830214 Computer-based Controllers

This document, "Competitive Update, Volume 2 Number 6" from Digital Equipment Corporation (DEC), dated February 14, 1983, is an internal publication aimed at informing DEC employees about market competition and strategies.

Its primary focuses are:

1. Competitive Evaluation of the Computer Based Controller (CBC) Market:

   • DEC is actively pursuing this growing OEM market, which includes process control, robotics, and automatic test equipment.
   • Computer Automation (CA): While offering low-cost "Naked Mini" processors, CA's older industrial products, incompatible software/bus architectures, and shift towards commercial systems present opportunities for DEC. Customer surveys reveal CA's vendor deficiencies despite hardware strengths.
   • Data General (DG): Positioned as a key competitor, DG's microNOVA, NOVA, and ECLIPSE families are analyzed. The report highlights DG's weaknesses compared to DEC, such as limited address space, smaller installed user base, lack of floating-point hardware in some models, and less efficient interrupt handling, concluding DEC holds a strong competitive advantage.
   • General Automation (GA): Despite some reliable hardware, GA is also seen as shifting its focus from industrial to commercial markets (e.g., ZEBRA 25 with UNIX), opening more space for DEC in the CBC market. GA's customers also noted vendor weaknesses.

2. Digital vs. IBM Disk Price/Performance Update:

   • While IBM has recently cut prices on its disks (e.g., 3310), DEC argues that a "total cost of ownership" analysis (factoring in IBM's substantial software overhead, disk space wastage due to pre-allocation, and generally fewer discounts) reveals Digital's RA80, RA60, and RA81 disk subsystems to be highly competitive, or even superior, in price/performance.
   • DEC's high-performance HSC50 disk controller is presented as having a superior architecture and advanced functions compared to IBM's 3880.

3. Other Competitive Insights:

   • Hewlett-Packard (HP9000): DEC acknowledges HP's new 32-bit "desktop super-minicomputer" as a formidable competitor, particularly in CAD/CAM. However, DEC emphasizes VAX's established software base, optimized VMS environment, and superior networking/clustering capabilities (DECnet, CI) as key differentiators against HP's UNIX-based offering, which is noted for higher effective costs and a less mature application ecosystem.
   • VAX-11 APL: DEC promotes its VAX-11 APL as significantly faster, more reliable, and better integrated into VAX/VMS than STSC's APL*PLUS/2000.
   • IBM Personal Computer (PC) Update: IBM's PC hardware (graphics printer) and software offerings are noted, with DEC positioning its own LA50 printer as more functional and highlighting the availability of similar software on its Rainbow and Professional systems. DEC also contrasts its comprehensive, on-site PC maintenance services with IBM's more limited options.
   • The document also includes brief market updates on various other personal computers, terminals, printers, pricing trends, and organizational announcements.

In essence, the document provides detailed competitive analyses and strategic positioning advice, asserting Digital's strong competitive standing across various hardware, software, and service domains against key rivals like Computer Automation, Data General, General Automation, and especially IBM and Hewlett-Packard.