Follow IBM or Compaq
The Kaypro Corp. has put on hold plans to introduce a computer compatible with the latest generation machines from IBM while it awaits the possible announcement next week of a rival computer standard.
David Kay, president of the Solana Beach personal computer maker, said his company would suspend plans to introduce machines compatible with IBM's Personal System/2 computers until it can assess the impact of an announcement it expects from Compaq Computer Corp. next week.
An industry trade publication, Computer Reseller News, is reporting this week that Compaq will challenge IBM's attempt to create a new hardware standard with the PS/2's by announcing an open, extended version of its AT-bus architecture, similar to machines already in wide use. Compaq is believed to have lined up support for the rival hardware standard from several large computer makers.
The expected Compaq architecture would add to the capability currently available in personal computers, as does the IBM Micro Channel architecture used in its PS/2 machines. But a possible advantage of Compaq's new architecture is that it would be an extension of the architecture used in the large installed base of IBM AT and AT-compatible personal computers. This would facilitate the use of some existing computer hardware and should ease migration to the more powerful machines.
The IBM Micro Channel architecture, on the other hand, represents a substantial hardware change. In addition, IBM is reported to be demanding relatively large royalty payments for use of the patented Micro Channel technology, demands which have diminished the enthusiasm of potential clone makers to copy the machines. Kay said the Compaq announcement could be significant and at least merited a delay in Kaypro's plans. "Given IBM's royalty demands, it's something to be considered," he said. "It's a delay of a week to see what will happen."
The delay puts on hold a project Kay described as near fruition. He said technical development of a Micro Channel architecture machine at Kaypro has been running on schedule, putting the company close "to meeting our goal of shipping within 60 days." Kaypro also had reached agreement with IBM on use of key Micro Channel patents, he said, adding that those agreements called for royalties of about 5 percent of wholesale prices.
Earlier in the year, Kay said his company would announce a PS/2 compatible machine during September and be shipping large quantities of the machines in October. But with Compaq moving to line up forces to support an extension of existing hardware standards, Kay said the company would not proceed with its planned PS/2 clone, "at least not in the time frame we had said."
At least one industry analyst said in June the PS/2 clone market could offer a substantial opportunity for Kaypro, if the market for those machines took off and if competition remained limited in the clone market. Tandy is currently the only vendor aside from IBM selling Micro Channel computers, but the clone market for these computers has been described as disappointing.
Kay said Kaypro had not been discouraged by Tandy's experience with PS/2 computers. Tandy, he said, is a company with experience in the lower-end of the computer market that is marketing a high-end PS/2-compatible machine. "Our prospects, I think, would be much better." Kay also said that he believed the Micro Channel would become an industry standard at some point in the future.
(The San Diego Union, September 9, 1988)