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Hp Procurve

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HP ProCurve Case Discussion

1. Evolution of NB (networking business)

Period | Industry Trends & Competition | NB’s Focus & Strategy | Attention from HP Top Management | Internal Relationships | External Relationships | Resource Allocation | NB Performance | 1. Emergence1970s | Fermentation, very few companies (3com) | Interconnect with disparate computers, emulating IBM systems and networking HP computers among themselves. | Very little | Management didn’t give it much attention | None | Very little money | | 2. IND & ING1982-88 | Fermentation, Cisco and 3com | ING had to create networking protocols to communicate with a variety of systems, including IBM mainframes and DEC mini computers and HP’s own three proprietary systems. Standardize TCP/IP | A lot of restructuring and forming ING and RNG | Problems with management and management changing, organizational restructuring. Dan Warmenhoven failing to convince HP of the opportunity in the networking business and then him leaving | | ING formations with 150 employees to 1600 people and RND formation. R&D suffering | | 3. Breaking up ING & Moving RND into PC Group1990s | Shakeout, Cisco and 3com | R&D became focused on the printing business network and LaserJet imaging. Unlimited warranties | dismantling ING by 1988, Ticknor said, “My biggest failure was that I was not able to convince HP of this networking business opportunity.” | Sharing the PC Group’s sales channel. Then getting there own sales force in 1998 with only 30 people. RND becomes ProCurve | Cisco | HP’s corporate leadership to warrant extra investment, Independent R&D and taking profits from them | cash cow whose profits were used to offset the low margins earned by PC’s. very profitable, very high-margin, successful, growth-oriented business | 4. Moving ProCurve into Storage Group2000-01 | Shakeout, Cisco and

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