Proposal to build a low cost hardware system capable of running current DEC System-10 software

This memorandum, dated September 20, 1971, from David Stone to the Operations Committee, proposes the development of a low-cost hardware system capable of running existing DEC System-10 software. The goal is to capture the $200K–$500K computational market by filling the gap below the DEC System 1040.

Key points include:

• Strategic Value: The proposal suggests leveraging 100 man-years of existing, proven PDP-10 software, which is well-suited for batch and time-sharing tasks.
• Market Positioning: The hardware speed is secondary to the accessibility of the software suite at a lower price point. The target manufacturing cost is under $80K, with a target sales price starting at $250K.
• 11/45 Impact: The author argues that this decision should be finalized before the announcement of the PDP-11/45. The PDP-11/45 should be positioned to complement the low-cost System-10 by focusing on real-time systems, where the PDP-10 is historically weak, rather than competing directly for the same computational market.