Open : how Compaq ended IBM's PC domination and helped invent modern computing

The story of Compaq is well-known- Three ex-Texas Instruments managers founded Compaq with modest venture funding. Just four years later, Compaq was on the Fortune 500 list, and, two years after that, they had exceeded $1 billion in annual revenue. No company had ever achieved these milestones so rapidly.

But few know the story behind the story. In 1982, when Compaq was founded, there was no software standardization, so every brand of personal computer required its own unique application software. Just eight years later, compatibility with the open PC standard had become ubiquitous, and it has continued to be for over two decades.

This didn't happen by accident. Cofounder and then CEO Rod Canion and his team made a series of risky and daring decisions-often facing criticism and incredulity-that allowed the open PC standard marketplace to thrive and the incredible benefits of open computing to be realized.

A never-before-published insider account of Compaq's extraordinary strategies and decisions, Open provides valuable lessons in leadership in times of crisis, management decision-making under the pressure of extraordinary growth, and the power of a unique, pervasive culture.

Open tells the incredible story of Compaq's meteoric rise from humble beginnings to become the PC industry leader in just over a decade. Along the way, Compaq helped change the face of computing while establishing the foundation for today's world of tablets and smart phones.

Author Notes

Rod Canion cofounded Compaq Computer Corporation in 1982 and served as chief executive officer from its inception through a decade of unprecedented growth and challenges. During his tenure as CEO, Compaq set records for the largest first-year sales in the history of American business and reached the Fortune 500 and the $1-billion-revenue mark faster than any other company in history. By 1991, Compaq employed more than 10,000 people and operated in 65 countries.

Since leaving Compaq in 1991, Canion has been involved in a long list of startups and early stage companies as an angel investor, advisor, and director. He helped found the Houston Technology Center in 1999 and the Goose Society of Texas in 2005, two organizations focused on encouraging entrepreneurs and helping early stage companies succeed. He is currently a director of Invesco, Ltd. and ChaCha Search, Inc., and is an advisory director of Encore Health Resources and Dynamics, Inc.

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Choice Review

The 1980s and 1990s were a tumultuous time in the personal computer industry as IBM lost ground on three fronts in the marketplace it started in 1981: processor architecture, system software, and system busses. As a founder of Compaq in 1982 and its CEO until Compaq terminated his employment in 1991, Canion (Invesco, ChaCha Search) could observe the tumult as an insider. The title and subtitle suggest that the book will address how Compaq surpassed IBM and discuss Compaq's involvement in the development of modern computing. It does provide insight on the battle between IBM and Microsoft for control of PC software, and it explains Compaq's role in using the EISA bus to counter IBM's Micro Channel bus architecture. There is also a small section on Intel's vacillation when their CISC processors were challenged by RISC designs. However, Open is really a case study in using "industry standards" as a marketing strategy, rather than an account of how "open systems" influenced modern computing. In a telling final chapter, Canion tries unsuccessfully to relate Apple's current success (based on notably closed systems and willingness to drop backward compatibility as needed) to Compaq's marketing strategy--successful in its day. Summing Up: Recommended. All general, academic, and professional business and computer science collections. C. Vickery Queens College of CUNY

Prologue: Why the Open Industry Standard Matters	p. xiii
1 An Unlikely Beginning	p. 1
2 The Road Less Traveled	p. 19
3 The Best Defense Is a Good Offense	p. 35
4 Opportunity Knocks	p. 51
5 IBM Fires the First Shot	p. 59
6 Back at You, IBM	p. 69
7 Patience Pays Off	p. 81
8 You're Going to Do What?!	p. 91
9 The "Death Star" Arrives	p. 109
10 Compaq's Most Unexpected Decision	p. 123
11 Compaq Leads the Revolt	p. 137
12 Intel Begins to Drift	p. 157
13 Exceeding Expectations	p. 167
14 The Open Industry Standard Wins	p. 175
Epilogue: How Apple Became the Computer Industry Leader	p. 183
Appendix: Compaq Timeline	p. 193
Acknowledgments	p. 201
Index	p. 203

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Table of Contents