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PalmOne to become Palm Again; PalmSource & Linux
gandell writes "CNET is reporting that after only two years, PalmOne is spending $30 million dollars to become "Palm" again. From the article:
"PalmOne, which makes handhelds bearing the same name, plans to change its name to Palm later this year, the company said Tuesday.
At that time, its product line, which currently includes the LifeDrive, Treo, Tungsten and Zire devices, will be branded under the Palm name..."
Some will remember that Palm split into two companies, Pa1mOne and Palmsource (which made the Palm OS). According to the article, "...At the time the two companies created a third company, called Palm Trademark Holding, of which PalmSource held a 55 percent stake. That stake will now be transferred to PalmOne for $30 million, the companies said.'" As well, at a recent show Dave Nagel gave notice that Linux is PalmSource's platform for the future.
Self-proclaimed genius works on stylus UI for Psion (IIRC), decides to take it further, comes up with one of the few interfaces would-be PDA makers hadn't thought of and it actually takes off -- though slowly at first.
Genius forms a company with a bunch of bitter ex-Apple folks.
PalmPilot starts to take off and Palm immediately make plans for the Nth generation of the OS, which will work on handhelds, phones, game consoles, etc. They also make plans to split the company into a hardware and OS division so there will be no conflicts like Apple had when Palm takes on Microsoft and kicks their butt. They talk about this for years.
The split is a disaster. They didn't figure out how groups would work together and left lots of unanswered questions -- and then rushed the split. The result? Two half-staffed divisions with no plan for how to work together.
Carl Yankowski is hired, who tells all of Palm to stick it 'cause he's here to tell y'all that Bluetooth is the future. A year is wasted trying to a) figure out how to cram Bluetooth into a Palm without sucking its batteries dry, b) trying to figure out the protocols, c) trying to figure out something useful to do with a Bluetooth-enabled Palm. The result? Carl is fired (Oh I'm sorry. He resigned. And all that cheering when the door hit his huge butt? Um...that was cheering.)
The two divisions are re-merged, with plans to split them again at some future date. Jobs are duplicated, jobs are lost. Nothing is gained.
The relatively inexperienced guy who runs the supply chain operations, after years of pressure from marketing over parts shortages, finally works out a contract so that Palm will have more Palm V's in the next couple of years than you can shake a stick at. I don't know how it got approved, but someone finally worked out that the Palm V was supposed to be end-of-lifed in six months and they needed to clear out the channel for the new devices. This is bad.
In Europe, in March (IIRC), Palm announces the release of the next-gen Palm. People say "Wow, that sounds good, so I'll put off my purchase of a Palm V until the new one comes out." Later marketing claims no one told them that the project was delayed until at least June (it actually turned out to be September). The channel is stuffed with Palm V's -- with tons more on the way -- and no one's buying them. The new Palm isn't ready, so no one's buying them either. Palm's revenue dries up faster than an earthworm on a sunny day.
The billion dollars or so that came from its IPO was partially committed to all those Palm V's no one wanted. But there was also some kind of fallout from the land deal for the new World HQ, that was made worse by ever-abusive parent company, 3Com, raping Palm yet again to pay for its own lost business. Palm loses something like $800M in six months.
First round of layoffs are announced. People panic. Next two rounds of layoffs are not announced. But someone reserves every conference room in the Outlook calendar, so it's kind of a tipoff.
All those friends of friends who were hired when everyone thought they were going to get rich from the IPO fall into two camps: A) Friends in high places are still there to protect them, B) first to go. Where Camp A people are found, so are scapegoats.
Lunatic VP of engineering cheerfully announces that the only way to continue on towards greatness is by adopting parallel development. To wit, every engineer is now on 5 projects. Project A on Monday, Project B on Tuesday, etc. Completion dates are not changed.
Stock options are repeatedly given as incentives. Let's say options at $10 are granted on Monday. By Wednesday, when they can be distributed, the stock is down to $9.50. This happens repeatedly.
A calendar company is bought, not used, its people fired. A web portal company is bought, not used, its people fired. A French software company is bought and the engineers are actually vit