3Com splits into two business units

3Com Corporation hopes that a new corporate structure, which will see today’s company split into two, will help it drive profitability and growth.

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By  Rob Corder Published  April 25, 2001

3Com Corporation hopes that a new corporate structure, which will see today’s company split into two, will help it drive profitability and growth.

The two new units: 3Com Business Connectivity Company and 3Com Business Networks Company will have separate presidents and management teams; a move designed to improve focus on different customer segments’ needs.

“Today’s action is another step on the path to profitability and growth,” continued Claflin. “It puts the responsibility for the business in the hands of the people on the front lines, where 3Com is closest to its customers,” said Bruce Claflin, 3Com chief executive officer.

The difference between “business connectivity” and “business networks” may seem hard to define for some, and in fact is more to do with the type of customer you are than the type of products you buy.

The Business Connectivity Company will focus on business customers that are served by PC OEMs, distributors and other channel partners with high-volume connectivity products for desktop, mobile and server PCs. Today, these 3Com offerings include Gigabit Ethernet access and wireless connectivity products. Products and services will be based on a “Universal Connectivity Platform” that 3Com says offers “simple, seamless and continuous network access -- from one network to another -- across a variety of access technologies and all major devices.”

The Business Networks Company will serve businesses of all sizes with LAN switching, wireless infrastructure and IP PBX voice solutions. Business Networks offerings will also be based on 3Com’s “Universal Services Platform.”

The two new business units join a third, previously split away unit, 3Com’s CommWorks Corporation, which builds IP networks for network service providers around the world.

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