What Happened to 3Com?

3Com grew out of Ethernet, the local-network technology developed by engineer Robert Metcalfe at Xerox PARC. Metcalfe founded the company in 1979 to turn Ethernet into practical products, including adapters and equipment that connected computers in offices. Its name reflected “computers, communication and compatibility.” As businesses adopted computer networks, 3Com became a major supplier of networking hardware and software, expanding through products and acquisitions. It also bought U.S. Robotics, a leading modem maker, and developed Palm handheld computers; Palm became a separate public company in 2000.

The company struggled to maintain its position as networking changed. Ethernet equipment became more standardized and less profitable, while Cisco established itself as the stronger force in high-end corporate networking. 3Com’s broad portfolio and major acquisitions did not produce a lasting advantage, and the company withdrew from several markets while refocusing on enterprise equipment. A proposed 2007 takeover by Bain Capital and Huawei was blocked after U.S. national-security concerns. Hewlett-Packard eventually bought 3Com for about $2.7 billion in 2010, gaining its networking products and the H3C business in China. 3Com was not simply a failed startup: it helped popularize Ethernet, but competition and shifting strategy left it unable to remain independent. Its name and products were absorbed into HP’s networking operations.