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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

2210.0. "Wall St wants Windows-NT from Digital!" by RANGER::JCAMPBELL () Mon Nov 09 1992 13:14

Hi,
    
    I am posting this note here, in addition to in MARKETING, because it
    may have an enormous impact (positive, in my estimation) on how we do
    work here at Digital. About 3 weeks ago Digital held a "Focus Group"
    meeting, including some of our largest banking customers from New
    York City, to discuss their perceptions about the importance Window-NT
    will have for them. Their response was unanimous - Windows-NT will
    displace VMS. Their questions to us was: will Digital help them in
    the transition, or will they need to go elsewhere. In other words, they
    want Digital's help in porting their software from VMS to Windows-NT.
    
    Again, since Windows-NT is just Another Cutler Operating System, it
    should not be very hard for us to make the transition ourselves (and
    if you use Norton Desktop, it even looks sorta like X).
    
    						Regaards
    						Jon Campbell
(forwards deleted)
                  I N T E R O F F I C E   M E M O R A N D U M

                                        Date:     04-Nov-1992 04:21pm EDT
                                        From:     KATE GARDNER
                                                  GARDNER.KATE
                                        Dept:     Asset Management Marketing
                                        Tel No:   297-3807

TO:  Remote Addressee                     ( _fsoa::kgardner )


Subject: NT Focus Group                                              





   SUBJECT:  Windows NT Focus Group Findings - Detailed Report

   The purpose of this memo is to document detailed feedback
   from a Windows NT focus group conducted on October 21, 1992.
   The focus group was conducted by Digital with key New York
   banks.  The purpose of the focus group was to collect feedback
   on Windows NT and the Alpha PC strategy.  Digital's Windows NT
   and Alpha AXP PC strategies were presented by Michel Gambier and then 
   the floor was open for feedback and discussion.  The entire meeting
   lasted 4 1/2 hours.

   ATTENDEES
   ---------

   The twelve attendees were all senior IS executives from existing 
   Digital VMS accounts.  Their knowledge of Windows NT ranged 
   from non-existent to substantial. All of the attendees felt that 
   Windows NT would be very important in the future. They are ALL 
   planning to migrate from VMS to Windows NT over time; some earlier 
   than others. The group repeatedly said that Digital should make a 
   substantial commitment to Windows NT.

   The attendees included representative from  Participants Trust 
   Company;  The Bank of New York; Republic National Bank; Bank of America; 
   Bankers Trust; Advanced Systems Concept, Inc.; Chemical Bank; Barclays 
   Bank; Chase Manhattan; Pfizer, Inc.


   CURRENT PERCEPTION OF WINDOWS NT
   --------------------------------
 
   When asked about the key advantages and disadvantages of Windows
   NT, the group was quick to come up with advantages and had a harder
   time coming up with disadvantages.  They were asked about their
   perceptions, beliefs and concerns BEFORE they heard the strategy 
   presentations.

   o Advantages/Benefits of Windows NT

     - Windows NT will be a world class operating system in the PC
       space at the right price (they don't see this with VMS)

     - Windows NT is an operating system built with portability
       in mind

     - Scaleability

     - SMP
    
     - Client-server 
     
     - Virtual device drivers

     - Allows software to be disseminated to the desktop

     - Security

     - Better tools than OS/2

     - The ability to develop software for multiple platforms, cutting
       down on development costs - which is a significant benefit

     - Microsoft support is great relative to OS/2 and IBM

     - Believe there will be a variety of applications available on NT

     - Reliability		

   o Disadvantages of Windows NT

     - Further Windows NT release delays will allow other operating
       systems such as OS/2 to gain ground

     - Potential lack of applications (although the group felt that
       would most likely not be true)

     - Resources required to run Windows NT (part of the group 
       disagreed here, saying that they'd trade that for reliability)

     - It won't be ready for mission critical applications at Day 1
       since it's a new system and needs to mature before it's usable.
       It will need time to be accepted.

     - Migration might be an issue - looking for help here from vendors
       who will suggest solutions

   FEEDBACK ON DIGITAL'S WINDOWS NT AND ALPHA PC STRATEGIES
   --------------------------------------------------------

   o Digital's Opportunity With Windows NT/Digital's Commitment

   The group emphasized over and over again that Digital has a 
   tremendous opportunity to succeed with Windows NT and that 
   Digital should make a big commitment - even if it means shifting
   resources from OSF/1 and VMS.   Specifically, they said:

   - It doesn't matter what happens, Windows NT will succeed.
     DEC has no other choice than to go after it in a big way.
     Since DEC has limited resources, it's important to focus

   - Digital has an opportunity to go ahead and succeed with
     Windows NT; Digital has to get on the bandwagon full swing.
     Windows NT should be moved on aggressively.

   - If new resources can't be found (at DEC) to make a complete
     commitment to Windows NT, take them off of OSF/1 or VMS.
     UNIX is not as important as Windows NT.

   - Windows NT has more going for it politically than VMS

        - Digital must do something dramatic - DEC is hardly mentioned
     in the business press on Windows NT

        - Moving resources off of UNIX should be a no-brainer since
          Digital's UNIX perception isn't good, there's not much to
          lose

        - DEC should treat the move to Windows NT as serious

        - DEC has to hit big on day one (when Windows NT is released)

        - DEC has no other choice than to go after this in a big way

        - In order to be successful with Windows NT, Digital needs
          a Bill Gates equivalent reporting to Palmer; a corporate 
          champion

        - This transition (to Windows NT) is as important, if not
          more important as the transition from RSX to VMS

        - The Windows NT plans are the same as ALPHA VMS, so the
     group said they might as well make the move to Windows 
          NT now

        - The commodization of hardware should indicate that more
          needs to be invested in Windows NT by DEC

   - DEC should be the vendor of choice in PC-based servers
   
   - Current areas where Digital can add value to Windows NT
     include: TP, CASE, Services

   - There is a huge market for assisting in migration to 
     Windows NT

   o Digital's Service Strategy and Windows NT

     In general, the group was not satisfied with Digital's 
     service.  However, they indicated that there was a big
     opportunity in services for Digital - especially in
     migration.  For example:

   - Customer loyalty used to be to technology, but now
          they are loyal to a vendor because of their good
     service

   - Good service is always remembered - especially from
     a software company (i.e., Microsoft)

   - There is a huge market for migration services to
     Windows NT

   - DEC's consulting services have been poor; they'll
     go to smaller companies unless DEC builds up some
     core competencies

   - They will need help porting applications from VMS
          and would like Digital's help

   - If Digital doesn't allocate resources to port 
          applications, someone else will

   o Windows NT Product Strategy

     In general, the attendees had input in many product areas.
     However, their key inputs were in the areas of TP, DB, System
     Management, CASE (configuration management) and connectivity.  
     The group felt that Digital's software products should be 
     available VERY soon after Windows NT ships.  

     They also stated that enterprise system management tools, 
     diagnostic and performance tools were essential - these were 
     the tools UNIX never gave them but are needed.

     VMS Subsystem
     -------------
     The group asked if Digital was planning to build a VMS subsystem
     on top of Windows NT.  They indicated it should be done; but in
     the same breath said that DECmessageQ should be used instead since
     they'll all be using it.   They don't care too much about clustering
     since none of them use it today.

     TP
     --
     When asked about TP, the first thing that was asked was for
     TMX to be ported.   Everyone in the group felt that TP was
     critical to their success and was a big hole that Digital 
     could fill on Windows NT.  Specifically they said:

   - The TP monitor is essential - reliability is what keeps
     them awake at night

   - They would move to Windows NT because their maintenance
     costs are skyrocketing

        - Because it takes 2 years to build a TP application, they
     will begin working on their Windows NT port as soon as 
     they can

     DB
     --
     There was quite a bit of discussion about Digital's database
     strategy - most felt Rdb was going to have formidable competition
     on Windows NT from Sybase because they have a headstart with
     SQL Server.  Additional comments were:

   - Typical size of their database is 3-4 gigabytes

   - Digital should forget the database business on Windows
          NT

   - No one cares that Digital is moving Rdb to Windows NT

   - No one would buy Rdb on Windows NT, but they might buy
     	  a gateway   

     	- Ellipse is something they would consider in the future

     CASE
     ----
     The group felt that CASE on Windows NT was another opportunity
     for Digital, especially in the configuration management area.
     According to them, no one else was taking a global software
     development view and that Digital was one of the only capable
     vendors.  More comments:

   - No one is jumping on the Windows NT bandwagon for CASE;
     especially in the area of business modeling.  None of
     the major CASE vendors has asked any of the attendees
          to beta test their product on the Windows NT platform.

   - They'd like MicroFocus COBOL, IEF and Intersolv 

     Need for Super PCs
     ------------------
     Everyone in the room indicated they had a need for super
     PCs.  They'd like to look at multimedia, OO, neural nets
     and AI seriously but can't do it in today's environment.

     	- Natural data (voice, video, image) will play a big role
          in the 90s and they will need super PCs to support it

   - Software is the bottleneck now, software eats up the
     processor

     Power PC from IBM and Apple
     ---------------------------
     The attendees knew much more about Windows NT than they did
     about IBM and Apple's venture.  From what they knew about it,
     they thought it would be too late to market.  Comments were:
   
   - PINK might be interesting if it ever gets done

   - Windows NT is much more prominent - everyone senses the
     need to get on the platform

   - Lots of vendors have told the group they won't develop
     any more software for OS/2, they've been burned and
     will build for Windows NT instead

    Connectivity
    ------------
    When asked about connectivity needs, the attendees indicated they
    needed EVERYTHING so that fewer things would need to be changed.
    Mainframes need to be included.  File sharing and RPCs are also
    important

    Dumb Terminals
    --------------
    The group felt that there was a trend away from using dumb terminals
    because PCs are now cheaper.  	
 
    Applications
    ------------
    The trend is to buy sw applications rather than develop them.  All  
    would be very interested in a customer service application (maybe  
    something like the Client Management Framework?).  A specific 
    interest was expressed in trading applications, but there was also  
    interest in any type of banking specific sw.  Their loyalty is to the 
    applications, not the hardware or operating systems.  

   
    
    This document was written by Kate Gardner and Donna Slattery.



T.RTitleUserPersonal
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2210.1Windows NT: part real, part fadFUNYET::ANDERSON21st Century computing starts tomorrowMon Nov 09 1992 13:3026
Everyone is getting excited about Windows NT before the first real version even
ships.  Although some excitement about it is warranted, I feel a lot of this
interest is not unlike mentality.  It's "in" to tout Windows NT as the best thing
since sliced bread.  Although Microsoft would love to have Windows NT replace
every operating system on every computer in the world, it will never happen.

It's interesting that the group mentioned in .0 feels that Windows NT will
replace OpenVMS.  I don't think Windows NT will contain all features present in
OpenVMS.  This is certainly true at its first release, but also probably true in
the long run.

If someone said, "Windows NT will replace OpenVMS on all our desktop computers,"
then I'd be more inclined to believe them.  I hope Digital will help customers
migrate from OpenVMS to Windows NT *IF IT IS RIGHT FOR THE CUSTOMER*.  No one
gains if a customer implements the wrong solution.  Deciding to stay with a
current operating system or change to a new one should be done with some care.
I don't think most businesses who now use OpenVMS to run their business will
run out and buy the first version of a new operating system, no matter who wrote
it or sells it or how much it costs.

Windows NT is very important.  Digital cannot afford to ignore it, as we have
ignored many popular computing trends.  But let's not blindly overstate its
functionality.  I can't wait until Windows NT is actually here so there can be
a more rational discussion of its place in the industry.

Paul
2210.2Don't write them off yetBTOVT::SOJDA_LMon Nov 09 1992 15:5317
    Just as it may be premature to say that WNT will replace all other
    operating systems, it is equally premature to say that it will never
    happen.
    
    The argument that VMS (aka OpenVMS) has, and maybe always will have,
    more features than WNT isn't really that much of an advantage.  Look at
    MS-DOS.  How many things does it lack?  Yet, it outsells every other
    operating system many times over.
    
    Unfortunately, our customer base is much smaller than Microsoft's and
    that will work to their advantage.  OpenVMS may be very important to
    our *current* customers but it doesn't mean much to our non-customers
    (read that as the new customers we must attract in order to keep our
    shrinking market share).
    
    Larry
    
2210.3I must be kidding!STAR::DIPIRROTue Nov 10 1992 08:269
    	Yes, and let's not make it really easy for all our existing
    customers to migrate away from everything we make money on! I haven't
    seen a business model which shows how we're going to make any money
    from WNT systems, nor have I seen one for WNT software that we're
    developing (if we're developing it). It would sure be nice if we knew
    where we expected to be making all our money 2-3 years from now and
    could put plans in place to help migrate those customers inclined to
    move anyway to those areas where we'll make money in the future.
    Nah..what a ridiculous idea!
2210.4Look at the attendees...WLDBIL::KILGOREBill -- 227-4319Tue Nov 10 1992 08:3923
    
.0>   The attendees included representative from  Participants Trust 
.0>   Company;  The Bank of New York; Republic National Bank; Bank of America; 
.0>   Bankers Trust; Advanced Systems Concept, Inc.; Chemical Bank; Barclays 
.0>   Bank; Chase Manhattan; Pfizer, Inc.
    
    I'm not going to say anything about Windows NT, or our plans, or lack
    of such, to support it.
    
    I would, however, like to point out an interesting fact about the
    list of attendees at this focus group. One should be aware that the
    banking industry in New York is a suprisingly close-knit (almost
    incestuous) group. Advanced Systems Concepts, Inc. (aka ASCI), as a
    developer of software for the banking industry (eg ASCI Intact -->
    DECintact), has meen a focal point in this relationship. I would
    closely scrutinize any assumptions regarding the independence of
    opinions expressed within this focus group, and given the past
    relationship of Digital with ASCI, I would watch very closely for
    hidden agenda.
    
    NT may be the greatest thing since free checking, but I would like to
    widen the genetic pool before I have this baby.
    
2210.5SDSVAX::SWEENEYPatrick Sweeney in New YorkTue Nov 10 1992 09:4811
    re: 2210.4

    What's the point of mentioning "ASCI"?  They are a small software
    company.

    Chemical, Bankers Trust, Chase, B of NY, etc. represent represent the
    banking industry in New York.  Along with Citibank, they basically
    _are_ the banking industry in New York (ie domestic commercial banks
    with substantial retail networks).

    It is independent enough for me.
2210.6SDSVAX::SWEENEYPatrick Sweeney in New YorkTue Nov 10 1992 09:569
    I haven't seen a business model which shows that we're going to make
    any money from VMS systems either.

    I take the position that Windows-NT will become the most widely used
    operating system after MS-DOS and Windows.  Digital lacks any
    influence to prevent this from happening.

    If Digital cannot make any money from Windows-NT, then it may be the
    case that Digital can not make any money - period.
2210.7WLDBIL::KILGOREBill -- 227-4319Tue Nov 10 1992 11:2410
    
    Re .4:
    
    Never underestimate the power of a "small software company" to turn
    your life into hell on earth.
    
    The point of mentioning ASCI is that this "small software company"
    could have skewed the results of the focus group in ways mere mortals
    could never imagine, to a degree totally out of proportion to its size.
    
2210.8Alpha,repeating PC history ??MQOOA::LEWed Nov 11 1992 13:4969
	Hi,

	Do you have ever read the "Repeating PC History"'s article on 
	DECprofessional press, pg104,Nov1992 (by John C. Dvorak).

	Interesting comments about Digital Alpha's strategies ...
	
	Here's a part of text ...for who not have a chance :


*	"... Digital is working closely with Microsoft in porting Windows NT
	to Alpha. Microsoft's track record for making a first release of 
	"anything" work well isn't good. Microsoft likes to get a product
	shipped as fast as possible and then improve it until it becomes a
	winner.
		Meanwhile, the customer is saddled with the buggy product that
	has to be upgraded over and over. That customers happily finance the
	company in this way is a testament to the marketing genuis of Microsoft.

		But even if NT is a bug-free hit, you have to wonder what
	Digital's position will be in the software pecking order.


**		NT will be ported to virtually every platform. Intel will run 
	it on the 586 & 686, which should be powerful as Alpha.

	Most developers will put their software on the Intel architecture 
	before even attempting a port to Alpha. If you can run the XYZ
	Spreadsheet on your $5,000 Intel-based workstation, why would you want
	to run the same thing on a $10,000 Alpha workstation ?

	Running NT on Alpha, simply put, invites comparisons.
	Digital by comparison will never look favorable on a price/perf basis.
	The company isn't set up to look cheaper than PC clones manufactured in
	a garage and sold for cost. If the machines made in the garage were junk
	,it wouldn't be a problem. But "parts is parts", and most parts are good
	parts.

***		What we're seeing is a combination of errors not unlike
	Digital's errors of the late 1970s and early 1980s. First we have the
	proprietary killer chip that will not be used to low-ball the competi-
	tion, but instead will be put in a profit-oriented box. Then we have the
	use of a Microsoft-developed oddball version of something (Window NT)
	that will be popular in another version.
		Software for this operating system will be available only from
	Digital or from a few vendors directly.
		It's unlikelythat you'll be able to walk into Egghead and buy a
	shrink-wrapped version of, say, Excel/NT for Alpha. Meanwhile, all your
	friends will be buying off the shelf.

****		Digital should rethink its strategies fast.
		And it should remember: If you forget history, you are doomed to
		have it repeated to you.
        ..."


		Personaly, I remember the PDT11/150 & RT11 ( if and only if,
		they were less expensive ... we still have the PC market today),
		and the Rainbow's history with the screwball version of MS-DOS.
		It's sound to me like yesterday !

	How do you think ?
	Just port to some reflections...and because I love my company and its
	futur.

	P_le


2210.9CVG::THOMPSONRadical CentralistWed Nov 11 1992 14:2810
>		Software for this operating system will be available only from
>	Digital or from a few vendors directly.
>		It's unlikelythat you'll be able to walk into Egghead and buy a
>	shrink-wrapped version of, say, Excel/NT for Alpha. Meanwhile, all your
>	friends will be buying off the shelf.

	I doubt this very much. But concider the source. Dvorak is one of 
	those people who has never impressed me in the least.

			Alfred
2210.10ECADSR::SHERMANSteve ECADSR::Sherman DTN 223-3326 MLO5-2/26aWed Nov 11 1992 17:4324
    Well, Microsoft is aware of its record and has been emphasizing that
    they are testing Windows NT very extensively.  Also, Digital has
    indicated that Alpha is a family and not just one hot chip. 
    Cost-reduced versions are surely in the works and Digital is already
    establishing itself as a cost-effective vendor of PC products. 
    Further, the place of Alpha has so far been relegated to doing server
    functions within a Windows NT cluster, if that's the correct term.
    It doesn't have to be the hottest box, but it does have to provide
    long-term value and a migration path for growth.  The Intel chips are
    not at the beginning of their growth path like Alpha is because of
    their architecture.  Microsoft is breaking away from the Intel chips
    intentionally because their customers don't like being stuck with only
    Intel machines.  The alliance with Digital is placing Alpha in a
    position of choice even though there are several vendors of CPUs that
    can also be used in servers.
    
    In other words, the author of the article is greatly mistaken and
    perhaps deluded if he really thinks Microsoft and Digital aren't aware
    of the failures of the past and haven't gone to great lengths to avoid
    repeating history.  On the other hand, it may actually do us and
    Microsoft good when people are focused on areas which will be among our
    strengths this time around.
    
    Steve
2210.11Customers won't change unless it's *real* cost-effectiveAUSTIN::UNLANDSic Biscuitus DisintegratumThu Nov 12 1992 01:2932
    re: .10
    
>    Cost-reduced versions are surely in the works and Digital is already
>    establishing itself as a cost-effective vendor of PC products. 
    
    There is no external evidence to customers that Digital "surely"
    has price-sensitive versions in the works.  I did one of the AXP
    presentations at our announcement, and this was a hot topic amoung
    the customers (and competitors) present.  And while we have finally
    closed the gap on PC price/performance with other major vendors, we
    are in the process of splitting off a relatively small section of
    the company to keep us in that business.  The only way they'll be
    able to survive is to run without the tremendous overhead burden
    of the rest of the company.  Do you think they'll do the same
    thing with Alpha? What will the remaining %80 of the company do?
    
    You are right on one thing, a lot of the public isn't happy about
    relying on Intel CPUs.  That's why they are buying AMD and Cyrix
    clones in mass quantities.  They *don't* want to change our the
    x86 architecture, they just want lower prices.  So far, I haven't
    seen how Alpha is going to change this equation.
    
    Don't get me wrong; I think Windows-NT on Alpha is the right
    strategic move, but for different reasons.  I think it will allow
    us to open up new markets and create new solutions, as opposed to
    competing in the already-flooded PC market.  We've been sinking
    into the mire as an "also-ran" for so many years, we need to gamble
    big and try to *create* the next computer market, not just follow
    everyone else into the existing melee.
    
    Geoff Unland in Austin
    
2210.12FORTSC::CHABANPray for Peter Pumpkinhead!Thu Nov 12 1992 11:265
    
    Put NeXTstep on Alpha, now!
    
    -Ed
    
2210.13WNT == VMS like HAL == IBMTROOA::SODHAInstant SQL, add water and mixSat Apr 10 1993 01:361
    
2210.14MU::PORTERceci n'est pas un nomSun Apr 11 1993 22:4716
    >                  -< WNT == VMS   like   HAL == IBM >-
    
    Hmm, if you're a programmer, remind me not to use 
    anything you've written.
    
    The relationship you're looking for is (in pidgin C)
    
       (IBM - HAL) == (WNT - VMS)
    
    Note that the operation mapping IBM to HAL has
    the opposite sign to the operation which maps
    VMS to WNT.  I'm not sure what this signifies.
    
    
    
    
2210.15STAR::DZIEDZICMon Apr 12 1993 09:099
    Arthur Clarke, who wrote the story upon which "2001" was based
    (and also co-authored the screenplay) has claimed numerous times
    the HAL-IBM connection was coincidental.  IBM provided a lot of
    technical assistance during the filming of "2001"; Clarke was a
    little embarassed when someone pointed out the connection.
    
    As far as VMS-WNT, I kinda prefer "classic VMS" and "new VMS";
    sorta like "classic Coke" and "new Coke" (can you still buy that
    stuff any more?).
2210.16Beware the comparisonFUNYET::ANDERSONOpenVMS Forever!Mon Apr 12 1993 11:268
Don't forget that Windows NT is a Microsoft product from which Digital receives
no profit.  OpenVMS is a Digital product from which Digital derives revenue. 
The market for and functionality of these two products is also quite different.

Paul

P.S. Whenever I see a sign for "Coke", meaning the "new" Coke, it's always
     Coca-Cola Classic.
2210.17Where are we headed?IW::WARINGSimplicity sellsMon Apr 12 1993 16:1213
A recent article on IBM in the UK Sunday Times quoted "loss of control over
the Operating System" as one of IBM's biggest blunders.

One of our great strengths has been control over one major OS, the Office
Document Database and Relational database all on the same platform. We look
to be losing control of all three now on our newer platforms.

I sometimes wonder whether the rich seams of profit will appear on the SI
side of the house (already subject to gross oversupply), and what
technologies we'll retreat to when it becomes obvious....

Maybe i'm having a bad day;-)
								- Ian W.