Industry

Computer Peripherals

Fate

Acquired by Triumph-Adler

Predecessor

Peripheral Equipment Corporation

Headquarters

Chatsworth, California, United States

Pertec Computer Corporation (PCC), formerly Peripheral Equipment Corporation (PEC), was a computer company based in Chatsworth, California which originally designed and manufactured peripherals such as floppy drives, tape drives, instrumentation control and other hardware for computers.^[1]

Pertec's most successful products were hard disk drives and tape drives, which were sold as OEM to the top computer manufacturers, including IBM, Siemens and DEC. Pertec manufactured multiple models of seven and nine track half-inch tape drives with densities 800CPI (NRZI) and 1600CPI (PE) and phase-encoding formatters, which were used by a myriad of original equipment manufacturers as I/O devices for their product lines.

In the 1970s, Pertec entered the computer industry through several acquisitions of computer producers and started manufacturing and marketing mostly minicomputers for data processing and pre-processing. This split up Pertec into two companies. Pertec Peripherals Corporation (PPC), which remained based in Chatsworth, California, and Pertec Computer Corporation (PCC), which was located at 17112 Armstrong Avenue, in Irvine, California.

Pertec and MITS[edit]

Close up of the Altair 8800B. Currently on display at the Living Computer Museum in Seattle, Washington.

Pertec bought MITS, the manufacturers of the MITS Altair computer, for US$6.5 million in 1976. This purchase was motivated mainly by the ownership of the Microsoft BASIC sources and general license that Pertec erroneously assumed to be included in the deal. They also acquired iCOM, makers of micro peripherals, in the same year. They believed that these acquisitions would change them from selling computers mostly for hobbyists, to selling them for small businesses.^[2]

Pertec changed their name, after the acquisition of MITS, from Pertec Corporation to Pertec Computer Corporation to "be more reflective of the company's present position and to clearly state our future direction".^[3]

As a result of the acquisition, Pertec became involved in the manufacturing of microprocessor-based computers. Their first models were expanded versions of the Altair models, typically coupled to the existing disk-drive range.^[4] Despite initially good sales, the Altair's 8080CPU was becoming increasingly outdated, so Pertec decided to retire the Altair as well as the MITS name itself.

In 1978, the company launched the first of its own designs, the PCC-2000.^[5] This was based on two Intel 8085 series microprocessors: one of which was given over to I/O control. Being a high end machine, it was intended to be the core of what would now be described as a workgroup. The machine was intended to support four "dumb" terminals connected via RS-232 serial lines, in addition to its internal console. The basic machine had twin 8-inch floppy drives, each capable of storing 1.2 megabytes and could link to two Pertec twin 14-inch disk drives, giving a total of 22.4 megabytes of storage, which was a very large amount for the time. The system was generally supplied with a multi-user operating system called MTX, which included a BASIC interpreter that was similar to Business Basic. The PCC-2000 was also available with MITS DOS or CP/M. In the UK, several systems were run under BOS. Unfortunately, the PCC-2000 was too expensive for the market and was never a great success.

Pertec Business Systems[edit]

Pertec/MITS 300[edit]

Pertec/MITS 300/55 Business System. Currently on display at the Living Computer Museum in Seattle, Washington.

The MITS 300 was the first product built and released by the Pertec after their acquisition of MITS in 1977. They produced the 300/25 and the 300/55.^[6] Both were fully integrated systems that included both hardware and software in one package.^[7] The 300/25 used Pertec floppy diskette drives and the 300/55 added Pertec DC-3000 14-inch hard disk.^[8] The system consists of the MITS 2nd generation Altair 8800 (or Altair 8800b) computer with hard drive controller and MITS datakeeper storage system. The complete 300/55 business system sold for $15,950 and included the Altair 8800b with 64k of dynamic RAM, a CRT terminal and a desk.^[9] The system was designed to handle a variety of business applications including word processing, inventory control and accounting. This system was prone to overheating and had a very short life span.^[10]

The new system allowed for MITS peripherals including Altair Floppy Disc, Altair Line Printer, Teletypewriter, and the Altair CRT terminal.^[11] The printer was a bidirectional Mits/Altair C-700 that could print 60 characters/second and 26 lines/minute.^[12]

Pertec PCC-2100[edit]

Pertec's primary line of computer products was aimed at the key-to-disk minicomputer systems that were used as front-end data processors for the IBM 360/370 and similar systems. This line was opened in the first half of the 1970s by the Pertec PCC-2100 data entry system, which was essentially different from the PCC-2000 mentioned above. The system was able to serve up to 16 coaxial terminals, two D3000 disk drives and one T1640 tape drive.

Pertec XL-40[edit]

Pertec XL-40, introduced in 1977, was a more successful successor of Pertec PCC-2100.^[13] The XL-40 machine used custom 16-bit processors built from the TI3000 or AMD2900 slices, up to 512 KB operating memory and dedicated master-capable DMA controllers for tape units, floppy and rigid disk units, printers, card reader and terminals.

The maximum configuration came in two different versions. One featured four T1600 / T1800 tape units (manufactured by Pertec), two floppy disk units (manufactured by IBM or Pertec) and four D1400 / D3400 rigid disk units (4.4, 8.8, 17.6 MB formatted capacity, manufactured by Pertec or Kennedy). The other one featured two large capacity disk units (up to 70 MB formatted capacity, manufactured by Kennedy or NEC), one line printer connected through long-line interface (DataProducts LP600, LP1200, B300, Printronix P300, P600), four station printers connected through coaxial cable (Centronics), one card reader (Pertec), four SDLC communication channels and 30 proprietary coax terminals (Model 4141 with 40x12 characters or Model 4143 with 80x25 characters).

The system was mainly used for key-to-disk operations to replace the previously popular IBM card punches and more advanced key-to-tape systems manufactured for example by Mohawk Data Sciences (MDS) or Singer. In addition to the basic key-to-disk function, the proprietary operating system, called XLOS, supported indexed file operations for on-line transaction processing even with data journaling. The system was programmed in two different ways. The data entry was either described in several tables that specified the format of the input record with optional automatic data validation procedures or the indexed file operations were programmed in a special COBOL dialect with IDX and SEQ file support.

System maintenance operations were performed in a protected supervisor mode; the system supported batched operations in the supervisor mode through the use of batch files that specified operator selections. The operating system interacted with the user through a series of prompts with automatic on-screen explanations and default selections, probably the ultimate user-friendliness achievable in text-only human-computer interaction. The XL-40 was also marketed by Triumph-Adler in Europe as TA1540, the beginning of a relationship that would eventually see a merger of the two companies.

Pertec 3200[edit]

Pertec's final in-house computer design was a complete departure, the MC68000-based Series 3200.^[14] The primary operating system was an in-house developed multi-tasking, multi-user operating system, but it could also run Unix. As with the XL40, Triumph-Adler marketed the system in Europe under their own brand with the model name MSX 3200 (There were four models, eventually, in the Triumph-Adler series: 3200, 3220, 3230 and 3240). The key to disk application from the XL40 was re-implemented on the 3200. The other main application was a BASIC language driven database, similar to the ones used by MAI Basic Four or Pick operating system. These BASIC database business systems would be purchased by outside companies that bundled the PCC 3200 with their software to provide a complete small business package (accounts payable, accounts receivable, payroll, inventory, sales tracking, taxes, etc.) customized for specific businesses.

The 3200 was extremely advanced for the time, being intended to support up to 32 users, all using intelligent Z80-based terminals, each of which could optionally run CP/M attached to the 3200's high speed coax cable. Later an ISA bus to 3200 coax interface was made for the PC, and this allowed the usage of PC's as smart terminals for the 3200 or as networked systems running MS-DOS. It was the first Pertec product to support the emerging "Winchester" standard for miniature hard disks.

Eventual fate[edit]

Soon after the introduction of the 3200, Pertec Computer Corporation was purchased by Triumph-Adler. Later PCC was acquired by Scan-Optics in February 1987.^[15] During the transition from systems based on custom-made CPUs to CPUs made by Intel and Motorola, prices for these systems dropped dramatically, but without an offsetting increase in demand, and eventually companies such as PCC slowly dwindled away to small remnants of their peak days in the mid-1980s, or were bought out by larger companies.

Pertec's PPC magnetic tape interface standard of the early 1970s rapidly became an industry-wide standard and is still in use by tape drive manufacturers today.^[16] Similarly, its PERTEC disk interface was an industry standard for pre-Winchester disk drives of the 1970s.

While taking on all the characteristics of a classic crusade, the early days of Altair were nerve-racking, hectic, and frustrating. MITS was bringing computers to the masses, and the demand for microcomputers seemed unquenchable. The staff worked long hours, 7 days a week, of ten for no more than minimum wage. It wasn't at all unusual to find 20 or 30 people at MITS any hiur of the day or night. While conducting atour of MITS, President Ed Roberts found himself stepping over the sleeping body of a staff member in the software department. The body was that of Bill Gates, co-founder of Microsoft.

What's It Called?

When the first Altair was completed. it was packed up and shipped off to New York to Popular Electronics Technical editor Les Solomon. Les was to use it in preparing a feature article for the January 1975 issue. The first Altair was lost in transit, and a second machine had to be frantically configured and rapidly dispatched northeast. A contest at MITS had failed to produce a suitable name for this machine, Les Solomon was given the task of arriving at an appropriate appelation. While discu1ssing possibilities with family over dinner. his daughter suggested "Altair." It [--??-] that the good ship Enterprise, beloved among Trekies, was winging its way to the star Altair on television that night.

After considerable confusion, Altair became more well known than MITS. Many people assumed that the Altair was produced by an Albuquerque company named Altair. Almost no one knew what MITS stood for. Rumors indicated it meant "man in the street," which had some credibility because MITS had made it possible for many to own their own computers. MITS was actually a mnemonic for Micro Instrumentation and Telemetry Systems. It was the remaining artifact of an earlier Roberts' venture to produce telemetry equipment for model rockets.

The Age of Altair ushered in an information hunger explosion. Microcomputer clubs formed rapidly. It was not unusual to encounter groups without computers of any kind. They met regularly to discuss magazine articles, advertisements, and friends of friends who had ordered their own micros. The Southern California Computer Society (SCCS) grew so fast it once predicted that within 2 years every man, woman, and child on the face of the earth would be an SCCS member.

Books, magazines, and pamphlets sold out the instant they appeared at computer stores. One of the most interesting early publications was Computer Liberation by Ted Nelson. A collection of letters, articles, and drawings, it is a fascinating compendium of the state of computerdom in the mid-1970s. MITS produced its own publication, Computer ores, with David Bunnell as editor. The first issue appeared in April 1975 and was soon to develop a large following. Ultimately it came to an abrupt and ignoble end.

The MITS-Mobile, a van equipped with a complete Altair system was pressed into service as a traveling road show. It was an instant success, beginning with a trip to Texas in late April and then the rest of the United States. Response was overwhelming. People would often foil ow the van from one site to another to attend the computer seminar given by the "MITS-Boys," in spite of the fact that seminars were often several hundred miles apart. Although seminar admission was $9.75, the program was such a success devotees paid the expenses. Taken to the National Computer Conference (NCC) in May 1975, the van was presented as the .. ultimate recreational vehicle."

Altairs For Sale

The first retail computer store, an Altair store, was an offshoot of Arrowhead Computer, started by Dick Heiser in West Los Angeles. This new venture, dubbed .. The Computer Store," offered the Altair for a kit price of $439 while Intel offered the 8080 microcomputer chip for $350 in single quantities.

Ed Roberts, creator of the Altair, felt computer stores were an "interesting experiment,'' but he was uncertain about their future. Some people thought it was sacrilegious to sell technology as sophisticated as computers in a storefront environment. Heiser's initial order was for $5,000 worth of Altair equipment. Everyone at MITS was astounded when, a few days later, a second order appeared from Arrowhead. Paul Terrel soon started a second store in Northern California, which beecame the first Byte Shop.

Bruce Seals arrived in New Mexico to sign up as an Altair dealer in Knoxville, Tennessee. Later he started Seals Electronics, which provided reliable memory for the early Altair systems.

Richard Stafford and Jim Dunion appeared at the MITS-Mobile seminar in Atlanta. Their arrival was to cause the local MITS representative anxiety. He quickly pointed out that trouble would undoubtedly ensue at the seminar since Stafford and Dunion had purchased two 4K dynamic memory boards; although they were assembled by different technicians, either could be made to work. During intermission they were invited to make their case. Curiously enough, this initial encounter ended on a friendly but firm note that either they receive satisfaction or they would make trouble.

Shortly thereafter, Stafford, Dunion, and others formed The Computer Systems Center, an Altair store in Atlanta, Georgia. They were joined by Ben Dyer, who was to become the store manager. This eventually led to the formation of Peachtree Software and Retail Sciences. Today The Computer Systems Center has been shorted to TCS and is a software company arriving in Houston, Texas.

In the midst of this flurry, Motorola announced the 6800 microprocessor, its entry the microcomputer race. This chip was believed by many to be a substantial threat the Intel 8080. As a hedge against this theat MITS engaged in a crash program produce an Altair with a 6800 chip, calied the Altair 680. BASIC was soon under development for this machine by Ric Weiland of Microsoft. It was sold to MITS for $32,000, in contrast to arrangements MITS had made with Microsoft for 8080 BASIC under an exclusive license agreement. The subtle distinctions in an exclusive license can prove crucial; BASIC is woven into many aspects of our story.

The 680 was to prove an inappropriate use of MITS' resources, and although perhaps 1,000 machines were shipped to enthusiastic hobbyists, today they are virtually nowhere to be found.

We're Number One

An early discussion at MITS evidenced concern that the world be told MITS was number one in the microcomputer field. One faction held that the general public needn't be told what they already knew, while the opposing view contended that an open statement to the market would have a number of beneficial effects. The advertising department soon provided what was to become known at MITS as the "number-one ad."

Every periodical on microcomputers would invariably make references to MITS/ Altair. The number-one ad soon appeared in many publications. Phone calls, letters, and visitors flooded into an otherwise dry Albuquerque.

Opportunists Hang On

Most entrepreneurs have certain common characteristics: They are extremely interested in money, have short attention spans, are sometimes paranoid, are poor at details, are unable to carry projects through to logical conclusions, change their minds frequently, bore easily, and will seldom talk of anything other than business. They are fundamentally opportunistic and will jump at any and all deals and roads to fame and financial success. Paradoxically, they are often unwilling or unable to turn over their business to outsiders, or anyone else for that matter.

The many opportunities that were brought to Albuquerque and to MITS' front door were viewed with a jaundiced, though not totally indifferent, eye. The number-one ad and the vast exposure of the MITS/ Altair name in the trade press stimulated many offers of acquisition. One such offer was presented by representatives of Pertec Computer Corporation. It appeared at the outset to be the most serious and substantial offer to date. This occurred against an increasing proliferation of competitive machines and a nagging fear that Texas Instruments (TI) would soon enter and immediately dominate the microcomputer market.

TI had approached MITS to determine whether an Altair-like product was of interest to MITS and its marketplace. The technology of the 9900 plus a lack of software was considered too severe to warrant such an effort. Nonetheless. when MITS had 6 million in sales and TI dropped 12 million into the calculator market in an apparent effort to dominate the market. it was very intimidating.

The Pertec overture was viewed with cautious optimism. The first, somewhat mysterious visit was fallowed by additional visits and a formal off er. Apparently the president of Pertec, Ryal Poppa, had become intrigued with the microcomputer market and realized the fact that Pertec produced the floppy and hard disks used in the MITS systems would provide a captive customer for Pertec products and afford entry into the microcomputer market for small-business systems.

In an enthusiastic determination to enter this new market, Poppa made a recommendation to the board that Pertec acquire MITS. The board responded with a number of pointed questions, which in turn resulted in a number of staff members being sent to Albuquerque to verify that the president had used sound business judgment The staff stayed long enough to gather the information needed to support Poppa's position and, without further investigation, departed.

Pertec was then negotiating the purchase of ICOM, a California-based company that was also a substantial customer for Pertec floppy disk drives. ICOM and Shugart were negotiating to meet future drive requirements with Shugart products. The ICOM acquisition by Pertec would provide a second captive customer for Pertec floppy drives.

Although unwittingly, ICOM was also to play a role in the eventual demise of MITS.