THE INSIDE STORIES

FEATURES

Customer support-the 24·hoursolution 3 The Worldwide CUSlOl11lT SUppOrl Operations translates into a comprl i tin" ad\'anta,e:c for HP and ncarly onr-fifl h or f('\'C"IlLLC .

What a Mickey Mouse way to start a company 8 Oncr upon iJ I irne Bill and Da\'e sold their /irst audio OSCillators to Walt Disnev Co 10 make rnnl[Jsia: tht'n Hill

Palling together to win in the marketplace 12 It takt.'s 51 rategic alliancl's. joint \'ent ul"es and con~ort ia ror HP and IlS (('i;llllnW(es 10 cOl1lpetr SlIl'l'("SSflllly

Steve Martin-a wild and crazy HP fan 19 A former novice turned "computer head' has a passion for HI'

The"other" Apono landing 22 ThE' HPIApollo mergt'r crealrs a !l('W No.1 in works! at ions. DEPARTMENTS

page 12 ElrtraOrdinary People 16

Your1'llrn 20

Letter from John Young 25

ElrtraMe....ure 26

MEASURE

1::.1 nor l~r""'Jlhh dt"'-'~IIt'r (.tlllt ,-Un Illtr.,. l Hl ul.lIitHl Jay ("(l1,·m,1II ·1 hmrub.J_ BrOil'" U~ D'l'mh r) 1<01 ,~" Fla"",_", Shirl('\' Cillhert /\rt Din'l'lor: Associate editor: Jean Burke Hopp(> Annt't t (' Ya \m' j ['- lit-I l \' Gerard HailS KUt'nuil! rV1aurt'l'll SchiC'k~1

J\~1\::Sufe '~OuC'.'she-::J Sf) tlr. e~ G .,ee' :CI errOI;::... et:>s ';~IuO Ie Re'o' r ~ 'err,:: C;J'lIn\·Jn.ecl on Do::-(X;rtrno;>!'" a·o.:. .::... t.....o'" Mcr.3ge' j.aa·~S5 corr~DVnClerce ':::. ·,.fe-::,... ·'" f--1ewle" P3::k::;r:::COrT,pan, .!O?" C ?,(;, (1201 POI.;) :".1-:" Ce' ':.)rr:r:; 94.3JJ-JeQ:) page 29 UY- :d15J 857 .j1.lS ';:. ,Ol;r .eCJ' o,:;·r~::'cnr.~ occ..:::-trr,erl

Hew'el' Pac~oro C:mpt':;0, ~ Gr~ '1"'1el[,,01101"'01 rT'c"lU'acl'JI,?' c' rT>€CJsu'en'E:"n: ana ·:c,rnpul'J'18:1 p·c.-ouct~ one sys'elT,s recog'"1"ed TOI excelience Ir qclolltv ond supp:)'1 The CO"'l'OO'"1, S pr:xJuC:s ~)n,j ~er.'lce5 8f9 used In IndusTry tyJv'e~s engineer r'g SClenC0 'T1edIClr"'E' c'1d eduCO'lon In apprC~lmalely 10.] courilies ~ou'lded In mO. HI'" co,.O'O'''g ," 5'·"', acn"e"",, ·n" yee' HI' empl.)y, ma'o ,",an OJ DJO oeople woddw,do (!(';)

2 MEASIJRE .. ~ ......

"C'day, Bill." Ihe Aussic voice nC;lrly 8,000 miles away Customer craddl's OJ I I h e 01 her (' Jlei or I he Il'Iephone lint:, "G'day, mal ~ , " Bill DUll n allswers cheerru \ly, even Support­ I hOll,t!;h i l's the III iddIe of Lhl: a Itemnon on I he rOll rth of,J ulv a I I h t' MoullI

~'( ' I )I ' - I)II W I (JI 11,11t · 1 I ~)!~(' 3 "Irs like a n i nvesti~at or piecing together the eVidence. You focus in on the cus tomer's knowledge and your knowled ge of their system to come up with the right solution." BUlls part of a 15.000-person HP con ti ngent called the Worldwide Cus­ tomer Support Operations (WCSO ). How importa n t Is s upporl? HP service for equ ipment. systems and peripher­ a ls genera ted S 1.85 billion in revenue in 1988-19 percent of the compa ny's to131 revenue. But s uppo rt is much more than jus t a significant profi t center. It 's a way of life. "Go back to the corpora te objectives and you'l1 see that HP has had a clear focus on its cus tomers from the beg;in­ n ing."says Mike Leavell, formerWCSO vice p resident and general manager

"Support is an exciting business because it's

so diverse and HP custorner-educatton centers like Itte one (above) at WCSO ~dquarters in Mountain View, Icomplex." CaUlomla, help customefS gel the most !rom their networi< • . an d newly named d irector of U.S. Field About 1. 100 employees are in tht> Operations . "Ou r mission IS (Q pro.... ide WCSO's new Mountain View. Califor­ products and services of the highest nia, headquaners- a 450,OOO-square­ Worldwide Customer qua lity and the greatest possible value fool. two-building complex which on('{' SUpport Operations to our customers. and that enables u s \,..·as a shopping ('enlcr to get a nd h old their respect and loyalty. The faCIlity houses group head­ ataglance "Those a ren 't j ust words Bill Hewlett quarters. an HP Response Center. 15.000 employees a nd Dave Packa rd made up 30-some HP Customer Education Center. HP 32 response centers Hnklng years ago: it's a p hilosophy HP has MultlvendorSupporl Operation. the 400 supportoffices worldWide practiced for decades." Application Supporl Division. the 9O-plus countries And it's m ore than maintenance and Product Support Division and four $1.85 billion In revenue (19% of repa ir, Mike adds. Support encompas­ support research and development HP's total revenue fOT fiscal ses everything from helping customers activillCS. 1988) select the righ t s ys tems, installing the Lmked with 400 support offices sys tems. tra ining cus tomers to ensure and 32 response eenlers worldwide. WCSO structure maximum productivity and helping WCSO offers customers 24-hour-a-day. AppHcation Supporl Division maJntaln the systems night and day. 365-day-a·yt"ar support. Product Support Division "Support is an exciting business And when it ('om(>s to support. Response Center Operations because it's so divers e and complex." tht>re's nothing mor(> imporlant these Support Matertals Operation says Roger Costa. genera l ma nager of days than network suppOrl. Networks MultlvendorSupport Operation the Product S upport Divis ion. "We see Hnk a Wide variety ofequipment within SupportSystems Laboratory the full rangeofHP-R&D. manufac· offices and across ('Olllinents. Servic­ U.S. CustomerSupport turing. ma rketing and so for th . Tha t ing such diverse net\\'orks is. effect i\'t'ly. European Customer Support presents a n intellectual challenge to a competitive advantage. Intercontinental Customer Support kn ow and deal with all elements of the company."

" MEASU RE Giant car-rental company Hertz International uses HP's NetAssure support program to handle large rental volumes, process transactions faster and maintain high customer satisfaction throughout Europe,

HP's Network Support program, for your system over a maze of telecom­ InternatIOnal Ltd" "The payback we get example. inc1udes: munications services. from that investment is measured In How do you support such a web of terms of('ustomer satisfaction, how • Worldwide .Dpport~ HPcovers (he diverse products a nd services from fast we prQ('ess our transactions and world with consis tent. limeJy s upport. multiple vendors? By offering a range the fact we arc able Lo handle much of network-support services which cov­ more volume without adding a lot • Comprehensive services. It can ers all phases of a customer's network of manpower. " help ('ustomers through the planning. needs from d esign to Implementation. HP eqUipment and network support design and implementation phases. For example, one ol'these servIces also help keep the Singapore Stork is HP NetAssure. This gives customers Exchange operat ing smoothly. • MuitiveDdorsupport and problem a single contact point to identify and "In a trading day, we can do 8100 mil­ managemeat. HP plans multivendor correct problems- even if lhe problem lion to $200 million worth of shares in networks and helps Implement. main­ is in another vendor's eqUipment. a four-hour trading period, ,. says Paul tain and opera te them. "Basically. that mean. that HP is Phillips, data-processing manager for monitoring our lines and all ofour tele­ the exC'hange. "Irthe network is down • EzperieDce and expertise. In communications ha rdware." says Joe ror one hour, it could cause 825 million addition to its recognized leadership Bournat. management-information­ to S50 million worth of lost trading. in customer-support satisraction, HP services director for Hertz Europe Ltd.. which could transla te to hund reds of provides extensive training for its the giant car-renlal company. thousands or mtllions ofdollars worth network specialists. " In tht" event ofany failure:· he of commiSSions }os l in the industry. So notes. "HP has the capabilit y of identi­ it 's critical tha t the network be up the Specialization. If there's one word fying it and correcting it If necessary, whole day so we dOIl·t have these sorts thaI captures the contemporarychal­ t h ey will notify the local Hewlet t-Packard of problems.·' lenge ofcustomer support. that's il office on a ('ountry level a nd COHeet the In addition to ('tlstomer testimonials, Network systems today are like hlgh­ problem as soon as possible .. HP has a raft ofsurveys which support tech Tinker Tovs : start with a computer Adds Frcdy Dell is. president ofHert;.: Its Industry-Ieadrrship position. system made U'p of hardware and sort­ Based on results which HP compiled ware from a half-dozen or more ven­ from minicomputer surveys by Data­ dors, and then transmit the data in

September-October 19H~) 5 pro. a m a rkct-rcscardl firm. HP ranks No 1 among Ind u s try leaders In overall s upport satl s faclion for tilt' sixth con­ secutive year. S urvey results wert" averaged across S IX key cat('gori('s: m ainlrna n ct.' erfectiveness. mainte­ n a n ce respon s iveness, troubleshoot­ ing. documenta lio n education and sort w ar e support .

"Now we can examine our worldwide results and respond quickly I to those issues." While those surv('Ys provide some indication o f how HP stat'ks up Wilh its compe tilOf!:; , thn~ e company surveys conducted in each of lhe past two years provide m ore important results:

• Ayearly service-center survey asks customers i n the U .S .. Europe and A key to HP'$ support success Is the extensive training suppor1 engineers undergo. The Intercontinental Lo ra te HP on repair. training gives them the ability to think broodly about the root ot a problem. calib ra ti on a nd adminisLra tion.

• An a n n u al worldwide l'uslomer­ rrgion a nd local issut.·s-and rrspond s upport survey meas ures HP's ser\,jee qUi{'kly to those ISSU('S at t'ach le\'(>1 of In a reas s uc h as works tation and sys­ (he suppOrt organizal iOIl. · The high cost of te m ha rdwa re. software and rt'spons t.·­ With thc StlnTV ft.·sults. art'a mana­ losing a customer ce nte r s upport. a nd c us tomer-educa­ gers can foll()\\' lip wil h plans to addrcss tion services. sp("{'ific issu('s l·ustonlt.'rs han' raised. • For every customer who com­ "The surwys help us imprm'(' our ser­ plalns. 26others remain silent. • The corpora te l' ustomer-salisfaclion vices each yt.·ar. and help us idt'nti(v s u rvey asks customers worldwide and r('spond 10 spf'citic customer • 91 % ofunhappy customers will never purchase goods or services aboul H P's performann" in areas such nerds," Karla S3\'S as educational serviC'es . sales inlerac­ Keys to HP's Sl"a'{'('ss in the area of from you agaIn. tlons . informa tion and literature. prod­ CUSLOmrf ~llpport are Ihe peopk and uct documentation, deliver,' and cost the lraininl! they rec('iv(> as supporl • The average "wronged~ customers oro wners hip. " enginf't'fs. This gives them the abill [Y will tell eIght to 16 people. to 1h in k broadly abol! t tlle root of the "In the past. mos t countries and problem. says Hoger Cosla. • It costs about five Urnes as much sales regions condu C' trd nH"ir O\vn sur­ "Somet lines you expect Ihe problem to attract newcuslomers as it costs to keep old ones. veys." n otes Ka rla Williams. pro ,!~ ram is A and it t (Iros oul In he ' B' and 'C. manager for WCSO cus tom er-salisfac­ he expla illS..rr you dOll', han" Ihe Ira ill ­ • Solve customer complaints and tion s urveys. 'We did nol hal/t' a globa l in.l!and tlWAbihly {O look £11 Ihe lar.l.!er 82% to 95% will continue to make pICture ofHP's support performaTu"{' aspc(' t of I he problem. YO Il ('OIlld m is­ fro m the c u s tome r's vit'\\lloinl. Now \\'(' diagnos(' lht· r('al problt.-m ." purchases. ('a n exam in e our own worldwidr SUf\'t'\' (Source: Technical Assistance Research r{'sulLs 10 Iden tify worldWide. slipn Programs_ Washington. D.C.)

6 MIO ASURE .,11 '­

Atlanta, Georgia, houses five main support .unctions, including a North American Response Center, customer :~ , II ..'\. network center, eustomer-education center, application-engineering project center and repair depot.

[11 April. Marc I-[orl . gell('ral man<-l,gl'r "0111' goal is togiv(' ( ' \ l stoIlHT S IIII' VOl I I'all solve a llOllwr tit i rd jusl hy of lht' Apl)li('al iOlI SllPllOrl DiVisi(Hl. same h:vd of snpport ill Sillgapon', 'w,tlh.illg' lh('mlllI"(Hlgl} tlw'pltl,!!,r;11l1 ;1I11l01IlWt'd a IH'W soIIWiln'-:-,uppOI j ,Jap,1II and Paris 111 (1' they wotlld g(" ill S( 'P hy SII'P, Tilt, ot hi'!" IIIi rt I ,In' Inore program which kawr«.'s lltn·t o lewis (Imvillown S ail Frail( is('o or I.os AIIgf'­ {'omph'x prohh'lIls wltt'n' WI' Ir,v {O (IfS(TYil'(.' : It's." say., Mike L\' .. wt'll. duplicate tlw prohll'1ll the ('tlSI(JlIHT For G{'IH' IlntlOhklllltlLli l Wt' • HP BasicLine- ClislOlllns \\'il!J a l'll~iJLt'{'r a( t ilt" Nonll AlllLTi(yst('lIl ,llld dO(,lIIlH' lltallOll, or n:S(,llIlion oj soft­ laxed a ('t1j)Y 10 lhnu,' (J('Ill' says "0111' w;ln'l>rol)kJlIS. look <.H till' ('.\: lIl1p[(' ;md 111('.'1 kllt'w wl1<11 10

Srpll,[tllH r,( lclollt r I ~JWj 7 What a Mickey Mouse way to start a company Once upon a time, Bill and Dove sold their first audio oscillator to Walt Disney Company for the making of Fantasia, and then Bill and Dove and all 93,000 of their employees lived happily ever after. n lale 1940. Bill Hewlett and Dave thistles and orchids becolTIe- Russian he goes after the broom with an ax Packard were well on (ht'if\l,lay to dancers in Cossack clothing and and each splinll"'r becomes a maniacal I building their O\vn version of the peasant dresses. \vater-carrying broom, While Mickey Magic Kingdom They'd oul~rown the searches for the ant iciol e, Yell sid lh(' ,garage and all \""as Zip-A-OeC" Doo-Dah • In tllC' most famolls sequence, Paul sorcerf'r rf'"l urns 10 the castlE'. makes right with the world. Dukas· "The Sorcerer's Apprell t ice. ,. the \va\rr disappear a nd s\\-'at5 Mickey Ayear earlier. their very first sale Mickey Mouse borrows the sorcf'rrr's \\,.'ith the broom [or his 11115('hi('l". {Sto­ had been an ordn ofeight Model200R ma~i c ha t a nd teaches a broom to do kowski used Disney's own musicians audiO oscillators Lo Walt Disney Com­ his water-felching ('hores. As Mickey· for thiS one sequence,} pany. which was in the final strdch lazily room is nooded When bCl'omcs a fiery metaphor ror the crea­ Late 1940 was a litlie more tense for Mickey awake~ in waist-deep water. tion of E... rth, ('omplete with vokano{'s. Wail Disney. Fantasia had been (wo years and an astounding 52. 3 million in the making, It all slarted in 1938 with a Mi ckey Mouse short subjeel of "The Sorcerer's ApprentllT." which 10 fun Fantasia facts cost S 125.000 La make. To recoup lhis .. The sorcerer In Fantasia's ··The the hooves of the other centaurs, investment. Wall Disney and conduc[Qr Sorcerer's Apprentice'" sequence is Deemed "racjally sensitive,,. says Leopold Stokowsk1 deCided to make Ihe named Yensid. Hold tbat up to the David Smith. the images disap­ cartoon one part ofa iOllgr-r ('oncert Wicked Witch·s mirrorand see what peared from the film. feature . it spells. Fantasia premiert'd on November .. FantaSia Is a musical term ror a 13, 1940, at New York·s Broad\vayThea­ "' More than one mlllion drawings composition in a fanciful or irregu­ ter. one ofonly 12 theaters in rhe world were done for the film. That resulted lar form or style. specially equipped to run it with an In apprOXimately a 4.5-to-1 ratio expensive '·Fantasound'· sOllnd system between drawings created and used. .. A sequence based on Debussy's with 56 speakers. "Clair de Lune~ was part ofFantasia Theunlhinkabie happened. Fanta­ "' There was some thought given (0 until mid-1939, but was shelved sia bombed . Disney's first commercial casl1ng Dopey of the Seven Dwarfs untllit appeared in Disney's 1946 failure had a lot working against it. as the sorcerer's apprentice, but feature. Make Mine Music. under With only ] 2 theaters capable ofshO\\.'­ Walt Disney hoped Mickey's appear­ the title"Blue Bayou."in the 'SOs, ing it, says Disney a rchivis t David ance would boost his waning "Blue Bayou"was broadcast on the SmIth, Disnev's s taunchest fans 111 popularity. Disneyland television show as the Middle didn'l have much first stereo broadcast on televiSion . access to it, There were distribution .. Mickey Mouse had pupils in his The origJnal Stokowski soundtrack problfms at RI

St'pt('mbcr-Octob(T 1989 9 earthquakes, floods, fish, dinosaurs and prehistoric birds.

• Beethoven's "Pastoral Symphony." wriHen by the composer to evoke the feelings ora day in the country. becomes a mythologicallovefesl. complete with a soused Bacchus. lightning-flinging Zeus and arrow-slinging Diana.

• Amilcare Ponchielli's "Dance ofihe Hours" brings together ostriches, ele­ phanls, crocodiles and hippos in tutus and toe shoes for an exuberant dance that crumbles the Iron gates of the hall they"re in.

• In a classic good vs. evil mode. Mod­ est Mussorgsky's "Night on Bald Moun­ tain" becomes a terrifying whirl of demons, devil bats and lizards that is stilled by morning church bells and Franz Schubert's-"Ave Maria."

Though Disney has been more than vindicated since the show's dismal pre­ Mk:key Mouse congratulates Leopold stokowskt for conducttng "The Sorcerer's Apprentice" miere. critics at the time claimed he -P8fhaps tile moot 'amous fantasia sequence. had "bastardized" the claSSical music used in the production. "People in the explains that Stokowski recorded each OS('iIlators untillhe early 19805. music field especially felt it was sacr'i1e­ section ofhis orchestra individuallv. Turnsout that Wall Disney wasjust a then mixed the Illne separatt" optical decade or Iwoaheadofhis time When it tracks on rour master (racks. the film was re-released in 1956 with "Peoplefelt was "These tracks," Culhane writes. Lhe original optical F'antasound tracks sacrilegious tofoist on "were heard bv the audience for Fanta­ re-channeled on four-track ma~n('ti(' an audience a picture sound from three sound horns behind film. it made mone\' for the tirst time. ofwhat music is the picture srreen instrad of the usual says Disney's an:hi\'ist It's been re­ supposed to be evoking one. plus 56 small house speakers released seven limes-in 1946. 1956, in your mind." placed stratt"gil'ally throu~h the audito­ 1963.1969.1977. t982 and 1985. rium. Thus. when a mutr-d horn in The In 1969. It entered cult-film status Rite ofSpring' heralds the approach of when the "Oower chlldrrn" embraced gious to foist on an audience a picture 1)'rannosaurus Rex. the horn sounds Its wild images- tsprC'ially. wink. orwhat music is supposed to be evok­ from the auditorium. far from the wink. Lhed

10 MEASURE who are makingFantasia the season's islic movie TRON. significant in the hit revival." industry for being the firsl film (0 make In 1982. the Slokowskisoundtrack extenSive use ofcomputer Imaging. was re-recorded by Irwin Kostal in digi­ John Murray, sales rep at HP's Cala­ tal and Dolby stereo. But Stokowski basas. California, onlce, says Walt Dis­ will be back when Fantasia hits the ney Productions now uses three HP theaters in November 1990 for its 50th­ 9000 technIcal workslations to create anniversary celebration. says Disney animated productions. most recently archivist David Smith. The original for The Lillie MermaId. 1\vo oflhe HP sound track is being "de-noised' by workstations are in the new Disney film Disney engineers to remove the pops. studiOS in Orlando, John savs, where scratches and hisses. much the same the hordes of tourists can wilk ty and lreatment Gone WWt the Wind got for watch the HP 90005 at work. Disney its 50th-anniversary release this year, also uses many HP plotters and print­ Ron Haver. dlrectorof film programs at ers. as well as an HP 9040 Series 500. the Los Anp;eles County Museum of Arl Bill Stancil helped Norm Neely and Beyond film entertainment. there are and Fantasta-phlle extraordinaire. JohnnyHawkIns complete the deal. the cash-machine amusement parks: hopes Disney will also reinsert snippets Disneyland in Anaheim. California. that have been cut through the years. DisneyWorld In Orlando. Florida. and He's especially hopefullhat Ihe The miSSing link Tokyo Disneyland. A major new attrac­ folksy on-screen introductions to the How did the successful Walt Disney tion. the MGM-Disney Studio Theme sequences by Deems Taylor. a respected Productions first hear about Bill Park. opened In Orlando Ihis May and musiC crlUcorlhe Ume who was well and Dave's audio osciUator?Wtlliam Euro-Disneyland, 20 miles outSide of known for his radio broadcasts for the StancH had been working as a Paris. is on 1ts way. There is the popular Metropolttan Opera. will be included "sound man" for MGM and Goldwyn cable Disney Channel. There are hotels in FantaSia again. Studios. but left studio work to and resorts. and a burgeoning network The adventurous, ploneerLng spiri t establ!sh his own garage laboratory. of retail stores that sell MIckey Mouse that Watt Disney shared with Iheworld One of Bill StancU's good friends. sweat shirts and Goofy nip;hlltghts. through film classics like Fantasia has George Downs. told him about a ter­ Disney is developing a satellite broad­ returned to the companyafter some rific osctIlator he'd seen at the 1938 cast system in Euro-pe with H.upert rocky years rollowingWah's death in iEEE convention. George drew Bill Murdoch. called DisneyChanllcl and 1966. The 'SOs have positively sizzled a picture of the audiooscillator and Sky Movies. under the dirrcUon ofChief Executive suggested heget In touch with Norm Disney's fairy tale is far from over. Officer Mi chael Eisner (who has been Neely. father of HP's Neely Sales The sleeping giant recovered from Walt called more Walt than Walt). Disney's Region. and Johnny Hawkins. a Dis­ Disney's death In 1966 and is awake. Si~ bUlion market value is by far the ney engineering consultant working hot. in touch with lheAmerican pulse laq~est cfall the entertainment compa­ on Fan.tasia, Bill Stancil went to and as lovable as ever. Stay '"looned." nies. In the last four years, annual reve­ work for Norm Neely as a sales engi­ -Jean Burke Hoppe nues have increased 150 percent to neer. helped get the DIsney audio $3.4 billion (n 1988. whileprofils have osc1llatoT sale from Johnny Hawkins (Free-lance writer and l~relong Mouse­ more than quintupled to $522 million -and the rest Is history. keteerJean Burke Hoppe last wrote in 1988. Bill StancU worked for Norm Neely JorMeasure in IheJuly·Augusl1988 Walt Disney StudiOS and its grown­ for less than two years, but came issue on the way wecommunicate. up subdivision, Touchstone Pictures. into successes ofhis own. He soon Like entertainerMichael Jackson and have turned oul one hIt after another started his own company, Stancil his celebrated single-gloved hand. with last year's Good. Morning Viet­ Corporatton. which for 42 years has Jean has been known £0 wear mouse nam, Three Men and a Baby and Who made multichannel voice recorders earsJar no apparent ,easan.-Ed.) Framed Roger Rabbit, and this sum­ used by police. highway patrol and mer's Dead Poets SoclelY and Honey, fire departments. as well as stock­ I Shrunk Ihe Kids. brokers, financlallnsututlons. Happily. HP sUll has a small place money eXChangers and racetracks. in Disney'S Cinderella success story. Approaching age 80, Bill Stancil In 1982. Walt Disney Productions used sttU reports to work every day and an HP 9826 desktop compuler and HP cherishes his special HP connection. 1000 computer to create many of the "I framed myhusiness on the logic animated special effects for the [utur­ those two guys had." he says. 'Tve used their methods as a Bible for my own company."

September-October 1989 11 Through strategiC alliances, jOint ventures and consortia, HP and its many teammates are

Look at 1he rt'laLioll~ hips today bf'l \1,.'(,(') I Hi' atld Ameri('an Telephone' & Pulling together to win Te lf".~r ilph (AT&T). and you '11 find them complex changill,ll; and very confusil\g. • AT&T is a solid HP customer. in the marketplace AT&T is liP's laq.J:(·st cOIll mercial major account. and HP Sc-llt"s to AT&T 11a\'l' been ('oll~istt"n Ily .l!,nm·ill .~ at raster ralt's than HP S o\'t"' fal] bUSIill'sS HP Prcsln.rlll John Young makes regular saks calls Oil 111(' inlenlal ional leie­ cOllllIHlnin ti ions giant • AT&T ia • good BP supplier. II is HP's dominant Inn.!!-distanlT l'an-in_ handlilll!lIPWClfdsofS 2 milliun 1ll111\ltl's or IOrl.c,-distaIllT (,

The many forms of teamwork Working tog:ether can take many HP-AT&T-Siemens forms-from a total purchase of Announced agreement to anothercompany. as HP did \vith supply Interchangeable ftber· Apollo. to merelybelonl(inl( to lhe opttc components II!aI comply same industry association. wtth Internattonal computer Ht"re are some real-world examples nelWOfldng stond

12 MEASUHE • ( 'SIX i." ( j rC(/ls[('rcd lrad cl11(l rk oII\T&T II! /III' ( ' ~ Clfld Or/wrcfllllllri('s to con trol thc ruture or UNtX. easy to de-flne. HP an d others a re look­ r('('ommcnded the rormatton of four to Confused about the' relationships? ing for technologtcal superiority. man­ SIX ~uch groups involvln~ univers ities, You're not alone. Hewl ett-Packard and ufacturing competitiveness. marketing government and indus try 10 Improve many other companIes are finding that cloul and ultimately, for eustomers. the country's compditiveness in to compete in today·s marketplace, (See John Young's message. page 25.) supercondu(' tivi !y. you ve got to team up with o lhers. These partnerships. \vhilt a grO\ving Somel1mes your partners will be your Spreading R&D's risks trend. h ave to overcome a natural best friends. sometimes lhey may be HP has long enjoyed a reputation for reluctance to s hare ideas. Traditionally. your most bilLer rivals. ploncning some ofth(' world·s fines t R&D groups ha\'l.~ looked dO\vll their - Fortune magazine reports th a t in the technologies-lhe firs t handheld scien­ nosesa t o thers· id(>as. Tcehnol01!..Y that 19805, U.S. companies form ed man: tifk cai<.'ulaLOr. t ht> frcque llCY COUll ter was ··no l -I n ve nted-h t~n:·· was orten than 2.000 alliances wJth European and the a udio os('illa tor. TraditionaHv. treated with scorn companies alone. In 1988. [or example. the company spcnd8 about 10 cellis ~f A major turning polnlln lhat HP struck deals with four telecommu­ every dollar in salt's on research and attitude was IBM's errort to develop the nications companies. In May. HP and development. pnsonal ('omputer in the early 19805 Northern Telecom announced an agree­ Hut to make thost'" R&D dollars go Hather th a n desi.~n l he mi::lchinr and menl to design networks USing both even further lOday. HP is parr ofconsor­ Its software in-house, Big Hille turned companies· products. In June. HP tia, univers ity partners hips a ndjoinl loot h ers for help: the mlcroprol'('s50r bough t a minority interesl in an Italian venI \J I"('S. tame from Intel. theopera lingsystem fir m ~ NECSY, that builds measurement For example. in June HP a nnounced from Microsoft. the disk drives from instrumentation svstems [or maintain­ It s plans LOJoin DuPont and the Los St:agatr and the drive (~on trollers from Ing telecommunication networks. In Alamos National Laboratory in a tech­ Western Digital. The results: the IBM July. HP bought 10 percent orOclel nical program to develop I hin-film. PC became·the industry-standard per­ Communicalions, a voice-processing hi~h . trlllperature su peTcoll dudors sonal cornputpr almos t overnighl. and firm. And in Augus t, liP formed a part­ for eleclronic components The coHabo­ everyone started looking for partners. nershipwith Australia's telephone ra tJve effort will involve th f> eqUivalent company (see story on page 15). of25 or more researchers and a n esti­ Finding a DRAM answer "None of these recent rela tions hips is mated $ ]0 million worth of equipment IBM is agaIn s h aring ifS expertisl' particularly large." Hob Wayman, HP's and facUities Work will oe done at the by taking the It'ad in creatIng a new chief financial officer, told security ana­ existing facilities of the three pa rties, chip·ma kin~arrangemen t called U.S. lysts last year. "But each represents an Including HP Labs· Deer Creek faC ility. Memories Inc It's a $1 billion v('nture important new direction. an important In Its quest to bring: sllperc:o nductor to manuracture dynamiCrandom­ new s trength for the company. In the applicati ons to the ('ommerelal market access memory chips. or DRAMs. very broad·information-m anagement this new consortium Aoes head-to-head Seven U.S.-based companies (IBM. marketplace in which we compete. \\lith a Similar one establlshl"d earlier HP. Advanced Mirro Devices. LSI LOJ~~ic. there a reopportunilies to team up thiS year by IBM. AT&T and Ihe Massa­ Inlel. Na t ional Semiconductor a nd successfully wilh other compa nies.·· ehusclts Ins titute ofTechnology (MIT). DEC) plan to poollheir monies in a The rewards for such teamwork are A U.S. preSidential advlsoryl·ommit tc(' separate ('o mpany to bund a state-of-

HP-Eon HP-Hllachl Biotechnology Research HP-Matsushlta Acquisition of a small company Joint developmentof new, and Development Corp Jointventure to produce the which makes network manage­ higher-speed chip set based on HP-American Cyanamid HP 7600 series of electrostatiC ment products. The organization, HP's Rise (reduced-Instructlon­ -~o-Dow-Ecogen­ ploHers.lnstead oi using a now known as the Intelligent set-c:omputlng) technology and International Minerals and pen, e~ostatlc ploHers use Networks Operation, Is part 01 Hitachi's advanced semicon­ Chemical-Agricultural patterns of electrical charges the Colorado Telecom Division. ductor and circuit-design tech­ Research and Development which attracttoner to paper, nology. HP signed much like a photocopieror a theftBI product Is Ihe LAN Probe also has Group to conduct biotechnol­ tor locol on agreementwith long-time LaserJet printer. Ethernet area networks. ogy research, for example, to Korean jolnt·ventu,. partner find an environmentalty safe Somsung Electronics. pesticide made from natural plants.

Scplemi.>er·OC"lobf'r 19H9 13 Pulling together

th r - o p erallll,l! s~,;sl{,lll. AT&. T. AT &T Ii('('11 S('S domina te tht' markt"1. h il u p on U_S i Il t h t' electronl{'s i n d LL!'> I r.y tn l'1l 1n i n t II UNIX to hll1J(.lrt'd ~ o i (: o lllpa n it's includ­ Mt"muries as. an a n swer. alliam'('s is to lind Wi.l \,S {() Ill

HP-3Com RACE HP-Varian Open Software A strategic alliance for Joint (Research and o....el~1 Working logether, """" Foundation development, marketing and Program In Advanced developed 0 process called HP- IIM- DEC - Bull- Nixdorl­ servicing of network and Communication 1echnotog~ metol-organlc moIe<:ukn beam Siemens-Apollo (n_pori 01 soIIwar. products _ on 101" Europe) ep~oxy (MOBR£) 10 make high· HP)-Phlllps-Hllaehl and now intet'nattonal standards" tIP HP-Enc~-C~­ eJeetron mobiltty translstOf'$ 150 others con purchase up to 5 percent Advanced Systems Alchlt.ctures [HMfT)- 1he los1est and IC>IOI8S1· Developtng 0 new "open" 01 3Com's stock. noise transistors In use today" -and more than tOO others computtng environment. based Program run by European Eco­ on a UNIX derivative, without nomic Community 10 _lop AI.Tis restricttve licensing Integrated voice, dafg and procHces, video _'0be used throughout Europe In the 199Os.

14 MI·:ASliHE 23 others formed UNIX International­ a users' group to influence the future direction ofAT&T's division responsi­ ble for the operating system: the UNIX Software Organization. But to make matters more complex. some companies have decided to play il safe byjoining both sides, For example, Data General is a member ofboth OSF and UNIX International. While the battle lines mav be clear between rivals UNIX Intern ational (UI) and OSF, no baUie lines are needed ill A $1.5 million lolnt-venture sale In Australia: the Queensland stale police. the case ofa third UNIX consortium called XlOpen. Its members include all major members ofUI and OSF. as well as those organizations themselves. Unusual arrangement spurs XfOpen's mission is to propose stan­ dards via portability gUides so soft\varc HP computer sales in Australia written for one version ofUNlX can eas­ On a continent known for unusual tamers along with its telecommuni­ ily run on other brands ofmachines animals like kangaroos and koalas, cations networks. Itlooked at about HP was one of the first companies to HP has a special arrangement in the 50 possibilities (including Austral­ passXJOpen's test suiles. which company it formed with Australian ia's two largest players-IBM and earned it the right to use X/Open's Telecom in August 1988. DEC) before picking HP. 1\vo rea­ trademark on its HP-UX products. Hewlett-Packard sold halfInterest sons Telecom felt HP would be Its Kathryn Harrigan. a professor of in its commercial-computing busi­ best partner: complementary net­ strategic management at Columbia ness In Australia to the govemment­ working strategies and both firms' University, Laid Fortune magazine that controlled telephone company in support ofinternaUonal standards. these arrangements are a necessity. return for access to Telecom's top Is the partnershIp working? "Within a decade, most companies will corporate customers. The two "par­ There's been one big payoffalready. be members of teams that compete ents" are sharing the risks and the Telecom and HP have been awarded a against each other... profits from the companyequally. $1.5 million (U.S.) contract to sup­ But regardless of motive, HP must One technology writer in Australia ply a computer-based command­ learn that alliances are here to stay. called the arrangement "a coup" for and-control system for the state "Our success depends not only on what HP because it now owns "halfof the police force in Queensland. we can do ourselves." says John Young. onlycompany in this country that The system will enable dispatch­ HP president. "but on what we achieve can supply all ofa company's com­ ers to instantlyobtain names, with others," - Brad Whitworth puter and telecommunications addresses, telephone numbers, needs until deregulation of the tele­ criminal records, vehicle identifica­ communications market. This is tion and other information from a likely to give HP a solid, two-year computer when responding to a call, 'Window ofopportunity.' " and then relay this information to HP's other businesses in Aus­ police officers in the field. tralia-test-and-measurement Eventually the mobile and foot instruments, technical computers patrols will have portable terminals and other products-weren't to display electroniC maps, finger­ UNIX International affected by the deal. prints and photographs. AT&'-Sun-Amdahl-Fujilsu­ The new company. Telecom/Hew­ But even the new 50-50 partner­ NCR-Unlsys- and now 23 lett-Packard Pty. Ltd.. operates out ship needed the help ofothers to others ofHP's Melbourne headquarters and cHnch the deal. BHA Computer will Developing a standard version will have two HP execs and two Tele­ serve as the local system integrator, 01 AT&"s UNIX operating system com execs on its board. But because Peat Marwick Hungerfords will pro­ around SUn's RiSe technology. Telecom has offices throughout the Vide quality-assurance andservice­ Should speed sales 01 UNIX country, HP's "reach" in the Austra­ introduction consulting. and computers, benefiting AT&T and SUn's efforts to grow In the lian marketplace has been extended. Sybase Australia Pty. Ltd. will pro­ computer business. For nearly two years, Telecom had vide the relational database managew been looking for a partner to offer ment system upon which the computingsolutions to its cus­ application is based.

S("ptcmbCf-OClober 1989 15 An Clutomobile accident nearly 20 veers ago leff HP labs' Earl Norwood legally blind-and turned his lite Clround, Earl Norwood gets a second chance here are two Earl Norwoods. "Let's give him a chance." The dividing line between lhe two is like a curtain of time that He interviewed al HP's Stanford Park T Division (SPD) 12 years ago. "I sensed separates two dlsttnrtly different personalities. the apprehension that interVIewers had aboul my ability to do lhejob," Earl On one side of the curtain is a 20­ remembers. "But in t he end lhey said, year-old auto mechanic who CQuid 'Let'S give him a chance.' And they think no fur ther than grabbing a dozen made me an offer. I felt so lucky. There beers at a loealliquor slOre at day's end. Even with only 12 percent Vision. Earl excels were so many other people they could On the other side is a responsible as an associate systems administrator. have hired." adult: a contrlbulingand highly Earl's first HP aSSignment was test­ respected HP employee: a talented was the sound from a radiO. " I knew ing and troubleshooting on the HFsig­ and joyful musician. I was a live when I h(>ard (hf' mu::;if',"' nal-generator instrument product line What separates (he (wo is a disastrous he says. He had a lways loved music in SPD in PaioNto. Hedelighls in the auto accident almost 20 years ago that and intended to study it seriollsly. Now fact that he was the first tet:h on the left Earllegaliy blind. he drcided to Immerse himselfand line to make standard time on certain "r think DrLhat accident." says Earl, bou,ght a bassguilar on the way home sub-as..c;emblies, which meant his aver­ "as a dividing line between wasted from Ihe hospi LUI. ~ age time was higher than anyone else·s. youth and responsible adulthood. I Hr sperlt hours on the Instrument Nlhough Earl enjoyed working on went from being a drunken gas-st

Scptember-O('(ober 1989 17 ORDINARY PEOPLE

" When I play I feel healthy." Earl rlt'vt'r wants to he without mll~k in his II]'e "Thr music i!5 a ~reaL wav ol ('upi ng \\'ilh being clirft'ITll't. wi III t;(,lIH~ dlsahh: d . TI1(' Jllusic (oudws a kind of who h'sOlllCIl t'SS inSide 1Ilt'_ When I pl"y. I rf'l'! h(' a llh~ 'a nd strong' Earl acimltS lhal not ~('t'illl2, IS eli rtl­ ('ull allel u fle n Jrustrallllg fnr him Earl"svision is m easured at 20 ' 100: 20/ 200 is blind. He has a kind 01 IUllIwl dsion a llel Sl'l'~ paris (If I hllH.!;S and pt'opk at a I illlt' He l'an 'l sec" (rarlit· h.chISand h ~ l s III rely o n sound tu jucl.1!t" how far away ears are H t" ran '! dri\T a nd .I!.l't 1>1,\( I· ... hc.' want s [0 ,I.!u- l':;,.pt·l'ially at nie;hl­ and l1e h as to rd\' on olil('rs mort:" tll;11l h e likes. " It's a fr~ l s LraLlon . says Earl. 'lhat I face <"'fry day But 1lI." pllLloso­ phy is thall havt' lodo lhIfH~~ 011 Illy own l::\'t'rY0!l(' ha ~ limilat ion>.; Alld YOII do whall'vt'r .' Oll ran to 1akc' t}(I\'an LH,!,C' ofalllh C:' ,L! OOci In you and pla~ dow]l your limitations. " Despilt'lhl':-;e selHIlllcnLs, Earl Earl and fellow HP employee Stephen wallace practice their music after work, "The music is a SC:<,' ms I() h (I\'(' a llIn i LIt, SS capat'i I~' and great 'WaY of caping with being ditferenl, with being disable

18 Mf;ASUkE -auwild andcrazy" HPfan

He may be a wild and crazy guy on stagf', but in private. enterlain('f Steve Marlin is a very Sf'TiOl1S guy­ and serious aboui his passion for HPequipmenl. "1 have lots ofHewkll-Packard equip­ ment spread around various houses Obsessed with computers? No, says comedian Steve Mar1in, who mugs for the camera while and Clpartments in Southern Ccliifofllia using an HP Vedra computer and HP LaserJet printer in his Beverly Hills, California, home, and New York. "Steve told Measure dur­ ing a July tE'JephoI1c inten'iew from Hoxnnnc. which h(' wrote. Ron Herman, owner and president 01 his Los Ange-les office. ~ ' l have- Sf'VfTal In u'oxanne, Steve plays a smar!, Blue Chip Computer Systems in Los gS/l6s (HPVet'tra computer::;,) and LSi likable fin"' chierwitli a nose about as Angeles - the computer stort' \VlltTt' 12s (laptop computers). HP Las('rJet long as a hook-and-ladder truck, All Slcve buys his flP equipmen(-says the printers and so I"orth. Victoria (Steve's HP Ponablc PLUS personal computer silver-haired comedian is extremely \Virf'. actress Vidoria Tennant) gets my plays a supporting role knowled,geable

Scptcmtwr-Ol'!otwr 19H9 19 YOUR TURN Measure readers share their views on mailers of importance with employees

(Not so) trivial pursuits Clil HP cmployees subject to layoff wh~n thC"ir job bee'o In es '-n'dundant"? Thrsf' The May·June Issue orMeasure was excellent! rlearned some very intt"resl­ quest ions an.' of,great concern to all HP iog bits ofHP trivia in the 50th anni­ employees a nd Investors. versary book oflists. Kudos to Vernon JOEL NEVISON Andrews! ForI Collins. Colorado COLLEEN HEUTMAKER St. Paul. Minnt'sola HP neLJe r ilas hod (L no-/cl!JqU policy - rcuher. ltlt' hw't' a sfrong oqjeclil'e Measure readers may be inrerested in Qre mployme nt s('cu ril y bosed 011 per­ Jormance beilt't'e our record IS 01//­ knowing thar Vernon- who has been I inlhis area philosophy the HP historian and visitor'relallofls stund.ng HP's coordinator-is pulling his vast lias beer! 10 t'fHer markets seieClivcly and Itirt'('ol1servafil't'ly inslt'Cld q{ knowledgeqftrillia to good use. He has returned to the classroom to pur­ TWilling a " hire-a IId:fire" compa "!J. We nre ve ry ('QuUOUS aboUl adding sue a doctorate in sociology regulGremployecs, lIiring at the University q{Wisconsin. Jut/-limp. Good luck. Vemon. - Ed. controls. willie frustraUng at limes. are bf'llt'r lila n' Ol't'r-fi iril1~q. From lime fo lime, w e ask empl(J~/f.'(!s /0 work What about DMK? Ol'erUtne 10 help HP meet short-term How refres hing it was to read aboul busilles!-; tIt.::'f..'ds. Similarl!!, otlrjlex­ not another engineering or produclion Sonny and Dona Margolis relax In their Jorce program enables LIS /0 meet sile_ but about ihe eXC'ltmp; world of state-ot·fhe..ort Frisco, lexas, home. special need s by supplernerlling our distribution (Mav-June '89)-an over­ regular workforn-, looked. but critical parI. of HP's We knew prior LO fhe OCqLltSU Ion busines s, The house that [hal Ihe re w o uld b~some redundant I was disa ppointed, however, that the SonnybuiH pOSH ions tn d eparlments sllch as article did not mention the Direct Mar­ Corpora Ie Legal, Tax. Treasury and I ",as so impress~d wi th your Extra­ keting: DlvlslOn's (DMK) work. DMK is It!{ormalioll Syste ms. All q{rhese Ordinary People artidt" on Sonny Mar­ people arc receh: ing generous SCller­ doing some Incredible work in Ihearea golis in lhe May-June issue. I hav(' Qttct' payme nts Qlldjob-placement of distribution a nd is certainly a major passt:'d my MeQsurt' 10 many frit:'nds a~~isw"ce wilhin and oUlsidel!.{ player as HP s tnves to keep customers and relatives so they ('an see that even happy. Maybe nexllime. HP, We {aced s imilar redulldondes pri\'at(' honl<.'s hi:lve US('S for HP equip­ WillI o<:quisWons in lhe '60s. Outside MICHAEL JAMES WADE ment. This hom(' must bt' amazing consulwnls I(lho have assisted in Sunnyvale. California M UIlELL BARNETT nUI11('rous mergers IlQlle said Ihat the Marvs\'ille. Wisconsin downsizing a s (l resulI qrthe HP:Apolio Remember your merger has been as well planned. customer implem(' nwd and generously han­ No more HP way? dled as any they'l'e wUnessed. "Thinking /(Jobaliy" (March-April '891 The annOlln('rTllent tllat Hel,1,'lelt­ As you can see. w e use many aller­ was an excellent article that informed Packard willla\'off IOOworkersat the nalil'CS 10 /ClHQ[f's. InJacl. H'e've never us very well about what HP must do in Apollo Division has caused ('onsidrf­ had fo r('sorr 10 la!JqlTs in fhe normal. the world market of the future, To me. able contrOVf:rsv and confusion. HP s aay-ro-day operation qroLlr worldwide the key sentence was how HP people reputation as an employee-orientt'd bus illes..'i(! !-; , Our frack record is out­ answer the ques tion, "Who is my <.'ompany is wtil knowJl. This reputa­ s[QnriiTlg in lhis are(J And leI me customer? " tion is bUilt in part on lht· fact that HP (Jssurp you thar Ollr long-lime uqjcctil'f:' To be effeclive" globaliy." HP must has had a nO-layoff policy for its 50·year qfempioymert. st'('uril!J based on first make that goal an everyday accom­ history, It seem s thal UP is sell in;£! performance haSt! I changpu one plishment: this is done by pral' l icing quite aprcced(·nr with this layorf. Oil the concept with evt'ry customer wt' Does thiS represt'nI a new corporate -Pelt' P('u: -r~on , Corporale come in contact with. policy to undermine "the' HP way?" An· Personnel opeuuions manager PATRICIA JOHNSON Loveland, Colorado

20 MEASURE with regard co ouroveraliJinancial • Costofsales s[ruclure . / also thInk most employees want to • Operating expenses be associaled ll)ith a wLnning q[[orl, and that isjudged b~j all q{ourconsU­ [] Operating-prommargin lUencies- customers. suppliers. employees a nd shareholders- as being a succes!:!{ul enterprise. (firmly believe tl1alllP has to maintain a slrongJinancial performance to pro­ Vide you and olhers the opportunity to make personal choices. and to {eel secure In a working environm~ llt that conrinues to prouidc the basis {or dOillgso. . - Dean Morton. executive v ice president and chiq/ operating officer

1980 1988 Please send mail Do you have comments about some­ While HP's net revenue has more than tripled since 1980, the company's operating-profit thing you've read in Measure? Send margin has declined. us your thoughts. We want to share them with more than 93.000other employees_ Beware of profits company thal continues to provide Ifyour letter is selected for pub­ There has been a lot of talk a round the all oJus lhe secureJuture you refer to. Hcat/on. you 11 receive a special company lately about our dwindling Wh ere we apparently d([fer is lhat Measure T-shirt with the 50th­ profit margins (May-June 1989 Mea­ you see the emphasIs on slrong.fi nan~ anniversary symboL Be sure to sure). Once again we are being asked to cial performance asgetUllg in the way send us a return maHing address, tighten our belts in an errort to get prof­ oJkeeping HPaspecial place (0 work, and Indicate your T-shirtslze­ its back In line so that we might sus~ and beinga company rhat can help unisex: medium. Jarge orX-large. tain OUf ambitious 20 percent rate of contribute solutlons 10 som e ofthe Address letters vIa company mail growth. For how long? Ad intinitum? major lssues q[our times. s uch as the or HP Desk to Editor. Measure. Pub­ Has anyone stopped to think what envlronmen t. l see i(just (he other lic Relations Department. Building the implications 0[20 percent corpo­ way around. 20BR. Palo Alto. Via regular postal rate growth are on our socit'ty? Isn'( HP has succeeded over (h e years services. the address 15 Measure. this philosophy largely responsible by beIng a company oj in(egrily-one Hewlett-Packard Company20BR. [or the many grim headlines we are that places great ua/uc in its employ­ P,O, Box 10301. Palo Alto. CA94303­ experiencing? ees as individuals. Our ability. how­ 0890 USA. Try to limit your letter to I want to feel secure that the fUlure ever. toq[feremploymenf stability 150 words, We reserve the right to will a llow m(" to continue to enjoy life as based on perjormance. fo be a credit edltletters. Please sign your name much as I do now. With profi t as a pri~ LO(.'ommuniliesin which we reside. to andgive your location. Names will mary objective. I don't h ave a lot of fal th be a poslliueJorceJorchange in such be \,..lthheld on request. in such a future. The time has come for things as equal opportunity. is h eavily us to put OUf people and citizenship predlcated on oursuccess in operating before profit. Failure to do so can only the compan!) in a way that isjillan­ mean more of the same grim headlines ctally sound. In the 1990s and immln-ent global Growlh never has been viewed as a destruction. . primary or indepelldent objective at BILL BOSCH HP_ThatsstiLl true today !fwe don '( Cupertino. California grow in line with the markels we serue and maintain good profit margins. ProJit andgrowth are important we'll eventually stagnate and be oqjecllves which h elp HP remain a put in an increasingly risky position

September-Oc tober 1989 21 Narin Som and Phalseila Senechal, assemblers in the manual and engineering change Ofder departments, sor1 components at the Apolto manufacturing plant in beter, Neow Hampshire. The otherApollo ~ant is in Livingston, Scotland_ In nine short years, Apollo Computer grew Somt:' 40 vears after Bill H("wktt and Uaw Packard rnadt' hi~torv in a Palo from a living-room operation to a leader Alto gCtrage. a ,group of entrepreneurs on lhe o the r side of the U.S was mak­ in the workstations market. Now, as part of HP's ing SOITI(' his tory of i ts O\\--n-starting Workstation Group, the industry braces for a new company LO build a new kind ofl'Ompult'r The ("'O mpunywtls AJKllio and the t.."OmpulC'r\o\'Us Ilu'-v"urk.....,.lat ion-a TheUother"Apollo landing product that wo-uJd dl"1h'er the- ('ompu­ lat io na] pO\ve r of a minicomputer and the ach'i;lnl'r d daw ill'Cess and commu­ nications rapabllit its ofs hared 5.\'S­ (em ~ toa s in,qlt' use r s d esk . In January 19HO. that group ofentre­ prent."t1rs b(.' ga n lon g da.\·s of product develop ment a n d m 3rk('[ str at e~y plan­ ning a t com pany headquarters- then the li vi ng room o f ont' of thr seven founders . Apollo's ti rst o ffi ces opened in Lt'xing­ ton. Ma ssachusetts . in May. and by Septe m ber. worki ng models of the (irs1

22 MEASUH£ The Apollo acquisition means new HP sites in Chelmsford, Massachusetts, and 30 miles northeast In Exeter, New Hampshire, workstations were running. Customer orders began in October. the first [rom Harvard University. Later that month, the company's first international cus­ tomer- Rutherford Laboratories of Oxford. England-sent a blank check with instructions lodeliver two workstations. The las t person hired by Apollo thal sLarL-up year was John Bowne. employee number 46. "We were s tartinga whole Lynn Hansen and John steinbrecher, technical marketing representatives at theApollo new industry." says John. "Jud1(ing by Dlvis;on oHlces in Chelmstord, Massachusetts, check out the graphics display tor the DN1000. the amount of competition in this industry. Irs obViOUS that the concept By March 1983. Apollo had more 3,000 people byyear's end. was a good one." In fact. the worksta­ than 1,000 employees putting these Since then, even through challenging tion market that Apollo pIOneered in prinCiples to work. The major'ity times, Apollo has remained a technol­ 1980 r emains the fastest·growing in worked in a new corporate headquar­ ogy leader in the \a..' orkstation markel­ the computer industry. ters facility in Chelmsford, Massachu­ place. Well after Apollo introduced its Much l1k e at HP. Apollo's founders setts. Gone were the days of cramped first innovations in 1980. the company had definlte Ideas about the principles quarters and shared desks. Apollo was continued to be the leader to market the company would be based upon­ nO\\o' a worldwide company with inter­ with new te c hn o lo~y. Most recently. excellence. action, ego. ethics. justice national headquarters in Geneva and Apollo introduced the first personal and fun. subsidia ries In the United Kingdom. supercomputer. the Series 10000. and Bill Poduska. Apollo's first CEO and France and West Germany. It was time the lirst RISe (rcduced-instruction-sel one of the founders. wrote, "We are to go public with theslock. computing) graphics supercomputer, capable ofdoing more than we ever '" Every person here felt a sense of the Series IOOOOv!sualization system. dared. The succe~s orour company ownership 1n the company," says Mary " (Apullo) h as bla".cd a trail by exploit­ depends on each ofus believing as Allard. whojoined Apollo ill 1982. "f inp,a carefully selected market m ehe. much In ourseh·'es as the company hadn't been here long bt'foTe Ihe com­ high.powered. self·(.'ontained c.:omputer believes in us. We will not tolerate dis­ pany went public. but Ican still remem· workstations for scientists and engi­ honorable conduct. We will preserve ber how pruud I was- how proud we neers.·' BUSlTleSS Week magaZine w!'Ott' and foster what we have buill-a com­ all were." in 1984. pany that takes pride andjoy in doing Employee pride gre\v as the company In 19~7. Apollo introduced the con­ things thal are worthwhile." grew. Sales quadrupled during the nt'xt cept ofnelwork compulingwith the year and totaled nearly S216 million: the worldwide employee base exceeded Network CompulingSystem (NCS), a set ofadvanced software tools for cn:'at­ ing unified computing environments Today. NCS is an industry standard. adopted by camputef suppliers and users worldwide. Apollo also offers a full line ofper­ sonal workstations. as well as softwart"­ development tools. and leading applica­ tions software through strategic a1li­ ances with companies like Mentor Graphics, Auto-lTol and CADAM, Today_ more than tOO,QOOApolio workstations are installed worldwide. primarily for sCientific and engineerinp; applications industries. Apollo prod­ ucts are also used in places like the Sistine Chapel. where historians are working to restore Michelangelo's fres­ coes. and In the design firm where graphic artists created the computer Wayne Dubois, engineering technician at the Exeter, New Hampshlre,Iaclltty,1ests a DN1000 animation for the 1988 Summer workstatton. Apoflo worbtattons have been used to rM10re the ceiling of the Sistine Chapel. Olympics, These days. Apollo products can be much mort' togt'ther than eilherofus found In HP booths at trade shows as can do individuaJlv " the merged companies work to present An early declslo~ was made La sepa­ a unified message In workstations. rate the bUSiness management from The strategy Is workmg. As one ana­ the merger management. Key to that lyst wrote after the April 12 external plan were the appoinlments of Dave announcement ofHP's intent to Perozek as Apollo's ~rneral manager acquire Apollo. "You'lI see a wave of and Brian Moore as merger manager. happiness in I he customer base. ­ Under separate control is the process of Industry analysts and the press con­ technolog,v ('onvergenn", which Alain tinue to praise the new partnership_ Coudair. general manag('r of HP's ·'Hewlett-Packard is probably the besl cooperative computing environment partner Apollo could have picked," architecture. Is driving. commented another analyst. Companywide. Ihere is a growing Across the board, whether the issue numberof stories that demonstrate is technology or corporate culturr. how well Apollo and HP have come signs point to more similarities than together. Nowhere has the together­ differences between HP and Apollo. And ness been mOTr evident than at the May Apollo DlYtslon GM [)aye Perozek chats with when there are differences, the signal 50th anniversary ambassadors' evenl employees at dtv1slon offtces In Chelmsford. from HP from the start has been '·to The start dale of this three-day global retain the best afboth organizations'-' celebration in Palo Alto was May 19­ That is one of the principles gUiding the day aner Apollo Computer. Inc, continues to innovate in the industry the transition process. announced by became a SubSidiary of HP. Just days marketplace tha t Apollo Computer Workstation Group General Mana,ger before. Rost' O'Donnell. a senior con­ pioneered nine years ago. With the Bill Kay shorUy after the mer,ger was sultin.'! en~inerr in software engineer­ entreprf"neunal spirit that fueled the complete, "This has been a merger in in~. andJack Moher. a purchasin~ fires inside Apollo and made HP the every sense of the word." according to section manager, werr {'hosrn toallenct mdustC), giant It is today. the company Byron Gayman , manager or the graph­ the event as representatives ror the is destined to lead. ics hardware pro~ram at Apollo. "The newest HPdlvlsion. Of her trip. Rose - Maureen S{'hlckel bottom line is that we can accomplish said. "( felt like [was being welcomed into a familv Jack added. "We were (ThiS 1s thefirSl Measure arride by treated like"royalty. ,. Maureen ScflickeL the communicalOr Looking to t990and beyond, a Jar the Apollo Division ,-Ed_! now expanded HPWorkstation Group

24 MEASURE: LETTER FROM JOHN YOUNG

President John Young discusses HP's many new relationships

hiS issue ofMeasure highlights our increasing emphasis on T working closely with organiza­ tions beyond HP. We're forming alliances (page 121. makingacquIsitions (page 22) and developing other kinds ofrelation­ ships: with independent software ven­ dors, systems integrators. universities, dealers-the list goes on and on. Why are we reaching out in this way? Why are other groups increasingly impor­ tant to OUT success? At its heart, the answer is simple: OUf customers' needs aregrowing more complex, and we cannot meet them all by ourselves. HP President and CEO John Young talks with members of the media in July before a meeting In wanting to purchase complete on international competitiveness with U.S. Vice President Dan Quayle and high-tech execs. solutions. customers present us with a tall order. More and more pieces make up a solutions puzzle. Varied software ular technical problem. In addition tamers are asking; for this accessible and hardware elements, both from HP to performingjoint R&D with others, way to buy. and other vendors, often are required. we·re acquiring new technologies, On the international scene, we've Whafs more, customers have as appropriate. This doesn't signal entered into manyjoint ventures that increasing choices in how they can buy. a weakening of our commitment to help us sell around the world by giving Some like to purchase through HP's making technical contributions. We're us access to a particular nation·s mar­ direct sales force. Others work through looking for innovations to add to, not ket. and insight into the local needs systems integrators who bundle solu­ substitute for, our own. For example, and business practices, tions for them. Still others prefer the the combination ofHP's and Apollo's Working closelywith othergroups convenience and local services which workstation efforts puts us in an even requires us to learn new skills. We need dealers offer. better position to meet customer needs. to be able to manage complex relation­ It's prettyclear that to meet these Manufacturing is another area where ships-say,where a company is an customer needs we mustjoin with we've benefited from forging tighter ally in one arena and a competitor in others. relationships with others- in this case another. We also need to be flexible You can see our need to work with oursuppliers. and sensitive in dealing wi th other others reflected in most every aspect of Ofcourse we've always depended on groups who may have a djfferent style ourbusiness. vendors. But in the last decade, with ofdoing business. In the R&D arena, developing tech­ our lOX goal to increase hardware In addition, it's important for us nology in conjunction with nOfl-HP quality and associated emphasis on to re-examine our attitudes about research organizations offers us many TQC, we've seenjust how important new ideas. We've got to avoid the ··not­ benefits. For one, it gives us access to our suppliers' quality is to ourown. invented-here" syndrome-not only in other people's good ideas. For another, Consequently, we're using fewer ven­ R&D, but in every function. Let's make it helps us stretch our R&D dollar to dors, forming closer relationships use ofthe best ideas available, whether cope with the growing costs ofresearch. with them and asking them for higher­ we find them within or outside HP. We've recently undertaken a number quality parts. We've come to work with Because our success depends not only ofcol1aborattve R&D efforts. To name a them as an integral part of our team. on what we can do ourselves but on few: We've formed an alliance with Sony In marketing, we're forming a myriad what we achieve with others. Corporation to develop and apply the of relationships that help us sell our technology ofdigital-audio tape. At products. We work with third-party Stanford University, we've established software suppliers to make sure the our first university research center. a applications customers need will run program that allows engineers and sci­ on our computers-something that entists from HP, other companies and often can make or break a deal. We academia to work together on a partic- partner with systems integrators, OEMs and consultantswho help our products get to customers, often as part ofa larger package. We're selling more through dealers because cus­

September-October 1989 25 one for the HP ScanJet interface. HP loaned the production company a varl­ In the movie. etyofHPproducts. The film Ghostbusters II. between features HP equipment In the ghosts and the familiar a number of scenes. and faces orDan Ackroyd and although it looks quite Sigourney Weaver. the familiar. the logo may seem familtar bluelogo of HP out ofproportion. HP per­ will capture the eye of many mits film-makers to enlarge HPpeople. the logo tn boost recogni­ At Ghostbuster head­ tion of the otherwise subtle quarters In an old fire­ brand identification. house. movje ~ goers will see HPmovie·p;CX"rs alsowlll an HP Vectra personal com· find HP equipment featured puteron the secretary's in the Disney film. Honey. desk. At the university I Shrunk the Ktds. research lab of Dr. Egon Spengler. played by Harold Ramls. the camera zooms in on a table with another HPVcctra. And. on top olthe proces­ sor are two HP-Iabeled boxes.

lhe-",<__."_HP_.

John goes back ans and the handicapped: supports the "Adopt-a­ to school School- program; and From briefcase to backpack. donates millions ofdollars HP PreSident and CEO John annually to education. Young returned to school in health. welfare. arts and June to attend commence· culture. ment ceremonies at Oregon It was a return visit for State University. where he John. He graduated in 1953 received an honorary docto­ from OSU with a bachelor's rate of humane letlers. dc~ree in electrical engi­ He was honored not only neertng. He went on to for leading HP. but for his receive a master's degree unique commttment and tn business administration contributions to society. frolll Stanford Universily The school recognized thai in 1956. HP. underJohn"sleader­ ship. loans professionals to teach at minority colleges 0Ng0n _ ""'"'"'" _ ...""" ...... , Ph.D. on John Young. and universities: actively seeks to hire minorities. women, Vietnam-era veter·

28 MEASURE CHART Collins. Colorado. lab will now reporl to [he Apollo ICHANGES Division. v,:hile Apollo's The Mirrowave and Com­ graphics program becomes municatIOns Group has part of the Graphics created a new CommunI­ Technolog}' Division. ('ations Test BUSiness Unit under Tom Vos as GM It REDRAWING comprises the Colorado Tcle('ommunications and IANALYTICAL Queellsferry Telecommu­ Tilt' Analytical Products nications dh'isions aiong Group has CTe

Sepl emUE' r-O(·tobe-r 1989 27 HPwinsin BOnOM inro rmati o nsV~Ltms_ . photo finish Porl a bk a nd low-priced: Scanning through the ILINE the HP 85908 RF spec· August edition orPopular Ht'\I/If'l {-Packard ('()mpaIIY trum a n a lyzer and the Photography magazine, HP rt'pofLect a 2:~ pt'fl'erH BP 85928 microwave readers will recognize famil­ illcreasf' In net [{'\Tlllle s pec trum analyzef from iar equipment featured in and ~l ~3 pcn l'll [ (il:t'lT 192 III dllOll or.sO C{,llt ~ LeaveUlo dllT('lOL U. S, engineers Steve Kruger. testing: lab in the world :' PI'!' sharf' Oil some 2"'0 Fit- lei Opna[io n s Bob Sanlariella and Jim reports Robf''fl , mlIlI01l ShOll e>.; , Terje Christoffersen to Onkr... wlakd :;; : ~ 020 eounln' C :'vl. HP NOf\VClY , I>llIion lip 20 IH' rn'1l1 InHIl '10m Sapooas (0 GM. ( ~ ol­ ordl'r~ 01'::>2 ::l27 bill lOll III orad() S prln ,~s I)i\'is ioll A coup for NYU lilt' ~'t > ar-'l.l!() (Juilne!" Mike N&ggiar to f'n­ HPhas awarded the Lt'on­ SO lidi COlllputer l~r oll p ard N, St"rn School orl3usl· NEW rn a rkdllH! rn a ll ager . . ness at New York Univt'rsilv Roy Verley 10 din.'(' tof. a S350,OOO grant 10 selup'a IPRODUCTS Corpo f<)ll' PlIbJIl' NewWave comput In~ envi­ The Software En~lIH'nill ,l! Ht" la tio n ., ronment. complete With Systellls Di\-isioll has Vectra gS-16 personal com­ intfodu('t·ct tht' first of Ihe WORTH pulers and HS·25C servers, UP CASEdge fanlily (If Approxlmatel", 3.400 stu­ produ('ls for illtegratt'd INOTING dents attend [he g:raduate (,(lmpU[{,f-Cllcicct snttware· Cll ina-Ilf' wlell-Packard school on a full- or parl-t ime t'Il.l!iIWt'rI ng lei\SE) net'cis h as rt.'op(.' IlC'd IlS IkiJin,g basis, Many were on hand ()f ClIStOTl1t'fS • Apollo a nd Shangh tl.i nllites afler for the dedic-at iOIl of th(' [)i\'hioll brought OU[ sh 1I [ [ 1n~ d o\\'n for s evt'ral Hewlett-Packard Resource a new \Tf~iOJl of IIw \\'C('ks wlw n condilio ns Center in Jun(' DomainlCommoDLisp h t't'

28 MEASURE Celebrate good times ... HP enUtIes around the world contintle to celebrate a golden annlversarywlth everything from Hula Hoop contests to formal evenings with big-band sounds. . Poodle skirts, leather jackets and tennis shoes are replacing dresses. suilsand high-heeled shoes at many HP,ites. Themes of the '20s, '30s. '40s. and '50s are bouncing to life aseach site captures a gli mpse of HP's historic 50 years. Co-founders 8111 Hewlett and Dave Packard were among 12,000 guests at the all:Co]orado even tin Colorado Spr ings in June. where many umbrellas danced overhead as thun­ der sounded and douds. wind and rain tiJled the air. Harvard University hou­ sed a 50th celebration for an all-New England event which included Apollo Divi­ sion employees. Eight thou­ sand celebrated together by eating, dancing and watching entertainmen t. The Toronto. Canada, caf­ eteria became a usa Can­ teen. decorated with model airplanes and movte posters of the 1939 era. "In the Mood" set the theme and s tarred three senior male managers as the Andrews Sisters. HP's Boise. Idaho. site above held a 50th beer bust for cake to sing"Happy Birth­ HP's 50th celebrations are 3.500 employees and com­ day" to HP. They went on coming up roses-the Wil­ munity leaders. Governor to dance the night away liam David rose to beexaci. Cecil Andrus and Boise to music of the '405. HP Lid. in the UK chose Mayor Kirk Kempthorne Dancing, singingand a gOlden-yellow rose to be offiCially proclaimed June story telling have become named in honorofHP 29 as "Hewlell-Packard Day." a part ofHP's anniversary co-founders Bill Hewlett [n Geneva. Switzerland. party. Around the world. HP and DGtve Packard. Next 645 ,l,'llests celebrated with is celebrating good times. autumn. HP's anniversary Bill Hewlett. as he shared -LisaD:A.mtco will be remembered when stories of HP's past. 800Wilham-David rose In Ireland, employees bushes blossom at HP sites. gathered around a 50th

Scptember-Ortober 1989 29 above l3lu(" JWlf' skit's were abun­ dant early in the day when more than 12 ,OOOCoiorado HP e mployees and guests joined in a statewid(' c':l'Ie­ brallon at the U,S, Air Force Acadt'mv in Colorado Springs, The day-Iongactiv­ ilies reatured a superstar obstacle course top right As tht:' sky darkened and an intense storm bre\vrd, HP co-founders Bill Hewlett and Dave Packard trudged from tht foolball stadium stands to a 50 ya rd-line sta.~e As the huddled crowd fero,g· I1Ized the ramous guests. above above spectaLOrs rose to tht'ir ket The FillclrHT and Hl'IlIarkt'l ­ ).tick(·y Mous(' f J (I'SA'~ a nd appla uded spontane­ IIlg Divi-.;ioll's 50th ks( h'i­ Lt'Olllt' Awar) Illak('s a :-.pt'­ ously- ignoring winds (ie"" lIlcludt'd PI(,Ilic.'s alld cial app('aran('c in Gfl1('\'a which ripped the sta .~t' b('t'r bust s wi (h a '5th 1\<1 i r­ 10 h('lp ('OflHllt' nloralt'. tiP's canoples a nd rain which hi\!(' j('<-lns, pOtl~' I,Ills ,mel sale of Ilw audIO oS('iJlator s horted out tht., sound Hula Hoop co1Hc'slS FnU's to Walt Ui ~ Jl('\ · St Helios lor sys tem, E.sthn rulhrie,hl , formt'r the 010\'1(' Fa; uas llI , ~lKkt·: Arizona llula Iloop (:ham, holds a rt"plil'a ollhe hblori(· pi()fl, spins .lway 1( 1 ~OS prorluCi

( llIl('~ ,

30 MEASUHE above HP Malaysia presented a gOlden evening in May COffi­ pletewith a beautypa~eant. The nigh I belonged to Koek Eng Kuan. who was crowned Ms. HP Malaysia.

topleft New England attendees left stroll throu!1h a cultnary HP's McMlnnvtlle (Oregon) journey at Harvard Univer­ site celebrated big with sity where grazing stations traditional beer bust.s and were set up featuring exotic picnics. And. to make the foods from many naUons. party even bjgger. attendees united for a grand blue-and­ above while anntversarywave to New Apollo Division employ­ all HP employees. eesJoin HP employees from the New England Region for a 50th anniversary cheer during the July festivities at Harvard University.

September-October 1989 31 PARTING SHOT

Not just another customer demo Because HP Labs is a show­ case for emerging technol­ ogy. employees who work there are used to customer demonstrations. But this was a very special visitor-U.S. Vice President Dan Quayle-and the occa­ sion calJed for a special demonstration on superconductivity. "The vice president'" summer intern JerfYoung exclaimed when he learned that he would conduct the demonstration during the vice president 's visl t to HP in July. "My body went numb when I first heard the news, and I could hardly eat. Including the weekend, 1worked about 70 hours that week preparing, and I didn't sleep veryweU." Jeffsays the vice presi­ dent asked several good questions and seemed interested in the demon­ stration. Jeffgave thevlce president a superconduc­ tivity kit as a gift. U.s. VIce PTesldent Dan Quayle practices a superconducllYHy experimentwilli help!rom (from left) Jeft 'The next morning my Young, HP Labs Director Frank carrubba, HP co-launder DavId Packard and HP Labs' Len Cutler, mom came into my room and told me I was on the 10 get a high-tech perspec­ comprehensive overview tive results front page of the newspa­ tive on competitiveness. of the issues affecting U.S. "He seemed ~enuinely per," Jeff notes. "I looked He chairs a council on competitiveness..." the vice interested in our Views," once. then I went back to my competitlveness whose preSident told reporters. John says, "and rm confi­ room, got my glasses and mission is to establish HP PreSident John dent he will carry our mes­ looked again, It's sUII hard federal policles to improve Young. who chaired the sage back to his own Council to believe. ,. U.S. international President's Commission on on Competitiveness." After the tour of HP Labs, competitiveness Industrial Competitiveness John chairs the private Vice President Quayle met "The thing I accom· in 1983-84. believes the Council on Competitive­ at HPwith Bay Area leaders plished was to gel a good. meeting can produce posi­ ness. which he founded. -Hans Kuendig

MOVED LATELY? CHANGE OF ADDRESS SHOULD BE REPORTED TO YOUR PERSONNEL DEPARTMENT. r;,;.'1 HEWLETT Bulk Rate "':f.II PACKARD U.S. Postage Measure Magazine Paid PO Box 10301 Hewlett-Packard Palo Alto. California 94303-0890 Company