A Case Study of the Failure of Digital's Work-station Vision

The document details Digital Equipment Corporation's critical failure in its workstation and graphics strategy, exemplified by Structural Dynamics Research Corporation (SDRC), a key CAD/CAM software vendor and long-term Digital customer. Digital's "Workcluster Vision," involving VAXstations (VS3100s), led to SDRC experiencing high defective unit rates, severe performance degradation with VMS upgrades, and an uncompetitive per-seat cost. Digital's X terminal offerings also lacked necessary color and performance. Consequently, SDRC and other technical customers now perceive Digital as technologically lagging behind competitors like HP, SGI, and IBM in high-performance 2D and 3D graphics. This situation is causing Digital to lose millions in internal sales and services from SDRC, as well as tens of millions annually in "leveraged business" (where SDRC sells its software on Digital platforms, which has dropped from 65% to 12% in 18 months). The report urges Digital to urgently acquire superior graphics technology from a third-party vendor, such as Jupiter Systems, to quickly regain market competitiveness and respect, as internal development is too slow and costly to address the immediate crisis.