The story
Founded by Ken Oshman and Robert Roy Maxfield in 1969.1
Start up to Fortune 500
The company name "ROLM" was formed from the first letters of the founders names: Gene Richeson, Ken Oshman, Walter Loewenstern, and Robert Maxfield. The four had studied electrical engineering at Rice University and earned graduate degrees at Stanford University. At Rice, Oshman and Loewenstern were members of Wiess College. Not an original founder, Leo Chamberlain was hired and became very much the soul of ROLM, advancing progressive workplace ideas such as GPW (Great Place to Work). The Old Ironsides Drive campus (ROLM Campus-Santa Clara, CA) was equipped with a swimming pool, openspace park areas, a cafeteria and recreation center.
ROLM originally made flight computers for the military and heavy commercial industries such as oil exploration (Halliburton). Beginning in the early 1970s, International Paper Company bought a significant number of the 1602 series computers. These became the environmentally-hardened base for that company's in-house-developed process control system, which informally became known as the dual-ROLM. Later, in an attempt at diversification, ROLM themselves branched off into energy management by buying a company producing an early version of such a system and the telecom industry by designing the CBX, internally running a 1603 computer. It quickly outsold AT&T, who at the time had not come out with a digital PBX, and became #2 behind the Nortel SL-1 switch by 1980. At one point, ROLM was poised to overtake Nortel as the leader in PBX sales in North America. By 1984, ROLM was a Fortune 500 company.
Acquired by IBM
In May 1982, IBM purchased 15% of ROLM; They continued to acquire ROLM stock until September of 1984, reaching 23% ownership. IBM partnered with, and in 1984 acquired ROLM Corporation in Santa Clara, California. The 'Mil-Spec' Computer portion of the business was sold to Loral Corporation when IBM's Federal Systems Division was determined by government regulatory agencies to be already too large and dominant in military markets to retain ROLM Mil-Spec. Ultimately, the Mil-Spec group ended up in the hands of Lockheed Martin as Tactical Defense Systems.
In the telecom equipment market, ROLM started to lose pace with Nortel, due to product issues, and it never recovered. The 9751 CBX, which has IBM's name on it, was initially a successful product; but when ISDN service became more affordable, IBM did not update the 9751 to integrate correctly with ISDN. Nortel leaped ahead on that issue alone; AT&T (now Avaya) and others gained ground and started to overtake ROLM.
Acquired by Siemens
IBM's ROLM division was half sold to Siemens AG in 1989, whereupon manufacturing and development became wholly owned by Siemens and called ROLM Systems, while marketing and service became a joint venture of IBM with Siemens, called ROLM Company. By 1992, Siemens bought out IBM's share in ROLM and later changed its name to SiemensROLM Communications. However, the die was cast, and the downturn (across the telecom sector) continued. The ROLM name was eventually dropped in the late 1990s, though Siemens still retained the trademark.
End of ROLM
Secondary vendors still offer support for ROLM phone systems, including repair services for broken phones and sales of refurbished units and Phonemail systems. Many systems have remained in use in large-scale universities, institutions and some corporations (Entergy, School of the Art Institute of Chicago, Huntsman, The Southern Company, the Santa Fe railroad [now part of BNSF], etc.), which were large-scale ROLM users from the early days.
The Great America Campus was leveled in 2014, and is now a parking lot for the adjacent Levi's Stadium. The River Oaks campus was leveled and is now high density housing. The Zanker campus remains with Broadcom as the tenant.
From Wikipedia’s article on ROLM, shared under CC BY-SA 4.0.4