Digital Equipment Corporation

Digital Equipment Corporation

C. Gordon Bell (VP Engineering, 1972–83)
Products	PDP minicomputers VAX minicomputers Alpha servers and workstations DECnet VT100 terminal LAT and Terminal server StrongARM microprocessors Digital Linear Tape Flip-Chip modules System Modules
Number of employees	over 140,000 (1987)

Digital Equipment Corporation (DEC

in 1957. Olsen was president until he was forced to resign in 1992, after the company had gone into precipitous decline.

The company produced many different product lines over its history. It is best known for the work in the minicomputer market starting in the mid-1960s. The company produced a series of machines known as the PDP line, with the PDP-8 and PDP-11 being among the most successful minis in history. Their success was only surpassed by another DEC product, the late-1970s VAX "supermini" systems that were designed to replace the PDP-11. Although a number of competitors had successfully competed with Digital through the 1970s, the VAX cemented the company's place as a leading vendor in the computer space.

As

product line began to make successful inroads in the mid-1990s, but was too late to save the company.

DEC was acquired in June 1998 by Compaq in what was at that time the largest merger in the history of the computer industry. During the purchase, some parts of DEC were sold to other companies; the compiler business and the Hudson Fab were sold to Intel. At the time, Compaq was focused on the enterprise market and had recently purchased several other large vendors. DEC was a major player overseas where Compaq had less presence. However, Compaq had little idea what to do with its acquisitions,^[1][2] and soon found itself in financial difficulty of its own. Compaq subsequently merged with Hewlett-Packard (HP) in May 2002.

History

Origins (1944–1958)

When the Air Force project wound down, the Lab turned their attention to an effort to build a version of the Whirlwind using

At MIT,

better source needed

]

In 1957, when the pair and Ken's brother Stan sought capital, they found that the American business community was hostile to investing in computer companies. Many smaller computer companies had come and gone in the 1950s, wiped out when new technical developments rendered their platforms obsolete, and even large companies like

better source needed

]

The pair returned with an updated

, where plenty of inexpensive manufacturing space was available.

Digital modules (1958)

In early 1958, DEC shipped its first products, the "Digital Laboratory Module" line. The Modules consisted of a number of individual electronic components and

The Laboratory Modules were packaged in an extruded aluminum housing,

better source needed

]

The original Laboratory Modules were soon supplemented with the "Digital System Module" line, which were identical internally but packaged differently. The Systems Modules were designed with all of the connections at the back of the module using 22-pin Amphenol connectors, and were attached to each other by plugging them into a backplane that could be mounted in a 19-inch rack. The backplanes allowed 25 modules in a single 5-1/4 inch section of rack, and allowed the high densities needed to build a computer.^[11]

The original laboratory and system module lines were offered in 500 kilocycle, 5 megacycle and 10 megacycle versions. In all cases, the supply voltages were -15 and +10 volts, with logic levels of -3 volts (passive pull-down) and 0 volts (active pull-up).^[13]

DEC used the System Modules to build their "Memory Test" machine for testing core memory systems, selling about 50 of these pre-packaged units over the next eight years.^[14] The PDP-1 and LINC computers were also built using System Modules (see below).

Modules were part of DEC's product line into the 1970s, although they went through several evolutions during this time as technology changed. The same circuits were then packaged as the first "R" (red) series "

DEC published extensive data about the modules in free catalogs that became very popular.

PDP-1 family (1960)

With the company established and a successful product on the market, DEC turned its attention to the computer market once again as part of its planned "Phase II".

The PDP-1 was supplied standard with 4096 words of

readers and punches, and faster punched tape and printer systems.

When DEC introduced the PDP-1, they also mentioned larger machines at 24, 30 and 36 bits, based on the same design.[21] During construction of the prototype PDP-1, some design work was carried out on a 24-bit PDP-2, and the 36-bit PDP-3. Although the PDP-2 never proceeded beyond the initial design, the PDP-3 found some interest and was designed in full.^[22] Only one PDP-3 appears to have been built, in 1960, by the CIA's Scientific Engineering Institute (SEI) in Waltham, Massachusetts. According to the limited information available, they used it to process radar cross section data for the Lockheed A-12 reconnaissance aircraft. Gordon Bell remembered that it was being used in Oregon some time later, but could not recall who was using it.^[23]

In November 1962, DEC introduced the $65,000 PDP-4. The PDP-4 was similar to the PDP-1 and used a similar instruction set, but used slower memory and different packaging to lower the price. Like the PDP-1, about 54 PDP-4s were eventually sold, most to a customer base similar to the original PDP-1.^[24]

In 1964, DEC introduced its new

A more dramatic upgrade to the PDP-1 series was introduced in August 1966, the PDP-9.^[29] The PDP-9 was instruction-compatible with the PDP-4 and −7, but ran about twice as fast as the −7 and was intended to be used in larger deployments. At only $19,900 in 1968,^[30] the PDP-9 was a big seller, eventually selling 445 machines, more than all of the earlier models combined.^[31]

Even while the PDP-9 was being introduced, its replacement was being designed, and was introduced as 1969's

However, by this time other machines in DEC's lineup could fill the same niche at even lower price points, and the PDP-15 would be the last of the 18-bit series.

PDP-8 family (1962)

Smithsonian's National Museum of American History

in Washington, D.C. This example is from the first generation of PDP-8s, built with discrete transistors and later known as the Straight 8.

In 1962,

a machine that was small and inexpensive enough to be dedicated to a single task even in a small lab.

Seeing the success of the LINC, in 1963 DEC took the basic logic design but stripped away the extensive A to D systems to produce the PDP-5. The new machine, the first outside the PDP-1 mould, was introduced at WESTCON on August 11, 1963. A 1964 ad expressed the main advantage of the PDP-5, "Now you can own the PDP-5 computer for what a core memory alone used to cost: $27,000".^[33] 116 PDP-5s were produced until the lines were shut down in early 1967. Like the PDP-1 before it, the PDP-5 inspired a series of newer models based on the same basic design that would go on to be more famous than its parent.

On March 22, 1965, DEC introduced the PDP-8, which replaced the PDP-5's modules with the new R-series modules using Flip Chips. The machine was re-packaged into a small tabletop case, which remains distinctive for its use of smoked plastic over the CPU which allowed one to easily see the logic modules plugged into the wire-wrapped backplane of the CPU. Sold standard with 4 kWords of 12-bit core memory and a Teletype Model 33 ASR for basic input/output, the machine listed for only $18,000. The PDP-8 is referred to as the first real minicomputer because of its sub-$25,000 price.^[34][35] Sales were, unsurprisingly, very strong, and helped by the fact that several competitors had just entered the market with machines aimed directly at the PDP-5's market space, which the PDP-8 trounced. This gave the company two years of unrestricted leadership,^[36] and eventually 1450 "straight eight" machines were produced before it was replaced by newer implementations of the same basic design.^[33]

DEC hit an even lower price-point with the PDP-8/S, the S for "serial". As the name implies the /S used a serial arithmetic unit, which was much slower but reduced costs so much that the system sold for under $10,000.^[37] DEC then used the new PDP-8 design as the basis for a new LINC, the two-processor LINC-8. The LINC-8 used one PDP-8 CPU and a separate LINC CPU, and included instructions to switch from one to the other. This allowed customers to run their existing LINC programs, or "upgrade" to the PDP-8, all in software. Although not a huge seller, 142 LINC-8s were sold starting at $38,500.^[33] Like the original LINC to PDP-5 evolution, the LINC-8 was then modified into the single-processor PDP-12, adding another 1000 machines to the 12-bit family.^[33][38] Newer circuitry designs led to the PDP-8/I and PDP-8/L in 1968.^[15] In 1975, one year after an agreement between DEC and Intersil, the Intersil 6100 chip was launched, effectively a PDP-8 on a chip. This was a way to allow PDP-8 software to be run even after the official end-of-life announcement for the DEC PDP-8 product line.

PDP-6 and PDP-10 families (1963 and 1968)

While the PDP-5 introduced a lower-cost line, 1963's PDP-6 was intended to take DEC into the mainframe market with a 36-bit machine. However, the PDP-6 proved to be a "hard sell" with customers, as it offered few obvious advantages over similar machines from the better-established vendors like IBM or Honeywell, in spite of its low cost around $300,000. Only 23 were sold,^[39] or 26 depending on the source,^[40] and unlike other models the low sales meant the PDP-6 was not improved with successor versions. However, the PDP-6 is historically important as the platform that introduced "Monitor", an early time-sharing operating system that would evolve into the widely used TOPS-10.^[41]

When newer Flip Chip packaging allowed the PDP-6 to be re-implemented at a much lower cost, DEC took the opportunity to refine their 36-bit design, introducing the

support.

The Jupiter Project was supposed to continue the mainframe product line into the future by using gate arrays with an innovative Air Mover Cooling System, coupled with a built-in floating point processing engine called "FBOX". The design was intended for a top tier scientific computing niche, yet the critical performance measurement was based upon COBOL compilation which did not fully utilize the primary design features of Jupiter technology.^{[citation needed]} When the Jupiter Project was cancelled in 1983, some of the engineers adapted aspects of the 36-bit design into a forthcoming 32-bit design, releasing the high-end VAX8600 in 1985.

PDP-11 (1970)

DEC's successful entry into the computer market took place during a fundamental shift in the underlying organization of the machines from word lengths based on 6-bit characters to those based on 8-bit words needed to support ASCII.^[a] DEC began studies of such a machine, the PDP-X, but Ken Olsen did not support it as he could not see how it offered anything their existing 12-bit or 18-bit machines didn't.^[42] This led the leaders of the PDP-X project to leave DEC and start Data General, whose 16-bit Data General Nova was released in 1969 and was a huge success.^[43]

The success of the Nova finally prompted DEC to take the switch seriously, and they began a crash program to introduce a 16-bit machine of their own. The new system was designed primarily by Harold McFarland, Gordon Bell, Roger Cady, and others.^[44] The project was able to leap forward in design with the arrival of Harold McFarland, who had been researching 16-bit designs at Carnegie Mellon University. One of his simpler designs became the basis for the new design, although when they first viewed the proposal, management was not impressed and almost cancelled it.^[44]

The result was the

designs in general. This would mean the machine would spend more time accessing memory, which would slow it down. However, the machine also extended the idea of multiple "General Purpose Registers" (GPRs), which gave the programmer flexibility to use these high-speed memory caches as they needed, potentially addressing the performance issues.

A major advance in the PDP-11 design was DEC's

backplane, and then installing software that read and wrote to the mapped memory to control it. The relative ease of interfacing spawned a huge market of third party add-ons for the PDP-11, which made the machine even more useful.

The combination of architectural innovations proved superior to competitors and the "11" architecture was soon the industry leader, propelling DEC back to a strong market position. The design was later expanded to allow

The PDP-11 supported several operating systems, including

became DEC's largest customer.

RT-11 provided a practical real-time operating system in minimal memory, allowing the PDP-11 to continue DEC's critical role as a computer supplier for embedded systems. Historically, RT-11 also served as the inspiration for many microcomputer OS's, as these were generally being written by programmers who cut their teeth on one of the many PDP-11 models. For example, CP/M used a command syntax similar to RT-11's, and even retained the awkward PIP program used to copy data from one computer device to another. As another historical footnote, DEC's use of "/" for "switches" (command-line options) would lead to the adoption of "\" for pathnames in MS-DOS and Microsoft Windows as opposed to "/" in Unix.^[45]

The evolution of the PDP-11 followed earlier systems, eventually including a single-user deskside personal computer form, the MicroPDP-11. In total, around 600,000 PDP-11s of all models were sold, and a wide variety of third-party peripheral vendors had also entered the computer product ecosystem. It was even sold in kit form as the Heathkit H11, although it proved too expensive for Heathkit's traditional hobbyist market.

VAX (1977)

The introduction of

In contrast, DEC decided to make a more radical departure. In 1976, they began the design of a machine whose entire architecture was expanded from the 16-bit PDP-11 to a new 32-bit basis. This would allow the addressing of very large memories, which were to be controlled by a new virtual memory system, and would also improve performance by processing twice as much data at a time. The system would, however, maintain compatibility with the PDP-11, by operating in a second mode that sent its 16-bit words into the 32-bit internals, while mapping the PDP-11's 16-bit memory space into the larger virtual 32-bit space.^[46]

The result was the

Supporting the VAX's success was the

line. With the VT and DECwriter series, DEC could now offer a complete top-to-bottom system from computer to all peripherals, which formerly required collecting the required devices from different suppliers.

The VAX processor architecture and family of systems evolved and expanded through several generations during the 1980s, culminating in the

Early microcomputers (1982–1986)

When a DEC research group demonstrated two prototype

It was only after IBM had successfully launched the

P/OS

("Professional Operating System"). This DEC machine easily outperformed the PC, but was more expensive than, and completely incompatible with IBM PC hardware and software, offering far fewer options for customizing a system.

Unlike CP/M and DOS microcomputers, every copy of every program for the Professional had to be provided with a unique key for the particular machine and CPU for which it was bought. At that time this was mainstream policy, because most computer software was either bought from the company that built the computer or custom-constructed for one client. However, the emerging third-party software industry disregarded the PDP-11/Professional line and concentrated on other microcomputers where distribution was easier. At DEC itself, creating better programs for the Professional was not a priority, perhaps from fear of cannibalizing the PDP-11 line. As a result, the Professional was a superior machine, running inferior software.

' popular word processing equipment.

The most popular early DEC microcomputer was the dual-processor (Z80 and 8088) Rainbow 100,^[48] which ran the 8-bit CP/M operating system on the Z80 and the 16-bit CP/M-86 operating system on the Intel 8088 processor. It could also run a UNIX System III implementation called VENIX. Applications from standard CP/M could be re-compiled for the Rainbow, but by this time users were expecting custom-built (pre-compiled binary) applications such as Lotus 1-2-3, which was eventually ported along with MS-DOS 2.0 and introduced in late 1983. Although the Rainbow generated some press, it was unsuccessful due to its high price and lack of marketing and sales support.^[51] By late 1983 IBM was outselling DEC's personal computers by more than ten to one.^[48]

A further system was introduced in 1986 as the

.

Networking and clusters (1984)

In 1984, DEC launched its first 10 Mbit/s

, and went on to become the dominant networking model in use today.

In September 1985, DEC became the fifth company to register a .com domain name (dec.com).

Along with the hardware and protocols, DEC also introduced the

concept, which allowed several VAX machines to be tied together into a single larger storage system. VAXclusters allowed a DEC-based company to scale their services by adding new machines to the cluster at any time, as opposed to buying a faster machine and using that to replace a slower one. The flexibility this offered was compelling, and allowed DEC to attack high-end markets formerly out of their reach.

Late 1980s diversification

The PDP-11 and VAX lines continued to sell in record numbers. Better yet, DEC was competing very well against the market leader, IBM, taking an estimated $2 billion away from them in the mid-1980s. In 1986, DEC's profits rose 38% when the rest of the computer industry experienced a downturn, and by 1987 the company was threatening IBM's number one position in the computer industry.^[9] Not long thereafter came IBM's VAX Killer offerings,^[52] at a time when DEC had twice the sales of IBM in the mid-range computer market.

At its peak, DEC was the second-largest computer company in the world, with over 100,000 employees. It was during this time that the company branched out development into a wide variety of projects that were far from its core business in computer equipment. The company invested heavily in custom software. In the 1970s and earlier most software was custom-written to serve a specific task, but by the 1980s the introduction of

which competed with Oracle's products on the VAX, part of a major partnership only a few years earlier.

Although many of these products were well designed, most of them were DEC-only or DEC-centric, and customers frequently ignored them and used third-party products instead. This problem was further exacerbated by Olsen's aversion to traditional advertising and his belief that well-engineered products would sell themselves. Hundreds of millions of dollars were spent on these projects, at the same time that workstations using

RISC

microprocessors were starting to approach VAX CPUs in performance.

Early 1990s faltering and attempted turnaround

As microprocessors continued to improve in the 1980s, it soon became clear that the next generation would offer performance and features equal to the best of DECs low-end minicomputer lineup. Worse, the Berkeley RISC and Stanford MIPS designs were aiming to introduce 32-bit designs that would outperform the fastest members of the VAX family, DEC's cash cow.^[53]

Constrained by the huge success of their VAX and VMS products, which followed the proprietary model, the company was very late to respond to these threats. In the early 1990s, DEC found its sales faltering and its first layoffs followed. The company that created the minicomputer, a dominant networking technology, and arguably the first computers for personal use, had abandoned the "low end" market, whose dominance with the PDP-8 had built the company in a previous generation. Decisions about what to do about this threat led to infighting within the company that seriously delayed their responses.

One group suggested that every possible development in the industry be poured into the construction of a new VAX family that would leapfrog the performance of the existing machines. This would limit the market erosion in the top-end segment, where profit margins were maximized and DEC could continue to survive as a minicomputer vendor. This line of thought led, eventually, to the VAX 9000 series, which were plagued with problems when they were first introduced in October 1989, already two years late.^[54] The problems took so long to work out, and the prices of the systems were so high, that DEC was never able to make the line the success they hoped.

Others within the company felt that the proper response was to introduce their own RISC designs and use those to build new machines. However, there was little official support for these efforts, and no less than four separate small projects ran in parallel at various labs around the US. Eventually these were gathered into the PRISM project, which delivered a credible 32-bit design with some unique features allowing it to serve as the basis of a new VAX implementation.^[55] Infighting with teams dedicated to DEC's big iron made funding difficult, and the design was not finalized until April 1988, and then cancelled shortly thereafter.^[56] The PRISM project was accompanied by the MICA project, which intended to consolidate VMS and ULTRIX into a single operating system.^[57]

Another group concluded that new workstations like those from Sun Microsystems and Silicon Graphics would take away a large part of DEC's existing customer base before the new VAX systems could address the issues, and that the company needed its own Unix workstation as soon as possible. Fed up with slow progress on both the RISC and VAX fronts, a group in Palo Alto started a skunkworks project to introduce their own systems. Selecting the MIPS processor, which was widely available, introducing the new DECstation series with the model 3100 on January 11, 1989.^[58] These systems would see some success in the market, but were later displaced by similar models running the Alpha.

32-bit MIPS and 64-bit Alpha systems (1992)

Eventually, in 1992, DEC launched the

In 1998, following the takeover by Compaq Computer Corporation, a decision was made that Microsoft would no longer support and develop Windows NT for the Alpha series computers, a decision that was seen as the beginning of the end for the Alpha series computers.

StrongARM (1995)

In the mid-1990s, Digital Semiconductor collaborated with

in 2006.

Palmer's reign (1992–1998)

At its peak in the late 1980s, DEC had $14 billion in sales and ranked among the most profitable companies in the US. With its strong staff of engineers, DEC was expected to usher in the age of personal computers, but the commonly misunderstood belief then argued by the board to its shareholders was that Mr. Olsen was openly skeptical of the desktop machines, stating "the personal computer will fall flat on its face in business", and regarding them as "toys" used for playing video games. This was made in 1977 about what could be more characterised as home automation devices.^[63]

The board forced Olsen to resign as president in July 1992^[64] after 2 years of losses in operating income.^[65] He was replaced by Robert Palmer as the company's president. DEC's board of directors also granted Palmer the title of chief executive officer ("CEO"), a title that had never been used during DEC's 35-year existence. Palmer had joined DEC in 1985 to run Semiconductor Engineering and Manufacturing. His relentless campaign to be CEO, and success with the Alpha microprocessor family, made him a candidate to succeed Olsen. At the same time a more modern logo was designed^[66]

Palmer restructured DEC into nine business units that reported directly to him. Nonetheless, DEC continued to suffer record losses, including a loss of $260.5 million for the quarter that ended on September 30, 1992. It reported $2.8 billion in losses for its fiscal year 1992. January 5, 1993, saw the retirement of John F. Smith as senior vice president of operations, the second in command at DEC, and his position was not filled. A 35-year company veteran, he had joined DEC in 1958 as the company's 12th employee, passing up a chance to work for Bell Laboratories in New Jersey to work for DEC. Smith rose to become one of the three senior vice presidents in 1987 and was widely considered among the potential successors to Ken Olsen, especially when Smith was appointed chief operating officer in 1991. Smith became a corporate spokesman on financial issues, and had filled in at trouble spots for which Olsen ordered more attention. Smith was passed over in favor of Palmer when Olsen was forced to resign in July 1992, though Smith stayed on for a time to help turn around the struggling company.^[67]

In June 1993, Palmer and several of his top lieutenants presented their reorganization plans to applause from the board of directors, and several weeks later DEC reported its first profitable quarter in several years. However, on April 15, 1994, DEC reported a loss of $183 million—three to four times higher than the loss many people on Wall Street had predicted (compared with a loss of $30 million in the comparable period a year earlier), causing the stock price on the NYSE to plunge $5.875 to $23, a 20% drop. The losses at that point totaled $339 million for the current fiscal year. Sales of the VAX, long the company's biggest moneymaker, continued to decline, which in turn also hurt DEC's lucrative service and maintenance business (this made up more than a third of DEC's revenue of $14 billion in the 1993 fiscal year), which declined 11% year over year to $1.5 billion in the most recent quarter.

Market acceptance of DEC Alpha computers and chips had been slower than the company had hoped, even though Alpha's sales for the quarter estimated at $275 million were up significantly from $165 million in the December quarter. DEC had also made a strong push into personal computers and workstations, which had even lower margins than Alpha computers and chips. Also, DEC was playing catchup with its own Unix offerings for client-server networks, as it long emphasized its own VMS software, while corporate computer users based their client-server networks on the industry-standard Unix software (of which Hewlett Packard was one of the market leaders). DEC's problems were similar to that of larger rival IBM, due to the fundamental shift in the computer industry that made it unlikely that DEC could ever again operate profitably at its former size of 120,000 employees, and while its workforce had been reduced to 92,000 people many analysts expected that they would have to cut another 20,000.^[68]

Selloffs

During the profitable years up until the early 1990s, DEC was a company that boasted that it never had a general layoff.^[69] Following the 1992 economic downturn, layoffs became regular events as the company continually downsized to try to stay afloat.^[70] Palmer was tasked with the goal of bringing DEC back to profitability, which he attempted to do by changing the established DEC business culture, hiring new executives from outside the company, and selling off various non-core business units:^[71]

• Worldwide training was spun off to form an independent/new company called Global Knowledge Network.
• Rdb, DEC's database product, was sold to Oracle.
• Rights to the PDP-11 line and several PDP-11 operating systems were sold to Mentec in 1994, though DEC continued to produce some PDP-11 hardware for a few years.^[72]
• Disk and DLT technologies was sold to Quantum Corporation in 1994.
• Boundless Technologies
  .
• CORBA-based product, ObjectBroker, and its messaging software, MessageQ, were sold to BEA Systems, Inc
  in March 1997.
• Printer business was sold in 1997 to GENICOM (now TallyGenicom), which then produced models bearing the Digital logo.
• Networking business was sold c.1997 to Cabletron Systems, and subsequently spun off as Digital Network Products Group.
• Fonix Speech Group
  .

Acquisition by Compaq (1998)

Through 1997, DEC began discussions with Compaq on a possible merger. Several years earlier, Compaq had considered a bid for DEC but became seriously interested only after DEC's major divestments and refocusing on the Internet in 1997. At that time, Compaq was making strong moves into the enterprise market, and DEC's multivendor global services organization and customer support centers offered a real opportunity to expand their support and sales worldwide. Compaq was not interested in a number of DEC's product lines, which led to the series of sell-offs. Notable among these was DEC's Hudson Fab, which made most of their custom chips, a market that made little sense to Compaq's "industry standard" marketing. DEC had previously sold its semiconductor plant in South Queensferry to Motorola in 1995, with an understanding that Motorola would continue to produce Alpha processors at the facility, along with continuing a two-year foundry agreement with AMD to continue producing the Am486 processor.^[73]

This led to an interesting solution to the problem of selling off the division for a reasonable profit. In May 1997, DEC sued

On January 26, 1998, what remained of the company was sold to Compaq in what was the largest merger up to that time in the computer industry. At the time of Compaq's acquisition announcement, DEC had a total of 53,500 employees, down from a peak of 130,000 in the 1980s, but it still employed about 65% more people than Compaq to produce about half the volume of sales revenues. After the merger closed, Compaq moved aggressively to reduce DEC's high selling, general, and administrative (SG&A) costs (equal to 24% of total 1997 revenues) and bring them more in line with Compaq's SG&A expense ratio of 12% of revenues.[76]

Compaq used the acquisition to move into enterprise services and compete with IBM, and by 2001 services made up over 20% of Compaq's revenues, largely due to the DEC employees inherited from the merger.^[77] DEC's own PC manufacturing was discontinued after the merger closed. As Compaq did not wish to compete with one of its key partner suppliers, the remainder of Digital Semiconductor (the Alpha microprocessor group) was sold to Intel, which placed those employees back in their Hudson (Massachusetts) office, which they had vacated when the site was sold to Intel in 1997.

Compaq struggled as a result of the merger with DEC,^[76] and was acquired by Hewlett-Packard in 2002. Compaq, and later HP, continued to sell many of the former DEC products but re-branded with their own logos. For example, HP now sells what were formerly DEC's StorageWorks disk/tape products,^[78] as a result of the Compaq acquisition.

The Digital logo was used up until 2004, even after the company ceased to exist, as the logo of Digital GlobalSoft, an IT services company in India (which was a 51% subsidiary of Compaq). Digital GlobalSoft was later renamed "HP GlobalSoft" (also known as the "HP Global Delivery India Center" or HP GDIC), and no longer uses the Digital logo.

Research and people

DEC's Research Laboratories (or Research Labs, as they were commonly known) conducted DEC's corporate research. Some of them were continued in operation by Compaq and are still operated by Hewlett-Packard. The laboratories were:

• Cambridge Research Laboratory (CRL) in Cambridge, Massachusetts, US
• MetroWest Technology Campus (MTC) in Maynard, Massachusetts, US
• Network Systems Laboratory (NSL) in Palo Alto, California, US
• Systems Research Center (SRC) in Palo Alto, California, US
• Paris Research Laboratory (PRL) in Paris, France
• Western Research Laboratory (WRL) in Palo Alto, California, US
• Western Software Laboratory (WSL) in Palo Alto, California, US

Some of the former employees of DEC's Research Labs or DEC's R&D in general include:

• Gordon Bell: technical visionary, VP Engineering 1972–1983; later moved to Microsoft Research
• Cisco Systems
• Mike Burrows: an author of the Burrows–Wheeler transform
• Luca Cardelli: co-designer of the Modula-3 language
• RSX-11M, VAX/VMS, VAXELN and MICA operating systems development; then led Windows NT development at Microsoft^[discuss
  ]
• Ed deCastro: became co-founder of Data General Corporation
• Alan Eustace: co-author of early profiling tools; a Senior Vice President of Engineering at Google; a world-record breaker in the stratosphere jump (2014)
• Jim Gettys: early developer of X Window System^[discuss]
• Henri Gouraud: inventor of the Gouraud shading
• Jim Gray: a Turing Award winner for database research; went missing on a ship trip
• Alan Kotok: chief architect of the PDP-10 series and prolific member of World Wide Web Consortium (W3C)
• Leslie Lamport: a Turing Award recipient; first creator of LaTeX macros;
• text formatting
  program
• Scott A. McGregor: co-author of the X Window System, version 11^[79]
• Louis Monier: an Internet and software entrepreneur
• Isaac Nassi: contributor to Ada programming language; co-author of the Nassi–Shneiderman diagram
• Radia Perlman: a pioneer in computer networking standartization; author of Spanning Tree Protocol
• Marcus Ranum: a computer and network security developer credited with a number innovations in firewalls
• Brian Reid: an inventor of Scribe markup language; pioneer in networking and firewalls
• Paul Vixie: a co-author of the BIND DNS server software
• Sanjay Ghemawat
• Jeff Dean
• Patrick O'Neil: a computer scientist well known for his works on databases

Some of the former employees of Digital Equipment Corp were responsible for developing DEC Alpha and StrongARM:

• Daniel W. Dobberpuhl
• Jim Keller
• Rich Witek

Grace Hopper worked for Digital Equipment Corporation as a consultant after her retirement from the United States Navy

Some of the work of the Research Labs was published in the Digital Technical Journal,^[80] which was in published from 1985 until 1998. At least some of the research reports are available online.^[81]

Legacy and accomplishments

As of 2012^[update],^{[needs update]} decades-old hardware (including PDP-11, VAX, and AlphaServer) is being emulated to allow legacy software to run on modern hardware; funding for this is planned to last at least until 2030.^[82]

DEC supported the

(Latin-1) and, by extension, Unicode.

Beyond DECsystem-10/20, PDP, VAX and Alpha, DEC was known for its work in communication subsystem designs, such as

Software

• The first versions of the C language and the Unix operating system ran on DEC's PDP series of computers (first on a PDP-7, then the PDP-11), which were among the first commercially viable minicomputers, although for several years DEC itself did not encourage the use of Unix.
• DEC produced widely used and influential interactive operating systems, including OS-8, TOPS-10, TOPS-20, RSTS/E, RSX-11, RT-11, and OpenVMS. PDP computers, in particular the PDP-11 model, inspired a generation of programmers and software developers. Some PDP-11 systems more than 25 years old (software and hardware) are still being used to control and monitor factories, transportation systems and nuclear plants. DEC was an early champion of time-sharing systems.
• The
  Univac's time-sharing systems, would look utterly alien. Many features of the CP/M
  and MS-DOS CLI show a recognizable family resemblance to DEC's OSes, including command names such as DIR and HELP and the "name-dot-extension" file naming conventions.
• Lotus Notes
  product.
• The MUMPS programming language, with its built-in database, was developed on the PDP-7, 9, and 15 series machines. MUMPS is still widely used in medical information systems, such as those provide by Meditech and Epic Systems.
• The Babel Fish machine translation service was developed by DEC researchers, and was one of the first machine translators to achieve broad success using natural language processing techniques.
• ALL-IN-1 was an office automation system developed by Skip Walter and others in Central Engineering under Gordon Bell. They developed a customizable list of application invocations and the robust DECMail product that provided one of the first commercially available electronic mail systems.^[84][85]

Hardware

DECtape

One of the most unusual peripherals produced for the PDP-10 was the DECtape. The DECtape was a length of special 3/4-inch wide magnetic tape wound on 5-inch reels. The recording format was a highly reliable redundant 10-track design using fixed-length numbered data "blocks" organized into a standard file structure, including a directory. Files could be written, read, changed, and deleted on a DECtape as though it were a disk drive. For greater efficiency, the DECtape drive could read and write to a DECtape in both directions.

In fact, some PDP-10 systems had no disks at all, using DECtapes alone for their primary data storage. The DECtape was also widely used on other PDP models, since it was much easier to use than hand-loading multiple paper tapes. Primitive early time-sharing systems could use DECtapes as system devices and swapping devices. Although superior to paper tape, DECtapes were relatively slow, and were supplanted once reliable disk drives became affordable.

Magnetic disk storage

DEC was both a manufacturer and a buyer of magnetic disk storage, offering more than 100 different models of

, among others.

DEC's first internally developed HDD was the RS08, a 256 kWord fixed-head contact-start-stop drive using plated media; it shipped in 1969.

Beginning in the 1970s, DEC moved first its HDD manufacturing and then its mass storage development labs to

DEC pioneered a number of HDD technologies, including sampled data servos (RL01, 1977) and serial HDD interfaces (Standard Disk Interconnect, 1983). The last internally developed disk drive family (RA9x series) used plated media, departing from the HDD industry trend to carbon overcoated sputtered media. DEC designated a $400 million investment to bring this product line into production.^[87] The RA92 (1.5 GB) was introduced in 1992, using a 14-inch platter.

DEC purchased its FDDs from OEMs such as Shugart Associates, Toshiba, and Sony.

RX50

The way the 400 KB

but the damage had already been done, in terms of market confusion and isolation.

Video and Interactive Information Server

The

[93]

The scalability feature allowed it to win contracts for many of the video-on-demand trials in the 1993–95 timeframe, since the system could theoretically accommodate unlimited interactive video streams and other non-video content.^[94]

The design was proposed and incorporated into the

, widely used in video stream and file delivery for MPEG-2 compliant systems.

Commercially, DEC's Digital and Interactive Information System was used by Adlink to distribute advertising to over two million subscribers.^[96][97]

Other

• VAX and MicroVAX computers (very widespread in the 1980s) running VAX/VMS formed one of the most important proprietary networks, DECnet, which linked business and research facilities. The DECnet protocols formed one of the first peer-to-peer networking standards, with DECnet phase I being released in the mid-1970s. Email, file sharing, and distributed collaborative projects existed within the company long before their value was recognized in the market.
• The LA36 and LA120
  dot matrix printers became industry standards and may have hastened the demise of the Teletype Corporation
  .
• The
  ANSI X3.64 standard, and even today terminal emulators such as HyperTerminal, PuTTY and Xterm still emulate a VT100 (or its more capable successor, the VT220
  ).
• DEC invented Digital Linear Tape (DLT), formerly known as CompacTape, which began as a compact backup medium for MicroVAX systems, and later grew to capacities of 800 gigabytes.
• Work on the first hard-disk-based MP3 player, the Personal Jukebox, started at the DEC Systems Research Center. (The project was started about a month before the merger into Compaq was completed.)
• DEC's Western Research Lab created the
  Compaq Aero
  PDA.
• DEC also produced a proprietary personal computer known as the Rainbow 100. It could run either MS-DOS or CP/M but from a hardware standpoint it was largely incompatible with the IBM PC.^[98]

Networking

• DEC, Intel and Xerox, through their collaboration to create the DIX standard, were champions of Ethernet, but DEC is the company that made Ethernet commercially successful. Initially, Ethernet-based DECnet and LAT protocols interconnected VAXes with DECserver terminal servers. Starting with the Unibus to Ethernet adapter, multiple generations of Ethernet hardware from DEC were the de facto standard. The CI "computer interconnect" adapter was the industry's first network interface controller to use separate transmit and receive "rings".
• DEC also invented
  Network of Workstations
  , which are used for massively cooperative tasks such as web searches and drug research.
• The
  Laboratory for Computer Science. DEC was the primary sponsor for the project, which was a contemporary of the GNU Project
  but not associated with it.
• In the period 1994–99
  disputed – discuss] Compaq software engineers developed special Linux kernel modules.^[99] A well-known Linux distribution that ran on AlphaServer systems was Red Hat 7.2.^[100] Another distribution that ran on Alpha was Gentoo Linux
  .
• DEC was one of the first businesses connected to the Internet, with dec.com, registered in 1985,[101] being one of the first of the now ubiquitous .com domains. DEC's gatekeeper.dec.com was a well-known software repository during the pre-World Wide Web days, and DEC was also the first computer vendor to open a public website, on October 1, 1993.^[102] The popular AltaVista, created by DEC, was one of the first comprehensive Internet search engines. (Although Lycos was earlier, it was much more limited.)
• DEC once held the Class A IP address block 16.0.0.0/8.

Corporate

• Digital Federal Credit Union (DCU) is a credit union which was chartered in 1979 for employees of DEC. Today its field of membership is open to existing family members, over 900 different sponsors, several communities in Massachusetts and several organizations. Many of the sponsors are companies that had acquired pieces of DEC.^{[citation needed]}
• Matrix management

User organizations

Originally the users' group was called DECUS (Digital Equipment Computer User Society) during the 1960s to 1990s. When Compaq acquired DEC in 1998, the users group was renamed CUO, the Compaq Users' Organisation. When HP acquired Compaq in 2002, CUO became HP-Interex, although there are still DECUS groups in several countries. In the United States, the organization is represented by the Encompass organization; currently Connect.^{[citation needed]}

Financial history

This list is incomplete; you can help by adding missing items. (August 2022)

Table of early sales growth

Year	Net sales[103]	Notes
1962	$6,535,502
1963	$9,906,968	+51.6%
1964	$10,909,565
1965	$14,982,920	+37.3%
1966	$22,776,434	+209% of 1964
1967	$38,895,782	+260% of 1965

Year	#Employees[e]	Net sales	Notes
1968	2,600	$57,339,400	+47.4% (in Net sales)
1969	4,360	$87,867,000	+53.2% (compared to prior year)
1970	5,800	$135,408,000	+54.1%
1971	6,200	$146,849,000
1972	7,800	$166,262,000

Footnotes

References

Works cited

• (Present), "Digital Equipment Corporation: Nineteen Fifty-Seven to the Present", DEC Press, 1978
• David Donald Miller (1997). OpenVMS Operating System Concepts. Elsevier.
  ISBN 978-1-55558-157-2
  .
• Alan R. Earls (June 30, 2004). Digital Equipment Corporation. Arcadia Publishing.
  ISBN 978-0-7385-3587-6
  .
• Edgar H. Schein; with P. DeLisi; P. Kampas; M. Sonduck (July 1, 2003). DEC is dead, long live DEC. Berrett-Koehler Pub.
  ISBN 978-1-57675-225-8
  .
• Jamie Parker Pearson (September 1992). Digital at work: snapshots from the first thirty-five years. Digital Press.
  ISBN 1-55558-092-0
  .
• Glenn & George Harrar Rifkin; George Harrar (1988). The Ultimate Entrepreneur: The Story of Ken Olsen and Digital Equipment Corporation. McGraw-Hill/Contemporary.
  ISBN 978-0-8092-4559-8
  .
• C. Gordon Bell; J. Craig Mudge; John E. McNamara; Digital Equipment Corporation (1978). Computer engineering: A DEC view of hardware systems design.
  ISBN 0-932376-00-2
  .

Further reading

• "Digital Equipment Corporation (DEC): A Case Study of Indecision, Innovation and Company Failure", David Thomas Goodwin, Ph.D. thesis, University of Amsterdam, 2016
• Several editions of the Small Computer Handbook were published by DEC, giving information about their PDP line of computers. The editions were:
  • Small Computer Handbook (1973)
  • PDP8/e, PDP8/m & PDP8/f, Small Computer Handbook (1973)
  • Small Computer Handbook (1970 edition)

External links

Wikimedia Commons has media related to Digital Equipment Corporation.

• GBell's CyberMuseum for Digital Equipment Corp (DEC)
• Rise and Fall of Digital (Equipment Corporation), a company chronicle at a German computer museum
• Ken Olsen, New England Economic Adventure
• Works by Digital Equipment Corporation at Project Gutenberg
• Works by or about Digital Equipment Corporation at Internet Archive