Datapoint

Datapoint Corporation was an American computer company headquartered in San Antonio, Texas. Founded in July 1968 as Computer Terminal Corporation by John Phil Ray and Austin O. "Gus" Roche, it initially developed compact computer terminals intended to replace noisy and slow Teletype machines used with mainframe time-sharing systems. Its early products displayed output on television-style screens and helped establish the company in the terminal market. The company’s most historically significant product was the Datapoint 2200, a programmable terminal introduced around the beginning of the 1970s. Although designed as a terminal, the 2200 could load programs from cassette storage and was used by some customers as a stand-alone programmable computer. Its architecture was also the starting point for work that led Intel to develop the 8008 microprocessor. Datapoint ultimately rejected the early 8008 implementation for performance and schedule reasons and shipped the 2200 with a processor assembled from discrete small- and medium-scale integrated circuits. Nevertheless, the instruction-set lineage associated with the project became an important predecessor of later Intel processor families. Datapoint expanded beyond terminal hardware. Its Datashare software allowed multiple terminals to communicate and share resources without relying entirely on a central mainframe. The company developed office-automation, word-processing, electronic-mail, directory, communications, and distributed-processing products. In 1977 it introduced ARCnet, originally called Attached Resource Computer, an early commercial local-area network technology using token passing. ARCnet connected Datapoint terminals with shared storage and printers and was installed in businesses around the world. The company also developed the PL/B programming language, originally known as Databus, and proprietary operating environments including DOS and Resource Management System. During the 1970s Datapoint grew rapidly, adding products such as disk systems, routing equipment, video communications, and personal-computer-compatible systems. It acquired Data Disc, a hard-disk-drive pioneer, in 1977 and later pursued Unix systems through relationships with Charles River Data Systems and Norsk Computer Industri. Its MINX system was an early picture-in-picture videoconferencing and multimedia communications product, while VISTA-PC systems combined IBM-compatible hardware with Datapoint software and RMS integration. The company’s expansion created serious operational and financial pressures. By the early 1980s, delivery delays, excess inventories, questionable or speculative orders, customer failures, and bad debts contributed to a severe financial collapse. The Securities and Exchange Commission ordered Datapoint to stop the sales-accounting practice at issue. Manufacturing was consolidated as the company contracted, and facilities in Waco and Fort Worth were closed while the San Antonio operation remained. Datapoint later faced a takeover effort by investor Asher B. Edelman. The company ceased operating as the major computer business it had once been, although its technological legacy survives in the history of personal computing, microprocessors, local-area networking, and distributed business systems.

Datapoint began as Computer Terminal Corporation in San Antonio in July 1968. Its founders, Phil Ray and Gus Roche, had worked on computing projects connected with NASA’s Apollo program and believed that users needed quieter, smaller, and more interactive equipment than Teletype terminals attached to large time-sharing computers. Their first major product, the Datapoint 3300, used a television-style display and quickly attracted orders. The company lacked manufacturing capacity and capital, so it raised approximately $4 million through a 1969 public offering and initially relied on outside manufacturers before developing its own facilities. The 3300 established Datapoint in the terminal market and was later sold by other companies under different model names. Ray and Roche then pursued a more capable programmable terminal. Victor Poor, Harry Pyle, and Jonathan Schmidt joined the development effort. Poor and Pyle designed an instruction architecture that could have been implemented with discrete logic or placed on a microprocessor. Datapoint discussed the concept with Intel and Texas Instruments, contributing to the project that resulted in Intel’s 8008. Datapoint rejected the early chip for performance and timing reasons, and the Datapoint 2200 entered production using conventional TTL and related integrated circuits. The 2200 could load programs from cassette media and was sufficiently capable that some users treated it as a small computer rather than merely a terminal. The success of the 2200 encouraged the company to adopt the Datapoint name formally. During the 1970s it broadened its business into distributed processing. Datashare allowed groups of terminals to communicate and share resources independently of a conventional mainframe. Datapoint added storage, communications, office-automation, word-processing, electronic-mail, and telephone-management applications. In 1977 it acquired Data Disc, a hard-disk-drive manufacturer, and introduced ARCnet, originally called Attached Resource Computer. ARCnet used token passing over relatively simple coaxial cabling and connected terminals to shared disks and printers. It became one of the earliest commercially deployed LAN systems, with installations in many countries. Datapoint also created the Databus programming language, later known as PL/B, and operating environments such as DOS and RMS. Its product range eventually included the 6600 and 8800 processor families, Mapped Intelligent Disc System products, ARCnetplus, MINX multimedia and videoconferencing equipment, and VISTA-PC systems using Intel processors and MS-DOS. In the 1980s the company explored Unix servers, first through Charles River Data Systems and later through a three-year arrangement with Norway’s Norsk Computer Industri. The NCI-based SX systems were followed by Datapoint DX models after that relationship ended. Rapid growth became a liability in the early 1980s. Datapoint had reached Fortune 500 scale, but production lead times lengthened and sales pressure encouraged orders that did not always turn into completed purchases. Excess inventory, customer bankruptcies, bad debts, and sales reversals damaged the company’s finances. Its market value fell sharply in 1982, and the SEC required the company to discontinue the disputed accounting or sales practice. Datapoint cancelled plans for a new headquarters, closed its Waco plant, later shut the Fort Worth factory, and consolidated remaining activity in San Antonio. In December 1984, investor Asher B. Edelman disclosed an 8% stake and made a $23-per-share acquisition proposal valued at approximately $416.3 million. Datapoint’s board rejected the bid and solicited alternatives. Edelman withdrew the offer but pursued a shareholder campaign to replace the board and seek a later sale. Datapoint subsequently declined from its earlier position as a major computer manufacturer and ultimately became defunct. Its historical importance remains tied to intelligent terminals, the Datapoint 2200’s role in early personal-computing history, the ancestry of the Intel 8008 instruction architecture, and the commercial development of ARCnet.

• 1984

  Edelman takeover bid

  [1]Datapointen.wikipedia.org

  Asher B. Edelman disclosed a substantial stake and proposed acquiring Datapoint for $23 per share; the board rejected the offer.

• 1982

  Financial collapse and factory contraction

  [1]Datapointen.wikipedia.org

  Financial problems, excess inventory, customer failures, and regulatory intervention led to plant closures and major contraction.

• 1980

  RMS introduced with the 8800 processor

  [1]Datapointen.wikipedia.org

  Datapoint introduced RMS alongside the 8800 processor to manage networked resources and distributed applications.

• 1977

  Data Disc acquired and ARCnet introduced

  [1]Datapointen.wikipedia.org

  Datapoint acquired Data Disc and introduced ARCnet, an early commercial token-passing local-area network.

• 1970

  Datapoint 2200 developed and launched

  [1]Datapointen.wikipedia.org

  The programmable 2200 terminal became Datapoint’s signature product and an important early small-computing platform.

• 1969

  Initial public offering finances expansion

  [1]Datapointen.wikipedia.org

  The company raised approximately $4 million in an IPO, supporting outsourced production and later manufacturing expansion.

• 1968

  Computer Terminal Corporation founded

  [1]Datapointen.wikipedia.org

  Phil Ray and Gus Roche incorporated Computer Terminal Corporation in San Antonio, Texas, to develop compact computer terminals.

Early computing technology innovator focused on intelligent terminals, distributed business computing, and practical local-area networking.

• Computer terminal · 1968

  Datapoint 3300

  An early video display terminal designed to replace Teletype equipment used with time-sharing systems. It used a television-style screen and became Datapoint’s first major commercial success. The model was later rebadged by other manufacturers, including Digital Equipment Corporation and Hewlett-Packard.

• Programmable computer terminal · 1970

  Datapoint 2200

  Datapoint’s most influential product was a programmable terminal with cassette-based program loading and optional disk storage. It was built using discrete integrated-circuit technology rather than the Intel 8008, but its proposed architecture helped motivate development of that microprocessor. Some customers used the 2200 as a stand-alone programmable computer.

• Local-area network · 1977

  ARCnet

  Originally called Attached Resource Computer, ARCnet was an early commercial token-passing LAN. It linked Datapoint terminals with shared storage and printers and was designed for distributed business processing. Its relatively simple cabling and operating model supported installations in many business environments.

• Multi-user business software

  Datashare

  Datashare enabled multiple terminals to communicate and share applications or resources without depending entirely on a central mainframe. It formed part of Datapoint’s broader distributed-processing and business-automation strategy and worked with the company’s Databus, later PL/B, programming environment.

• Videoconferencing and multimedia system

  MINX

  MINX was an early picture-in-picture videoconferencing and multimedia communications system. Datapoint patented the technology and used it in video communications and visitation-related applications. It could operate with compatible personal computers as well as Datapoint systems.

• Personal computer

  VISTA-PC

  A family of Datapoint personal computers using Intel processors and MS-DOS. VISTA-PC systems could emulate Datapoint workstation functions and integrate with the company’s RMS environment and PRO-VISTA office-automation software.

• Unix server · 1988

  SX and DX systems

  Datapoint pursued Unix systems in the 1980s through multiprocessor products based first on Norsk Computer Industri designs and later on Datapoint’s own DX models. These systems were intended to operate as servers on ARCnet networks.

• 1982

  Sales and accounting practices during financial collapse

  Datapoint accepted orders that did not always represent firm customer demand, contributing to excess inventory and later sales reversals or bad debts. The Securities and Exchange Commission ordered the company to stop the practice described in the contemporary account. The episode contributed to a sharp loss of investor confidence and market value.

  Source

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• 1984

  Respond to Edelman’s acquisition attemptM&A

  Background

  Investor Asher B. Edelman disclosed an 8% holding and proposed purchasing the company for $23 per share.

  Action taken

  Datapoint’s board rejected the offer and invited other takeover proposals. Edelman later withdrew the bid and sought shareholder support to replace the board.

  Aftermath

  The takeover dispute became part of Datapoint’s decline and restructuring as the company sought alternatives to the rejected offer.

  Proposed acquisition value. 416.3 million USD (December 1984 offer)

  Source

• 1982

  Consolidate manufacturing and facilitiesStrategy

  Background

  Datapoint’s financial collapse and falling demand made its manufacturing footprint unsustainable.

  Action taken

  The company closed the Waco factory, later closed the Fort Worth factory, and consolidated remaining U.S. production and facilities in San Antonio.

  Aftermath

  Datapoint continued to shrink and no longer operated at its earlier large-scale manufacturing capacity.

  Source

• 1977

  Introduce ARCnetProduct launch

  Background

  Datapoint’s terminal systems needed a way to share storage, printers, and applications across multiple workstations.

  Action taken

  The company introduced ARCnet, a token-passing LAN technology using relatively simple coaxial cabling.

  Aftermath

  ARCnet achieved substantial commercial deployment and became an important early LAN technology, although later Ethernet-based systems took the broader market.

  Source

• 1970

  Ship the Datapoint 2200 without the planned microprocessorProduct launch

  Background

  Datapoint and its engineers explored implementing the 2200 architecture on a microprocessor, leading to Intel’s 8008 development. The early chip did not meet Datapoint’s performance and launch-timing requirements.

  Action taken

  Datapoint released the 2200 using a processor board assembled from discrete TTL and related integrated circuits.

  Aftermath

  The 2200 became a major product, while the architecture associated with the project contributed to the lineage of later Intel processor families.

  Source

1. 1Datapointen.wikipedia.org