On Friday, May 31, 2019 at 11:02:10 PM UTC-4, charles wrote:
>
> I was always sad about Gandalf, they kinda Zigged when everyone else 
> zagged.  Way Back when I recall showing one of their engineers one of 
> the First HAYES modems -and I asked why Gandalf was not in the market. 
> He answered that PCs were Kids stuff, and that they only made products 
> for data centers. 
>

To be fair, that wasn't just Gandalf - that was the mind-set of most of the 
industry. In the product space that Gandalf occupied there were also 
companies like Case and DCA, neither of whom were able to successfully 
transition to the new market. DCA did a quick save by purchasing the IRMA 
company, who made 3270 adapters for PCs (and later Macs and also standalone 
units). So they had a new market, pretty much all to themselves, while 
continuing to have sales / support income from legacy customers.

On the other hand, those established companies were selling their products 
at much higher prices (the 4-port terminal-side board for the PACX IV was 
$600, and most of that was profit) and they also had partnerships with 
established modem vendors like ComData and perhaps didn't want to disrupt 
those deals in order to get into a very price-sensitive market of unknown 
(at the time) size.

There wasn't a lot of movement in the other direction - of the early 
low-end modem makers, US Robotics was probably the only one to get any sort 
of sizable penetration of the host-side market. Part of this was a complete 
lack of understanding about how sales were made on the host side - I don't 
think any of the low-end modem makers offered reasonable quantity discounts 
to end users, none offered lease / financing options, and all of them 
wanted MORE for a rackmount unit (which was a bare board - no case, manual, 
software, power adapter, cables, etc.) than they wanted for a standalone 
unit, and of course they also wanted big $ for the rackmount chassis. The 
sole example was Microcom, who graciously sold their rackmount modems for 
the same price as the standalone models.

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