The history of the personal computer wasn't just about technology—it was about vision, trust, and the courage to stand up to a monopoly. In his latest piece for The Crazy Ones, Gareth Edwards tells the story of how Compaq challenged IBM's dominance in the 1980s. When IBM tried to reclaim control of the PC market with proprietary technology, Compaq CEO Rod Canion decided to create an open standard and share it with competitors—effectively giving away "the company jewels" to preserve innovation. Gareth explains how Canion's leadership style created both a beloved workplace culture and the backbone needed to face down the industry giant. Just think—if IBM had won, we might be living in a very different technological landscape.—Kate Lee
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As CEO of Compaq, the most successful of the companies making IBM personal computing “clones,” there weren’t many people Rod Canion would always take a call from. Bill Lowe, the head of IBM’s personal computer business, was one of them.
It was September 9, 1988. The two men chatted amiably for a few minutes before Lowe made Canion an offer. IBM was prepared to give Compaq unparalleled access to its new, proprietary next-generation PC technology. All Canion had to do in return was cancel the press conference Lowe knew he had planned for the following week.
The call caught Canion off guard. The conference was to announce that Compaq and eight other major PC companies had agreed to keep the current PC technology as an open design standard, in outright opposition to IBM. Yet here was Lowe with a counter-offer: Abandon the others. Split control of the multi-billion-dollar PC market between Compaq and IBM. The two companies could rule it together.
The financial upside for Compaq was huge. It would be insane to turn it down. Besides, everybody knew you couldn’t win against IBM. There was silence for a moment. Then, calmly and politely, Canion gave Lowe Compaq’s answer.
Lowe listened and sighed. “I think you’re making a big mistake,” he said, and ended the call.
Four days later, Canion stepped onto a New York stage and did the unthinkable. He declared open war on IBM.
This is the story of Rod Canion and Compaq. It is the story of the battle for the soul of the personal computer, and the fight to prevent IBM from taking back full control of the technology behind it. It is based on contemporary accounts in the New York Times, Time, PC Magazine, Byte, and Infoworld as well as books such as Blue Magic by James Chposky and Ted Leonsis, The Fate of IBM by Robert Heller, Big Blues by Paul Carroll, and Open by Rod Canion. It draws on interviews with key figures such as Ben Rosen and L.J. Sevin conducted for the film Silicon Cowboys and for the Computer History Museum. It is also based on interviews with Rod Canion conducted by the author himself.
Starting the company
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