Newsgroups: biz.dec Path: gmd.de!newsserver.jvnc.net!howland.reston.ans.net!wupost!decwrl!pa.dec.com!rjones From: decnews-pr@pa.dec.com Message-ID: <9305131705.AA02840@raptor.pa.dec.com> Subject: Backgrounder/Digital's Personal Computer Business Sender: rjones@usenet.pa.dec.com Date: Thu, 13 May 93 10:05:02 -0700 X-Received: by usenet.pa.dec.com; id AA22455; Thu, 13 May 93 10:11:34 -0700 X-Received: by raptor.pa.dec.com; id AA02840; Thu, 13 May 93 10:05:03 -0700 X-To: DECnews for Press and Analysts:; Lines: 252 |||||| DECnews for Press and Analysts ||||||||||||||||||||||||||||||||||| Digital Equipment Corporation Maynard, Massachusetts 01754-2571 DIGITAL: WORLDWIDE SUPPLIER OF HIGH-QUALITY, HIGH-PERFORMANCE PERSONAL COMPUTERS AT COMPETITIVE PRICES Facts About Digital's Personal Computer Business: o Digital is now considered the fastest-growing PC supplier in the U.S. by market research firm Computer Intelligence, and the largest U.S. direct-mail computer supplier by DIRECT MARKETING magazine. o The company markets a complete family of technologically advanced and competitively priced PCs -- portables, desktops and deskside systems. o Digital PCs and PC server systems can be used with PATHWORKS, Novell and Banyan networking software. o Digital PCs support the industry-standard MS-DOS, OS/2 and SCO UNIX operating systems, as well as the Microsoft Windows user interface. o The company will soon provide full support for Windows NT on all PCs including the soon-to-be-announced Alpha AXP PC. o The company sells its PCs worldwide through multiple channels, including the company's direct sales force, numerous resellers and catalog/telemarketing efforts. o Through its Desktop Direct catalog aimed at the U.S. business PC buyer, Digital configures PCs to customer requirements and provides an easy-to-use, responsive order channel. Anyone can order a Digital PC directly by calling 1-800-722-9332 (1-800-PC-BY-DEC) in the U.S. from 8:30 a.m. to 8:00 p.m. Eastern Time. Digital offers a one-year on-site warranty for its desktop and deskside PCs. It's backed by a dedicated U.S. support team of thousands of professionals, an 800 support hotline and a consulting center. Digital's Phased Desktop Strategy For more than four years, Digital has pursued a phased desktop strategy. This strategy has helped Digital become a major supplier of industry-standard PCs and software applications. It also has enabled Digital to leverage important integration products such as PATHWORKS, its networking software, in order to integrate very large, enterprise-wide networks of PCs and other desktop computers. In the first phase of its desktop strategy, Digital formed strategic alliances with PC manufacturers such as Tandy and Olivetti, under which these companies would build desktop PCs to Digital specifications. Next, Digital began to design key parts of systems such as the DECpc 433 Workstation and the DECpc 400ST high-performance server family, in cooperation with technology leaders such as Intel. Digital then contracted with major PC systems suppliers, including Intel in the U.S. and Olivetti in Europe, to manufacture all or parts of its PCs. DECpc LP: New Family, New Worldwide Business Strategy In August 1992, Digital added a family of systems to its PC product repertoire that rapidly advanced the company's strategy. The DECpc LP family was designed specifically for manufacture and assembly by Digital as part of an innovative business strategy that optimizes all facets of product design, manufacture and distribution. With this model, Digital designs the PCs so that all board (the daughterboard), and non-processor-specific components are placed on another board (the motherboard). Digital is thus able to manufacture all its LP-series PC components at a single manufacturing plant. The company's Taiwan plant is highly automated, is in full compliance with strict ISO 9000 worldwide quality standards and is able to produce very high quality -- and reliable -- computer modules. The modules are then shipped around the world for final assembly and testing in each of six Local Integration Centers. Transportation costs are minimized because the more bulky, generic components are shipped via slower, inexpensive means. Only high-technology items such as processor-specific daughterboards are flown to the regions via fast air freight. With this model, Digital can substantially cut costs while maintaining high product quality. Further, Digital's sales regions can be responsive to customers' equipment needs without having to maintain large parts inventories or incur high transportation costs. During 1992, the LP family quickly became Digital's best-selling PC product line. DECpc MT: High Expandability in One-Third the Space In March 1993, Digital introduced the DECpc MT family, which is based on the same technology as the best-selling LP family, but in a highly expandable, desktop "micro-tower" package. Responding to suggestions from LP buyers who wanted to use storage- hungry applications or to use the LP as a LAN server, Digital built twice the expandability of the LP into a compact desktop package. The MT family offers the expandability of a floor "tower," but in one-third the space. The new family is ergonomically designed for desktop usage. Each family member has six expansion slots, five easily accessible bays for loading applications from a variety of media, conveniently placed controls for desktop work, low-radiation monitors and a 260-Watt power supply. Two temperature-sensing, variable-speed fans make the MT far quieter than floor "towers" -- quiet enough to meet or exceed the strictest worldwide standards for office environments. DECpc MTE: "The Ultimate 486" with a Pentium Future In May 1993, Digital further extended the product strategy that began with the LP and MT families: The company introduced the DECpc MTE family, which it nicknamed "The Ultimate 486," because it uses the fastest 486 chip, has an EISA bus to handle the fastest options, has a VESA VL-bus to facilitate upgrades and preserve investment in lower-cost options, achieves the industry's fastest video performance and accommodates upgrades to Intel's next generation of OverDrive processors based on Pentium processor technology. With the introduction of the MTE family, Digital customers now have five Intel-based desktop/deskside families to choose from: o The LP is the basic desktop family -- ISA bus, local bus video and GUI accelerator technology -- in a low-profile, horizontal package. o The MT offers the same technology, but far more expandability and power, in a vertical, desktop "micro-tower." o The MTE offers EISA and VESA buses, plus Pentium OverDrive processor upgradability, in the same ergonomic "micro-tower" design as the MT. o At the high end of Digital's Intel-based PC product line are two additional families. The DECpc 400ST is a family of high-performance servers; the applicationDEC 400xP is a family of high-performance multiuser systems. The ST and xP are fully upgradable, Pentium-ready servers -- EISA technology in a deskside, vertical configuration. o In addition to these Intel-based PC product families, Digital will offer the Alpha AXP PC, based on the Digital-built Alpha AXP processor -- a 64-bit RISC chip which is the industry's most powerful technology to date. Microsoft, with its forthcoming Windows NT operating system, and other suppliers of enabling software are enthusiastically supporting Alpha AXP products. Recent Developments Digital's momentum in the PC business has been accelerating sharply. Since January 1992, the company: o Became the first full-line computer systems supplier to use telemarketing to sell industry-standard PCs at "street prices." o Acquired the fourth-largest distributor of PC software. This company, 800-SOFTWARE, has more than 8,000 industry- standard PC applications in its catalog. It also provides extensive pre-sales and post-sales consulting and support. o Became one of the largest advertisers in the PC business. During 1992, Digital mailed more than one million direct- mail pieces and several hundred thousand catalogs, and made 225 ad insertions. o Established its new worldwide business model for engineering, manufacturing and distributing Digital PCs. o Launched five PC product families: xP, ST, LP, MT and MTE. o Focused its PC business more intensively, by establishing a new Personal Computer Business Unit with complete, worldwide P&L responsibility. The Business Unit allows Digital to behave like a nimble, fast-moving PC company. o Recruited a world-class business leader -- Enrico Pesatori, who was president and chief executive officer of Zenith Data Systems, a leading worldwide supplier of notebook and desktop PCs -- to run the Personal Computer Business Unit. o Launched the Windows NT Developers' Program so software developers can port NT applications to the Alpha AXP PC. One-Stop Shopping Digital designs and builds competitively-priced, technologically- advanced PCs supported by an extensive international sales and support organization. Digital offers one-stop shopping for its customers: A full set of industry-standard PCs, peripherals, applications and integration services -- all from a major computer systems vendor with a long-established reputation for engineering quality and networking expertise. Digital Equipment Corporation, headquartered in Maynard, Massachusetts, is the leading worldwide supplier of networked computer systems, software and services. Digital pioneered and leads the industry in interactive, distributed and multivendor computing. Digital and its business partners deliver the power to use the best integrated solutions - from desktop to data center - in open information environments. #### Note to Editors: PATHWORKS, Alpha AXP, DECpc and applicationDEC are trademarks of Digital Equipment Corporation. Windows NT is a trademark and MS-DOS and Microsoft are registered trademark of Microsoft Corporation. OS/2 is a registered trademark of International Business Machines Corporation. SCO is a trademark of Santa Cruz Operations, Inc. UNIX is a registered trademark of UNIX System Laboratories, Inc. Intel, i486 and Pentium OverDrive are trademarks of Intel Corporation. CORP/93/119c ============================================================================ DECnews for Press and Analysts is sent as a courtesy to members of the press, analyst and consulting community. For subscription information please contact: Russ Jones, UNIX Marketing Digital Equipment Corporation Voice: 415-617-3597 FAX: 415-617-3572 Internet: decnews-pr@pa.dec.com All Digital press releases, fact sheets and backgrounders are archived on gatekeeper.dec.com in the /pub/DEC/DECinfo/DECnews-PR directory. ============================================================================