3Com

3Com Corporation
Company type	Public
Industry	Computer network hardware
Founded	1979; 47 years ago
Founder	Robert Metcalfe, Howard Charney, and partners
Defunct	April 12, 2010
Fate	Acquired by Hewlett-Packard
Successor	Hewlett Packard Enterprise (Aruba Networks division)
Headquarters	Santa Clara, United States
Area served	Worldwide (China, Europe, Asia, Americas)
Key people	Bill Krause (President 1981), Bruce Claflin (CEO 2001), Robert Mao (CEO 2008)
Products	Network interface controllers, switches, routers, wireless access points, IP voice communication systems, intrusion prevention systems
Number of employees	6,000+ (2008)
Parent	Hewlett-Packard (from 2010)

3Com Corporation was a United States-based manufacturer specializing in digital electronics, with a primary focus on computer network hardware. Established in 1979 by Robert Metcalfe, Howard Charney, and additional partners, the company appointed Bill Krause as President in 1981. Its name originated from the phrase "Computer Communication Compatibility," highlighting its dedication to Ethernet technology, which Metcalfe helped co-develop.

The product lineup of 3Com included network interface controllers, switches, routers, wireless access points and their controllers, IP voice communication systems, and intrusion prevention systems. Based in Santa Clara, California, 3Com broadened its international footprint significantly after acquiring complete ownership of H3C Technologies Co., Limited (H3C) in 2007—a company initially formed as a joint venture with China's Huawei Technologies. Its offerings were marketed under the brands 3Com, H3C, and TippingPoint throughout China, Europe, Asia, and the Americas.

On April 12, 2010, Hewlett-Packard finalized the acquisition of 3Com. Following this transaction, 3Com was incorporated into Hewlett Packard Enterprise’s Aruba Networks division after HP acquired Aruba in 2015 and underwent organizational restructuring.

Xerox PARC (1972–1979)

Motivated by the success of ALOHAnet, Robert Metcalfe joined Xerox PARC in 1972 to engineer a wired networking solution. Collaborating with David Boggs, they developed early Ethernet versions capable of 3 Mbit/s transmission by 1973 and created the PARC Universal Packet (PuP) protocol by late 1974. Despite indications of customer demand, Xerox's management showed limited enthusiasm. Metcalfe briefly left in 1975 but returned to lead development of the influential Xerox Network Systems (XNS) protocol, completed by 1978. Due to persistent managerial indifference, he permanently departed Xerox in 1979.

Founding and early days (1979–1996)

In 1979, Metcalfe co-established 3Com alongside Howard Charney and other collaborators. Bill Krause assumed the CEO role in 1982 and led the company until 1992. Initially, 3Com manufactured Ethernet adapter cards compatible with platforms such as DEC LSI-11, VAX-11, Sun-2, and IBM PC. During the mid-1980s, the company branded its Ethernet technology as EtherSeries and launched PC-based software enabling LAN shared services built on XNS protocols: EtherShare for file sharing, EtherPrint for printing services, EtherMail for electronic mail, and Ether-3270 for IBM host emulation. The firm went public through an IPO in 1984.

Prominent network software products included:

3+Share for file and printer sharing
3+Mail electronic mail system
3+Route to route XNS over serial connections
3+Remote/PC enabling remote XNS routing
3+NetConnect offering versatile XNS routing across Ethernet and Token Ring networks
3+3270/SNA Gateway providing IBM 3270 terminal emulation
MultiConnect multi-port chassis-based 10BASE2 Ethernet repeater
3Server high-performance PC designed for server applications
3Station diskless workstation model
3+Open file/printer sharing based on Microsoft's LAN Manager technology
Etherterm terminal emulation software
Etherprobe LAN diagnostic tool
DynamicAccess software for Ethernet load balancing, response time improvement, and distributed monitoring

In 1987, through merging with Bridge Communications, 3Com expanded its portfolio to include Motorola 68000-based devices compatible with XNS protocols and Etherterm software:

CS/1 and CS/200 communication servers ("terminal servers")
Ethernet bridges alongside XNS routers
GS/1-X.25 X.25 gateway devices
CS/1-SNA SNA gateways
NCS/1 network control software running on Sun Microsystems workstations

By the year 1995, 3Com's market influence allowed it to secure a $900,000 annual naming rights agreement for San Francisco's Candlestick Park stadium, a sponsorship that continued until 2002.

1997–2000

In 1997, 3Com combined forces with USRobotics (USR), a prominent manufacturer of dial-up modems and the proprietor of Palm, Inc.. USRobotics was recognized for its consumer-focused Sportster modems and the business-oriented Courier series. This merger represented a significant shift for 3Com. The dial-up access server from USRobotics, known as the "Total Control Hub" and rebranded by 3Com as the "Total Control 1000," competed directly with Cisco's AS5200 amid the Internet surge. 3Com maintained this product line until it was spun off under the Commworks division, which was subsequently acquired by UTStarcom.

Bruce Claflin assumed the role of chief operating officer in August 1998. At that time, the modem market was rapidly shrinking, and 3Com's efforts to break into the DSL market were unsuccessful.

In the server network interface controller (NIC) sector, 3Com held a dominant position, challenged primarily by aggressive pricing strategies from Intel. Initially, 3Com developed its own Gigabit Ethernet cards but later formed a partnership with Broadcom, which provided integrated circuits for NICs bearing the 3Com brand.

The year 1999 saw 3Com acquire NBX, a Boston-based company specializing in Ethernet phone systems tailored for small to medium-sized enterprises. This VoIP technology quickly gained traction through 3Com’s distribution networks and collaborations with telephony companies such as Southwestern Bell and Metropark Communications, playing a key role in establishing VoIP as a viable communication solution.

Aiming to expand its presence in the consumer market, 3Com purchased internet radio startup Kerbango for $80 million in June 2000 and introduced the Audrey appliance, which was featured on The Oprah Winfrey Show. Both initiatives were discontinued within a year.

In March 2000, 3Com withdrew from the high-end core router and switch markets to concentrate on other areas. By June 2000, its CoreBuilder Ethernet/ATM switches and PathBuilder/NetBuilder WAN routers were discontinued; customers using CoreBuilder products transitioned to Extreme Networks, while PathBuilder and NetBuilder users were directed to Motorola. Between 2000 and 2003, 3Com focused on product lines such as HomeConnect, OfficeConnect, SuperStack, NBX, and Total Control. This strategic retreat limited its engagement with large enterprise and carrier clients going forward.

In July 2000, Palm, Inc. was spun off as an independent entity. After Palm’s initial public offering, 3Com retained an 80 percent ownership stake but had a lower market valuation than Palm itself. Around this period, U.S. Robotics was also separated once again.

2001 and beyond

In January 2001, Bruce Claflin succeeded Éric Benhamou—who had served as CEO from 1990 to 2000—as chief executive officer. Claflin faced criticism due to expensive diversification efforts into the mobile handheld computing sector. Meanwhile, demand for traditional add-on network interface controllers ("NICs") declined sharply as more computers began featuring built-in NICs. In response, the company undertook divisional cuts or sales and implemented multiple rounds of layoffs, reducing its workforce from more than 12,000 employees to fewer than 2,000.

By May 2003, 3Com had relocated its headquarters from Silicon Valley to Marlborough, Massachusetts. Additionally, it established a joint venture called H3C with Huawei to market and rebrand networking equipment.

That same year, 3Com divested its CommWorks subsidiary—which specialized in wireline and wireless infrastructure technologies—to UTStarcom.

Claflin announced his departure in January 2006. R Scott Murray took over as CEO and chairman of H3C but resigned in August due to concerns about Huawei’s ethical practices and cybersecurity risks. After Murray’s exit, Edgar Masri returned as president and CEO.

In September 2007, Bain Capital agreed to purchase 3Com for $2.2 billion with minority investment from Huawei; however, regulatory objections from the U.S. government over cybersecurity concerns linked to Huawei’s alleged connections with the Chinese military led to the deal’s termination in early 2008. Masri left the company soon after.

Robert Mao was appointed CEO in April 2008 with Ron Sege serving as president and COO.

For fiscal year ending May 30, 2008, 3Com reported revenues of $1.3 billion and employed more than 6,000 people across over forty countries. In the first quarter of fiscal year 2009 (ending August 29, 2008), revenue rose by seven percent year-over-year to $342.7 million with net income reaching $79.8 million compared to a previous loss.

The company emphasized its robust intellectual property assets including over 1,400 U.S. patents, nearly 180 patents in China, more than 2,700 engineers globally, along with numerous pending patent applications spanning various networking technologies.

Acquisition by HP

On November 11, 2009, Hewlett-Packard declared its intention to purchase 3Com for $2.7 billion in cash. The transaction was finalized on April 12, 2010. After HP restructured into Hewlett Packard Enterprise (HPE) and HP Inc., 3Com was incorporated into HPE and merged into Aruba Networks, becoming part of HP’s comprehensive networking division.

Products

Fixed configuration Ethernet switches, including stackable variants: 3Com Gigabit switches such as the Switch 5500G, 4800G, 4500G, and 4200G; Baseline and OfficeConnect series; as well as H3C models including S5600, S5500, S5100, S3600, S3610, and S3100.
Modular chassis switches comprising the 3Com 8800, 7900E, and 7500 series; alongside H3C’s S9500, S7500, and S7500E platforms.
Routers designed for wide area network (WAN) connectivity
Wireless network devices including access points and adapters
Internet gateways and firewall solutions for both wired and wireless networks
Software tools for network management
Security platforms such as the TippingPoint Intrusion Prevention System
IP Telephony offerings featuring PBX systems and Computer Telephony Integration (CTI) utilizing VoIP and SIP protocols; voice solutions included VCX and NBX products.
Network interface cards tailored for local area networks (LAN)
IP Video Surveillance and Network Storage products distributed in markets like China, South Africa, South America, among others
Consumer-focused USB webcams marketed under the 3Com HomeConnect brand with accompanying software
The groundbreaking 3Com Laser Library—a CD-based resource for documentation and technical assistance—conceived by Dirk Martin

Acquisitions

In 1986, 3Com nearly merged with Convergent Technologies but withdrew shortly before the shareholder vote. Among its significant acquisitions are:

Bridge Communications (1987)
BICC Data Networks (1992)
Star-Tek and Synernetics (1993)
Centrum Communications and NiceCom (1994)
AccessWorks, Sonix Communications, Primary Access, Chipcom (1995)
Axon Networks and OnStream Networks (1996)
The merger with USRobotics in 1997, which added product lines such as Sportster, Courier, Palm, Megahertz, Conferencelink, and Audrey
NBX (1999)
Kerbango (2000)
TippingPoint (2005)
Full acquisition of the Huawei-3Com joint venture in 2007 for $882 million, obtaining complete ownership from Huawei’s prior 49% share

Former subsidiaries

CommWorks Corporation was a former division of 3Com headquartered in Rolling Meadows, Illinois, which was sold to UTStarcom in 2003. This entity evolved from 3Com's Carrier Network Business unit and incorporated acquisitions including U.S. Robotics (Rolling Meadows), Call Technologies (Reston, Virginia), and LANsource (Toronto, Ontario, Canada). These components enabled CommWorks to develop IP softswitches and communications software: U.S. Robotics contributed media gateway technology (Total Control 1000) alongside softswitch capabilities; Call Technologies provided Unified Messaging solutions; LANsource integrated fax-over-IP functionality within the messaging platform.

The division pioneered Inter-working function technology by launching a leading wireless data gateway product for 2G CDMA networks. Collaborating with Unwired Planet (now Openwave) and Qualcomm, it introduced Quicknet Connect technology that reduced connection establishment times from roughly 30 seconds down to six seconds. This innovation was implemented across carriers in the U.S., Japan, and Korea—including Sprint—and later evolved into core CommWorks—and subsequently UTStarcom—offerings such as packet data gateways for 2.5G and 3G networks like the Packet Data Serving Node (PDSN) and Home Agents.

In 1998, CommWorks partnered with AT&T to co-develop an H.323-based softswitch enabling seamless trunking of residential long-distance calls by converting TDM signals to IP for transmission over AT&T's WorldNet IP backbone. By the year 2000, this gateway and softswitch software had been enhanced to support SIP protocols for MCI/WorldCom’s hosted business services.

Although 3Com divested CommWorks to UTStarcom, it retained intellectual property rights related to the softswitch technology. Building upon this foundation with enterprise PBX enhancements, 3Com introduced VCX in 2003—the industry’s first pure SIP-based PBX—thereby establishing a strong presence in the expanding IP telephony sector.

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