The History of Digital Equipment Corporation. When you think of leaders in the computing industry, your first thoughts probably turn to companies like Apple, Microsoft, and IBM. But flash back a few decades, and the leaders of those companies all wouldve gladly bowed down to Digital Equipment Corporation, or DEC, who began paving the way for everyone starting in 1. DEC identified a demand for more affordable and high performing computing systems that could be used in scientific research and other technological settings. DEC introduced a mid range computing solution, the minicomputer, at a time when the alternative was too bulky and costly for most people. Digital paper tape, circa 1. In addition to its extensive lines of minicomputers, it also became involved with software as well as the internet in the very, very early days of the internet. Write Or Die Desktop Edition 1.13. So, what happened to DEC Why did all the success and industry dominance they had for roughly three decades just suddenly slip away
Most argue that it was a failure of the companys leadership to adapt to the changing direction that computing began to take in the late 1. In order to understand how DEC eventually lost it all, its important to take a look back at how it all began and why such a monumental shift in the computing industry couldve been missed by such a critical leader in the space. The Impressive and Tragic History of DEC in Computing. DECs story begins in 1. MITÂ who had a theory and an idea for a business. It ends in roughly 1. Database of over 45K programs that can run on a Windows 1087VistaXP system at startup, including those created by viruses, worms, spyware, and trojans. Tabtight professional, free when you need it, VPN service. Compaq. Here is DECs journey. While working together in the Lincoln Laboratory at MIT, Ken Olsen and Harlan Anderson came up with the idea for DEC. They took notice of how popular the interactive computing machines were with students who visited the lab, as opposed to the batch processing machines that users couldnt input data into or use for real time feedback. Olsen and Anderson also knew that these interactive machines could be made and sold cheaper, which would be another major draw for researchers and scientists who were craving the technology. After creating their original business plan, Olsen and Anderson were advised to shift the focus of their company from one around computers to instead one focused on equipment. There were just too many concerns from investors about the future of computing, and so thats what they did. The plan for Digital Equipment Corporation was finalized and they received 7. In sticking with the theme of keeping expenses light not only for customers but for the company as well, they set up shop in an old wool mill in Maynard, MA. The first product DEC created and sold was its Digital Laboratory Module. Staying true to its business plan, the initial product lines DEC focused on were modules, or electronic components, that were mounted to circuit boards. By the end of that year, DEC sold 9. System Building Blocks logo, RTC Wikipedia CC BY SA 3. DEC began selling its first computer at the end of 1. But it was aware of peoples reluctance to invest in computer technology at the time, so it named the computer a programmable data processor, or PDP. The first iteration of this product line PDP 1 sold for 1. Throughout the remainder of the decade, DEC created over a dozen PDP variants. PDP 4 at the National Archives Auditorium, 1. DEC began the process of creating new models of the PDP that could be sold for much less than the original. For example, the PDP 4 was similar in most ways to the PDP 1, but it was slower and packaged differently, which is what enabled DEC to sell it for 6. While continuing to release new PDPs into the market, DEC also charged forward in its delivery of new modules. The Flip Chip came out in 1. PDP 4 to the PDP 7. Many of its subsequent module releases served a similar purpose helping users convert their old computers to upgraded versions. It was in this year when DEC released the PDP 8, which is widely recognized as the first successful commercial minicomputer. Part of this is due to the improvements made to this model, but a large reason for its commercial success was the price tag of 1. In the interim, DEC came up with a revamped version of their PDP line and released the PDP 1. Not only did it bring major upgraded features to their computing machines, it also was easier to use. By the time it stopped selling it in the 1. DEC sold over 6. 00,0. PDP 1. 1 by Don De. Bold Flickr CC BY 2. Evidence Oj Simpson Trial'>Evidence Oj Simpson Trial. In addition, the design of the computer, as well as its operating system, turned out to be immensely popular with other computing companies, that eventually ended up using it as inspiration for their own work. DEC made its first move into the European market in 1. Ireland. 1. 97. 4DEC became recognized as a Fortune 5. After widespread success with its PDP 1. DEC made the move into high end computers and launched the Virtual Address e. Xtension, or VAX. This new 3. 2 bit minicomputer or supermini line aimed to provide users with a wide array of computing resources that would be more affordable, powerful, and smaller than what companies like IBM could offer at the time. The Rainbow 1. 00 was created and was DECs first attempt to enter the personal computing space. DEC continued to stay busy during this time, regularly putting out new models of the VAX. The VAX 8. 60. 0 came out in 1. DEC registered dec. DEC was recognized as one of the premier leaders in computing when it was named the second largest computer company, just behind IBM. At the time, it had generated over 1. DEC reported its first quarterly loss. DEC reported its first annual loss. Founder Ken Olsen retired. DEC released Alpha AXP, which was a 6. VAX computers and to ultimately speed up processing times. DEC launched Alta. Vista, one of the first ever search engines for the Internet. It became incredibly popular with users. During the first day of its launch, Alta. Vista received 3. Two years later, it received 8. Altavista in 1. 99. Brent Payne Flickr. CC BY 2. 0. Although Alta. Vista persisted long past the end or, more accurately, the acquisition of DEC, it was eventually sold to Yahoo in 2. By the time 2. 01. Other computer companies began to make moves for the flailing DEC. Intel was the first to step in when it purchased DECs microprocessor plant in Hudson. But even that 1. The official end of DEC as a standalone company came in 1. Compaq for 9. 6 billion. Unfortunately, Compaq didnt know what to do with DECs overseas business, and so it was inevitable that neither DEC nor Compaq would exist for much longer. That day came in 2. Hewlett Packard acquired Compaq. What Is the Lesson Here Its been many decades since the world was first introduced to DEC, and tech history buffs still enjoy talking about it. Why First, because it left such a lasting imprint on computing as we continue to know it, whether it was its contributions to computers, software, microchips, or even the internet itself. Second, because there is an important lesson here that every computer company should carefully study if they dont want to fall victim to the same fate. In a Quora thread that asked the question Why did Digital Equipment Corporation fail it was interesting to see so many previous DEC employees and members of the MIT community speak up about what they noted during their tenure there.