jasmerb@mist.CS.ORST.EDU (Bryce Jasmer) (03/12/90)
Wednesday, March 7, 1990
CAMBRIDGE, MASS
IBM, Breaking With Tradition, Might License Chip Technology
By John R. Wilke
Staff Reporter of The Wall Street Journal
International Business Machines Corp., breaking with
tradition, would license the technology at the heart of its newest
computer line "if we found the right partner," an IBM executive said.
The move would be a significant departure for IBM, which
hasn't previously licensed its microprocessor designs. The technology
-- a set of semiconductor chips -- powers IBM's new line of
workstations.
Nicholas Donofrio, an IBM vice president, said in response to
a question at an industry conference here yesterday, "We haven't
announced anything, but we certainly would license [the chip set]."
IBM, an also-ran in the fast growing workstation market, took
the industry by surprise with the speed and aggressive pricing of its
new RS/6000 line introduced two weeks ago. The RS/6000 uses a powerful
reduced-instruction-set computer, or RISC, processor design and runs
the Unix software-operating system, a workstation standard.
Licensing the chips could help IBM because it would encourage
software developers to write more programs for the machine, creating a
broader market. Indeed, despite its speed, the new line is likely to
sell slowly until more software is available. "It's like a Lamborghini
with no tires," said J. Lindon Sanders, an engineer at DuPont
Electronics, Camp Hill, Pa., adding that he would consider buying the
new line if more programs were available. "I can't justify it if we
have to wait the rest of the year for software."
Mr. Donofrio said IBM wouldn't try to follow Sun Microsystems
Inc.'s strategy of licensing its RISC to all comers. And he said IBM
isn't currently in discussions with potential licensees.
Still, IBM watchers say the move might shake up the
workstation market. "This could have broad significance for the
industry," said Mark G. Schulman of UBS Securities Inc. "It has the
potential to increase IBM's market share, generate more support from
software makers and eventually put pressure on competitors' profit
margins."
"It's a killer chip," said George F. Colony of Forrester
Research Inc. He says that "IBM is now telling people it might make
the chip set available to commercial customers as early as 1991."
Competitors are skeptical, Don McInnis, director of
technical-workstation marketing at Digital Equipment Corp., noted that
"there aren't too many companies left that would license the
technology.
"Most computer makers have already made their move" and have
aligned with RISC chip makers such as Sun, MIPS Computer Systems Co.,
Motorola Inc. or Intel Corp., he said. "Nearly everyone -- in Europe,
the U.S. and Japan -- is already committed."
Mr. Schulman, the UBS analyst, ofered an intriguing candidate:
Next, Inc., the upstart computer maker founded by Steve Jobs. "Next
would be a logical choice. They're eventually going to need a RISC
chip."edwardm@hpcuhc.HP.COM (Edward McClanahan) (03/13/90)
"Most computer makers have already made their move" and have aligned with RISC chip makers such as Sun, MIPS Computer Systems Co., Motorola Inc. or Intel Corp., he said. "Nearly everyone -- in Europe, the U.S. and Japan -- is already committed." Thanks, WSJ, for leaving off my employer, Hewlett-Packard. HP has liscensed its HP PA Risc to Samsung and Hitachi. =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= Edward McClanahan Hewlett Packard Company Mail Stop 47UP -or- edwardm%hpda@hplabs.hp.com 19447 Pruneridge Avenue Cupertino, CA 95014 Phone: (408)447-5651