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Text File | 1990-04-25 | 4.5 KB | 105 lines | [TEXT/GEOL] |
- ------------------
- Apple Confidential
- ------------------
-
- SUMMARY AND ANALYSIS
-
- DEC introduced a slew of new workstation and PC products on January 10. The
- announcements include a line of PCs made by Tandy and resold under the DEC
- label, some new software products designed to tie PCs into DEC's networks, and
- a new set of RISC-based workstations.
-
- The workstation announcements are probably the most important; they set a very
- aggressive price-performance standard, and almost demand a similar response
- from companies like Sun, HP, and IBM. Sun in particular has been explicitly
- targeted by DEC, but the company most likely to lose out in the competition is
- Apollo, which is already financially weak. A workstation shakeout in 1989
- looks increasingly likely.
-
- In PCs, the DEC announcements will make it possible for DEC representatives to
- service customers who want to buy both midrange computers and PCs from DEC.
- The company's PC pricing is not very aggressive.
-
-
- IMPACT ON APPLE
-
- We don't think the announcements will have a major impact on Apple, especially
- in the short run. DEC seems to be putting most of its efforts into winning the
- workstation battle; by comparison, the PC announcements are relatively
- unexciting. In the long run, RISC systems continue to come down in price,
- bringing closer the day when they will show up in PCs.
-
-
- THE WORKSTATIONS
-
- DEC premiered a new RISC-based Unix workstation, built around microprocessors
- supplied by MIPS Computer Systems. The new DECstation 3100 is aggressively
- priced -- about 40% below comparably-equipped Sun 4 systems. For instance, the
- entry-level configuration is priced at $11,900, while the entry-level Sun-4/110
- is $19,950. These new DEC systems are the first ones designed to run only
- Unix, instead of DEC's proprietary VMS operating software.
-
- As officials at Sun and HP pointed out, it will be several months before much
- Unix software is ported to the DECstation 3100, and it won't even ship in
- volume until April. By then, Sun, HP, and possibly IBM are expected to
- announce or be close to announcing new lower-priced workstations.
-
- By mid-1989, the workstation world will have been reshaped considerably, with
- lower prices, higher performance, and a lot more RISC microprocessors. The
- list of competitors may have changed as well, because the move to a new
- price-performance level will create a substantial hurdle for manufacturers.
- Sun, HP, and IBM are all likely to clear it. Silicon Graphics probably will as
- well, although it could be hurt because DEC uses the same MIPS processors as
- SGI. Other companies may not clear the hurdle -- particularly Apollo and
- Tektronix. Sony's US workstation venture also looks vulnerable, with limited
- market penetration and no RISC products at this time.
-
-
- NEW VAXSTATION
-
- DEC also added a new model to its VAXstation line, which runs DEC's proprietary
- VMS operating system. The new VAXstation 3100 is more than twice the speed of
- the VAXstation 2000, which DEC claims was the world's best-selling workstation
- last year. An entry-level VAXstation will be priced at $7,900 -- relatively
- aggressive pricing.
-
-
- NEW PCs
-
- Three new PCs, manufactured for DEC by Tandy, were announced. They are listed
- below, along with specifications:
-
- Name CPU RAM Price Tandy Equiv.
-
- DECstation 210 286 10MHz 1M $2,630 Model 3000
- DECstation 316 386 16MHz 1M $3,485 Model 4000
- DECstation 320 386 20MHz 2M $4,960 Model 4000LX
-
- Price includes one 3.5" 1.44M floppy, a monochrome monitor, and MS-DOS 3.3.
-
- The DEC configurations do not map precisely to Tandy models, so we have listed
- the closest equivalents. The prices are about in line with Tandy's -- not bad,
- but not tremendously aggressive either. DEC is offering a one-year warranty on
- hardware, and a variety of networking options.
-
-
- PC-RELATED SOFTWARE
-
- The company also premiered two new software products: a PC emulator that runs
- on VMS workstations, and a DECwindows access product for PCs.
-
- The PC emulator, called VAXpc, imitates an IBM-AT on any VMS workstation. DEC
- says it can run most DOS programs that do not use protected mode or certain
- specific hardware features. In practice, this probably means it cannot run
- OS/2 and possibly Windows, but almost certainly will run popular PC programs
- like WordPerfect.
-
- The DECwindows access product, called MS-DOS DECwindows Display Facility,
- allows a PC to access and use VMS and Ultrix DECwindows applications residing
- on a network.
-
-
- _______________
-
- If you have questions or comments, please link COMPETITION.
-