Hewlett-Packard Co., the world’s biggest personal-computer maker, agreed to acquire Palm Inc. in a deal that values the company at about $1.2 billion, stepping up efforts to compete in the smartphone market.

After a golden age of growth Palm slumped from the market leader position to obscurity - starting with the burst of the Internet bubble. Now HP will aqcuire Palm to get its market share (pushing HPs market position some points further) and patents.

Palm started as a Zen-like electronic calendar, originally innovated by Jeff Hawkins, to become the PDA market leader. The california based company was not only an innovator but also shaped the PDA market. In the end it failed transforming itself into the era of smartphones and web devices.

I personally started with the first Palm model (think it was the 5000, grey-scaled) 1995/96 and I ended it with the slim and colour-screened "Vx" in 2001/2002. Palm pre-showcased what Apple is doing today in a perfect way with the iTunes store and tons of apps.

What should we learn from this failure?

• If your company is a technological or bla bla bla leader don't rest, keep going, innovate in a Schumpeterian way - even if it means that you have to destroy your own business (model).
• Don't become arrogant and megalomaniac like Alexander the Great himself - as executive, developer, marketeer ... don't wait, do it now ... don't jump on a bandwagon, start to shape a (new) market now ...

By the end Palm was only a cash burning machine outpaced by iPhones, Androids and Blackberrys. Will there be a comeback like Apple have done it with the iPhone/ iPad after the Newton affair - NO, i don't think so. Palm is history. Goodbye Palm - rest in peace.