded as II their .voun ~ eo IIIpany 01'­ dio -ll'~tin g lkld Ma x s ay s thall i W,IS .u irlio eC[lupmcut, Icrcd

BILL'S BRIGHT IDEA When Bill Hewlett was a Stanford University master's candidate, he turned a light bulb Into a bright idea. Itwas so bright that from It the youngHewlett-Packard Company was born. Bill was working with a Wien Bridge oscillator, which was used to generate an output Signal and to test Hewlett·Packard Company's first product audio equIpment. such as radios wa s the 200A audio oscillator, and telephones. The problem with the Wien Bridge was that the output amplitude became unstable when varying levels of electrical current were transmitted through the in­ strument during testing. The solution? Insert a light bulb, The light bulb's resistance fluc­ tuated with the changing levels of electrical current In the oscillator and compensated for those changes. The result was a stabilized output amplitude and the beginning of one 8111 Hewlett holds this 1968version 0' the of the most successful stories in audio oscillatorthat launched HP. corporate history.

January-Febru ary 19H4 YOURTURN Invites Measure readers to comment on matte rs of importance to HP employees

nIght was cancelled the day before lT1\' WHAT WE HAVE /\ rruervtew IN COMMON There:' wasn't enough ume to arrange Over the- vears as I have moved from \. another comrnerctal night. so I drove a " position to position within HP, I have company' car-a three-hour drive each bee-n exposed to a vartety ofexceptional way. Although my \rip was pleasant. I Hewlett-Packard people. These people wonder if the SIX hours on tile road have cxrubued manv varied talents. would be offset by the "approxnnatelv skills and at t it udes. To help me keep 45 minutes" flymg lime? the HP wav" alive and welt in t he '80s Having been a civilian lest naviuator ta job we all . by the wavl. I have before coming to HI'. I was looking Cor­ used three concepts to describe their • ward to rnv ni ,ght. Perhaps another day. common attributes , D01'\ALD DHOZDENKO I . They art' professionals. aware of San .Jose their roles in the organization and thelr contributions to HP, Thev address HP's at'iar ion departmenl [nIH's a problems with honesty and objectivity ANOTHER BIGGIE nu rnber otiactors into C071siderufion and maintain high standards of per­ In the March-April 1983 issue of before de<:ioing ro cancel a.nighl: rile lO.ll~1 Iorrnance for the-mselves and those Measure I noted the "Small List Ill'Hnberqfpeop/e scheduled ill around them. eacll direCIlOrl, (he [I -cacher. cIte (ksri­ ofSome ofHP 's Biggesls. . 2 . They have a st rong sense of owner­ naHan and the 0 ircmfr beinu (lou'n This photo from my own memora­ ship about their organization and their At'ialion's Debbie Bl![fo expiciins "II 's bilia captures at least a better con ten­ responsibilities Quality is taken as a been a long lime since u'e'[,c /lad to der for HFs "blggest" product than pe-rsonal commitment. profitability is cancel a ROSel'lile.lliglll because Il'C those in the artlcle , a part ofe\'e'!' decision and a sense of didn'f hm'e enough people MOfe oltct: The sale was made at a trade show urgency IS brouuh t to eve'!' task Iho n nor. i(s r/l(' u'('whef ill CH drsruprs where I mel wuh officials of the U,S. ~3 . They view their positions with a government's Office of Telecomrnuruca­ our schedule " service Orientation, seeking to cre ate tions Policy (OTP). The following Mon­ a supportive. team environment in day HP had an order for a complete mo­ which an awareness of the strengths bile spectrum monitoring system: a and weaknesses or people around van complete with antennas. portable:' them can lead to a strong feeling or power and an HP 8580A automatic corurrbuuon by all members of the spectrum analyzer in a multtbay rack, organization This was then produced by the former I hope other liP people find these con­ Microwave Division. cepts usefu] in approaching t hei r jobs The system was used largely to collect JOHN J01'\ES data on government communicat Ion Santa Clara channel use. This allowed OTP to make best use of the available spectrum So for those people who ask ifHP Your HP airline art trle told us not to be makes or made the Packard aurorno­ surprised if we saw an airplane \\ it h 'HI' on the tall at our k)( al airport bile. vou can now answer. ':-/0 Hut Address le-tu-rs \'1<3 ('ompan~' we did sell a rather special Hewlett­ That reminded me of t his photo I've mail to Editor. Ml'a~llrl'. Public Packard motorhome " been savtnu of a plane used 10 demon­ Relat ions Department. Building REr:D OGDE:"! strate HP products. 20BR. Palo Alto \ 'ia rt'.gular Santa Rosa The modified DC-6B 1It'\\ m .Januarv 1969 to Hawaii :'I1e\\' Zealand Aus­ postal service. t he address is tralia. Asia. Africa and Lat in Ameriva .''''easufe. Hewlet t-Parkard Corn­ FLYING WITH HP with more than 100 mstrumerus. com­ pany 20BH PO Box 1030 I, Palo The article on 'HP's No-Fuss Airllne' in puters ami calculators on board Altll . CA 901303-0890 Trv to limit the November-December issue was verv I-:no Ci\\-i\LLl:\[ vour let ter to 200 words. Please interesting, Santa ({osa sign your Irl t er and gi\T you r Approximately one year ago, I was to locut ion Names will be withheld attend an interview at Roseville. Cali ­ on request Where a response is fornia. I was scheduled to I1v on one of mdlcatcd. the best available corn ­ the HP planes from San Jose:' to Rose­ pany SOUfC(' will be sought. ville and then return later that day. But because I was the:'onlv passenger. Ihe

10 l\lEASURE •

Star track~ ~':;;~~'";;r 'Alion Meyer checks the monitor lor the on-board telescope during an observatory flight. HP computers ., heipNASA program takeoff A 10-year-old converted cargo plane flies astronomical missions as part 01the National Aeronautical and Space Administration (NASA)Airborne Science Program.

A rnetcorologts ts b rainstorm put HP co llec ti ng weather da ta. on a p leasant collision course with T h e computerwo rked so welJ­ NASAs Airborne Science Program even while airborne-that NASA m ore than 15 years ago-an ass ocia­ pe ople' decided they'd like to h ave a tion th at has ballooned both in da ta processing system as part of scope a nd in the amount of HP hard­ their s tandard equrpment , wa re and software tlying scient ific "Alot ofus wanted to b uy r-om­ miss ion s around the world. pu te r eq uipment," recalls NASA's Tod ay, HP co mputer gear aboard Ca rl G illespie, who h as b een part of two NASA p lanes s tudies fa r-away t he program s in ce the 19 70 5 ..Be­ galaXies a n d dow n -to-earth weather ca use we'r e a govern men ta l agency, systems. It all began wh en a scien­ we h ad to go o u t for bids , Though ti s t from the God da rd Weather Satel­ HP"s b id was not the lowes t. the li t e In strument G ro up brought a n WInnin g b id ca rne from a small job HP 2100 with h im on board a Con ­ s ho p tha t u sed HP equi pment." va ir 990airplane u s ed by NASA for While a lot of the HP eq u ip rnen t is

Jan uary-February 1984 II ThIs artist's conception ot the planet Uranus shows the rings which Before-ryKuiper AltboJne Obserw1ory mission, the crew1NOrksup were detected during a flight of the Kuiper AIrborne Observatory. a tIIght plan (this one COYlH'S the western U.S.)on an HPcomputer. airborne. more can be found on the Over the vears, SCIentific teams all another abrupt dip occurred . then ground at NASA's Ames Research both planes haw made many signifi­ another. and another and a no ther." Center in Mountain View. Califor­ can t contribut ions to the Iields of On lv lat er did he realize that th e nia-home base for the Ili~hts, astronomy and meteorology sudden dtps we-re ca used by s had ­ 1\vo HP 2113 computers on each The Cv l-l l . known as the Kuiper ows of t h e rings of Ura n u s as they plane are the program's real work­ Airborne Observatory IKAOJ, is the passed over the telescope. horses. They do "housekeeping" flagsh ip of the program. A large hole More recently. a special camera chores like storing and ~eneraling in the side of the hull holds a 36­ at iached to the telescope took com­ Ilight paths. logging the atrcrafts inch-diameter reflect ing telescope purer-generuted. false-color photos action and keepmg the plane on [IS advantage over earth-bound iele­ of the space shuttle Columbia as it course, On the converted Lockheed scopes is the clearer mfrared image new past KAO for landing The pho­ C-141 cargo plane used for astro­ of the galaXies il can produce by los showed the temperature of the nomical missions. one of the corn ­ flying at altitudes from 41 ,000 [0 spccial t iles on the plane's \\"1I1g. puters stores the coordinates and 45.000 feet. body nap and fuselage magnitudes of more than 250.000 "Water vapor weakens the infrared Meanwhile. the missions flown bv stars from the Smithsonian. Astro­ signal. so by IlYlng above 99 percent the Galileo 1I (a Con va ir 9901 depend physical Obsemacory Starea/alag, of the rnorsture. the telescope is able h eavilv on the weather. The plane Then. on command. the computer to observe the infrared radiation looks for all k mds ofstorrns-hurri· produces maps of star fields. emitted by stars. planets. nebulae canes. thunderstorms , monsoons­ But the HP computers' most im­ and galaXies." says Cart and meets them head-on. "S c ien ­ portant tasks are controlling the The observatory's most famous tists r a il th ese natural phenomena on-board scientific equlpment and discoverv came III March 1977 when 'ta rgr ts of opportunity," says S a ra h collecting the data gather('d by the astronomers found that rhe planet Young o f General. I h e teams of flying astronomers. geolo­ Uranus had several rings This Imd­ co m pan y that provid es the data pro ­ gists and meteorologists. in .gca rn e as a surprise to all o n r t'ssin g support s ta ff for t he air­ - Other HP equtpment. both on the board Thev had trained tilt" tele­ borne programs "Som e t im es we d e­ ground and in the air. supports the scope on the planet that ni ,~hltoob­ cide to a lte r ou r Ilight plan midway primary computers An HP 2108 serve the eclipse ofa distant star, a n d sco u t out sur h a taraet." computer controls a video tracker. Cornell Uruversuy's James Elliott On a weather fact -finding trip, an 1\vo HP 7906 disc drives store pro· was the principal experuneruer on airborne la ser svsrern on board the grams and data Four HP 7970 digi· that mission : "T h tr tv-ftve rTl inu tes Ga lileo 1I fires a beam through the tal tape drives (mounted sideways in before the star was expecu-d to be air surroundlJl,ga thunderstorm the C-141) log data, And an HP covered by Uranus. the st ars light The laser scat u-rs t he dust. poll en 6942A multiprogrammer provides unexpectedly dimmed for a lew and small pan .cles in the air. By signals for the nyin~ scientists, seconds . a few minutes later. measuring the shift of the part Ides,

12 MEASURE t he wind vcloci ty can be de ter m ln ed Th e on-board co rnp u ter system pr ints the results 40 secon ds a fte r th e la se r scans th e skv, "Thes e s tu d ie:- s provide meteorol o­ gis ts wi th a more co m ple te pi ct U IT of what happens during a s to r m ," ex pla ins Sarah In 1979. t lie Galilee II was in Asia for a n internat ional s tudv of mon­ Jim Pantaleo and Sarah Young manage the data-processing portion of NASA's soons called MOl\EX (monsoon ex­ AIrborne ScIence Program on both the Galll~ II (used for weather exploration) and the periment), For two mon ths the plane Kuiper AIrborne Observatory (used to studv $tars and planets). took a variety of atrnosph eric read­ in gs : temperature, derisitv, pres­ s u re . h umiditv. ult ravl ol et sky radi­ THE SKY'S THE LIMIT ance, etc, The-dat a was used to im prove s hort-range predtcr ions of monsoon ra in fa ll, Wh en the EI Chicon volcano eru pted in sou t hern Mex ico in 198 2, it formpela sulfuric acid clo ud that now covers one-thtrd of the globe Scie ntists a board the Galileo II u s ed HP eq uipmen t to collec t da ta a b o u t the clo ud layer, "A 101 of the in s trume-nt a tion tha t we tes t la ter ends up a ll a s pace­ s h uttle missi on o r on a weather sal ­ ellue." says Sarah. "We're on the brink 01being ab le to underst and some of the larger interactions o f the Earth a n d its atmosphere," Lat ely a co usin of the Calileo [[ a nd th e Kuiper Airborne Observatory has been g rabb in g a lot of headlines IRAS. the Infrared Astronomical S at ellite (a joint developm ent ofthe Un ited States. the Netherlands a n d the Un ited Kingdom launched in J a nuary 1983] has m apped the s ky, Ex p la ins Carl Gille spie, "Beca u s e IRAS is in s pace where there is no water vap or. it has been able to look at things never see n before." But IHAS exhauste d its su pply of liquld h el ium a nd now is a pi ece of junk. "T he KAO will b e a ble to follow up on some of lRAS ' in teres una fin d­ ings." expla ins Ca rl. And t hat ma y produce some m ore sales for HP. . From th eir ex posure to HP prod­ ucts on th e a irbor ne observa tory. astronomer s fro m around the \\;orld h ave pu rc has ed HP gea r for their own observato ries Now I hal 's high -l1yin ~ pra is e. M

January-February 1984 13 CLOSEUP

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:'IIEASU! { E COLORADO BALLET KEEPS TOMKRANTZ ON HIS TOES If you 've s ee n "The Nu t­ crack er" ball et. you remem­ b er the enchan ted moment w h e n the toy nutcracker grows to person size. Something like that re­ HITMEWITH YOUR BEST SHOT ce n tl y happened to Tom At the picnic for HP em ployees in Frankfurt. Germany, one of this vear's most Krantz of the Engincning popular booths featured the photographic im ages of the sales h e~dq llart ers ' Productivity Division in Fort management staff. Collins. with the help of a The object of the game: knock down a manag er's photo for a prize. (J ust don't Series 200 desktop compu ­ try it at the offlcr- on Monday morntng) From left, lap row: Gerhard Beitz, Fritz ter a n d other HP product s . . 'h u llr-r, Wull~l1I~ I'lwk er, nit In Holfm n , iii gl~ll IIc 'Jl ~5 1J1MI1I L Iiotltlfll n l W Experim en tm g with soft­ ( ,llUl " f Z il: p,l. I\I. ll l~ , l n ll 1l"1. DII' l l' r I ~ '(' rlm lll il. 1>1 ' I r' f :-l 'hltJ5_.['r l1111l tIll ware normally u sed for en­ Weltzien. gineering g ra p h ics. Tom re­ created a c u n n i ng little nutcra cker from a r twor k originally designed by Con ­ nie Asher a n d used bv the Colora do Ball e t to prom ote Its rec ent Denver perfor­ manc-e of the classic Tom's w ife Sharon, who is on the ball et s taff, s h owed th e HP­ plotted n utcracker a t work - a n d Tom wa s asked if h e cou ld enlarge i l. Tom obliged by producing some images of a four-foot nutcrack er, using the larg­ est paper ava ilab le on the H-P 7585 plotter.

January-February 1984 15 Talk 10 folks around He-wh-t t-Parkard data \)a~es have mov eel out 10 smaller Computer security: about rlu- t re ndy SllbJI'l'1 1111 ornpuu-r computr-rs III offices. factory tloors and security and sooner or lat e: [11<' muvie home-s-s-and ensurme t hei r protection 'WarGaml'< is mcnt jOlled is a whole new game TIl(' celluloid .idventurv «t a It'l'n-; manual the broader unphcauons ot computer PUll uu; those iechntques tnio prac­ securtty lor H}" And what call \\'t' do 10 I ict' IS up io tocul manaar-meru happen protect ourseive-." wuh Corporate i nu-rnal audtrors Thc dilficultvw it h ut rempuuu a cOllllnl! around pertudically lO st ra i.L!;hlforward answer IS I he unpl ied t ake a look I challenge to computer rmsc -hrel -rua ker-, The lntormatlon S\'SIl'mS Steer- ~ atHP? who aft' likely (() be less bt'J,~llilillg t han in,1!. Cornmtt tee ([SSe.: l, which co ­ the vounu hern of War Curnes " ordmates HI's data processing Chances art' that if we puhhcly declare acuvttit's. recentlv formed a our i nternal coruputer sy:"ilems are sale permanent subcornrmttee on from invasion . we become an at tracuve computer securuv. larget And if we adnut i herc an' gaps Says ISSC chairman Carl Cott rell, in our defense we slill become an at­ "We hope 10 come up with spcritic mini­ rracuve target mum standards for computer se­ W1Jal is clear, however, I~ that secu­ curny rhat top management will rtty measures which are dornt; d cre-du­ buy into and that Internal Audit able job for Hewlett-Packard today WIll \\'111 use as a model." need tif!:hlrnlll,~in the future, ,\(TeSS 10 While tightloe-al-!ewl computer ' computerized Information IS beromtnu securny is important. It is not ~oing more Widely dispersed t hrouah tile to be enough to do thejob. Carl adds spread of personal computers and corn­ 'We're moving in the direction of puter networks The davs are ending public packet-swnch networks, when a mainframe computer and its which are not secure, and opening stored data could be secured bv means ourselves to more vulnerabtlitv, ofenclosure in a locked room Today 'Ifyou know you're part ofa .. ..· .·:~: ::t~J~\f::::::f ~)~}::~ 16 MEASURE publtc network, you'd better be vigilant.·· which department is the "owner" of the Raphael , manager of R&D information Bill Ashton, who manages all Corpo­ information and what capabilities each resources. expects to come up wrth a rate administrative systems. heads individual user should have. Different proposed set of audit guidennes for ISSC's security subcommittee. He sees degrees of control are established de­ R&D computing that \...·ill be meshed a balancing act. "working at increasing pending on the nature of the data. with the ISSC subcommittee's effort. the security of computers without los­ The Computer Support Division in­ "Worrying about securing our in­ ing people's ability to communicate and cludes a section on computer securtty forrnauon is a new idea for manv HP to do their jobs." in systems-manager training that it people, as for industry generally:," Bert "We're trying hard as a company to gives all HP 3000 customers. both in­ says. A new Scientific Computing Facil­ make it easy, simple and friendly to use side and outside the company. ity which is currently being installed at computers," he says, "but at the same The HP 3000 computer itself has the HP Labs in Palo AHowill have strict time we have to recognize that everyone ability to insist on the entry of a two­ administrative security. doesn't need access to all types of level password before permitting some­ 'There's a real danger of outsrde information... one to log onto a terminal. Regularly threats to securtty of research data." changing that coded password and explains Tony Fanning. who is now GUARDING ACCESS keeping it well-hidden from view are concentratingon aspects of R&D secu­ rity in Bert's group. "We want to keep In the professional area of finance. part of the human aspects of good com ­ puter security. out the browsers who arejust curious . strict controls have always been In one scene m "WarGames." the cur­ the hobbyists who find it a challenge to the norm for handling ledgers and money transactions­ rent password to the high-school com­ try to break m. the poachers who want to profit from tnformauon they gain manuallyorbycomputer. Simi­ puter is readily available from a scrib­ bled note on a desk. It is used by the and the destroyers who compulsively larly, personnel departments are teen-ager in the movie to break in to steal or con ta m in a te material." used to treating employee rec ­ ords with strict privacy. changegrades. Such direct access by But in the atmosphere of the outsiders via telephone lmes can be EVERYONE'S BUSINESS prevented if the computer is equipped R&D labs, the notion of placing Paul Haefner of Corporate manufactur­ with "dial-back" software. It works by restrictions on using the com­ ing systems, who oversaw the new sec­ disconnecttng the call and calling back puter as a software research tion in tile information systems man­ tool runs counter to the tradi­ to a previously approved telephone ual dealing with data security. sees tion of free exchange of number to double-check the identity of computer security as the business of the would-be user before allowi ng the promising ideas. Further­ everyone at HP. more. HP engineers are now en­ connection. "In the past. controls were the Some new considerauons come into couraged to continue theirwork away province of accountants and play when the computing equipment is from the lab through a computer home­ auditors," he says. "But when movable. A Corporate task force is com­ loan program. you're dealing with information pleting gUidelines for workstations. As one observer said. "Lab notebooks rather than numbers and physt- VI concentrating on the powerful new were considered pretty sacred and en­ cal controls. you 're talkmg '// HP 150. Savs chairman Luis Hurtado­ gineers didn't carry them home. Now about all aspects of our busi­ Sanchez."ir s obvious that the trans­ the lab notebook is likely to be in some­ ness and a more pervasive portability of the workstation and its one's home computer." issue. peripherals creates some physical secu­ At a best guess, HP is relying five to One of the company's mod­ rity considerations. Do you require 10 limes as much today on computer­ els for preventive security is property passes'? Record serial num­ ized informalion as it did a decade ago. the Corporate Comput­ bers? Engrave identification numbers? Perhaps 70 percent of the company's ing Center in Palo Anchor the equipment to a desk'?" business activity is dependent on com­ Alto (formerly known puters. The positions ofFISM (data "As to data security. users will need to as Bay Area EDP) . Doug DeVries. who processing manager in factories) and remember to back up files regularly and became responsible for its securttv in RISM/BISM (the counterpartjob in not assume that the long-lIved floppy 1978, is mentioned almost as fre- • sales regions and bran ch offices) have discs will last forever," he says. "Flop­ quently as "WarGames" in HP conversa­ been created in recent years to provide pies with sensitive data should be tions about computer security. He day-to-day management of compuling taken out of the machine and stored often serves informally as a consultant activity. under lock at night because they can be to othercompany loca"tions. carried away in a pocket. " Individual systems are assigned to The center is lhe hub for processing "sys tems managers" who determine Since R&D computing has boomed the company's critical systems for pay­ in the past two years. Corporate Engi­ roll. worldwide communications. order neering has also started to look at the processing. invoicing and accounts re­ exposure ofHP information in com­ ceivable. among others. puter files, focusing on R&D. Bert Data access to mainframes in the

January-February 1984 17 center is now guarded by a sophiSll­ cenuy invited systems sperraltst John less they are quite sophisticated," cated software secunty package (ACF2) Conry of Hlvwtrinersh to lect ure on At HP Labs. the Measurement and which lets a user write the rules for who various practical aspects of protecting Communication Lab 15 doing advanced can access mformation. Actual entry to computers and t heir data I cryptography research and data secu­ the huge central computer room is also A number ofother Corporate depart­ rity system design The information strictly controlled ments also han' a stake 111 vartous as­ and signa) processing depart ­ It took an investment ofseven per­ pects ofcomputer securuv, Lawyers ment under Kai Ylu has pro­ sonyears ofwork to bring the Palo Alto worry about prou-cunu Irunchtsed duced an encrypuon appa­ cornputrng center to its present level of software from unaurhortzed copying raLUSwhich can talk in real security. (Doug observes that a rule of Government Affairs keeps an eye on tim!" to HI' 3000s and desk­ thumb in the industry is that about tmpendtng laws and re!tulatlons in tops. It can also be used for one percent ofa facility's annual data the area ofcomputer data. Jim Harker. high-spet'd file encryption One processing budget should be spent on manager ofCorporate Industrial Sccu­ divtsion IS already coopcrat ing ill protecttng its computer assets.j ruv. is responsible for ill\'l'<;llgatln14any ihe projecL episodes ofcomputer crtrne. "TIl rough encrypt ion. we can . Whether it is ~ood luck or ,~oocl make sure thal both users arid __~ ._...~v~ .'::';;'. ' DISASTER PLANNING defenses. HI' has escaped headline­ messages can be authenucated." :::~ ~ :~:~::;' As part of that planning. the Loveland makin,e: breaches of its computer se­ Kai savs. "and an mtr uder won 't .:: :::~ .... Instrument Division's large EDP renter curity. There have bern some minor be able \0 understand the -::;:. .:::.., in Northern Colorado is kept ready to breaks. such as the servk-r engll1('cr scrambled messaue." He lll'lll'\'t's serve as a stand-in in case oferner­ who lelt t he telephone number and that a data security svsrern should be gency. The Loveland and Palo Alto cen­ password of the office computer \ tstble able 10 detect anv chance in data sud) ters have been testing their respective on his desk at hornc-i-und th(') \\ ound as substitution ·addition. deletton. or disaster procedures at each other's lo­ up on a . pirate bulleI III board- shared rnoditicat ion cations since 1980 by computer buffs. '"A dozen Corporate people will roll in But while the probabili l~ ofcomputer here over a weekend with all their tapes tampering is low. the poten t ial impact PROTECTING CUSTOMERS and equipment to construct a system on the company ts high As both a user and a seller of its own that is a look-alike to their own: savs Admittedly. providings('('urity for computers. Hewlett-Packard is doubly FISM Jim Hallock. The dtvtstons own networks of computers Will add an­ involved with computer securttv, processing is pulled off the computers other dimension. HI> is now committed Provided as optional equipment with to accommodate a run-through to set' to developing a worldwide mteract tve tilt' HI' :3000 is MO:"JITOH ~an interrne­ that all procedures are right to network based on x .25 packet (t'elmol­ dtare-level svstern that sits between the bring up critical Corporate sys­ o~v . portions of which will use public machmes :vIPE operattnnsystem and tems in the substitute location data networks. One consideratton: the the applications bt'ing run. Each rerrm­ "Lots ofpeople art' doing iso­ public portion will be shared wuh OUI­ nal has IlS own friendly name and can lated things very well." says HP side users be pre-set to start and stop at gi\en internal auditor Ed Miller, Hank Taylor. Corporate rommuruca­ times with a parlil'ular application. who pays particular attention lions and office systems manager, be­ Explains R&D engineer Steve Rhodes to EDP, [See box.I: We'd like lieves HP 'ca n narrow down the risk" In of the Manufacturing Productivity Divi­ to see these ideas made avail­ several wavs . sion, "~10~ITORalso keeps users from .' able to other entities as well ." "We can'!im it t!1r number of user ad­ wandering into sensutve transac­ ~ ':':-:-'" Corporate Internal Audit. ac­ dresses from which calls an' accepted. " nons-e-n controls passage from one ..»...... :...... :..:..'-"cordmg to manager George Ab­ he says, "To discourage invaders. the program to another.' bott. IS "not an enforcer but an awaken­ network will flag pat terns of repeated Another module. CUSTOMIZER. er" when it comes to both the physical short calls in addition to the HI> 3000's maintains the "dicuonarv" which security ofcornputers and their data password protection. We could also drives all applications and sets the "We see if people at a location are con­ reject collect calls." rules for data access. cerned." he says. "We don't look in their Wirn Roelandts. network R&D man­ To control installation of Its MPN desks. but we get uncomfortable if we ager for the Information Products software products. the division has de­ see sensitive printouts lying around .. Group. is looking at encrvpt ion-c-the veloped the Opt ion lnstall Program It Each location is expected to have a scramblingoftransmitted data-i-to uses an encryption technique to pre­ computer security plan and its own protect against intruders who mi~ht vent users who don't know the proper controls in place to ensure the conunu­ tap into lines between computers or be ­ keys from installing options they ity ofprocessing and the integrityof tween a computer and terrnmals. "You haven't purchased. (It also allows HP data. can do encryption fairly simply with applicalion designers to add options to (Interest in computer security is computers." he says. "but it is also pos­ their products in a modular way.) shared bv HP's outside auditors. Price sible for computers to crack the mathe­ Ed McCracken, general manager of Waterho~se'sEuropean auditors re­ matical al,gorithms that are used un­ the Business Development Group. be-

18 MEASURE lieves that from 1l 0W 011 the co m pany will increasingly perform s ecurt tv audi ls on ihe co rnp u te-r products lhal it hi illgs 10 market . "/\.s systems become more opera­ tional ~p errorlllillg funclions beyond handling Iin ancial data- our custom­ ers will be even more COIlt'lTlled about securtty of their computers "T h ere's a dtchotomv between the need for our systems tobe more secure and more accessible at the same time. It IS a chall l"nge that we must address very seriously in our hardware and software products .. Can Hewlett-Packard itself avoid a "WarGamest tvpe of in vaston in a world filled with pirate bulletin b oards list ing cornpu le r access in formation? Bruce Woolpert of the Personal S oft­ wa re Division, who ove rsees thc HI' DESK electronic mail network in the L:.5 ., sUg.L(es ls a sun ple d efense. "T h e Slate of th e a rt in co m p u te r s ec u r rty ri ght now is m anaging information care fu lly and not being ca reless." he declares. "It's all very well , and necessary. to lock the com p u ter room a t night a n d to limit access 10 account s trucl ures But leaving passwords vixible or iermtnals logged on while you're at lunch is like leavlng your cred i l cards lying around." In the real-ltfe world. Hewlett-Park­ arcls trudit ional openness has to he tempered when it rnmes lo the busi­ ness of protccting computer aSS I ~ ( S M

January-February 1984

ou have grown weary painting tl ll llf J d Parl Ir ' " S ' 11 ' :'>. You decid e to nlts t tn rhc Fr .11 h 'F' II" l~ n Le .iou . T Ill' .. r Is I I . . -La nding In lin e: wnh til r h ungry urtlst s, you ~o thrung h Irlou. p h)' '1(.11 x- mn rnauon sro prevc whether \ iu HrI' !W lth ' l' Jl m J ~ h for til rt­ J!OI: ' rthe l. ( · ~l o n . u t'of the co r­ t ner ol vou r.cve vou n ouce a d j ~ U II ' gUished-looklng gentleman approachingyou. He has a perforated wooden cylinder s tu ck in his ear, "Strange... very strange," you think to yourself. Suddenly, the man thrusts the wooden cylinder again s t your bare chest-the other end still planted firmly in his ear. Willie Mitchell puts a shine on the metal parts of HPstethoscopes at the Waltham Division. " 0 mon Dieu, sacre bleu! Whai are you doing, monsieur?"you ask. "Pipe down and breathe. you Idiot!" the man shouts. "You surely must nearly 50 years when a Sanborn Com­ "About three years ago. other compa­ know who I am-Rene Tbeophtle Hy­ pany engineer. Maurice Rappaport, nies realized HP was reaping the bene­ acinthe Laennec-the father of chest combined efforts with cardiologist fits of this upper-echelon group wl th­ medicine." Howard Sprague to develop the first of out having to face any substantial "S'Il-vous plait, Rene, what is that what has become known as the Rappa­ competition," Colleen adds. That is no thing sticking out ofyour ear?" port-Sprague stethoscope. Hewlett­ longer true. "Other companies are now "This, monsieur. is my latest inven­ Packard acquired the Sanborn Com­ puttmg out high-precision stetho­ tion," Rene replies. "I call it a monaural pany and its stethoscope in 1961 . scopes with top marketing efforts. " stethoscope." Unlike fast-changing computer tech­ The HP 280 is now sold almost exclu­ Thechances of h aving a modern-day nology. the stethoscope has remained sively by more than 90 distributors physician approach you with a wooden basically the same for years, according throughout the U.S. Many are medical cylinder in the ear are slim. Today doc­ to Bob King, manufacturing engineer school bookstores or medical-surgical tors use the familiarbinaural stetho­ at the Andover Division. "Th e design supply houses. scope-two flexible rubber tubes and mechanical workings of the HP 280 One aspect ofHP's instrument that attaching the chest piece to spring­ really haven't changed for manyyears," has helped keep it at the head of the connected metal tubes with ear pieces. Bob says. "There has been no need to class is the finish the metal portions On close examination. you might improve its acoustic quality." receive at the Waltham Division. notice that the stethoscope is manu­ Instead, HP is looking for ways to im­ "We thought it (a fine-jewelry finish) factured by Hewlett-Packard. prove the HP 280's durability and com­ couldn't be done,"said Gene Fournier, The HP 280 Rappaport-Sprague fort. "Westill receive some letters from fabrication section manager. "But we stethoscope is the company's lone entry doctors who would like the ear tips to fit managed to accomplish the task in the binaural stethoscope field. Ac­ more comfortably," Bob says. through the fine efforts of metal fin­ cording to HP marketingstaff engineer While the technology and instrument isherWillie Mitchell." Colleen Janick, the HP 280 is the "Cad­ itselfhave changed little in recent The basic s teps include polishing the iliac" of the stethoscope marketplace. years, the marketing of the HP 280 has metal, buffing it and coloring it again Andover Division has R&D responst­ seen sweeping changes. after it is plated. Willie knows the steps bili ty for the HP 280 while Chelmsford Colleen sr y~ that before 1980 HP had by heart. He's been doing them 20 (an operation of the Medical Products the top end of the stethoscope market years. "I've been doing it for so long I Group) markets the product. all to itself. "Specialists and top profes­ think I could do it with my eyes sh u t," Laennec's wooden cylinder and the sionals came to us to buy the HP 280," he says. "They asked for ajewelry finish HP 280 have the same basic function : she notes. Meanwhile many nurses and and they got it." M listening to sounds produced within medical students for the most part the body. chiefly in the heart and lungs. chose to buy low-cost. limited -applica­ The ancestry of the HP 280 goes back tion stethoscopes,

January-February 1984 21 JOHN YOUNG HP's p re sid ent descr ibes the company s year-e nc res ults and the HP Bo ar d 's Far East trip

t' \T n ow dosed IIll' books on fi scal veal' I D l:<~, and we Ca n look back at las: y ea r 's r{'..,tllts wi th some sal isfa e t m n , pan nul.u lv 111 ligh t othow m any oro u r co mpet u o rs Iarr-d O u r Iour i h quu rr e-rwa-, 01 r r-r-o r d­ b reakm u o n e . WIth both ord e rs a n d s h ip m e n ts a t a ll-ti me h i~hs Ior I Il ' ThIS s tro n u last quarter co rn r tb uied 10 total orders o r ~ ..L9 billi on lo r t ill' vear. up 18 perccnt Irorn 19'<;2 , S h tp men t-. grew b y 12 p ercent , a n d ean) jIll!;; t racked tho s e well With a n mrrea xe of 1::1 p erce-nt John Young poses with emplovees on the Ironl sleps 01 Samsung Eleelronics-HP's T h e improvement olt h e U S, t'I'OIl' Independent sales operation in seoul, I(orec, orny is refl ec ted in the '27 pe rcent g row t h in d omestic o r ders, lnu-r n u­ This P~l~l IT;I r ~ ( l-. o uu.Ii ll 1t'cl " 1lI1W d ­ dr -r ive-d troru t h r-, lell u s ..\ ::. .1 n -su l t. t ionall y, lh t:' recovery has been s lowr-r torts nil t os t alld «xpr-n-« t o n t rol -. Ou r wrvr S',(, 11 i-x.u nplc-, l ' \ «rvw h ere 0 1d ra­ E co n o m ic uncerta inty ruupled w ith ,I costs of J2.11ods __ old Inn "asl'd 1:Z p' r- m .u l( , 11 h lowv r e-d Iield-I. ulu re- I"d u -s , co n u n ued s tronl.!;c\olla r a nd t he result­ C'( ' 11 1 , ex:u Ily Ir ~ H k 1nJ.!. Oil r --alt-s I! rll\\ l it s h url ('l ln l t \ '1 h' 11llH's , re-dur I'd invcn ­ a nt increase ol H l-' prtres Otllsick tilt' Growth ill ad muustr.u rv-. 0.,1:- \I-; I ~ Illr it'S and lowered manutavrurtnu US .. contr rbu te d to a m ore mudcs t 7 just I pi-rr CIlI , I dk< I uu; .I r(''''' r.u n: il l I Chis \\'e \ ('us e d our ow n disir ib u u -d perce nt g row lh Il1IIP \ uu ern a tionul l ur u uj u ru l t h« p.w ott tor lilt' m .uiv --_1:- ­ uuorm.u ro n s v--ln ll --efl el'tiq'!v 10 man­ o r ders, T his d lsparitv of ordt-r ~rowt h le1JlS wr Insullnl III unprovr prrxhu n v­ ill!('llllr a SSt''''' .ind iHTllUlIlS r t'['ej \'a b lt' , p os es som e challen ues 1'01' us , as \\ {' 1[ \ ' in [Il l" .l rt'.l 0111' produc-uvi tv - ell'lil lt"tl as dollars 0 1 consider our int erna ti ona l c huru, It" .1 "O ll l h t' o t lu -r hand, 1I't' m .idv --I ro n l!, "dlt-s p tT 1 'llIplo~'IT vo m p.m vwr d c -i-- ha s k ey s t re ngth corn mu rncnt .... 10 OI Lr !a\ I) III ol!r ~lI1h .,1101\'n -- t t'.l d v im provement T h is \ rend We b eli eve' there a re some iH'1ious w« and uur rn .rr k vu n u ,« 1 11 ' I II<'~ 'I' l u- Lu u -r W ill co u t r i b ut l' III o u r ubi l i I ~ I II Co m prtc can take: to b e l tcr b alance OUf s.Lll's and t OSIS t;rt'I\- IJ\ '22 pnl nll .1Il11 , TH lu drr! III world m nr kct s va lue-ad ded activit ies ill ot h er cnuu ­ IllIT,'ast'd lu r nu; m uu r lil' ld .."Ii,·s jOlll' ..\ " .I wo rldw rd « ('o mp,IIIYI o rn p vt int; trt c s . The est ablishmen t o l m o re Idt'lli , ,1" \ \TII ,IS S1I'Pf )('(\-ll p dclI IT I I:' I Il!.!, \\ t' u i wnrld w irlr m.irkr-ts ; HI' h a s marr, ti es in markets where we puruc ip a lt' m.ul« l!lese u ivv ... uncru __ w n h a \ 11'1\ tl' -..1IT rl!2: I!JS 10 <'ill I upon I have tour lie-d will enab le u s to cr ea te m ore value lo ­ t l1<' 10 Ill':' n -r m . ,LI1cl I t h m k W I ' .ITT nl­ on o n lv .,III('" " ,orlt'IlI('tlIH'r"oll,l l lUl h t' ('('o p lt' S I·/,t-pllblll til ('billa alld I All of HP's product g ro ups re po rt ee! IOll1plltl'f" -l h c prodIII 1 1... 011IO.t , J lC lll~lJ l ~-f)1IIlln,:,11 1 be 1lHl'rt'.,[t't! in \\'hy increased sales d u rill~ 1~ll'<1 ('OIl1PIJl('f SIIOIl!.!, ... 1.11 1 () ilr(lt-a1t' r p r' l!..:.rarn 1'-(1<- ­ Wt' ('h o s t" (h.ll 1m ,tI(' _ sales ,grow t h or 14 ptTt'l'llt jU St I Mr d ~ \'t' lnplnJ2. ,1111'.1<1 0 1" SI I1t'd ll ll·. ,In c! m,lJor The I ! j ,~ : ~ illlt'rn'lllfllldlllll'tlirn.( , lIk e o u t paced insl r u m e n l ~ ro \\ ' l h 0 1- 11 pn , sol"I\\ ;lI'" --llPP!WI __ h .ll e s lt:lInlllp lo [ 11(' or It · III E urope lIlt' P I'l '\ ' l ous~'('ar ('e ll l. a lthou gh o u r Ill strumeJ)[ peo p1l' ,ll la p l trH'ir prtl~r,l ll ls 10 ll '-t' thl' dt' Ill0nst rdtes t ilt' ia ll l ll a l lll 'I... a will b e qUi ck to POIllI n u l thatlht·\' led t'lIhall('l'111l'1l1" 01 I ll' Tot \l II \1'I rJt!ln tlt' ('()[ll p a n y \h'llal'e opera, the fourth qllarterwllh a I' e r ~ ' st r;Jllt; ..\ S('('lilldslr:llt'gll dl rc ( 1\(111 hil-- beel1 l JO Il:' l U,,!I)[l1('fS and c'llln pC( Ilors :11 p ercellt grow th !\kcllcal and allah'l ­ o u r t'lll p llil"h '.'1 1ljll ,i1 I[\ . 1--.\ ('olllp el i- Ih ro ut!llo1l 1 t Il l' \~ 'or ld OIlt'lll lrp os(' lcal produ cts ex per ie n ced groWl h r a It's Ii\ t' t'!I' IlH'1l1 ;111<1 t ill' llll r,'.ts l'l1proellll ­ 0 1o ur Fa r E a Sl {our \\-as tu r e\'le\\' our o f 10 and 5 percent respect i vel~' t in l\' ~llll l cosI I Ol11jJl'li11\ {'I H'S-- \ \'1' 1J ~1 \( ' opt'rat lll ns a n ti o ppo rtll ll il ies inlilis

22 rapidly growing part of the world NE!SALES($ MILLIONS) FIVE-YEAR GROWTH IN NETSALES One of the most s trtkmg things 6,000 about the Far East is the consistency with which electronics has been des'i~­ nated as a strategic industry in each ­ country. with its success deemed vital 5,000 ­ to overall economic growth. Countries are pursuinga varrety of measures to promote the success of their own elec­ tronics industry. and one goal of our tour was to underatand the strength of .4 ,0 00 the competition we will be facing. A second motive for our visit to the Par East was to celebrate the 20th anni­ versary of ourJapanese joint venture. 3,000 ­ Yokogawa-Hewlett-Packard. As you may remember. we recently increased our equity position in YHP. and this will al­ low us to expand its role in our Asian operations. On a personal note. I was ~ .ooo pleased to be able to congratulate 'I1iP's employees for receivtng the coveted Deming Prize for qu ality late in 1982. It was a lso instruct ive for our directors to see Japanese quali ty procedures 1979 1980 1981 198 2· 1983 firsthand. Our stay in the People's Republic of China allowed us to view the opportun­ SALES GROW TO $4.7 BILLION IN FY1983 Hies presented by this vast and rapidly Hewlett-Packard Company reported 84.7 ]0 billion. compared with changmg nation. There we have the a 32 percent increase in net earn­ 84.189 billion for fiscal 1982. a ] 2 unique situation of having a 65-person ings and an 18 percent increase in percent increase. Net earnings were distributorship devoted solely to sales net sales for the fourth quarter of its 8432 mil lion. or S 1.69 per share on and support ofHP produc ts but en - 1983 fiscal year. which ended Octo­ approximately 255 mil lion shares of t irelv within the Ministry of Electron­ ber 31. Sales totaled $1.:330 bil­ common stock outstanding. up 13 res. We had fruitful discussions with hon-e-the highest level for any quar­ percent from $383 million. or81.53 members of the government. including ter in the company's history, Orders per share on approximately 251 m il­ a one-hour private audience with Pre­ for the period totaled S 1.285 billion. lion shares in 1982. The per share mier Zhao. who will be visiting the U.s. also s et t i ng a record. amount for 1982 has been restated in January as Presrdent Reagan's Net earnings for th e fourth quar­ to reflect a two-for-one stock spli t in guest. The hospitality extended to us ter amounted to S 147 million. equal August 1983. was most gracious a nd gave us every to 57 cen ts per share on approxi­ Orders for the veal' totaled $4.922 opportunity to understand the r-om­ mately 255 million shares of rom­ billion. an increase of 18 percent plextty of an underdeveloped country mon stock outstanding. This com­ over orders of 84.180 billion durin~ with a planned eco nomy. pares with net ea rn ings ofS III fiscal 1982. Domestic orders totaled Certainly our Far East tour and million, or 44 r ents per share on $2.901 billion. up 27 percent over directors' meeting in China served a pproxima tely 251 million shares. las t veal'. In terna tional orders to reinforce in our minds the global during last year's fourth quarter. gairi"ed 7 percent. to $2.021 billion. nature of Hf' 's business. And that (restated to reflect lhe company's All lour business segments con­ is a perspective I would like us all 2-for-l stock split in August 1983). trIbuted to the record fourth-quar­ to have as we enter the year ahead. Fourth-quarter orders of $ 1.285 ter orders. Compared with fourth billion were up 26 percent over or ­ quarter 1982. the computer prod­ ders of$I.023 billion during the ucts segment was up 26 percent, fourth q uarter of 1982. Domestic or­ electronic lest and measurement ders amounted to $789 million. up was up 3 1 percent. medical elec­ 33 percent from the year-ago quar­ tronic equipment was up 6 pe rcent ter. while international orders and analytical instrumentation gained 16 percent to $496 million. was up 16 percent. For the fiscal year. sales totaled

January-February 1984 23 NEWSCLIPS Recaps the newsworthy events. changes and achievements within HP.

FOURTH QUARTER who relocates this January to start pherals Bristol Operation. Mike Matson Hewlett-Packard ended FYB3 in fine up the activity in temporary quarters to the Microwave Semiconductor Divi ­ style. with a 32 percent Increase in net shared with the Computer Peripherals sion. Casey Cornett to the Manufactur­ Wol(~ang earnings and an 18 percent Increase m Bristol Operation. Chuck Tyle I' will suc­ ingTest Di·vlslon. Flender to net sales for the fourth quarter. Sales ceed Hammond as director of the Physi­ the Bobltngen Engtneering Operation. totaled SI .330 billion-the highest cal Research Center ... Two new labs level for any quarter In the company's have been created within HPL's Com­ NEWPRODUCTS history. For full details and a report on puter Research Center. Ira Goldstein The new Controli 1000 industrial auta­ year-end results. see page 23 of this heads the Application Technology Lab­ rnation system from the Data Systems Issue. oratory. while Erich Neuhold directs DIvision'adds the high-pt>rfornlance the Information Management HP 1000 Model A600 computer and a CHART CHANGES Laboratory. new software package to the HP 2250 1\vo operations of the former Optoelec­ measurement and control process tronics Division have been elevated to LEASING CHANGES from the Loveland Instrument Dtvi­ division status. replacing the original Increasing customer interest in leasing sian. .. The HP 41 CX calculator from OED. The former Visible Products Op­ HP equipment has led to formation of the Portable Computer Diviston is erauon now takes the OED name. with two new entities. The Financingand billed as the most powerful advanced Mike Cowley as general manager Rick Rernarket ing Division wi thm BOG con­ calculator on the market. With clock Kniss is GM of the Optical Communica­ solidates marketing and admin for all and calendar functions. text-file edit­ tion Division (formerly the Interface leasing and for resale of HP computers. ing and extended memory. Su~ested Products Operationl.... In the Business OM is Don Schmickrath. Also new is U.S . list price IS 8325.. . From the Lake Development Group. the former Busi­ the Hewlett-Packard Frnance Company. Stevens Instrument Die tsron : the HP ness Development Center has been in­ a whollv owned subsidiarv which 3577A network analyzer which offers tegrated into the Application Marketing serves as the intermediary borrowing high accuracy and resolution over the Divtston (AMDJ and Systems Markeling funds to finance customer leasmg of HP 5 Hz to 200-MHz frequency range. and Center (SMCI . Joe Schoendorfbecomes products. It will rnanage its own portfo­ the versatile. fast HP 3561A dynamic­ GM of the latter. with Ed Hayes moving lio . Manager is Joe Barr. signal analyzer.... Vancouver Division to GM ofAMD. Newly added 10 the Bust­ has announced four new printers in ness Development Group is the Engi­ NEW HATS the HP 2930 family. Thev have irn­ neering Productivity Division. formerly Bob Rogers became region manager for proved print quality at a-decrease in part of the Computer Products Group. the Midwest Sales Region on .Janu­ price of as much as 50 percent. .• A trio (See "Leasing" on this page for other arv 1. . .. Ernesto Kolster is GM of HP of new industrial terminals (HP 3092A BDG news.)... •Bob Wayman has been Ve"nezuela .... Max Fallet has trans­ and 3093A and HP 398lAl from the named Corporate Controller succeed­ ferred from Boblingen to Palo Alto as Grenoble Networks Operation are in Ing Jerry Carlson. who has taken a manager of Corporate distribution. sealed. rugged packages for use in leave ofabsence.. ..Effective November Roger Grassel hasjoined HP as export harsh Industrial environments. ... A 1. HP South Africa shifted from lnter­ admlnlstrauon manager in Washing­ low-priced. compact Speech Output continental to Europe's South East ton. D.C.... Bill Murphy is now Per­ Module from the Roseville Networks Di­ Region. sonal Computer Group marketing vision can be used with an HP 1000 or manager. with Srlnl Nageshwar as HP 3000. It has a library of more than HP LABS ABROAD retail marketing manager and Alan 1.700 words and sounds... .The Per­ HP Is establishing In Stoke Gifford. Nonnenbergas national account mar­ sonal Software DIvision has developed England. the first branch ofHP Labs to keting manager In that organization. a VisiCalc3 program which runs on all be located outside Palo Alto. Director of ...Other new marketing manager roles: HP3000s. the new center wUl be Don Hammond. Derek Smorthlt to the Computer Peri·

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