Monday,
April 7, 2003
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Feature |
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Pioneer, who arrived too
early, passes away
Eric Auchard
ADAM
OSBORNE, whose successes and failures pioneering the first portable
computer became one of Silicon Valley’s great cautionary tales, died
at 64 after a long illness.
Osborne, a British
immigrant and long-time resident of Berkeley, California, died in his
sleep in Kodiakanal, a village in southern India last week, his sister,
Katya Douglas, told Reuters.
His death ended a
decade-long battle with an organic brain disorder that caused him to
suffer an endless series of mini-strokes.
The popularity of the
23-pound luggable computer he introduced in 1981 made his start-up,
Osborne Computer Corp., the fastest-growing company up to that time,
thanks in part to his willingness to cut the cost of computers nearly in
half compared with rivals such as first-to-market Apple Computer.
But the rigours of
"hypergrowth" — a term coined to describe his company’s
rise — ended in an even quicker plunge into bankruptcy two years
later, making Osborne’s legacy a textbook study of the perils of
undisciplined growth.
A later generation of
dotcom entrepreneurs would come to repeat his mistakes on an even more
spectacular scale.
Friends and former colleagues said they remembered Osborne as a man
brimming with ideas, an engineer turned early computer publisher, then
pioneering computer executive, for whom concepts ruled and business was
secondary.
"My appreciation
of him was that he was too much of an entrepreneur and not enough of a
jack-of-all-trades," recalled Lee Felsenstein, another co-founder
of Osborne Computer.
"He had the
perfect personality to become a dotcom billionaire," but arrived
too early, said John C. Dvorak, a columnist for PC Magazine. Dvorak
helped Osborne write the first Silicon Valley CEO confessional following
Osborne Computer’s collapse, inspiring a mini-genre since then.
Born in Thailand to
British expatriate parents, Osborne spent his childhood in southern
India, the son of an author of comparative theology who helped
popularise Eastern religion to the West.
After attending public
school and university in England, he married and moved to the USA to
pursue a career in chemical engineering with Shell Oil. He later became
a US citizen. Osborne gambled on a new career in technical writing and
publishing during the formative years of the PC industry.
Seeing an opportunity
to challenge Apple Computer after its initial success in 1977, Osborne
turned to developing the first commercially viable portable computer. He
received backing from renowned Silicon Valley venture capitalist Jack
Melchor.
In 1981, the company’s first year, Osborne sold $5.8 million worth of
the Osborne-1 computer. By the end of 1982, he had sold $ 68.8 million,
or as many as 10,000 units a month.
Then his classic
business misstep occurred. Osborne boasted in early 1983 of an improved
second generation of his product — months before it was ready to ship.
Sales of older models of his portable sewing-machine-sized computers
plummeted.
The inventory build-up
that resulted led Osborne Computer to collapse in September 1983.
Compaq Computer Corp.,
now a part of Hewlett-Packard Co. HWP.N picked up where Osborne left off
when Compaq introduced its first product — a portable computer — in
1983.
Undaunted by his
company’s failure, Osborne published a memoir of his experience in
1984 entitled "Hypergrowth." He then jumped into a new venture
he called Paperback Software — based on the idea that software could
be sold like mass-market paperbacks.
That venture ran aground
after Paperback was sued by rival Lotus Development Corp. in a
high-profile case that alleged Paperback’s spreadsheet program too
closely resembled Lotus’ own 1-2-3 program. Osborne and Paperback
parted ways in 1990.
Osborne’s health began
to decline in 1992, leading him to move to India to live out the rest of
his life with
his sister, Katya.
He was buried on Tuesday in a local cemetery near his sister’s home,
in Kodiakanal, an isolated village whose closest major city is Chennai.
Osborne married and
divorced twice. Survivors include his first wife, Cynthia Geddes, and
their three children, Marc, Paul and Alexandra Osborne, and his second
wife, Barbara Burdick.
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