710920 Low Cost 10 Proposal

This interoffice memorandum, dated September 20, 1971, from David Stone (on behalf of the Computer Strategy Committee) to The Operations Committee, proposes the development of a low-cost hardware system capable of running existing DEC System-10 software.

The primary rationale is to leverage the extensive investment in proven DEC System-10 software (estimated at 100 man-years), broaden its market reach, and address a market gap for systems priced between $200K and $500K, falling below the DEC System 1040. The proposed system could be manufactured for under $80K and sold for $250K and up, with a target delivery date of January 1974.

The memo emphasizes that the software is the key product, providing access to comprehensive facilities at a lower price point. It also outlines strategic implications for the 11/45 product line: if the low-cost DEC System 10 proceeds, 11/45 systems should be positioned to complement it, focusing on real-time applications (where the PDP-10 is weakest), remote batch stations, and communication front ends. Stone requests urgent comments on the proposal's validity and propriety, stressing the need for a decision before the 11/45 announcement.