On Thu, 5 Apr 2007 16:38:28 -0600, Anne & Lynn Wheeler wrote:

>
>part of the reason that Amdahl was able to (initially) move into the
>highend (in the mid to late 70s) was that the company had taken a
>side-trip into Future System project (which was going to replace all
>370s ... and be as radically different from 370 ... as 360 had been
>different from the machines that had gone before it).

Amdahl was successful in the high end market because it developed
processors using high speed Emitter-Coupled Logic.  Dr. Amdahl had
approached upper management at IBM before he left IBM and tried to
convince them to produce such a computer.  IBM said that it wouldn't
be profitable.

Part of the reason they thought it wouldn't be profitable was that in
order to place it on the (liner) price/performance curve, IBM would
have to charge about $10 million for the machine, and at that price
there would not be enough buyers to offset the development cost.
Dr. Amdahl pointed out that they could make a nice profit at a
$4 million price point.  IBM was not about to price a high end
processor so inexpensively.

-- 
Tom Marchant

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