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To: Finder who wrote (27502)2/3/1999 3:31:00 PM
From: Moonray  Respond to of 45548
 
New PalmPilot president faces tough tests
C|NET - February 3, 1999, 4:00 a.m. PT

The new president of 3Com's Palm Computing has some very big
shoes to fill, trying to succeed the management team that created one
of the fastest-growing products ever.

Robin Abrams, formerly chief executive of Verifone, must guide Palm
Computing through some potentially rough waters, as competition
from Microsoft and its Windows CE manufacturing partners heats up.
Then too, Abrams must oversee the development of new products to
keep ahead of rival Palm operating system-based companies.

Analysts believe that the next 18 months will be crucial to the
company's long-term fortunes.

Abrams, a sales and marketing veteran of Apple Computer and a
PalmPilot user, has an unenviable position--following in the footsteps
of the company's popular cofounders, who grew the company from
start-up to market leader with an established base of over 12 million
users.

"The world now recognizes that Palm is the fastest-growing consumer
product this world has ever seen," Abrams said in an interview. "That is
an incredible draw to any technology manager," she said in
explaining her decision to join Palm.

Abrams takes over for Janice Roberts, acting head of Palm Computing
since the departure of cofounders Donna Dubinsky and Jeff Hawkins,
who headed Palm before its acquisition by U.S. Robotics and then
3Com. Roberts will return to her role as senior vice president of
business development.

"As Robin's colleague, I will support her in my business development
role," Roberts said, mentioning acquisitions as a possible means of
expanding PalmPilot's business. "Palm has now become the fastest
growth business at 3Com...I will support her in developing strategic
business alliances around the world."

Both Roberts and Abrams said that licensing deals will be an important
way to compete against Microsoft and its legion of manufacturing
partners for its Windows CE devices.

Ironically, Dubinsky and Hawkins left 3Com to start Handspring, which
will license the Palm OS for use in entry-level handheld devices. The
two cofounders are acknowledged as the visionaries behind Palm's
existing product line, and widely thought to be responsible for
several of Palm's future products, including the upcoming Palm III
X, V, and VII products.

"They've [Palm Computing] got some major issues that they've got
to address," said Gerry Purdy, editor of industry newsletter
Mobile Insights.

"They have to address the future of the technology, how it is going
to evolve and catch up to the world of wireless, color displays, flash
storage, and open architecture APIs," he said, referring to Microsoft's
newest Windows CE devices. "I would say that another major challenge is
how are they going to relate to Microsoft and what is obviously
happening with improvements to Win 32 API environment for Windows CE."

"Any pioneer knows they can never be complacent," Abrams said. "At
the core of Palm's success is the product offering, and we will not lose
focus on what has created that," she said.

Abrams said her first task will be to rebuild the management team hit
by departures that also included Palm's marketing director, Ed
Colligan. "Hiring these vacancies and continuing the leadership in
terms of product design" is the first priority, Abrams said, adding that
the deadline for beefing up the top management team was
"yesterday."

But Purdy wondered, "How can this group of senior people and
founding figureheads of this whole platform be replaced?," noting that
the next year and a half will be crucial in determining whether
Handspring or 3Com controls the future of the platform.

"In the short term they've got some hot stuff coming down the
pike, but a year or two years from now it's going to be a whole
different ball game," he said. "In a sense, she's got a year to
18 months to take on these major issues--her ability to be
successful will weigh heavily on how she performs over the
next 18 months."

o~~~ O