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3Com Corporation
Company typePublic
IndustryDigital electronics, computer networking hardware
Founded1979
FounderRobert Metcalfe, Howard Charney, and others
FateAcquired by Hewlett-Packard in 2010; merged into HPE Aruba Networks
Headquarters
Santa Clara
,
United States
Area served
Worldwide (including China, Europe, Asia, Americas)
Key people
Bill Krause (President 1981), Bruce Claflin (COO 1998, CEO 2001), Robert Mao (CEO 2008), Ron Sege (President and COO 2008)
ProductsNetwork interface controllers, switches, routers, wireless access points, IP voice communication systems, intrusion prevention systems
Number of employees
>6,000 (2008)

3Com Corporation was a prominent American manufacturer specializing in digital electronics, particularly recognized for its contributions to computer network hardware. Established in 1979 by Robert Metcalfe, Howard Charney, and additional partners, with Bill Krause assuming the role of President in 1981, the company’s name originated from the phrase "Computer Communication Compatibility," highlighting its dedication to Ethernet technology, which Metcalfe helped pioneer.

The company’s product lineup included network interface controllers, switches, routers, wireless access points along with their controllers, IP voice communication systems, and intrusion prevention systems. Headquartered in Santa Clara, California, 3Com broadened its international footprint after acquiring full ownership of H3C Technologies Co., Limited (H3C) in 2007; H3C had initially been a joint venture with China-based Huawei Technologies. This strategic move enhanced 3Com’s position within the China market and supported its sales operations across Europe, Asia, and the Americas. Its products were marketed under the brands 3Com, H3C, and TippingPoint.

On April 12, 2010, Hewlett-Packard finalized the acquisition of 3Com. Subsequently, following HP’s purchase of Aruba Networks in 2015 and the ensuing corporate reorganization that year, 3Com was absorbed into the HPE Aruba Networks division.

Xerox PARC (1972–1979)

Motivated by ALOHAnet’s design, Robert Metcalfe formulated his own networking concepts and joined Xerox PARC in 1972 aiming to develop a wired version of ALOHAnet. Collaborating with David Boggs, they created early Ethernet models operating at 3 Mbit/s by 1973 and developed the PARC Universal Packet (PuP) protocol by late 1974. Despite these innovations, Xerox management showed little interest in commercializing the technology. Metcalfe left Xerox in 1975 but returned in 1976 to contribute to the Xerox Network Systems (XNS) protocol project, which reached completion by 1978. Disappointed once more by management’s lack of support, he exited permanently in 1979.

Founding and early days (1979–1996)

In 1979, Metcalfe co-established 3Com alongside Howard Charney and others. Bill Krause took over as CEO in 1982 and served until 1992. The company initially focused on manufacturing Ethernet adapter cards for early computer platforms such as DEC LSI-11, VAX-11, Sun-2, and IBM PC. During the mid-1980s, it marketed its Ethernet technology under the EtherSeries brand and launched software applications and PC-based devices that facilitated shared LAN services using XNS protocols. These included EtherShare for file sharing, EtherPrint for printing services, EtherMail for email communication, and Ether-3270 for IBM host emulation. The firm went public in 1984.

Notable network software offerings included:

  • 3+Share – file and printer sharing solution
  • 3+Mail – electronic mail system
  • 3+Route – serial port XNS routing utility
  • 3+Remote/PC – remote workstation routing tool
  • 3+NetConnect – flexible XNS routing across Ethernet and Token Ring networks
  • 3+3270/SNA Gateway – IBM terminal emulation
  • MultiConnect – chassis-based multi-port repeater for 10BASE2
  • 3Server – server-class PC platform
  • 3Station – diskless workstation terminals
  • 3+Open – file/printer sharing based on Microsoft LAN Manager
  • Etherterm – terminal emulation software
  • Etherprobe – LAN analysis application
  • DynamicAccess suite – features including Ethernet load balancing, response time optimization, and RMON II monitoring

In 1987, the company expanded through a merger with Bridge Communications, acquiring Motorola 68000-based devices compatible with XNS protocols along with Etherterm software:

  • CS/1 and CS/200 communication servers (terminal servers)
  • Ethernet bridges and XNS routers
  • GS/1-X.25 gateway devices
  • CS/1-SNA gateway products
  • NCS/1 network control software designed for Sun Microsystems platforms

By the mid-1990s, reflecting its significant market presence, 3Com secured an annual $900,000 naming rights agreement for San Francisco’s Candlestick Park that extended through to 2002.

1997–2000

In 1997, 3Com combined operations with USRobotics (USR), a prominent manufacturer of dial-up modems and the owner of Palm, Inc.. USRobotics was recognized for its consumer-oriented Sportster modems and the business-focused Courier modems. This merger signaled the onset of 3Com’s downturn. The USRobotics dial-up access server, known as the "Total Control Hub" (later rebranded as "Total Control 1000"), competed directly with Cisco’s AS5200 amid the internet expansion. 3Com continued to develop this product line until it was spun off into Commworks, which was eventually acquired by UTStarcom.

Bruce Claflin took on the role of chief operating officer in August 1998. As the modem market rapidly contracted, 3Com’s efforts to break into the DSL industry were unsuccessful.

3Com held a commanding position in the server network interface controller (NIC) sector, with only Intel’s aggressive pricing posing a significant challenge. Initially, 3Com developed its own Gigabit Ethernet cards internally but later partnered with Broadcom, which provided essential integrated circuits for NICs branded by 3Com.

In 1999, 3Com purchased NBX, a Boston-based firm specializing in Ethernet phone systems tailored for small and medium-sized enterprises. This VoIP solution quickly gained traction through 3Com’s distribution network and collaborations with telephony companies such as Southwestern Bell and Metropark Communications, contributing to VoIP’s establishment as a viable technology for business communications.

Aiming to venture into intelligent consumer devices, 3Com acquired internet radio startup Kerbango for $80 million in June 2000 and introduced the Audrey appliance, which was featured on The Oprah Winfrey Show. Nonetheless, both products were discontinued within a year.

In March 2000, 3Com withdrew from the high-end core routers and switches market to concentrate on other areas. By June 2000, CoreBuilder Ethernet and ATM LAN switches, PathBuilder WAN routers, and NetBuilder WAN routers were phased out. Assets related to CoreBuilder were transferred to Extreme Networks, while PathBuilder and NetBuilder divisions were acquired by Motorola. Between 2000 and 2003, 3Com focused on product lines including HomeConnect, OfficeConnect, SuperStack, NBX, and Total Control. This strategic withdrawal limited its capacity to reclaim market share within enterprise or carrier sectors.

In July 2000, 3Com spun off Palm, Inc. as an independent entity. Following Palm's initial public offering, 3Com retained an 80percent ownership stake but had a lower market capitalization than Palm itself. Simultaneously, U.S. Robotics was also separated once again as an independent company.

2001 and beyond

In January 2001, Claflin succeeded Éric Benhamou as chief executive officer. He faced criticism over expensive diversification into the mobile handheld computing market. Meanwhile, sales of 3Com's core networking add-on cards ("NICs") declined sharply due to increasing integration of NICs into computers. The company responded with major workforce reductions, shrinking from more than 12,000 employees to fewer than 2,000.

In May 2003, 3Com moved its headquarters from Santa Clara in Silicon Valley to Marlborough, Massachusetts. That same year, it established a joint venture called H3C with Huawei, marketing products under this collaboration.

Also in 2003, 3Com divested its subsidiary CommWorks Corporation—which specialized in wireline and wireless telecommunications infrastructure—to UTStarcom, Inc..

Claflin announced his departure in January 2006. R Scott Murray assumed the roles of CEO and chairman of H3C but resigned in August amid concerns regarding Huawei’s ethical business practices and cybersecurity issues. Edgar Masri returned to lead as president and CEO.

In September 2007, Bain Capital agreed to acquire 3Com for $2.2 billion with minority financing from Huawei. However, U.S. regulatory authorities blocked the deal over cybersecurity concerns linked to Huawei’s connections with the Chinese military and controversial international activities; this led to the deal's collapse in early 2008. Masri resigned in April 2008 partly due to this failed acquisition.

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

For the fiscal year ending May 30, 2008, 3Com reported revenues of $1.3 billion and employed more than 6,000 staff across approximately 40 countries. In the first quarter of fiscal year 2009 (ended August 29, 2008), revenue increased by 7% year-over-year to $342.7 million with net income reaching $79.8 million compared to a loss of $18.7 million during the same period the previous year.

The company emphasized its robust engineering workforce comprising over 2,700 engineers and holding more than 1,400 U.S. patents alongside nearly 180 Chinese patents plus over 1,050 pending patent applications in China. Additionally, it maintained pending patent filings for around 35 inventions outside China covering a variety of networking technologies.

HP Acquisition

On November 11, 2009, Hewlett-Packard declared its intention to purchase 3Com for $2.7 billion in cash. This transaction was finalized on April 12, 2010. After HP's division into Hewlett Packard Enterprise and HP Inc., the 3Com division stayed within HPE and was eventually merged into Aruba Networks, alongside HP’s extensive networking assets.

Product Portfolio

  • Fixed Ethernet switches with stackable options: 3Com Gigabit series (Switch 5500G, 4800G, 4500G, 4200G, Baseline, OfficeConnect) and Fast Ethernet models (Switch 5500, 4500, 4210, Baseline, OfficeConnect); H3C models (S5600, S5500, S5100, S3600, S3610, S3100).
  • Modular chassis switches including 3Com units (8800, 7900E, 7500) and H3C chassis (S9500, S7500, S7500E).
  • Routers designed for wide area network connectivity.
  • Wireless access points, network adapters, and related connectivity products.
  • Internet gateways and firewall solutions for both wired and wireless networks.
  • Software platforms for network management.
  • Security systems such as the TippingPoint Intrusion Prevention System.
  • IP Telephony offerings encompassing PBX systems and Computer Telephony Integration; voice platforms VCX and NBX utilizing VoIP and SIP standards.
  • LAN interface cards.
  • IP Video Surveillance and Network Storage devices marketed across China, South Africa, South America, and other significant markets.
  • Consumer USB webcams bundled with software under the 3Com HomeConnect label.
  • The pioneering 3Com Laser Library—a CD-based resource for documentation and technical support.

Corporate Acquisitions

In 1986, 3Com nearly merged with Convergent Technologies but withdrew shortly before shareholder approval. Subsequently, the company grew through several acquisitions:

  • 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/acquisition of USRobotics in 1997 added product lines such as Sportster, Courier, Palm, Megahertz, Conferencelink, Audrey
  • NBX (1999)
  • Kerbango (2000)
  • TippingPoint (2005)
  • In 2007, the buyout of Huawei’s 49% stake in their joint venture for $882 million

Previous Subsidiaries

CommWorks Corporation—formerly a subsidiary of 3Com located in Rolling Meadows, Illinois—was divested to UTStarcom of Alameda, California in 2003.

CommWorks originated from 3Com’s Carrier Network Business unit and was formed through acquisitions including U.S. Robotics (Rolling Meadows), Call Technologies (Reston, Virginia), and LANsource (Toronto, Ontario, Canada). Combining these assets enabled CommWorks to develop IP softswitches and IP communications software: media gateways like Total Control 1000 and softswitch technology came from U.S. Robotics; Unified Messaging software was provided by Call Technologies; fax-over-IP solutions integrated with messaging platforms were contributed by LANsource.

The unit was a pioneer in Inter-working function technology that produced the first leading 2G CDMA wireless data gateway product. Collaborating with Unwired Planet (now Openwave) and Qualcomm, their Quicknet connect technology shortened connection times to approximately six seconds compared to the traditional modem duration of thirty seconds. This technology was implemented extensively in the U.S., Japan, and Korea by carriers including Sprint. It served as a foundation for core CommWorks—and later UTStarcom—products like the Packet Data Serving Node (PDSN) and Home Agents supporting 2.5G and 3G packet data gateways.

In 1998, CommWorks/3Com partnered with AT&T to develop an H.323-based softswitch enabling "transparent trunking" for residential long-distance services. Calls were converted from time-division multiplexing to IP via the Total Control 1000 media gateway before being routed over AT&T's WorldNet IP backbone to enhance network performance.

By the year 2000, CommWorks had upgraded its gateway and softswitch software to incorporate SIP support for MCI/WorldCom’s hosted business services.

Though CommWorks was sold to UTStarcom, 3Com retained intellectual property rights relating to the softswitch technology. By augmenting this software with enterprise PBX functionalities, 3Com introduced VCX in 2003—the industry’s first fully SIP-based PBX—representing a major advancement in IP communication technologies.

See also

References

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