770212 2020 Business Plan

This document, a Business Plan dated February 12, 1977, details the proposed DECsystem-2020 (2020), a new computer product by R. H. Bingham.

Key aspects of the plan include:

• Product Positioning: The 2020 is designed as the low-cost member of the DECsystem-20 family, offering approximately 90% of the 2040's performance at roughly a third of its cost. It's envisioned as a "satellite computing system" or a "distributed main frame," aimed at filling product gaps by providing a commercial, medium-cost system with strong COBOL performance. It sits competitively above the PDP-11/70 and below the STAR system.
• Goals: To rapidly bring the product to market to address competitive challenges and to provide the necessary tools for reliable manufacturing and maintenance of the 2020 design.
• Technology & Features: The 2020 utilizes Low Power Schottky TTL and AM2901 4-bit data path slices. It features a 512-word virtual address write-through cache, 8 fast general-purpose registers, an 8080 microprocessor for console functions, virtual memory, and a 2000-word writable control store. Memory uses 16K or 64K MOS chips, supporting up to 512K words with single-bit error correction and double-bit error detection. It communicates via a 50-line synchronous bus and includes a UNIBUS adapter for PDP-11 peripherals. Key co-requisites are the 16K MOS Chip and RM03 disk drive.
• Market Strategy & Applications: The 2020 is targeted for distributed computing, serving as a local processing system linked to larger DEC systems, an OEM offering, a software development tool, graphics system, and an ARPA net node. Example applications include oil exploration (Schlumberger), research (Mobil), general data services, education, and government/military uses, with a particular emphasis on its competitive advantage in COBOL. The strategy is to sell to target accounts in FY78 to seed volume sales in FY79 and beyond, with a public announcement planned for May 1978.
• Schedule: Design started April 1, 1976. Prototype operation and limited release are slated for April and August 1977, respectively. The first customer shipment is projected for October 1977, with a public announcement in May 1978. The estimated product life is 2.5 years.
• Financials: Total estimated development cost is $1.4 million (22 man-years). Average system costs are projected at $60K (FY78) and $46K (FY79), with a typical basic system price of $100K (FY79 projected). Competitive analysis shows the 2020 priced significantly lower than rivals like HP 300II, Prime 400, and VAX, particularly excelling in COBOL performance.
• Risks: Identified risks include the new "Multiwire" technology being single-sourced initially, potential underestimation of sales volume, and the possibility of 16K MOS volume/yield issues limiting memory capacity and market penetration.