The Evolution of Hewlett Packard’s Product Lines: From Electronic TM Instrumentation to Keysight
Hewlett Packard (HP) has a rich history spanning over seven decades, during which it has undergone several significant transformations. One of the most notable of these was the product line split that occurred in 2015, during which the instrumentation division, originally under the HP name, evolved through various brands into the current Keysight Technologies. This article delves into the journey of HP's electronic TM instrumentation, how the split led to the formation of Agilent Technologies, and the subsequent integration of the instrumentation division into Keysight. Additionally, we discuss the strategic reasoning behind the division and the shift in revenue focus during this period.
Introduction to HP's Early Products
Hewlett Packard’s origins trace back to 1939 when David Packard and William Hewlett started their garage business, primarily focusing on audio devices and electronic oscillators. However, their first product, a high-fidelity sound oscillator, was short-lived compared to what would become their major revenue generators over the years: electronic test and measurement (TM) instrumentation. This early focus on TM instrumentation laid the foundation for HP's reputation in the industry as a leader in precision electronics and testing equipment.
HP's TM Instrumentation and the Revenue Shift
Over the years, Hewlett Packard expanded its product line to include a range of electronic test and measurement instruments. These products were vital in fields like electronic engineering, research and development, and manufacturing. The success of these instrumentation products led to a significant increase in revenue, positioning HP as a leading player in the market. The high demand for test and measurement solutions was driven by the continuous advancements in technology and industries requiring precise electronic measurements. This segment of HP's business was eventually split off to form a separate entity, Agilent Technologies, as part of a larger strategic decision.
The Split: Revenue and Brand Strategy
In 2015, Hewlett Packard went through a significant corporate split, separating the highly profitable computer and printer business from the less lucrative but strategically important TM instrumentation business. This decision was driven by the changing dynamics in the tech industry, where the traditional hardware business was facing increased competition and lower profit margins due to commoditization. By divesting the computer and printer business, which had been providing the majority of the company's revenue, to a new entity called Hewlett Packard Enterprise (HPE), and retaining the TM instrumentation business under the Agilent name, HP sought to preserve a brand with a strong focus on high-value, specialized products.
Agilent Technologies: The Success of the New Entity
After the split, Agilent Technologies was established as an independent company, initially centered around the TM instrumentation business. The decision to keep the HP name for the instrumentation division, rather than changing it to reflect Agilent immediately, was a strategic move. The HP brand was renowned for trust, reliability, and innovation—a reputation that remained strong in the testing and measurement industry. By using the HP name, Agilent could leverage the existing brand loyalty and market recognition, making the transition smoother for customers and channel partners. As a result, Agilent enjoyed a period of significant growth and consolidation in the market.
The Transition to Keysight Technologies
Further down the line, in 2019, Agilent Technologies underwent another transformation, merging with a commercial company called National Instruments until its acquisition by Keysight Technologies (now Keysight). This final name change from Agilent to Keysight Technologies was part of a broader strategy to create a stronger brand identity, one more capable of competing at the high end of the global market. The combination of Agilent’s expertise in electronic measurement and Keysight's advanced technology brought together a powerhouse in the field of testing and measurement, aimed at serving high-tech industries such as aerospace, automotive, and defense.
Conclusion: Strategic Moves and Brand Legacy
The evolution of Hewlett Packard’s product lines, from electronic TM instrumentation to Keysight, reflects a strategic journey dictated by market forces and brand value. Each step was carefully planned to maintain and enhance the brand’s market position, with the HP name continuing as a testament to the company’s enduring legacy in the test and measurement industry. Through strategic divisions and mergers, HP has continuously adapted to remain at the forefront of technological advancement and innovation.