From Founding to Acquisition and Beyond
3Com was founded in 1979 by Bob Metcalfe, the inventor of Ethernet, during his tenure at Xerox PARC. Metcalfe, a pioneering engineer, established 3Com to commercialize Ethernet and make it the standard for networking in personal computing. The company’s name, representing "Computers, Communication, and Compatibility," underscored this vision. Initially, Metcalfe pitched Boston venture firms due to his links there via MIT. Boston’s conservative investment culture conflicted with the ambitious nature of Silicon Valley, leading Metcalfe to shift westward to secure more flexible funding. Despite initial setbacks, he ultimately secured $1.1 million from venture capital, primarily from Silicon Valley, which propelled 3Com’s early development and launch of Ethernet-based products.
By the early 1980s, 3Com had emerged as a major player in networking technology, focusing on Ethernet adapter cards for systems like the IBM PC. The addition of Bill Krause, a former Hewlett-Packard executive, as CEO marked a turning point in the company’s operational maturity. Krause’s disciplined management style complemented Metcalfe’s visionary approach, driving significant growth. In 1984, 3Com went public, achieving a 15x return for early investors. Its success grew in tandem with the rapid expansion of personal computing and internet adoption, becoming a standard for connecting computers.
A significant moment came in 1997 when 3Com acquired U.S. Robotics, a top modem producer, along with Palm, Inc., maker of the PalmPilot. This move diversified 3Com’s portfolio, though the rise of built-in network interfaces in computers led to a decline in demand for its standalone networking products in the early 2000s. In response, 3Com spun off Palm, Inc. in 2000 and adjusted its focus, withdrawing from the high-end router and switch markets.
In 2003, 3Com formed a joint venture with Huawei, establishing H3C to target the Chinese networking market. By 2007, 3Com had acquired full ownership of H3C, cementing its presence in China and broadening its influence globally. This move underscored the company’s shift toward international markets and continued relevance in networking.
On November 11, 2009, Hewlett-Packard (HP) announced its acquisition of 3Com for $2.7 billion to enhance HP’s networking capabilities and compete with Cisco. The acquisition, finalized in 2010, expanded HP’s offerings in Ethernet switching, routing, and security through 3Com’s TippingPoint portfolio. Later, in 2015, HP acquired Aruba Networks, further integrating 3Com’s technologies into the Aruba Networking division. Today, while the 3Com brand no longer exists, its legacy endures within Hewlett Packard Enterprise’s networking solutions.
