With an unstable market, Eric knew the price of Palm was not going to sustain at those highs. But what exactly happened when the market crashed? SM: It is hard to sustain that kind of price range … EB: We knew the price had to come down, but we did not exactly know how it
In this second interview series with Eric Benhamou, we discuss his involvement with Palm. If you haven’t already, do read the first interview series for context [here]. As you know, Palm is in the midst of a great deal of change at the moment. However, it is an important company that established the PDA category,
To conclude an extremely interesting interview, here is a final, reflective segment with Eric. We will continue the story of Palm separately, later in September, once Palm’s shareholder vote for the Elevation Partners deal is completed. SM: You have watched what happened since then. What lost 3Com the position you were in at the end
SM: Whom did you sell the high end product line to? EB: We sold it to Extreme. We put Extreme in business. It was a bad decision because the analysis was wrong. It was taken in an overheated period, by an over impatient board who were comparing ourselves with companies whose growth rate was inflated
With Palm successfully launched, and the merger with USR stabilized, Eric was now at the end of his tenure as CEO of 3Com. Here is details his final decisions, and reflects back on some mistakes. SM: In our next series, I would love to examine Palm. Finishing up with the 3Com story, however, the USR
Finally, poised for success, 3Com did spin off Palm as a separate company. SM: I think you find that a lot with folks who are entrepreneurial by nature – they like to be in charge of their creations. I know you ultimately did spin off Palm as a separate company, when did that happen? EB:
3Com acquired US Robotics, and then USR started shrinking in the modem market, one of its primary franchises. In a royal nightmare that ensued, Eric lost the advantage that 3Com had built as part of its first turnaround. SM: Were there any positives which came out of this mess? EB: The only thing that came
3Com challenged Cisco with a Boundary Router strategy that threatened Cisco’s core router franchise. SM: So what prevented you from finally catching Cisco and passing them? EB: In 1997, there was one major shock for 3Com. More and more enterprise networks had to extend into carrier networks. Enterprises could not build all of these large