Be Inc.
| Company type | Private (until IPO), then Public |
|---|---|
| Industry | Technology, Computer software, Computer hardware |
| Founded | 1990 |
| Founder | Jean-Louis Gassée, Steve Sakoman |
| Defunct | November 13, 2001 |
| Fate | Acquired by Palm, Inc. |
| Headquarters | Menlo Park , United States |
Area served | Worldwide |
Key people | Jean-Louis Gassée (CEO), Steve Sakoman, Erich Ringewald (CTO) |
| Products | BeOS, BeIA, BeBox personal computer |
Be Inc. was a United States-based technology firm recognized for creating the BeOS and BeIA operating systems, as well as the BeBox personal computer. Established in 1990 by former Apple Computer executive Jean-Louis Gassée, who took on the role of CEO, the company operated out of Menlo Park, California.
The company’s core mission was to develop an innovative operating system using C++ tailored for proprietary hardware platforms. Although BeOS garnered favorable critical acclaim, its commercial penetration remained modest. Initially designed to run solely on the BeBox, BeOS was subsequently adapted for the Power Macintosh and later ported to the Intel x86 architecture. After venturing into the Internet appliance market with BeIA, Be Inc.'s intellectual property was purchased by Palm, Inc. in 2001.
History
Be Inc. was launched in 1990 by former Apple executives Jean-Louis Gassée and Steve Sakoman, with financial backing from Seymour Cray, shortly after Gassée’s exit from Apple.[1] The team immediately began working on a prototype computer following Gassée’s departure.[2] Erich Ringewald, who had served as lead engineer on Apple’s 'Pink' OS initiative, joined as chief technology officer,[3] along with several other former Apple staff members.[4] Initially called Be Labs and headquartered in San Jose,[5] the company operated quietly for over four years before publicly revealing its product.[6]
The origin of the name "Be" is said to have come from a brief conversation between Gassée and Sakoman during their brainstorming sessions.[7] The company’s original tagline was One processor per person is not enough.[8]
Their first prototype incorporated five AT&T Hobbit processors.[2] By 1992, development was underway on a kernel and user interface that evolved into BeOS.[4] When AT&T ceased production of the Hobbit processors due to poor market performance, Be redirected their efforts toward the PowerPC architecture and accordingly ported BeOS.[4]
BeBox and BeOS
In October 1995, Be launched the BeBox personal computer, distinguished by its PowerPC processors equipped with activity indicator LEDs and a combined analog/digital 37-pin GeekPort. The BeBox gained recognition for its multimedia strengths, particularly appealing to Amiga enthusiasts. Despite this attention, Be faced ongoing financial difficulties after years of product development; however, in April 1996 they secured capital from prominent Silicon Valley venture capital firms.
By late 1996, Apple was searching for a replacement for Copland. Amid speculation that Apple might acquire BeOS, Be sought to broaden its market presence through partnerships with Macintosh clone manufacturers to bundle BeOS. In November 1996, Power Computing obtained a license for BeOS. Ultimately, Apple selected NeXTSTEP over BeOS—an outcome influenced by Steve Jobs's return and due to BeOS lacking critical features such as printing support. Reports that Be demanded US$500 million and an executive role at Apple—while NeXT was acquired for US$400 million—were denied by Jean-Louis Gassée.
Post-BeBox Developments
By the beginning of 1997, Be Inc. faced significant hardware and financial obstacles that prompted the company to halt production of the BeBox and concentrate solely on software development. BeOS started to appear on certain Macintosh clone systems and subsequently on Apple's Power Mac computers, a transition enabled by Power Computing despite initial resistance from Apple. In 1998, Be expanded its capabilities by acquiring StarCode Software, which brought the PackageBuilder and SoftwareValet tools to support BeOS software distribution. The company also attracted fresh capital, including a notable 10% stake acquired by Intel following the successful porting of BeOS to the Intel x86 architecture. Hitachi became Be’s first prominent manufacturing collaborator, offering BeOS pre-installed on select hardware.
In July 1999, Be Inc. launched its initial public offering on Nasdaq. Nevertheless, widespread adoption remained elusive due to most original equipment manufacturers (OEMs) being contractually bound to Microsoft, limiting their ability to offer BeOS-based solutions. A highly anticipated agreement with a major OEM in 1999 failed to come through, resulting in a drop in the company's stock price.
Strategic Redirection
February 2000 marked the introduction of the BeIA operating system as Be announced a strategic shift targeting Internet appliance markets. In an effort to boost adoption, BeOS version 5 was made available as a complimentary download after struggling to gain significant market share. Around this period, both Compaq and Hitachi pledged to launch devices powered by BeIA.
A key partnership was secured with Sony, which utilized BeIA for its eVilla home internet appliance showcased at CES 2001. Despite these initiatives, by 2001 Be Inc.’s stock had experienced a steep decline amid reports forecasting imminent cash flow difficulties.
Company Dissolution and Legal Actions
On August 16, 2001, Be Inc. declared that it would be acquired by Palm, Inc. for $11 million USD. Shareholders approved this transaction on November 13, after which Be commenced dissolution proceedings. CEO Jean-Louis Gassée joined Palm’s board following the acquisition. Since Palm was not focused on desktop operating systems, it spun off PalmSource to continue development of Palm OS and related products. The assets from Be were transferred to PalmSource, which likely integrated portions of BeOS code into Palm OS version 6. Subsequently, both PalmSource and the rights to BeOS were obtained by the Japanese company ACCESS.
During the dissolution process, Be filed a lawsuit against Microsoft, accusing it of anti-competitive conduct. The complaint challenged Microsoft’s OEM agreements that restricted dual-boot configurations involving Microsoft and non-Microsoft operating systems and alleged coercion of Compaq to refrain from promoting an Internet appliance featuring BeIA. Additionally, Be claimed that Microsoft interfered with its initial public offering (IPO). This lawsuit was resolved out of court in September 2003 with Microsoft paying $23.25 million USD to Be Inc.
Legacy
Following Palm’s acquisition of Be’s intellectual property, The Register emphasized that Be should not be regarded as a failure:
The open-source project Haiku carries forward the legacy of BeOS through a complete reimplementation. The fifth beta release of Haiku was made available in September 2024.
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