archive.computerhistory.orgarchive.computerhistory.org/resources/access/text/2013/04/1027232… · Jeff Hart Berkeley Roundtable of the Int'l Economy Oaryl Hatanio Rich Helfrttih

Dataqyest aaimpanyof ltieDun& Bfadstrect Corporation

Jeff Hart Berkeley Roundtable of the Int'l Economy

Oaryl Hatanio

Rich Helfrttih

Richard Hort»n

Frank Jalenko

Theo Janssen

Bob Jenkins

Michio Katsamata

Valerie Kisak

Mike Kubiak

Ken Kunitomo

Robert Lakin

Daniel Lankford

K-. Y. Lee

Jane Locke-Alford

Eric Lundquist

Steve Maine

Mike Manier

J. Daniel McGr jinie

Clem Meas

David Mehlhoff

Beatrice Montamedi

Lissa liorgenthaler

Mike Murphy

Cy Musiker

Gene Norrett

Semiconductor Industry Association

Advanced Micro Devices, Inc.

Ramtron Corporation

NEC Corporation

3M Company

Motorola, Inc.

Japan Financial Daily

Northern Telecoin Electronic^ Inc.

Advanced Micro Pevlces, Inc.

NEC Corporation

Tandem Computers, Inc.

AT&T

Acer Incorporated

Semiconductor Industry Associa'^^^^

Electronic Buyers' News.

Microchip Technologfy Inc.

Journal of Commerce

Seeq Technology, Inc.

Silicon Compiler Systems Corp. •.

Shinko Electric America, Inc.

UPI

California Technology Letter

California Technology l etter

CBS News Business Update

Dataquest Incorporated

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Dataquesf Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Pari? Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

Bruce Norton

William O'Meara

Joe O'Neill

Paul Ortiz

Matthew Panarese

Jim Patella

Pat Patterson

Chris Peterson

Andrew A. Procassini

Richard Quinnell

Kris Rallapalli

Ted Reed

Valerie Rice

Peter Richmond

J. Daniel Robertson

Matt W. Sagal

George M. Scalise

Monte Seifers

Clysta Seney

Greg Sheppard

lice Silis

Peter Silverman

Bob Starr

Robert Stavers

Roger Steciak

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Information Handing Services * .-•r.BmJDJ.

G-2 Incorporated

Gould, Inc. ..! „„

Seeq Technology, Inc. ^ ^ .

Wells Fargo

NCR Corporation

Industry Week .

Mitsubishi Electronics America, Inc. n-- ' •

Semiconductor Industry Association

EDN Magazine

Raytheon Corporation

Sacramento Bee ^ •

Electronic Business News

Advanced Micro Devices, Jfnc.

3Com Corporation

AT&T

Maxtor Corporation , , •,

Northern Telecom Electronic^ Inc.

Silicon Systems, Inc. ^ ;

Dataquest Incorporated ,_,

Wells Fargo

MemTech Technology Co^rporartion

Yamaha Systems Technology Division

Coopers & Lybrand


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. Dataquest Incorporated, a company of The Dun & B r a d ^ r ^ ^^îrgpration 1290 Ridder ^|rl< Drive. San Jose, C^ 95131-2398 / (408) 437-8000 / Tel??t 17^^37 FaX: (^).43^^292

Nancy Steid^mahn

Winifred Steil

Frank Stempski

Anthea Stratigos

Rodney Stubbs

Rahul Sud

Brian Sullivan

, c. -1 -I ••> c'lsmA Jay Sullivan

James M. Summers

John Taft

Chuck Thompson

Tom Thornhill

Mike Tyler

Jack Van Den Heuvel

Jean Claude Vrignaud

Don Watters

Jeffrey A. Wellington

Jon Wellman^^'""^ *'''

Suellen Whit£

Loring Wirbel

B i l l Wirth

Vincent Wohil^Witer^

Anthony D. Wut^ta '

Won Yang

•TiS

Feature News Service

AT&T

ICI Array Technology


PlanTek

Microchip Technology Inc.

ZyMOS Corporation

McKinsey & Company, Inc.

AT&T

Coopers & Lybrand

Silicon General Corporation f , . . . . '••

Shearson Lehman Button Research

i


Raytheon Corporation

Rockwell International Corporation

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McKinsey & Company, Inc.

Bank of Boston

Coopers & Lybrand

Information Handing Services ;• 1 e n q ^ " : .

Electronic Engineering Times

LSI Logic Corporation

AT&T

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IBM Corporation ;. -i ;.

Samsung Semiconductors, Inc.

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^ ^ Tncdifporated, a company of The Dun & Bradstree« Corporation ^2^6Mder Park DM. Sdff dose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

DataQuest n n a company of tfgf The Dun & Bradstreet corporation

SEMICONDUCTOR INDUSTRY ASSOCIATION SEMINAR September 29, 1988 Santa Clara Marriott

List of Attendees

3Com Corporation J. Daniel Robertson, Vice President, Manufacturing

3M Company Theo Janssen, Sales Specialist

AT&T Daniel Lankford, Director, Market Management Matt W. Sagal, Vice President, International Marketing Winifred Steil, Manager, Strategic Marketing James M. Summers, Market Management Director Vincent Wohlheiter, Product Marketing Director

Acer Incorporated K. Y. Lee, Vice President

Advanced Micro Devices, Inc. Curt Francis, Vice President, Strategic Planning

Rich Helfrich, Manager Mike Kubiak, Director, Investor Relations Peter Richmond, Manager

Alpha Partners Brian J. Grossi, General Partner

Apple Computer, Inc. Allan Alcorn, Apple Fellow

Arthur Andersen & Company David Clements, Partner

Bank of Boston Jeffrey A. Wellington, Vice President

1290 Ridder Parl< Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292

Bank of the West Thomas A. Hannen, Assistant Vice President

Berkeley Roundtable of the Int'l Round table Jeff Hart, Professor

Borg-Warner Chemicals Barbara Arnold, Market Development Specialist

Burr, Egan, Deleage & Company Shirley Cerrudo, Partner

CBS News Business Update Cy Musiker, Reporter

Cahners Publications Elizabeth Baatz

California Technology Letter Lissa Morgenthaler, Editor Mike Murphy, Editor

Cirrus Logic, Inc. George Alexy, Vice President, Marketing

Communications Week Tim Haight, West Coast Bureau Chief

Coopers & Lybrand Robert Stavers, Partner John Taft, Partner Jon Wellman, Manager

Data Business Publishing Brian Franklin, Publisher

Dataquest Incorporated Terrance Birkholz, Research Analyst Ronald Bohn, Research Analyst Shirley Cahn, Conference Assistant Patricia Cox, Manager, Information Services

Maureen Davies, Conference Assistant Mark Giudici, Product Manager Gene Norrett, Corporate Vice President and Division General Manager Greg Sheppard, Senior Industry Analyst Roger Steciak, Senior Industry Analyst Anthea Stratigos, Group Director Mike Tyler, Director, Graphics and Imaging Service

Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

EDN Magazine Richard Quinnell, Regional Editor

Electronic Business News Valerie Rice, Associate Editor

Electronic Buyers' News Gavin Bourne, Editor Eric Lundquist, Editor

Electronic Engineering Times Loring Wirbel, Reporter

Electronic News Jim Detar, Correspondent

Electronic Purchasing Magazine Marc Elliott, Associate Editor

Feature News Service Nancy Steidtmann, Correspondent

Fujitsu Microelectronics, Inc. William K. Conway, Director, Advanced Planning Admistration

G-2 Incorporated

Gould, Inc.

William O'Meara, President

Joe O'Neill, Vice President, Sales and Marketing

Hewlett-Packard Company Ken Cotter, Product Marketing Engineer

IBM Corporation Dennis W. Andrews, Assistant General Manager Anthony D. Wutka, Advisory Engineer

ICI Array Technology Frank Stempski, Marketing Manager

Industry Week Pat Patterson, Editor

Information Handing Services Bruce Norton Suellen White

Dataque^ Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Parl< Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

Intel Corporation Alan Allan, Marketing Manager Joe Altnether, Senior Product Marketing Engineer

Japan Financial Daily Michio Katsumata, Chief Correspondent

Journal of Commerce Mike Manier

Ketchum Public Relations Rob Gelphman, Senior Account Executive

Koltron Corporation G. D. Bucci, President and Chief Executive Officer

LSI Logic Corporation Jim Boswell, Marketing Manager Bill Wirth, Director, Component Technology Marketing

Linear Technology Corporation William Ehrsam, Vice President, Marketing

Maxtor Corporation George M. Scalise, President, Chief Executive Officer

McKinsey & Company, Inc. Jay Sullivan, Assistant to the Director Don Watters, Director

MemTech Technology Corporation Peter Silverman, Vice President, Engineering

Microchip Technology Inc. Steve Maine, Vice President, Business Development Rahul Sud, Vice President, Marketing

Micron Technology, Inc. Gene H. Cloud, Marketing Manager

Mitsubishi Electronics America, Inc. Dwain Aidala, Vice President, Marketing Chris Peterson, Strategic Marketing Manager


Motorola, Inc. James Gradoville, Manager, International Trade Programs Bob Jenkins, Corporate Vice President and Director, Sector Technology

NCR Corporation

NEC Corporation

Jim Patella, Marketing Engineer

Frank Jalenko, Vice President, Strategic Planning

Ken Kunitomo, Director, Corporate Planning Group

National Westminister Bank USA Linda K. Brown, Assistant Vice President

Northern Telecom Electronics Inc. Valerie Kisak, Manager, Industry Economics Monte Seifers, Director, External Business

Octel Communications Corporation Robert Cohn, President and Chief Executive Officer

Perkin-Elmer Corporation Michael Archuletta, Director, Marketing

PlanTek Larry Campbell, Senior Vice President Rodney Stubbs, President

Prometrix Corporation Richard Elkus, Jr., Chairman and Chief Executive Officer

Ramtron Corporation David Bondurant, Director, Marketing Richard Horton, President

Raytheon Corporation Kris Rallapalli, Marketing Strategic Planning Manager Jack Van Den Heuvel, Product Marketing Manager

Rockwell International Corporation Jean Claude Vrignaud, General Manager, European Operation


Sacramento Bee Ted Reed, Reporter

Samsung Semiconductors, Inc. Won Yang, Vice President

Security Pacific Capital Corporation Jeff Brown, Senior Investment Analyst

Seeq Technology, Inc. J. Daniel McCranie, President and Chief Executive Officer Paul Ortiz, Vice President, International Sales

Semiconductor Industry Association Doug Andrey, Manager, Industry Statistical Programs Warren Davis, Vice President Daryl Hatano, Director, International Trade and Government Affairs Jane Locke-Alford, Director, Communications Andrew V. Procassini, President

Shearson Lehman Button Research Tom Thornhill, Senior Vice President

Shinko Electric America, Inc. David Mehlhoff, Marketing Manager

Silicon Compiler Systems Corp. Clem Meas, Vice President, Marketing and Sales

Silicon General Corporation Chuck Thompson, Executive Vice President

Silicon Systems, Inc. Clysta Seney, Director, Corporate Planning

Siliconix Incorporated Tom Hardy, Vice President, IC Business Unit

Standard Microsystems Corporation Jim Christophersen, Manager, Strategic Planning

Tandem Computers, Inc. Robert Lakin, Director, Strategy

Dataquest Irxjorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

Tatung Science and Technology, Inc. Kam Chan, President, Local Branch

Texas Instruments, Inc. David Bartek, Strategic Marketing Manager, Linear Products

Toshiba America, Inc. Roger Childers, Product Marketing Manager

UPI Beatrice Montamedi, Correspondent

Wells Fargo Skip Dusseau, Vice President and Manager Matthew Panarese, Assistant Vice President lice Silis, Vice President

Yamaha Systems Technology Division Bob Starr, National Sales and Marketing Manager

ZyMOS Corporation Dave Handorf, President and Chief Executive Officer Brian Sullivan, Vice President, Marketing

Dafaquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

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DataQuest ' n ' n a company of IBM TheDun&BradstreetCorporation

INTRODUCTION AND WELCOME

Manny A. Fernandez President and CEO Dataquest Incorporated

is President and CEO of Dataquest. Under his leadership, increased its products and services, expanded its overseas

and earned record revenue and profits. Mr. Fernandez has been in high-technology industries for the past 18 years. Prior to the presidency of Dataquest, he founded the company's Strategic Service, which provides vital decision-making support for CEOs

of high-technology companies. Before joining Dataquest, Mr. Fernandez was President and CEO of Gavilan Computer Corporation, President and CEO of Zilog, Inc., and Group Vice President of Fairchild Camera and Instrument Corporation. Mr. Fernandez received B.S. and M.S. degrees in Electrical Engineering from the University of Florida.

Mr. Fernandez Dataquest has coverage, involved assuming Executive

Dataquest Incorporated SEMICONDUCTOR INDUSTRY ASSOCIATION/DATAQUEST CONFERENCE

September 29, 1988 Santa Clara, California

1290 Bidder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292

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Seizing Opportunities of Change: Strategic Electronic Markets for Semiconductors

^ % ^ \ ^ "

WELCOME AND INTRODUCTION

MANNY A. FERNANDEZ

President and CEO Dataquest Incorporated

1988 Dataquest Incorporated September 29 — Reproduction Prohibited


DataQuest a company of The Dun& Bradîcct Corporûn

DataQuest «>«> a company of l i a l The Dun &Bradstreet Corporation

INTRODOCTION AND WELCOME

Andrew A. Procassini President Semiconductor Industry Association

Dr. Procassini is President of the Semiconductor Industry Association (SIA), the trade organization that represents U.S.-based semiconductor manufacturers. Prior to becoming SIA President, Dr. Procassini served semiconductor firms in senior management positions in the areas of quality and reliability assurance, operations, sales, and marketing, and in the international arena. He has held major posts in the semiconductor divisions of Motorola and Fairchild. He also cofounded and served as President of Micro Circuit Electronics. Dr. Procassini received a bachelor's degree from the University of Michigan, a master's degree in Economics from Arizona State University, and a doctorate in Business Administration from Nova University.



1290 Ridder Park Drive, San Jose, CA 95131-2398 (408) 437-8000 Telex 171973 Fax (408) 437-0292

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] I Seizing Opportunities of Change: ] I Strategic Electronic Markets

for Semiconductors

x y > ANDREW A. PROCASSINt

President Semiconductor Industry Association (SIA)

© 1988 Dataquest Incorporated September 29 — Reproduction Prohibited


DataQuest acompaiwoF I 1 K Dun CBradstrcet Corporabon

DataQuest w a n a company oF I B M The Dun &Bradstreet Corporation

DATAQUEST ELECTRONICS OOTLOOK

Anthea Stratigos Director Semiconductor User and Applications Group Dataquest Incorporated

Ms. Stratigos is Director of Dataquest's Semiconductor User and Applications Group. She is responsible for developing and managing research on semiconductor purchasing trends and related semiconductor consumption based on a demand or from an end-market perspective. The main focus of the group's research is to provide semiconductor users and manufacturers with information that better equips them to address buying and selling issues. Prior to joining Dataquest, Ms. Stratigos worked in Information Development at IBM Corporation's Santa Teresa Laboratory, where she documented software products for IBM's mainframe systems. Ms. Stratigos holds a B.A. degree in Communication from Stanford University.




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DATAQUEST ELECTRONICS OUTLOOK ANTHEA STRATIGOS

Director Semiconductor User and Applications Group

Dataquest incorporated



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AGENDA

• The boom/bust cycles

• Electronic markets outlook

• Users and their issues

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THE BOOM/BUST CYCLES Comparison of Semiconductor Consumption

and Electronic Equipment Production

Percent Change Year to Year

50 40 30 20 10 0

-10 -20 -30 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990

Souice: Oataquest

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1988 Oataquest Incorporated September 29 — Reproduction Prohibited

Oataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

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THE BOOM/BUST CYCLES Current Actual versus Target

Semiconductor Inventory Levels (All OEMs)

June Aug, Oct. Dec. Feb. April June Aug. 1987 4- 1988

Source: Dataquest

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THE BOOM/BUST CYCLES Current Actual versus Target

Semiconductor Inventory Levels (Computer OEMs)

Days

4b

40

35

30

25

on

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P^^^ Current Actual E M I Target

• " < * * • • - . . . . /

June Aug. Oct. 1987 —

Dec. Feb. April June Aug. 4^ 1988

Souice: Dataquest


Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

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ELECTRONICS MARKETS OUTLOOK Estimated Worldwide Electronics Production

Application Market

Data Processing

Communications

Industrial

Consumer

Military

Transportation

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1987 1988 1989

50 100 150 200 250 300 350

Billions of Dollars Souice: Dataquest

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ELECTRONICS MARKETS OUTLOOK Estimated North American Electronics Production

Application Market

Data Processing

Communications

Industrial

Consumer

Military

Transportation

50 75

Billions of Dollars Source: Dataquest



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ELECTRONICS MARKETS OUTLOOK Estimated Japanese Electronics Production

Application Market

Data Processing

Communications

Industrial

Consumer

Military

Transportation V,V-|j,|Ajk|.|W

S 1987 S 1988 EHD 1989

20 40 60

Billions of Dollars

80 100

Source; Daiaquesi

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ELECTRONICS MARKETS OUTLOOK Estimated European Electronics Production

Application Market

Data Processing |

Communications

Industrial

Consumer

Military

Transportation

10 20 30

Billions of Dollars

40

Source: Dataquest


Dataquest Incorporated, a company of The Dun & Bradstre^ Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

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ELECTRONICS MARKETS OUTLOOK Estimated ROW Electronics Production

Application Market

Data Processing

Communications

Industrial

Consumer

Military

Transportation

^ ^ ^ ^ ^ ^

10 20 30 40 Billions of Dollars

50 60

Souice: Daiaquest

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WHAT SHOULD YOU DO?

Working Partnerships Are Crucial

• Users need to: - Protect market - Access technology " Control costs


Oataquest Incorporated, a company of The Dun & Bradstreet Corpxsration 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

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WHERE THE GROWTH ISN'T -FASTEST-SHRINKING LARGE MARKETS

Estimated U.S. Revenue (Billions of Dollars)

Segment

5.25" Flexible Disl< Drives Alphanumeric Display Terminals Modems Line Printers 8- to 10.5" Rigid Disk Drives Electronic Typewriters 1/2" Tape Drives

1988 1989 CAGR

$1.3 $3.0 $1.2 $1.4 $3.4 $2.4 $2.4

$1.1 $2.7 $1.1 $1.3 $2.8 $2.3 $2.3

(15%) (11%)

(7%) (4%)

(18%) (5%) (2%)

Souice: Dataquest

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WHERE THE GROWTH IS -FASTEST-GROWING LARGE MARKETS

Segment

Processing Terminals Optical Disk Drives Electronic Publishing 3- to 4-in. Disk Drives Workstations Manufacturing Network! LAN Connections Cellular Radio

Estimated U.S. Revenue (Billions of Dollars)

1988

0.1 0.4 1.6 3.7 1.9

5 0.7 2.4 3.6

1992

1.0 3.0 6.6

14.2 4.8 1.7 5.4 7.9

CAGR 1988-1992

86.7% 61.8% 42.2% 39.5% 25.6% 23.9% 22.4% 21.9%

Souice: Dataquest



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USERS AND THEIR ISSUES

Fastest-Growing Large Market Participants

Segment Companies

Workstations

Manufacturing Networks

LAN Connections

Cellular Radio

1. Sun 2. Apollo 3. Digital

1. Digital 2. Foxboro 3. Allen-Bradley

1. Digital 2. 3Com a Novell

1. AT&T 2. Motorola 3. NTI/GE

Soufce: Dataquest

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Fastest-Growing Large Market Participants

Segment Companies

Processing Terminals

Optical Disk Drives

Electronic Publishing

3- to 4-in. Disk Drives

1. Novell 2. 3Com 3. TeleVideo

1. Philips 2. Hitachi 3. Sony

1. Interleaf 2. Frame Technologies 3. Xyvision

1. Miniscribe 2. IBM 3. Tandon

Souice: Dataquest



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The Major Issues

1987

Pricing Availability/lead times Quality/reliability On-time delivery FMVs/trade agreement Cost control JIT/inventory control Surface mount New products/obsolescence ASICs Offshore manufacturing

and procurement

1988

Availability/lead times/shortages Pricing On-time delivery Cost control Memories Quality/reliability Reducing vendor base New products/obsolescence JIT/inventory control Fluctuating yen/currency exchange

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WHAT SHOULD YOU DO?

Conclusions

• Users expect continued growth in purchases • Availability, lead times, and shortages

are critical issues • Closer vendor/buyer connections may temper

the cycle • The shift offshore may be slowing • Cost control and manufacturing strategies

still play critical roles in determining buyer action


Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Parl< Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

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WHAT SHOULD YOU DO?

Working Partnerships Are Crucial

• Users need to: - Protect market - Access technology - Control costs



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PERSONAL COMPUTERS

Allan E. Alcorn Apple Fellow Apple Computer, Inc.

Mr. Alcorn is an Apple Fellow at Apple Computer, Inc. He works in the Advanced Technology Group and directs investigations into new technologies and applications for personal computers. He is currently chairman of a task force that is changing the way Apple Computer deals with ASICs. He is also -a member of the DRAM task force. Prior to joining Apple, Mr. Alcorn was a founder and the Vice President of RSD at Atari. He designed the first commercially successful coin-operated video game called PONG. He also built the first video game on a custom chip, followed by the Atari VCS home video game machine. Previously, Mr. Alcorn worked at the Videofile division of Ampex as an Electrical Engineer. Mr. Alcorn holds a B.S. degree in Electrical Engineering and Computer Science from the University of California at Berkeley.

Dataquest Incorporated SEMICONDOCTOR TNDOSTRY ASSOCTATION/DATAQOEST CONFERENCE



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Seizing Opportunities of Cliange: Strategic Electronic Marlcets for Semiconductors

PERSONAL COMPUTERS

ALLAN E. ALCORN Apple Fellow

Apple Computer, Inc.


Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292


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Dataquest Incorporated, a company of The Dun & Bradstreet Corporation ^ , , „ „ „ „ 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292


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PERSONAL COMPOTTNG IN THE 1990s

Dennis W. Andrews Assistant General Manager Advanced Engineering Systems IBM Corporation

Mr. Andrews is the Assistant General Manager for Advanced Engineering Systems at IBM Corporation, where he is responsible for AIX (ONIX) and RISC-based offerings. Prior to this, he was Laboratory Director for IBM's Entry Systems Division. Previously, he was Systems Manager, responsible for the development of the Personal Systems/2, Models 50, 50, and 80, and also had responsibility for the Personal Computers AT and XT 286. Mr. Andrews has worked for IBM for many years, starting as an Operating Systems Programmer and holding a variety of software development management positions. He was involved in the launch of the IBM PC and was the Product and Marketing Support Manager in the International Operations Group that was formed to introduce PC products outside of the Onited States. Mr. Andrews received a B.S. degree in Theoretical Mathematics from Penn State Oniversity.

Dataquest Incorporated SEMICONDUCTOR TNDOSTRY ASSOCIATTON/DATAQOEST CONFERENCE



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PERSONAL COMPUTING IN THE 1990s DENHtS W. ANDREWS

Assistant General Manager Advanced Engineering Systems

IBM Corporation



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• Higher Standard Of Usability & Reliability

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Dataquest incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

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Dataqyest a company of The Dun & nad^R^ CorporAun

DataQuest n n a company of MMMM The Dun & Bradstreet Corporation

COMPOTER STORAGE

George M. Scalise President and CEO Maxtor Corporation

Mr. Scalise is President and Chief Executive Office of Maxtor Corporation. Prior to joining Maxtor, he was a Senior Vice President of Government and Industry Relations at Advanced Micro Devices. During his tenure with AMD, he was responsible for manufacturing, marketing, and international operations. Previously, he held upper management positions with Fairchild Semiconductor and Motorola, working in the United States, Europe, and the Far East. Mr. Scalise currently heads the disk drive consortium, which addresses industry and national issues such as trade policies. He has been a leading spokesman for the electronics industry as chairman of the SIA's public policy committee and worked closely with the U.S. government in developing and implementing the U.S.-Japan semiconductor trade agreement. Mr. Scalise holds a B.S. degree in Mechanical Engineering from Purdue University.

Dataquest Incorporated SEMICONDUCTOR INDUSTRY ASSOCIATTON/DATAQUEST CONFERENCE



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c, Seizing Opportunities of Cliange: Strategic Electronic Markets for Semiconductors

COMPUTER STORAGE

GEORGE M. SCALISE President and CEO Maxtor Corporation



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VOICE PROCESSING

Robert Cohn President and CEO Octel Communications Corporation

Mr. Cohn, a cofounder of Octel Communications Corporation, is the company's President, Chief Executive Office, and a Director. Prior to founding Octel Communications, he was Marketing Manager for Acurex Corporation's Tcore Division, which produces microprocessor-based measurement and control systems. At Acurex, he was responsible for two successful products and received a patent for a user-friendly display device that today leads that industry. Previously, Mr. Cohn was with McKinsey and Company and also held positions in commercial and investment banking. Mr. Cohn received a B.S. degree in Mathematics and Computer Science from the University of Florida and an M.B.A. degree from Stanford University.

Dataquest Incorporated SEMICONDUCTOR INDUSTRY ASSOCTATION/DATAQUEST CONFERENCE



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Seizing Opportunities of Change: Strategic Electronic IMarlcets for Semiconductors

VOICE PROCESSING

ROBERT COHN President and CEO

Octel Communications Corporation


Dataquest Incorporated, a connpany of The Dun & Bradstreet Corporation 1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

OCTEL COMMUNICATIONS CORPORATIO

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Robert Cohn

September 29,1988

Dataquest Executive Briefing

©Copyright 1988 OCTEL COMMUNICAT 20K-1 1

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VOICE PROCESSING SYSTEMS ARE SPECIALIZED COMPUTER SYSTEMS

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OCTEL COMMUNICAT

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MAJOR VOICE PROCESSING MARKETS UTILIZE STORED DIGITIZED SPEECH

• Largest voice processing markets - Voice mail

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Smaller voice processing markets - Voice recognition

- Speech synthesis

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ANALYSTS AGREE THAT MARKET IS IN SOLID GROWTH PHASE

End-User Revenues

($MM)

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Consensus" 1984-1987 1987-1991

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OVER A BILLION DOLLARS IN A FEW YEARS MAKES SENSE

Proven technology

Solid customer demand

Multiple customer purchases

Market far from saturation

• New market opportunities - Voice information services

- Smaller businesses

I ' - International markets

I - Computer system integrations

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BREADTH AND DEPTH OF OCTEL SALES INDICATE STRONG MARKET ACCEPTANC

Over 30 Fdrtun© 100's

Customer with multiple systems:

• Average systems per customer:

• Largest customer:

• Top 5 customers:

• Top 25 customers:

©Copyright 1988 . — OCTEL COMMUNICAT 20K-7

PRESENTATION OUTLINE t\3 (O O 3) Q.'

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DISTINCT VOICE PROCESSING MARKET SEGMENTS HAVE EMERGED

Customer Premise Eauioment Voice Information Services

Foûne 1000 I

Companleisi

Smaller Companies

Telephone Company Enhanced Services

Cellular Providers

Service Bureaus

Internation

CPE and VIS

©Copyright 1988 20K-0

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"FORTUNE 1000" IS THE LARGEST MARKET SEGMENT TODAY

Many communications problems

72,000 large PBX/Centrex installations (U.S. o

Relatively untapped market

Lowest purchase cost per user

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LARGE COMPANIES HAVE SERIOUS COMMUNICATIONS PROBLEMS

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VOICE PROCESSING SYSTEMS CAN ADDRESS THESE NEEDS

Voice mail (voice messaging)

Telephone answering

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Information Center"^ Mailboxes

Enhanced"^ Call Processing

©Copyright 1988 OCTEL COMMUNICAT V2

THE LARGE CORPORATE CUSTOMER-DEMANDING REQUIREMENTS

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STRATEGY IS TO PROVIDE THE EXACT PRODU DEMANDED BY TARGET MARKET

• Rve VP features

• Range of product sizes

• Compatibility with all PBXs

• Integrations with most PBXs/COs

• Networking

• Best features

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INTEGRATIONS ARE A KEY FORTUNE 1000 MARKET REQUIREMENT

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- Provide message notification

- Return to "operator"

Difficult to develop (especially for PBX vendors

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SEVERAL OPPORTUNITIES EMERGE WIT ASPEN COMMAND LANGUAGE (ACL)

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• Strategically important - To major corporations (CPE)

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m Enormous future potential

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VOICE PROCESSING VENDORS REQUIRE SEVER FROM SEMICONDUCTOR INDUSTRY

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Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Parl< Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

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COOPERATION IS NEEDED TO MAINTAIN CURRENT WORLD LEADERSHIP POSITIO

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VP vendor/semiconductor relationships critical

Need to work together

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DataQuest «»WB a company of I B S l The Dun &Bradstreet Corporation

ON-LINE TRANSACTION PROCESSING

Robert F. Lakin Director of Strategy Tandem Computers

Mr. Lakin is Director responsible for the manufactures and sells systems. Previously, President of Marketing,

of Strategy for Tandem Computers, where he is company's core strategy processes. Tandem a wide range of transaction processing computer Mr. Lakin was Executive Assistant to the Vice Manager of Direct Response Marketing, and Manager

of Marketing Planning for Tandem. Earlier, he held a variety of positions with Burroughs Corporation, including lecturing and teaching in Burroughs' domestic and overseas operations on data management, access control, and network architecture. Mr. Lakin is a graduate of the University of Northern Iowa.




[Ba3asooe.iMQ 07Mi/ea:QED|

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ON-LINE TRANSACTION PROCESSING

ROBERT E LAKIN

Director of Strategy Tandem Computers



Handouts

The Future of OLTP

- P Presented to

SIA/Dataquest

By Bob Lakin Tandem

September 29,1988

•«jrrANOEM COMPUTERS

OLTP: From the Sidelines...

"OLTP reminds ma of the story of Cinderella: a poor step-child picking the lentils from the ashes while batch goes to the ball..."

ESI [*S»I

SIA/Oataquest Conferenea

Tandem at SIA/Dataquest September 29, 1988

Page 1 Dataquest Incorporated, a company of The Dun & Bradstreet Corporation

1290 Bidder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

Handouts

• jFTANDEM COMPUTERS

.into the Mainstream

..but now somebody's passing around the glass slipper, and guess who it fitsl"

..MS^ SIA/Oataquast Confaranca

-«J)TANOEM COMPUTERS

^^ Trends: Where the databases are

Rsgônal, OlitribuiM

• IHQ / Regions retain control over databases

• Databases distributing to regions, LAN servers

' More images & graphics: massive database size

• DB of record = existing OBs + new relational SQL DBs

• Database of record require very large, high availability storage

• Key Issue: access from more locations, more people

SIA/Oataquast Conferenca


Page 2 Dataquest Incorporated, a company of The Dun & Bradstreet Corporation

1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

Handouts

• jfTANDEM COMPUTERS

Trends: Where the MIPS are:

Cheap IMIPS move into branch locations—more than in ail the computer rooms

Short list: iVIS/DOS, OS/2, Mac, UNIX

"Private" computing — ^ departmental computing — ^ corporate computing

Local copies of corporate data through upload/download

Potential: new, more complex transactions

Key issues: factoring out differences and geography

SIA/Oataquast Confarane*

- jTTANDEM COMPOTERS

^ ^ Trends: Connecting, little sharing

• Wide-area private networlcs going standard (OSI/SNA)

• Wide-area public networks going standard (OSI/ISDN)

• LANs going standard (Ethernet, TCP/IP, LAN Manager, Token Ring)

• LAN/WAN interconnection forming the new Enterprise Network

Rflgiond. Olstributsd

SIA/Oataquast Confarenca


" Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

Handouts

• jn'ANDEM COMPUTERS

~ Issue: Effective Use of MIPS and Data

Resource mapping (central, regional, local) based on business needs Cheap desktop mips ideal for transaction capture

Mission critical databases will need fault tolerance, high availability, data integrity Going beyond connectivity to co'Operative processing

OLTP provides the model— client/server architecture

SIA/Oataquast Confaranc*

Enterprise Transaction Processing


Page 4 Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

Handouts

-«jn"ANDEM COMPLfTERS

" Enterprise Transaction Processing (ETP)

• Hosts and workstations will be integrated on standard nstworlcs

• Integration wiil be based on applications requiring siiared data

• Transaction processing is the ideal model for managing shared resources

SIA/Oataquast Con<ar«nea

'ÂNOEM COMPUTERS

Components of ETP:

TRANSACTION-RICH

ENVIRONMENT

ENTERPRISE SUPPORT

SIA/Dataquast Coniarenca IP



Handouts

•^jfTANDEM COMPLfTERS

Transaction-Rich Environment

OQ • Higher volumes, many new applications

• Greater complexity as micros add the dimension of graphics and image

• Routing transaction across internal and external systems (payments systems. Electronic Data Interchange)

a SIA/Dataquast Conferanca •11

•ÎTTANDEM COMPLfTERS

••• Enterprise-Wide Databases

• New databases in SQL—slow but sure migration of existing databases to relational

• A new standard to link databases

• Single database for OLTP and query

• Flexibility In distribution

• Full transaction protection across multiple databases and locations

• Parallel architecture for extremely high performance

• Micros own the tools and some of the databases

®

SIA/Oataquast Conferanca it


Pages Dataquest Incorporated, a company of The Dun & Bradstreet Corporation


Handouts

• jfTANDEM COMPUTERS

••! [ Cooperative Processing

• Transaction systems inciuda routing systems

• Application arciiitecture migrates to client (requester) / server

• Hosts take on the character of shared resource managers/servers

• Open architectures allow deploying new enterprise-wide applications across hosts/micros and across multiple vendors

SIA/Oataquast Confaranea 13

•«j|TANDEM COMPUTERS

••• Enterprise Support

• Multi-vendor service

• Partnerships in specialties—geography, devices

• Systems integration and consulting

• Electronic training delivery

• Electronic logistics

A.

m SIA/Oataquast Confaranea 14,



Handouts

• jrTANDEM COMPUTERS

The Next Five Years

Transaction processing dominates new applications

Hosts manage shared resources and bacl(bone networics

l\Alcros and LANs instrument branch locations

Standards define database and application envrionments

Cooperative processing architecture enables enterprise-wide applications

SIA/Oataquast Confaranc* 15

Thanks!

- P TANDEM COMPUTERS


Page 8 Dataquest Incorporated, a company of Tfie Dun & Bradstreet Corporation


Dataquest acompanyof The OunStBiadstreet Corpofation

Dataquest n n a company of MMMM The Dun &Bradstreet Corporation

HDTV/VIDEO

Richard J. Elkus, Jr. Chairman and CEO Prometrix Corporation

Mr. Elkus is Chairman, Chief Executive Officer, and a Director of Prometrix Corporation. He is also Director and Vice Chairman of the Board of Integrated Systems, Inc. Previously, he was a Director and Chairman of Pacific Measurements, Inc.; Director of Acacia Sales Corporation; Executive Vice President and General Manager of Geometries, Inc.; General Manager of Gould Medical Systems; and President, Chief Executive Officer, and a Director of Eyrie Company. Mr. Elkus is also the Director and a founder of Tomex Corporation and cochairman of the AEA Task Force on HDTV. Mr. Elkus received a B.A. degree from Stanford University and an M.B.A. degree from Tuck School of Business Administration at Dartmouth College.




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^ \ ^

HDTV/VIDEO

RICHARD J. ELKUS, JR. Chairman and CEO

Prometrix Corporation



TOWARD A NATIONAL STRATEGY

THE STRATEGY

OF LEVERAGE

RICHARD J. ELKUS, JR. CHAIRMAN

PROMETRIX CORPORATION SEPTEMBER 2, 1988


WHAT IS HDTV

1. TWICE THE HORIZONTAL AND VERTICAL RESOLUTION.

2. A PICTURE QUALITY SIMILAR TO A 35 MM SLIDE.

3. CD QUALITY SOUND.

4. THE LARGER THE SCREEN THE BETTER IT LOOKS.

5. IN TIME 100 MEGABITS OF MEMORY VERSUS 1 MEGABIT TODAY.

6. AND THE UNITED STATES IS A NON-PARTICIPANT.


SUMMARY

1. THE HDTV MARKET REPRESENTS A COMPLETE MERGING OF TECHNOLOGIES ESSENTIAL TO THE DOMINATION OF THE CONSUMER ELECTRONICS MARKET AND MAJOR PORTIONS OF THE TELECOMMUNICATIONS AND COMPUTER MARKETS. THE NATION WHICH

. BECOMES THE KEY SUPPLIER OF PRODUCTION, DISTRIBUTION, AND RECEIVING EQUIPMENT WITHIN THE HDTV MARKETS WILL HAVE DEVELOPED A PRINCIPAL MEANS TO CONTROL A MAJOR PORTION OF THE SEMICONDUCTOR CHIP AND EQUIPMENT BUSINESS AND. THEREFORE, HAVE ACHIEVED A SIGNIFICANT STEP TOWARD TOTAL TECHNOLOGICAL SUPERIORITY IN THE YEARS TO COME.

2. WHEN THE FIRST CONCEPT OF A VCR WAS INTRODUCED THE UNITED STATES WAS BY FAR THE TECHNOLOGICAL LEADER AND OWNED THE BASIC PATENT POSITIONS IN THE FIELD.

3. AS WE FACE THE INTRODUCTION OF HDTV. THE UNITED STATES IS FOR ALL PRACTICAL PURPOSES A NON PARTICIPANT.

4. IF THE UNITED STATES DOES NOT ULTIMATELY BECOME A MAJOR IF NOT PREDOMINANT SUPPLIER OF PRODUCTS TO THE HDTV MARKET PLACE, THE RESULTING CHANGE I N TECHNOLOGICAL LEADERSHIP WILL HAVE AN EXTRAORDINARILY NEGATIVE EFFECT ON OUR STANDARD OF LIVING, POLITICAL AND ECONOMIC LEADERSHIP, MILITARY PREPAREDNESS AND THE GENERAL CONTROL OF OUR DESTINY AS A NATION.

1 Dataquest Incorporated, a company of The Dun & Bradstreet Corporation


TACTICAL SUCCESS - STRATEGIC LOSS

1. THE UNITED STATES HAS BEEN THE SOURCE FOR MUCH OF THE WORLD'S TECHNOLOGICAL INNOVATION.

2. BUT IN A WORLD WHERE THE GRAND STRATEGY IS TO DOMINATE INTERRELATED END USE MARKETS THOSE TECHNOLOGIES MORE OFTEN THAN NOT HAVE BECOME A TACTICAL WEAPON IN THE HANDS OF THE COMPETITION.

2


SIZE OF THE ELECTRONICS MARKET

TO PROVIDE A FRAME OF REFERENCE FOR THIS PRESENTATION I WOULD LIKE TO GIVE YOU AN IDEA OF THE SIZE OF THE ELECTRONICS MARKET.

1. ELECTRONICS IS NOW THE LARGEST DURABLE GOODS MANUFACTURING INDUSTRY IN THE UNITED STATES AND IS GROWING THREE TIMES FASTER THAN ALL OTHER MANUFACTURING.

2. THE WORLDWIDE ELECTRONICS MARKET HAS BECOME A MAMMOTH BUSINESS WITH A COMPOUNDED GROWTH RATE APPROACHING 9%. HOWEVER, THE PROJECTED GROWTH RATE FOR THE ELECTRONICS MARKET IN JAPAN IS EXPECTED TO BE 40% GREATER THAN THAT OF THE UNITED STATES.


1987 UNITED STATES SALES (BILLIONS OF DOLLARS)

ELECTRONICS $235

CHEMICALS $215

AUTOMOBILES AND PARTS $201

MACHINERY $156

PETROLEUM $130

CAHNERS


WORLDWIDE ELECTRONICS MARKET (BILLIONS OF DOLLARS)

ISfiS 1332

EUROPE $139 $182

JAPAN $246 $360

UNITED STATES $258 $332

OTHER $127 $200

TOTAL $770 $1074

DATAQUEST


THE STRATEGY OF LEVERAGE

WITH THOSE STATISTICS AS A FRAME OF REFERENCE, IT IS IMPORTANT TO UNDERSTAND THE INDUSTRIAL STRATEGY OF THE JAPANESE VERSUS THAT OF THE UNITED STATES.

1. LIKE INDEPENDENT CIRCLES, WE IN THE UNITED STATES APPROACH PRODUCTS, MARKETS AND BUSINESSES AS SEPARATE ENTERPRISES WITH LITTLE DESIRE OR MECHANISM TO COORDINATE STRATEGY AND DIRECTION.

2. THE JAPANESE, ON THE OTHER HAND, WHILE PROMOTING INDIVIDUAL INITIATIVE, ASSUME THAT ALL CIRCLES ARE INTERRELATED AND INTERDEPENDENT AND AS SUCH FEEL THAT COORDINATION OF STRATEGY AND DIRECTION IS ESSENTIAL

3. THUS IN JAPAN:

EVERY TECHNOLOGY BECOMES THE STEPPING STONE FOR THE NEXT.

EVERY PRODUCT BECOMES THE BASIS FOR ANOTHER.

AND THE RESULTING EFFICIENCIES OF SCALE ARE ENORMOUS.


THE STRATEGY OF LEVERAGE

UNITED STATES

JAPAN


DEFINITION

IN ORDER TO EXPLAIN THE JAPANESE STRATEGY MORE FULLY I WOULD LIKE TO DEFINE THE PHRASE "END USE MARKETS".

END USE MARKETS MEANS:

MARKETS FOR THOSE STAND-ALONE PRODUCTS WHICH HAVE SIGNIFICANT VALUE TO THE INDIVIDUAL CONSUMER.

FOR EXAMPLE:

A VIDEO RECORDER, 35MM CAMERA OR PERSONAL COMPUTER. NOT THE COMPONENTS THAT MAKE UP THESE PRODUCTS.


DOMINATiON OF INTERRELATED END USE MARKETS

THE JAPANESE HAVE LEARNED THAT PUSHING THE DEVELOPMENT OF A PRODUCT TO ITS LOGICAL EXTREME RESULTS IN AN INTERRELATIONSHIP OF THAT PRODUCT WITH OTHER PRODUCTS.

FOR EXAMPLE, THE FOCUSING SYSTEM ON THE 35 MM CAMERA BECOMES THE FOCUSING SYSTEM FOR THE VCR. CONVERSELY. THE AUTOMATIC ELECTRONIC SYSTEM IN THE VCR BECOMES THE AUTOMATIC ELECTRONIC SYSTEM IN THE 35 MM CAMERA.

AND THE JAPANESE HAVE ALSO LEARNED THAT PUSHING THE DEVELOPMENT OF A MARKET TO ITS LOGICAL EXTREME RESULTS IN AN INTERRELATIONSHIP OF THAT MARKET WITH OTHER MARKETS.

FOR EXAMPLE. THE SUCCESS OF THE VCR CREATED THE MARKET FOR PRERECORDED TAPE (WHICH IS NOW GREATER THAN THE FILM MARKET FOR THEATERS). CONVERSELY. CONTROL OF A LARGE MEDIA PRODUCER CAN INFLUENCE THE STANDARD FORMAT FOR A VCR. (NOTE THAT SONY HAS PURCHASED CBS RECORDS.)



DOMINATION OF INTERRELATED END USE MARKETS -2

THE JAPANESE HAVE ALSO LEARNED THAT:

1 . DOMINATION OF INTERRELATED END-USE MARKETS PROVIDES THE ECONOMIC STRENGTH NECESSARY TO DOMINATE SEMICONDUCTOR DEVELOPMENT.

ON THE STRENGTH OF THE VCR THE JAPANESE WENT FROM A MINORITY POSITION IN THE SEMICONDUCTOR MARKET TO THE WORLD'S LARGEST PRODUCER OF SEMICONDUCTORS IN FOUR YEARS.

THE VCR BY ITSELF CONSUMES APPROXIMATELY 12% OF THE TOTAL SEMICONDUCTOR OUTPUT OF JAPAN AND NEARLY 5% OF THE SEMICONDUCTOR OUTPUT OF THE WORLD.

2. DOMINATION OF THE SEMICONDUCTOR MARKET PROVIDES A KEY STEP TOWARDS CONTROL OF ELECTRONIC PRODUCTS IN GENERAL.

3. ELECTRONIC PRODUCTS IN ONE FORM OR ANOTHER A R E FUNDAMENTAL TO ALMOST EVERY OTHER PRODUCT AND MARKET.

loon D..^ Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

WE FACE A GRAND STRATEGY:

THE DOMINATION OF INTERRELATED END USE MARKETS

AGAINST WHICH

NO SINGLE TECHNOLOGICAL DEVELOPMENT OR EXPERTISE CAN BE A SIGNIFICANT THREAT

10


INSTAVIDEO DEFINED

AND NOW I'D LIKE TO TELL YOU A STORY THAT HAS BEEN LABELLED BOTH FASCINATING AND TRAGIC BUT UNDERSTANDING ITS IMPLICATIONS CAN AND SHOULD PRODUCE A HAPPY ENDING.

TWENTY YEARS AGO I WALKED INTO THE OFFICE OF THE PRESIDENT OF AMPEX WITH A DETAILED PRODUCT PLAN FOR THE DEVELOPMENT OF A HOME VIDEO RECORDER.

THE FINAL RECOMMENDATION IN THE PLAN WAS THE PRODUCTION OF A HOME VIDEO RECORDING SYSTEM ENCAPSULATING THE CAMERA, RECORDER AND PLAYBACK COMPONENTS IN A SINGLE UNIT.

THIS PRODUCT PLAN RESULTED IN THE ESTABLISMENT OF AN ENGINEERING TEAM WHICH WAS COMBINED WITH THE EDUCATIONAL AND INDUSTRIAL PRODUCTS DIVISION OF AMPEX CORPORATION, OF WHICH I WAS GENERAL MANAGER.

IN 1970, WE INTRODUCED THE PRODUCT AND CALLED IT

INSTAVIDEO.

11


SEPTEMBER 2, 1970 •INSTAVIDEO" SPECIFICATIONS

RECORDER/PLAYER

SIZE: i r x 1 3 " x 4 1/2" WEIGHT: 15 POUNDS WITH BATTERIES PORTABLE BATTERY OPERATED CARTRIDGE LOADING PLAYS ON AC POWER WITH AUXILIARY POWER PAK TWO INDEPENDENT AUDIO CHANNELS. INCLUDING STEREO PLAYBACK SLOW MOTION AND STOP ACTION ELEMENTARY ELECTRONIC EDITING CAPABILITY

CAMERA

WEIGHT: 5 POUNDS 4 TO 1 ZOOM LENS STANDARD


1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

AMPEX POSITION IN WORLD MARKETS - 1970

1. DURING THE PERIOD 1966 TO 1970 APPROXIMATELY 65,000 LOW COST VIDEO RECORDERS HAD BEEN PLACED IN SERVICE THROUGHOUT THE WORLD.

2. AS OF 1970. IN TERMS OF DOLLARS, AMPEX REPRESENTED BETWEEN 70 AND 80% OF THE WORLDWIDE MARKET FOR VIDEO TAPE RECORDERS.

3. AMPEX ESTIMATED THAT BY 1975 THE MARKET FOR CLOSED CIRCUIT VIDEO TAPE RECORDERS WOULD APPROXIMATE 200 MILLION DOLLARS.

4. IN 1972 AMPEX AND SONY WERE APPROXIMATELY THE SAME SIZE (ABOUT 450 MILLION DOLLARS IN GROSS REVENUES).

5. IN DOLLAR TERMS, THE TWO PRINCIPAL COMPANIES PRODUCING VIDEO TAPE RECORDING PRODUCTS IN THE UNITED STATES AND IN THE WORLD DURING THIS PERIOD WERE AMPEX CORPORATION AND RCA.

6. VIRTUALLY ALL OF THE BASIC PATENTS SIGNIFICANT TO VIDEO RECORDING WERE THE PROPERTY OF AMPEX AT THIS TIME. CERTAIN CROSS LICENSING ARRANGEMENTS EXISTED BETWEEN RCA. AND AMPEX.

7. DURING THIS PERIOD ALL FOREIGN PRODUCERS OF VIDEO TAPE RECORDERS OPERATED UNDER LICENSE TO AMPEX CORPORATION.

13


TERMINATION OF INSTAVIDEO

HOWEVER:

1. DURING THE PERIOD FROM 1969 THROUGH 1972 AMPEX BEGAN TO EXPERIENCE CASH FLOW PROBLEMS.

2. TOP MANAGEMENT DETERMINED THAT IT NEEDED HELP FROM TOSHIBA CORPORATION TO DEVELOP A MANUFACTURING CAPABILITY. IN THAT REGARD. EXISTING TECHNICAL INFORMATION PERTAINING TO INSTAVIDEO WAS TRANSFERRED TO TOSHIBA.

3. OPPORTUNITIES FOR JOINT VENTURE WITH ANOTHER UNITED STATES COMPANY WERE TURNED DOWN OVER CONCERN THAT ANOTHER DOMESTIC COMPETITOR WOULD BE ESTABLISHED.

4. AMID PROFIT AND CASH PROBLEMS CULMINATING IN A SIGNIFICANT CORPORATE LOSS IN 1972, THE INSTAVIDEO PROJECT WAS FORMALLY DROPPED.

14


VCR MARKET - 1985 TO PRESENT

THE YEAR 2000 WILL BE 10 YEARS AFTER THE EXPECTED INTRODUCTION DATE OF HDTV VCRS IN THE UNITED STATES FROM JAPAN. MANY EXPECT THAT HDTV WILL BE A MARKET IN FULL BLOOM BY THEN. 1985 WAS 10 YEARS AFTER THE INTRODUCTION OF THE VCR INTO THE UNITED STATES FROM JAPAN.

1. IN 1985 IT WAS ESTIMATED THAT MORE VCRS WERE SOLD IN THE UNITED STATES THAN PERSONAL COMPUTERS.

2. IN 1985 PRODUCTION RATES IN JAPAN ALONE HAD REACHED 2.5 MILLION UNITS PER MONTH.

3. THE VCR MARKET TODAY PROBABLY APPROXIMATES 15 BILLION DOLLARS WORLDWIDE AND AFFECTS VIRTUALLY EVERY ASPECT OF OUR LIVES.

4. UNITED STATES PRODUCERS OF VIDEO RECORDERS REPRESENT LESS THAN 2% OF THE TOTAL MARKET.

5. THE MAJORITY OF THE VIDEO TAPE RECORDERS USED IN THE PROFESSIONAL, EDUCATIONAL, AND INDUSTRIAL MARKETS ARE THE HALF INCH VARIETY RESULTING FROM THE DEVELOPMENT OF THE VCR.

6. THE MARKET FOR VIDEO CASSETTES IS LARGER TODAY THAN THE THEATER MARKET FOR FILM.

15


DOMINATION OF INTERRELATED AND END USE MARKETS

DURING THE PERIOD OF THE DEVELOPMENT OF THE VCR. THE JAPANESE INDUSTRIAL COMPLEX PROCEEDED TO DOMINATE OR TAKE A COMMANDING POSITION IN THE FOLLOWING MARKETS:

A. THE VIDEO TAPE RECORDER MARKET INCLUDING PROFESSIONAL. COMMERCIAL AND CONSUMER APPLICATIONS.

B. THE VIDEO CAMERA MARKET INCLUDING PROFESSIONAL. COMMERCIAL AND CONSUMER APPLICATIONS.

C. LENS MANUFACTURING CAPABILITY.

D. SMALL PRECISION ELECTRONIC MOTOR DESIGN.

E. AUTOMATIC FOCUSING SYSTEMS FOR 35 MM AND VIDEO CAMERAS.

F. THE 35 MM CAMERA MARKET.

G. THE MAJORITY OF THE WORLDS TELEVISION RECEIVER AND MONITOR DESIGN AND MANUFACTURE.

H. THE CONSUMER AND COMMERCIAL AUDIO RECORDER MARKETS.

I. THE COMPACT DISK PLAYBACK SYSTEM MARKET.

J. THE VIDEO DISK PLAYBACK MARKET.

K. HIGH SPEED DIGITAL FIBER TRANSMISSION EQUIPMENT.

IN SUPPORT OF THE DEMANDS OF THESE END USE AND ANCILLARY COMPONENT MARKETS. JAPAN HAS DEVELOPED A SEMICONDUCTOR CHIP INDUSTRY GREATER THAN THAT OF THE UNITED STATES AND NEARLY THREE TIMES THAT OF EUROPE; AND A SEMICONDUCTOR EQUIPMENT INDUSTRY ESTIMATED TO BE GREATER THAN THAT OF THE UNITED STATES AND THREE TIMES THAT OF EUROPE.

16

Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Parl< Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

BYPRODUCTS OF SUCCESS

THE RESULT OF A SUCCESSFUL STRATEGY OF INTERRELATED END USE MARKET DOMINATION PRODUCES CERTAIN INTERESTING RESULTS WHICH OFTEN OFFER FURTHER OPPORTUNITY TO EXPAND ONES SPAN OF CONTROL

1. SONY HAS PURCHASED CBS RECORDS.

2. THE FORMER EXECUTIVE VICE PRESIDENT OF RCA CORPORATION IN CHARGE OF RCA'S VIDEO TAPE RECORDING ACTIVITIES IS NOW PRESIDENT OF SONY CORPORATION OF AMERICA.

3. THE FORMER CHAIRMAN OF AMPEX CORPORATION IS NOW EXECUTIVE VICE PRESIDENT OF SONY CORPORATION OF AMERICA.

AND AS AN ASIDE:

4. TOTAL SALES OF AMPEX TODAY ARE ESTIMATED TO BE BETWEEN 600 AND 700 MILLION DOLLARS.

5. SONY'S SALES LAST YEAR EXCEEDED 10 BILLION DOLLARS.

6. GE/RCA HAS SPUN OFF ITS CONSUMER ELECTRONICS BUSINESS AND IS SHARING CURRENT RESEARCH AND DEVELOPMENT EXPENSES OF THE GENERAL SARNOFF LABORATORIES WITH SGS THOMSON. ULTIMATELY THE PATENT POSITION OF GENERAL SARNOFF LABORATORIES WILL BECOME THE PROPERTY OF SGS THOMSON.



STRATEGY: SHORT TERM VS. LONG TERM

A MAJOR PHILOSOPHICAL DIFFERENCE BETWEEN THE UNITED STATES AND JAPAN HAS HELPED ENSURE THE SUCCESS OF THE JAPANESE STRATEGY.

1. TO MANY IN THE UNITED STATES OVER THE LAST 20 YEARS THE ENTREPRENEURIAL SPIRIT. EITHER AS A VENTURE CAPITAL STARTUP OR WITHIN A LARGER CORPORATE ENVIRONMENT. HAS BEEN DEFINED AS THE QUEST TO ESTABLISH A PARTICULAR TECHNOLOGICAL EXPERTISE AS A STAND-ALONE MONEY MAKING MACHINE IN THE SHORTEST POSSIBLE TIME.

2. IN JAPAN THE ENTREPRENEURIAL SPIRIT HAS BEEN DEFINED AS THE ASSUMPTION OR DEVELOPMENT OF A TECHNOLOGICAL EXPERTISE THAT IS TO BE PUSHED TO ITS LOGICAL EXTREME SO THAT IT MAY BE INTEGRATED WITH OTHER TECHNOLOGICAL DISCIPLINES FOR THE PURPOSE OF DOMINATING INTERRELATED END USE MARKETS OVER THE LONG TERM.

3. THE JAPANESE SYSTEM RESULTS IN A MASSIVE CONCENTRATION OF NATIONAL RESOURCES ON TARGETED MARKETS IN AMOUNTS SIGNIFICANTLY LARGER THAN IS PRESENTLY POSSIBLE IN THE UNITED STATES.

18

°^* ' ' ®®' Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

AND NOW I WOULD LIKE TO INTRODUCE YOU TO

HIGH DEFINITION TELEVISION


1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

HIGH DEFINITION TELEVISION PORTRAYS LIFE IN VIVID SPLASHES OF

BREATHTAKING COLOR AND SOUND

BUT THE PICTURE MAY ALSO REFLECT THE EBBING TIDE OF UNITED STATES

TECHNOLOGICAL AND ECONOMIC LEADERSHIP

20


HDTV: A BASIS FOR BROAD TECHNOLOGICAL DEVELOPMENT

THE HDTV MARKET WILL BEGIN TO DEVELOP IN THE UNITED STATES UPON INTRODUCTION OF NEWLY DESIGNED JAPANESE VIDEO RECORDERS, CAMERAS AND TELEVISION RECEIVERS SOMETIME IN 1990 ACCORDING TO PRESS REPORTS.

SOME ESTIMATES SUGGEST THAT THE HDTV MARKET WILL BY ITSELF REPRESENT 25 TO 35 BILLION DOLLARS ANNUALLY BY THE YEAR 2000.

HDTV WILL EFFECT AND IMPROVE THE TECHNOLOGICAL DEVELOPMENT OF THE ENTIRE ELECTRONICS INDUSTRY.

THE HDTV SYSTEM OFFERS A STRONG MONETARY INCENTIVE FOR FURTHER DEVELOPMENT OF MANY STRATEGICALLY ESSENTIAL TECHNOLOGICAL AREAS INCLUDING SUBSTANTIALLY HIGHER SPEED MICROPROCESSORS AND MEMORY DEVICES WITH VASTLY GREATER STORAGE CAPACITY. HDTV MAY WELL PROVIDE AN ESSENTIAL BASIS FOR COMMERCIAL DEVELOPMENT OF THE FLAT SCREEN DISPLAY. OF COURSE, HDTV WILL PROVIDE THE FOUNDATION FOR FURTHER SIGNIFICANT DEVELOPMENT OF THE VIDEO TAPE RECORDER, TELEVISION DISPLAY SYSTEM, RELATED CAMERA EQUIPMENT AND MAGNETIC TAPE.

21

'^^^'^^^^ Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

AND FOR TOMORROW

BUT THERE IS MORE:

1. ASSUME THAT THE VCR IS NOTHING MORE THAN A STORAGE DEVICE FOR MOVING PICTURES.

2. IN TIME THE HDTV RECORDER MAY BECOME A PLUG IN MODULE SIMILAR TO A CARTRIDGE AND THEREFORE A COMPONENT PART TO THE COMPUTER.

3. AT THIS POINT THE MERGING OF TECHNOLOGIES MAY WELL GIVE THE JAPANESE AN ADDITIONAL CAPABILITY IN THEIR QUEST TO BECOME DOMINANT IN THE WORLD'S COMPUTER MARKET.

UNITED STATES' DOMINATION OF THE COMPUTER MARKET REPRESENTS THE GREATEST SINGLE ECONOMIC SUPPORT FOR THE UNITED STATES-SEMICONDUCTOR INDUSTRY.



HDTV AND THE FIBER OPTICS MARKET

THE HDTV MARKET MAY, TO THE EXTENT IT EXISTS WITHIN A GIVEN NATION, PROVIDE A SIGNIFICANT MONETARY INCENTIVE TOWARD THE DEVELOPMENT OF AN INSTALLED FIBER OPTICS COMMUNICATIONS BASE.

SUCH A NATIONAL FIBER OPTIC NETWORK WILL PROVIDE A BASIS FOR SUBSTANTIAL ADVANCES IN COMPUTER TELECOMMUNICATIONS AS WELL AS INTEGRATED HDTV SYSTEMS AND WILL HAVE A MAJOR BEARING ON THE SPEED AND VERSATILITY OF D E F E N S E COMMUNICATION REQUIREMENTS AND, THEREFORE, MILITARY PREPAREDNESS.

FIBER OPTIC NETWORKS MAY ALTER THE METHOD OF TRANSMISSION OF TELEVISION PROGRAMMING AND AS SUCH MAY AFFECT THE COMPETITIVE POSITION OF THE BROADCAST NETWORKS AND CABLE SYSTEMS. ACCESS TO A MAJOR FIBER OPTIC NETWORK MAY OFFER A MEASURE OF FOREIGN CONTROL OVER THE UNITED STATES TELEVISION INDUSTRY THAT DOES NOT EXIST TODAY. (PERHAPS SONrS MOVE IN THE MEDIA MARKET HAS BROADER IMPLICATIONS.)



STRATEGIC WINDOW OF OPPORTUNITY

1. SUCCESS IN HDTV MAY WELL BE CONSIDERED CRITICAL TO THE JAPANESE IN THEIR BATTLE TO ACHIEVE STRATEGIC TECHNOLOGICAL LEADERSHIP IN THE WORLD.

2. TO REVERSE THIS SITUATION, AND IT MUST BE REVERSED IF THE UNITED STATES IS TO SURVIVE AS A MAJOR ECONOMIC POWER WITH ITS POLITICAL SYSTEM INTACT, WE MUST COMMIT ON A COORDINATED AND COOPERATIVE BASIS O U R TECHNOLOGICAL AND INDUSTRIAL ENERGY WITH THE SPECIFIC TACTICAL GOAL OF BECOMING A MAJOR SUPPLIER OF END USE HDTV VCRS, CAMERAS, DISPLAY SYSTEMS AND, OF COURSE, RELATED COMPONENTS.

3. NO STANDARD ESTABLISHED BY A COMMITTEE OR GOVERNMENT AGENCY WILL WIN THE BATTLE; NO SINGLE TECHNOLOGICAL BREAKTHROUGH WILL WIN THE BATTLE; AND NO SINGLE COMPANY WILL WIN THE BATTLE.

4. FOR SEVERAL YEARS WE WILL FEEL THE HEAT OF COMPETITION WHEREIN WE HAVE LITTLE TO OFFER IN THE WAY OF PRODUCT.

5. BUT HDTV OFFERS A WINDOW OF OPPORTUNITY IN WHICH THE COMPETITION, THOUGH FORMIDABLE, MUST REESTABLISH ITSELF AS THE DOMINANT SUPPLIER IN THE FIELD. MAJOR MARKET PENETRATION BY ANY COMPETITOR WILL BE SEVERAL YEARS AWAY. THAT WINDOW MAY APPROXIMATE 5 TO 10 YEARS. THIS IS A SHORT TIME TO REESTABLISH OUR INDUSTRIAL INITIATIVE IN THESE AREAS BUT SUCH A GOAL IS ACHIEVABLE.

24


OPTIONS

1. SEVERAL MAJOR INDUSTRIAL ENTERPRISES WITH SIGNIFICANT RESOURCES THAT CAN BRING SUPERIOR TECHNOLOGICAL, STRENGTH IN RECORDER DESIGN. VIDEO PROCESSING, DISPLAY SYSTEMS, TELECOMMUNICATIONS, COMPUTER EXPERTISE AND A MAJOR UNDERSTANDING OF SEMICONDUCTOR DESIGN AND MANUFACTURING MUST COME TOGETHER UNDER SOME OFFICIAL UMBRELLA THAT PROVIDES A LEGAL FRAMEWORK FOR DISCUSSION AND COOPERATION.

2. THE GOVERNMENT MUST PROVIDE THAT LEGAL FRAMEWORK AND SOMETHING ELSE BESIDES: THE LEADERSHIP NECESSARY TO DEVELOP, IN CONCERT WITH PRIVATE SECTOR LEADERS, A NATIONAL INDUSTRIAL AND TECHNOLOGICAL STRATEGY. THAT STRATEGY MUST CONSIDER AMERICA'S INDUSTRIAL AND TECHNOLOGICAL DIRECTION AND THE IMPLICATIONS OF THAT DIRECTION FOR BOTH FOREIGN AND DOMESTIC COMPETITORS.

3. THE GOVERNMENT MAY WISH TO PROVIDE SPECIFIC CONTRACTS FOR KEY END USE ITEMS IN ORDER TO SPEED UP RESPONSE TIME AND REDUCE THE RISKS OF DEVELOPMENT.

4. OUR TAX CODE MUST REFLECT AND OFFER INCENTIVE FOR THE RISK OF INVESTING VENTURE CAPITAL AND RESEARCH AND DEVELOPMENT DOLLARS IN THIS FIELD.



OPTIONS CONTINUED

OUR PHILOSOPHY OF QUICK RETURNS ON INVESTED CAPITAL MUST BE ALTERED TO RECOGNIZE THE LONG TERM STRATEGIC GOALS OF OUR COMPETITION. WHEN OUR MOST SIGNIFICANT COMPETITION WAS DOMESTIC AND WE OPERATED BY THE SAME RULES, A QUICK RETURN ON INVESTMENT WAS THE NAME OF THE GAME. BUT TODAY THE GAME IS DIFFERENT. IT IS THE UNITED STATES VS. JAPAN AND EUROPE. TO BECOME COMPETITIVE IN WORLD MARKETS IS ESSENTIAL FOR OUR ECONOMIC AND POLITICAL SURVIVAL. TO BECOME COMPETITIVE WE MUST UNDERSTAND THE DYNAMICS OF INTERRELATED END-USE MARKETS. TO BECOME COMPETITIVE WE NEED A NATIONAL STRATEGY.



FCC BROADCAST STANDARDS

There may well be several standards associated with the development of HDTV. These standards will be applied to tape format, software architecture, video production equipment, fiber optic transmission, other non broadcast transmission systems and direct broadcast transmission. This statement pertains only to direct broadcast transmission.

In my opinion the FCC in conjunction with appropriate and related standards committees should pick an HDTV direct broadcast transmission standard that meets the following criteria in order of priority:

1. The chosen standard should provide the basis for HDTV system development over an extended period of time approximating the current life of the NTSC

« standard, now about 40 years old.

2. Within the concept of longevity the standard should enable the HDTV system to reach its full performance potential.

3. Within the parameters of longevity and performance it would be desirable for that standard to permit the installation of an evolutionary system using, where possible, existing production, transmission and television reception equipment in order to minimize the level of capital investment at any given time.

4. The selected FCC direct broadcast standard for HDTV should emphasize the efficient utilization of bandwidth.

The timing of this effort should be coordinated if possible with the industrial group discussions on the subject of entering the HDTV market referred to under OPTIONS in my report on the Strategic Implication of HDTV.

Dataquest Incorporated, a company of The Dun & Bradstreel Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

Dataquest acofraianyof The Dwi& Uacbtfc^ CorpoTAioh

DataQuest ' n ' n a company of l i i t The Dun &Bradstreet Corporation

MILITARY

Gregory L. Sheppard Senior Industry Analyst MilAero Technology Service Dataquest Incorporated

^x^pb4«r«vK^^

Mr. Sheppard is a Senior Industry Analyst in Dataquest's Semiconductor User and Applications Group. Specifically, he is responsible for the MilAero Technology Service. He also tracks the military, automotive, and industrial markets. Before joining Dataquest, Mr. Sheppard worked at Fairchild Semiconductor Corporation as Corporate Manager of Business Analysis. In that capacity, he managed corporate market research, performed product and market forecasts, provided competitive positioning assessments, and maintained the 10-year market plan. He was also a board member of Worldwide Semiconductor Trade Statistics, Inc., and was Fairchild's liaison to the SIA and the AEA. Earlier, Mr. Sheppard was a Hardware Design Manager and a Systems Engineer at GTE Government Systems. While there, he specialized in C 1 systems, man-machine interfaces, and the design of decision aid systems. Mr. Sheppard received a B.S.E.E./C.E. degree from the University of Colorado and an M.S. degree in Systems Management from the University of Southern California.

Dataquest Incorporated SEMICONDUCTOR INDUSTRY ASSOCTATTON/DATAQUEST CONFERENCE



iag306006.iMG o/ni/m-OEi>\

Seizing Opportunities of Change: Strategic Electronic Maricets for Semiconductors

MILITARY

GREGORY L SHEPPARD Senior Industry Analyst

MilAero Technology Service Dataquest Incorporated


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sg-î OD •= gco O CD -~ S 5!g _.a ^ o !S9 03 "D •~. O

TlS go o 00

•vl

o lO (O lO

ESTIMATED WORLDWIDE MILITARY ELECT GROWTH ELEMENTS 1988-1994 CA

/

10% -

6%-

4% -

2%-

0% - /

Estimated $ Growth

3.6%

1 /

4.3% / /

/

I

9.3%

. . ' ! ' • ' " 'i-\-,r,rr '-'.^

Total Defense Spending

Military Electronics Production

Military Semiconducto Consumption

N) CO O

Q! a a>

CD CD

• so. CO _ S =J 3 O

c-5 o -3 $^ o t > a gB" u8 ^1 i l ^ s. o ^ S J

i" 00 ^ O f i o O CD

-- s

i* 5 ^ ^ o sgo C0T3 ^ O -nS 8 o o t^

o (O ro

SEMICONDUCTOR TECHNOLOGY TH

LSI/VLSI — • SSI/MSI

ASIC's

Memory Intensity

Monolithic ^ ^ Hybrid

Frequencies/clocks T

Pad-hard/rad tolerent

CO O

a a (D

Tl

^ O j r B)

of <• c S CO - CO

M _ a 3 D O

< 5 O "D

$ 9 BJ

5a ^ • ^ i^l 1 0 0 ^

^ 2.

-2 5

00 ^

O f i o o 00 ^ S ffiâ ffi 3

S35 CJT3 ^ O

Tli-.

O 00

> i o ro CO M

ESTIMATED WORLDWIDE MILITARY/AERO SEMICONDUCTOR CONSUMPTION

Billions of Dollars

$6

$€ CAGR 1898-1994

9.6%

1987 1988 1989 1992 19

Source: Dataque

ro u> o 33 Q! a. (D

^ D TT D)

o l

11 M _ (B 13 3 O <-9 O "D

gg - a 5a g» to o

si ^ 2, fe 3ir 6 0 03 ^ gBo O CB

~~ S s!a ^ a ::io SS9 03-O ^ o -nS i§ o a

o (O ro

ESTIMATED WORLDWIDE MILITARY/AEROS SEMICONDUCTOR CONSUMPTION

(MILLIONS OF DOLLARS) CAGR

*

Total Semiconductor

IC Bipolar Digital

Memory Microcomponent Logic

Standard ASIC

MOS Digital Memory Microcomponent Logic

Standard ASIC

Analog Discrete OptoelectroniG

1988 2806.6

2302.8 680.2 115.8

94.6 469.8 325.7 144.0

1066.6 346.7 266.9 453.0

93.6 359.4 555.9 406.2

97.6

1989 3069.9

2536.9 691.8 112.4 102.2 477.3 321.4 155.9

1244.8 399.1 315.8 529.9 104.4 425.4 600.3 430.0 103.0

1994 4860 .9

4160 .8 822.6

96.6 151.3 574.8 327 .9 246.9

2417 .8 750.6 699.8 967.3 177.8 789.5 920.4 560.8 139.2

8 8 - 9 4 9.6%

10.4% 3.2%

(3.0% 8.1% 3.4% 0.1% 9.4%

14.6% 13.7% 17.4% 13.5% 11.3% 14.0% 8.8% 5.5% 6.1%

Source: Dataques

8 £ a (D

s; o

Si

THE TOP TEN ESTIMATED WORLDWIDE MILITARY/AEROS

SEMICONDUCTOR SHIPMENTS (MILLIONS OF DO

PR g " CO o

- l ^1 0 0 ^

^ S. fen S ?

^ ^ 00 =

o gi ~- 55

§!& - $ : i o SS9 cj-a ^ o -nS » 6 '^ 3 "5 o 3 «>. ^ o l>0 (O M

National/Fairchild

1 Texas Instruments j^r

AMD/MMI Harris Semisonductor Motorola

i GE Solid State Philips-Signetics Intel SGS-Thompson Plessey/Ferranti/

Interdesign

1987 250 201 180 152 148 115 83 70 70 58

Source: Dataquest,

i < • ^

M _

^ ^ AGENDA

• Political Environment

Systems Technology and Opportuni

D) 3 3 Q c_ .

- 1 $1 g» CO o

i| 00 =

^ Q

S H

r? • Semiconductor Outlook 00 = O f i . O CO

i" !l rio SS5 w o -ô J l ^ g o-

o ro CO

Procurement Issues

s a a CD

Jo :Kr 03

of < • ^

. « ! w _ B) 3 3 O fT° O "O

• w

9a OJ o

§1

DIMINISHING MANUFACTUR SOURCES (DMS)

SOLUTION

s; CO y

03 ^

ge» O (D ~- S S"! (B a

SS9 CJTD ^ O

7 1 ^

4^ O 3 .u CO •fj o ^3 ro

Last time buys After market production System redesign Emulation Modular-technology transparency Documentation - CAD tool standardiza Vertical integration

t Lifecycle Sourcing Plan

1

CO LU

CO CO

LU

LU CC

O O CC Q.

E CO Staa

O) o ^ B

CL

O) C

• ^ B B

^

(0 Q

> ^

iS • t^Km

m ^ H B

2 "D c5

TD C

OD

0) o c i5 '5

>

D CO

>

CO a 1 1

•o

E Q) OT

to

2 O

• Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

M CO O

a a (D

DATAQUEST CONCLUSIO ^ o X- Ell

-<»8 M Z D) 3 3 O

•^5 o -3 $ R • p

2a g" Co o -i 1 00 ,5 J^ S -N O - I

S J 6o si O p o O 00 •~- S

s!8-^ S

CD

3o ^5 COTD ^ O

o 52 CO

o r\o to

Slower but attractive growth for military and aerospace electronics and semiconductor sales

Standards become more crucial

Strong move toward VLSI

Procurement streamlining is makin good progress

Dataoyest aoMiwanyof ITK Diin& adstiieet Corporation

DataQuest m n a company of U M S The Dun &Bradstreet Corporation

LANs

J. Daniel Robertson Vice President, Manufacturing Distributed Systems Division 3COM Corporation

Mr. Robertson is Vice President of manufacturing for 3COM Corporation's Distributed Systems Division. He joined the company as Production Manager and was later named Director of Manufacturing before being appointed to his present position. Previously, Mr. Robertson was employed in Hewlett-Packard's Computer System Division, initially as a Production Engineer and later in management positions in which he led the production, production engineering, and materials groups. Mr. Robertson received a B.S. degree in Electrical Engineering from Purdue Oniversity and an M.B.A. degree from the University of Santa Clara.

Dataquest Incorporated SEMICONDDCTOR INDUSTRY ASSOCIATION/DATAQOEST CONFERENCE



• a tfhi<ii;BBl

nn

^w^w^

Seizing Opportunities of Change: ~~| I I Strategic Eiectronic Maricets

for Semiconductors

LANs

J. DANIEL ROBERTSON Vice President, Manufacturing Distributed Systems Division

3COM Corporation

1988 Dataquest Incorporated September 29 — Reproduction Prohibited.


Introduction l>0 (O

o CL Q. (D

TJ ^ O ^ ffi. 5S < ^ - a w _ 0> D 3 O <^9 o -o

s ° • M

5^ g»> CO o

1 0 0 ^

-^ 9.

n CO ^ O B O O 03

^ S »!§:

ffi. 3o !S5 CJT3 ^ O -nS go o 00

-;J O l\i (O l>0

LANs - Looking Forward

I>0 CO

o CL Q. CD

T)

^ a ^ 01

^§ < ffi CD - a w _ (B 3 3 O < - ^ O T3

$R - w

5a S" rt o o> o •^^^ 1 0 0 ^

^ Q

sg^

i" 00 =" goo O CD -~ S ffils CD 3 :2!o 555 COT3 ^ O

Agenda

§^!

"5 o 00

• Computing Systems Evolution

• Technology Trends

• LAN Market Growth Projections

• Comments on Win-Win Relationships

• Summary

o l\3 CO rvj

Computer Industry Evolution 8

I

I E QI gt" W o

W ^ 0) <o

I? I?

I C3T3 •— o

s-S So

>l o ro (O

CO kM

JW

"o D c 0> J^ Urn

(0

Computing Millenniums 1955-2015

Distributed Computers

Networked J (Personal) Computers y

FDD Mor Prot Intel

Batch (Mainframe) Computers

• Integrated circuits • Electro-Mechanical

Peripherals

Timeshared (Mini) Computers^

MSI circuits Semiconductor Memory Terminals

LANs Micro MIPS Protocols SW Graphic interface

1955 1970 1985 200

Islands of Automation

Corporate

IBM

SNA

Department inn mil

VAX

Hill IIIII

MInlcomputar

Ethernet

^m I c^" [JpfjiFI

T»rmln»l* or PCs H5 CS/200

Workgroup xzn: 35«rv«r3

& A PC PC o o

Macintosh

Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

Computer Networking Systems rv> (O

o a a (D

h ^% w _ 0) 3 3 O C - O O "O Jg 9 - ffi

5£ ^^ CO o

i ^ l m ^ -X Q.

S^ ifeO 00 ^ O 00

? —- 5 sig:

8

:2!o !S9

go

53 .t^ S3 o l>0 (O N)

IBM

Enterpri

.Enterprise, Systems

Workgroup Systems

O Macintosh I

TC Pro

g

I is < ^ a - a w _ B> 3 3 O t - 9 o -a igg 2^ $» w8 ^^ 1 0 0 ^ ^ S. ° 5 i 3 J ^ ^ CD ^ goo o ro •~- S 5!a ffi s

SSR U T 3 ^ O

ir^ g o "S o 3 J: ^ O l>0 <£>

ro

Key Technology Trends '

Industry Standards, Open Systems Architectu

\^_\ Transmission Systems

[~N Communication Protocols

[_\ Networking Softwiir0

[ ~ \ Networking Hardware

H \ LAN/WAN Integration

D

K3 (O O

3 ) Q.'

a. CD TJ 0)

?I < • •=

-'"a w l B) 3 :3 o

< - ^

• B)

5a $ » CO o ^^ ^1 00,3 -^ 9.

3 J

00 ^

gco o gj ~~ S

!l SSR COT3 -,^ O

-nS So

Trends in Transmission Systems

Q Thick, Thin Ethernet IZ|/^ Ethernet on Twiste

§

CO ->l o U3 IV)

Q Increased Throughput ( TP = Bandwidth + Processing

Bandwidth improvements

Apple Talk (.23 Mbps) ^ S . / ^ « /> IBM Token Ring (4.0 Mbps) | _ > FDD! (100-0 M Ethernet (10,0 Mbps) ^

Processing Improvements

Standard K

VL?" r > RISC Chip ^ /

s; a

9^

o "

0)

5^ c38

Si -^ S.

3 g

^? 00 ^

§ c° CD

—• S

t^ X i5 r^lo SS§ u-o ^ o

S't So "S o 03

o (O ro

Trends in Networking Software

Q Acceptance of OS/2 and UNIX V as Industry Standard, Open Systems Platforms for Next Generation of Distributed Applications

Cooperative > Distributed

Ql Improved Integrated User Interfaces IBM's Presentation Manager/MS Windows' UNIX Graphics-based Interface/X-Windows Apples' Macintosh Interface

Ql New Generation of Distributed Applications • Microsoft/Ashton-Tate SQL Server • "Groupware"...4-5-6, A-B-C

Today's Application Environrhent 8

I ?S < c: -n.g w _ 0) 3 3 O o O O "D

ss - m ga g" CO o ^ ^ 1 00 =

- ^ Q.

3 J ^ 00 = O p o

o ro ^ S 5*g w :^n sgo C0T3 ^ O -nS. go

o 00

>l o l\3 (O N)

Today's Applications Share Disks and other Perip

File, Print Server

All Computing Occurs in the Network Station

Distributed Application ro to o

Q! Q.

•D ^ O TT g^

D | S (D - a (/> _ 0) 3 3 O c - O O T3 $9 ' K. 5a S" CO o

1 0 0 ^

^ 9.

S J ^ ^ CO ^ gBo O CD -~ S

ffilg

_ S. S3R co-g

o 3

O 3 4^

^ 3 o ro CO lO

Network Station

OS/2 Pipes "Redirectio

Network Server

Trends in Networking Hardware

i &

< • " ^

p ^ 03 _ 0) D 3 O

< - ^ o -o 89 - BJ.

5a OJ o

• ^ 1 1 00 =

-^ 9.

3 J

00 =" OBo O 00 ^ K i!a 5^ :i!o S55

-ni o' D

"S o a>

o (O ro

Q Hardware Optimized for LAN Applications

Past: I I I I I I

Host

Via RS232C/327

"^k^ Terminals

Present: I - • • •! Server

Via LAN

•: Client

Trend: y Host

I I Communication Server ^

• - r — — , j U:—I—1—AJr^ L

D | [D | [D1 îî^s^ [^jSi^SLi

to CO

o a a (D

T3 ^ O ^ S. < • •= a a> - a M _ 03 3 3 O C-5 O T3

$ ? - m 5a g" OJ o

^ ^

Si ooj 5=;!

' — CD

^ ^ 00 ^

goo O CD ~~ S »•§: ffi s : : io 589 C3T5 ^ o

Sli. g o o 00

->I o ro CO N)

Trends in LAN/WAN integration

Q LAN/WAN Integration via Bridges, Routers, Gat • Bridges (LAN-LAN, LAN-WAN-LAN)

• Routers (Protocol Dependent)

• Gateways (Protocol Translation)

Qj Transportation via a Worldwide Digital Infrastru . T1,X.25 [ ~ \ ISDN

I>0 <o o J) a a CD

•o ^ O TT Q)

? ! ^n c o l

is <^5 O TJ $9 - 81

$a s» c»> o

Si ^ Q.

S ? 6 D 00 = geo o gi •^ S

®Ia X ffi -..a :3!o 559 COT3 ^ O

§?° "S o OD

o ro CO N)

Marketing Segments/Competition

Homogeneous

A Systems Companies

IBM DEC

HP Sun

Computers Computer Networking

V ^trogeneoliis

PC LANs

• Novell • Western Digital

3Com GP LAN

• UBI • Excela

intra Networking

Growth in LANs to (O

o 3) a Q. CD •D

ej o ^ 0)

CD <D - a w _ B> 3 3 O

<^9 O "O S9 • w

5a CO o

si 0 0 • <

^ Q.

3 J

^ ^ 00 ^

gB= O DO

— S «!§: 5? ^ _.s :3!o 55R

i § o 52 -c^ ^ o lO CO K3

Worldwide LAN Market CAGR = 35%

Billions (OOO's) 1987 1991

8

6

PCs installed

# connected

% connected

# wkgp servers sold

#NOSsold

27,000

3,000

11%

16

180

50,000

25,000

50%

70

527

.i*i;si^tiî..j^f^n^

y\

1986 1987

U.S. CAGR s 32% Int'l CAGR = 40%

Source: Dataquest, IDC, Future Computing

1988 1989 1990

U.S.

Market Growth IV) (O

o a a. (D

"D ^ O ? r B)

oE < c: M _ 0> 3 ZI O

<^5 o -o 8 9 • a

5a CO o

1 00,5

- ^ Q.

-2? 6 o 00 -' Ofio o m -^ S s!g ^ ^ _.s rô 5S9 3 ^

j i -S o o 3 -0. CJ > i o to (O p\i

Worldwide LAN Market 1987 1991 C

Adapters

Stations

Servers

Software

GP LANs

495

45

290

350

1,320

1,425

665 1.

1,535

1,350

3,225

Agenda rv) (O

o d a. (D

TJ

^ O ^r 0) 9I <• c

p | w _ ni zs 3 o <^9 O "O S89 - w 5a g" CO o ^^ 1 CD ,5

- ^ Q.

00 ^

O B o O OJ •~- s

5!t 5? ^ 2. 3o 559 -nS g o "S o OS •Jj o ^3 (D N)

• Computing Systems Evolution

• Technology Trends

• LAN Market Growth Projections

• Comments on Win-Win Relationships

• Summary

DataQuest CocporaUon

aoHraanyof The DonSTBradsticctC

DataQuest ' n n a company of I B M The Dun &Bradstreet Corporation

GRAPHICS

W. Mike Tyler Director Graphics and Imaging Service Dataquest Incorporated

Mr. Tyler is Director of Dataquest's Graphics and Imaging Service. Previously, Mr. Tyler was Director of Marketing at Ramtek Corporation. Prior to that, he was with Computer Sciences Corporation based at NASA's Goddard Space Flight Center, where he was a Design Engineer. In this position, he was principally involved with the Earth Resources Technology Satellite (ERTS) program, later known as Landsat. Mr. Tyler received a B.S. degree in Computer Science from the University of Maryland.

Dataquest Incorporated SEMICONDUCTOR INDUSTRY ASSOCIATION/DATAOUEST CONFERENCE



|B23Q60ia.lMG 07/11/e8:DEDt

^^WV^


h GRAPHICS IV. MIKE TYLER

Director Graphics and imaging Service



Dataquest Incorporated, a company of The Dun & Bradstreel Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

|22a8002.IMQ' "6o(\ ^^jTy\ I

1987 REVIEW, FORECAST, TRENDS

Graphics terminals

Graphics workstations

Graphics for personal computers

Graphics for the Mac

Industry trends and issues

Emerging markets

|228eO03.1MG QOIXS/BaTTfL]

GRAPHICS TERMINALS

• 1987 review

• Five-year forecast

• Trends and issues



12286004 IMG 00^15^8817711

1987 YEAR IN REVIEW

Graphics Terminals

• Units up: 16.7%

• Revenue down: 12.7%

• ASP off: 25%

Souice: Dataquest

|Bg28e006.IMQ 00/15/88:TYL|

U.S. REVENUE GROWTH OF U.S. COMPANIES

Millions of Dollars

800

600

400 -

200 -

1983 1984 1985 1986 19S7 Source: Dataquest



|B22ee009.IMG 00i/1S/«e:TYL]

ESTIMATED WORLDWIDE UNIT SHIPMENTS OF U.S. COMPANIES

Graphics Terminals

Thousands of Units

1987 1988 1989 1990 1991 1992 Souice: Daiaquest

12286011 .IMG 0»15Wa?fYr[

GRAPHICS TERMINALS

Trends and Issues

• Moderate user demand

• Low-end market eroded by PCs

• High end eroded by workstations

• PC terminals

• Networked terminals

• X-embedded terminals


Dataquest Incorporated, a company of Ttie Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

122eaoi2.iMG oaiMaaTfYLl

GRAPHICS WORKSTATIONS

• 1987 review



|22Baoi3.iMG oonMaa:Tvn

1987 YEAR IN REVIEW

Grapliics Workstations

• Units up: 71.2%

• Revenue up: 35.7%

• ASP off: 20.7%

Souice: Dataquest


Dataquest Incorporated, a company ot The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

|B22aaOUIMG 0W15/e9:TyL|

ESTIMATED WORLDWIDE UNIT SHIPMENTS OF U.S. COMPANIES

Graphics Workstations

Thousands of Units

1987 1988 1989 1990 1991 1992 Source: Daiapuest

[BgzeeOlS.IMG 0Q/1S/ag:TYL|

ESTIMATED WORLDWIDE REVENUE OF U.S. COMPANIES

Graphics Worl<stations

Millions of Dollars

8.000 7797

1987 1988 1989 1990 1991 1992 Source: Daaouest


Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

|g2aaoi7.iMG oariaaa:TVi.|

GRAPHICS WORKSTATIONS

Trends and Issues

Strong user demand

Adoption of standards

Commodity hardware

Graphics user interface

Expansion at high and low ends

|228eoia.iMG oaiyaaTmn

PERSONAL COMPUTER GRAPHICS

Add-On Boards

• 1987 review




Dataquest Incorporated, a company of Tfie Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

RECAP AND FORECAST Total Low-End Graphics by Type

PC AT Platform

|B22ae019.IMG 0O/15/aa:TYL|

^ ^ Mono ^ ^ EGA EM VGA gfflS? XGA/Future

CGA

1987

Total = 8.0 Million Units Source: Oalaquest

|B22W0ai.lMG OQflS/ae:TYil

^ ^ Mono ^ EGA ESS VGA ^ S XGA/Future

CGA


PC AT Platform

1988

Total = 8.7 Million Units Total =« 8.0 Million Units

Souice: Dataquest


Dataquest Incorporated, a company of Thie Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Teiex 171973 / Fax (408) 437-0292

|Ba2a80gi.iMG a)/is/aa:Tyn

^ ^ Mono ^ ^ EGA EM VGA

XGA/Future CGA


PC AT Platform

1988

Total = 8.7 Million Units

1989



Source: Dataquest

|a22aeoa3.iMG oo/i&raa?rYLl

TOTAL HIGH-END SUBSYSTEMS MARKET FORECAST

PC and PS/2

Thousands of Units

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2,9?0

_ . 392

mmaam WBM \ i 777

1 TTin •

1988 1989 1990 1991 1992 Soutce: Dataquest


Dataquest Incorporated, a company of Thie Dun & Bradstreet Corporation 1290 Ridder Park Dnve, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

|22BeOg4IMG 0aiae8:WLl

PERSONAL COMPUTER GRAPHICS

Trends and Issues

• Move to high resolution

• More than 50% color

• Embedded power-up graphics

• Almost 100% penetration

• Emergence of EISA BUS

|22Baoe5-tMG oafiyaaTrYT)

Mac Graphics

• 1987 review




Dataquest Incorporated, a company of Ttie Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

|B22e60g6.IMG 0Wt5/aa:TYL|

OPEN-MAC, LOW-RESOLUTION SUBSYSTEMS MARKET FORECAST

Thousands of Units

1988 1989 1990 1991 1992 Source: Dataquest

lB22a60g?.1MG 0Q/1S/aa:TYLl

HIGH-RESOLUTION MAC SUBSYSTEMS MARKET

M Radius ^ E-Machines M Supermac S Sigma Designs 00 Megagraphics • Others

1987 Total = 22.000 Units Souice: Dataquest

© 1988 Dataquest Incorporated September 29 — Reproduction Proliibited


[JSaaaSaajM^" bb/i5/B8:TYL |

OPEN-MAC, HIGH-RESOLUTION SUBSYSTEMS MARKET FORECAST

Thousands of Units

1,250

1.000

750

500

250

0

^ H Color

21 26

1988

94 94

1989

570

257 ^ ^ ^ ' ^^HHfrTTmTT? H H B S " ; I::; :

^^•ililliii

KB||36Q

illilliill

1990 1991

MAC GRAPHICS

1.110

B|

^11^505

"• 1992 Sourcei Daiaquesi

I22BM29IMG (XVISeaiTYL)

Trends and Issues

• Large monitors

• 24-bit

• Higher resolution

• Color

• Evolution of Quickdraw

• Apple products in 1988


Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Ridder Park Drive, San Jose CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

|228a030.IMG OQfiaaa:TVL|

TRENDS IN GRAPHICS AND IMAGING

Price

249.6

208

166.4

124.8

83.2

41.6

• The cost of memory

• The declining dollar

• Offshore opportunities

• Emerging markets

ESTIMATED DRAM ASPs ($ per Mb)

F^

^

'••.„ ' %

h \r s -•i

256Kb

'"""iiiiiHin,

! • * • P^^M f"""""""f,r

"""iniiiiMii,

1985 1986 1987 1988 1989 1990 1991 Source: Dalaqucst



|2aB8ooa.iMG osyiyseiTrTI

THE DECLINING DOLLAR FORECAST

v/$

260-

240-

220-

200-

180

160-

140-

120-

100

• V ^

X Deutsche Mark

S

1984 1985

^ X — I 1 1 1 —

1986 1987 1988 1989

DM/$

•3.25

-3.05

-2.85

2.65

[-2.45

2.25

2.05

1.85

-1.65

i r 1.45

1.25

1990

Souioe: The WEBV Group

STATUS OF THE INDUSTRY

|2aBaio3.iMQ «yiyae:TVLl

United States Europe



|aa2WCW.IMQ CI(W15ffla:TYLl

REVENUE OF U.S. COMPANIES

Change = (12.7%)

Millions of Dollars

800

1986 1987 United States

Change = 28.8%

Millions of Dollars

400

300

200

100

^ ^ ^ ^ m ffltitittiimHttffl ^ffliimitminnH

IH IIH 1986 1987

Europe Source: Dataquest

122aeflQ5.iMa otyiMeaTrYTl

EMERGING MARKETS

Graphics and Imaging

Document storage and retrieval

Scientific visualization

Photorealism



2aBao36•llM G o»i»aa:ryL]

EMERGING MARKETS

Document Storage and Retrieval

• Growth similar to DTP

• PC-based

• Interoperability

• Scalability

laaaaoaT.iMG oariyeeiTVLi

EMERGING MARKETS

Scientific Visualization

• High-end, complex systems

• Workstations, subsystems

• Lack of software

• Customization


Dataquest Incorporated, a company of The Dun & Bradstreet Corporation 1290 Bidder Park Drive San Jose, CA 95131-2398 / (408) 437-8000 / Telex 171973 / Fax (408) 437-0292

|Z26a038.IMG OQf 1 S/BStrYL [

EMERGING MARKETS

Photorealism

Broadcast animation

CAD, styling

Package, textile design

Simulation, training

|22aeo«O.IMG 0 a i 5 m a : T Y L |

SUMMARY

• PCs and workstations

• Commodity hardware

• Software differentiation

• Interoperability

• Graphics user interfaces


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archive.computerhistory.orgarchive.computerhistory.org/resources/access/text/2013/04/1027232… · Jeff Hart Berkeley Roundtable of the Int'l Economy Oaryl Hatanio Rich Helfrttih