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November 06, 2019

HP's tech lures Xerox offer to buy

HP printer tech
Photo by Dario Seretin on Unsplash

Plenty of writers and customers get confused about the HP of 2019. Back in 2014, the corporation split into two units, operations that align on devices and datacenters. Hewlett-Packard Enterprise now sells datacenter products and services. It's the arm that created HP 3000s in the 1970s. HP Inc., the part of the company that makes printing, imaging, and PC products, received an offer this week to be purchased by Xerox.

HP Inc. acquired 55 patents from Samsung for business printing not long ago. Now the corporation is being courted by a suitor whose printing legacy is wired deep into the DNA of Hewlett-Packard's spinoff. Patents for LaserJet tech, the engineering that in 1984 took HP into the realm of resellers farther removed from HP than any 3000 VAR, are part of what Xerox is bidding for.

The offer, which HP Inc. confirmed it has received, would sign up Xerox for more than $20 billion in debt, financed by Citigroup. The appetites of the HP which created the 3000 and then cut down the vendor's future in the MPE/iX market helped to spark that 2014 split. HP was striving for an overall Number One status as a technology supplier in the years just before it announced its takedown of its 3000 business.

Management at the vendor aligned on growing sectors of business. While the 3000 had enjoyed a nice revenue increase for several years leading up to Y2K, HP saw the unit as one whose growth had a limited future. "If it's not growing, it's going," one 3000 vendor said he'd heard in reports about HP's future.

This was in the era when PCs were soaring on the HP balance sheets and printer products were being sold in groceries. The corporation had just acquired Compaq and Compaq's Digital group, so while there was a future for OpenVMS and its growth, cutting back on enterprise products became essential in HP's strategy.

Xerox developed the first viable graphical interface technology in its Star systems. The Palo Alto Research Center's tour for a young Steve Jobs at Apple led to the mouse interface becoming an essential part of the Macintosh release. 

In a move that proves there's always value in technology that outlasts its creators, there's now a deal in the market to return some of HP business technology to a corporation that's been a part of business computing history since the 1980s. It can be hard to tell what's going to survive in computing and where it will land. HP Inc. recently announced it will be cutting 9,000 more jobs. Betting on good management is at least as important as betting on good technology. As 3000 owners know, technology like MPE/iX is able to outlive the interests of its creators.

05:46 PM in History, News Outta HP | Permalink

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