Despite the continued economic crunch and an overcrowded, highly competitive market, add-on main memory continues to thrive as an attractive, cost-effective alternative to the mainframe manufacturers' own memory. According to recent market studies, prospects are good for continued growth in this market through the early 1980's.
What motivates computer users to buy main memory units from sources other than their mainframe suppliers?
There are a number of good reasons.
First and foremost, add-on memory offers the greatest dollar savings of all the "plug-compatible" products, such as disk and tape drives_ For example, add-on memory vendors offer their wares at prices up to 70 percent (under extended lease plans) below the cost of the mainframe makers' memory. By contrast, disk or tape drives leased from independent vendors are seldom priced more than 10 to 15 percent below the drives supplied by the mainframe vendors.
What's more, add-on memory is usually the first
"plug-compatible" device that a user will see fit to incorporate. Users feel more relaxed about attaching independent memory than any other device because of its established track record (see the User Reaction section of this report) as the most reliable peripheral attachment-a direct result of its totally electronic construction. Once installed, the add-on units function in exactly the same manner as the mainframe manufacturer's own memory, and normally run for months at a time without any need for service.
Another motivating factor is the user's continuing need for more memory to satisfy the ever-increasing demands of his business environment. With a tighter operating budget than was available prior to the current economic slowdown, the user is more apt to go with independent memory in order to get the most for his money.
Another motivafing factor is the probable extension of the System/370's effective lifespan that resulted from IBM's apparent postponement of its major new computer systems architecture (FS) announcement. This seems to have sparked a renewed interest in the System/360 add-on market, as some vendors currently report a strong increase in sales in this market segment. A number of System/370 users have downgraded to System/360 models with large amounts of add-on memory in order to reduce their equipment costs.
In summary, the key motivating factors that currently
f"()[In the major thrust behind the add-on main memory markei are: iarge dollar savings, high product reliabiiiiy, strong user acceptance, a recessive economy, and the probable extension of the System/370's lifespan.
Add-on main memory from independent vendors can substantially improve the performance and cost-effectiveness of computers from I BM and other mainframe makers. This report-used in conjunction with the individual product reports in DAT APRO 70-will help you evaluate the pros and cons of add-on memory, benefit from the experience of 185 users who reported on 167.4 million bytes of independent memory, and select the unit that's best for you.
Prior to mid-1974, most of the action in the add-on memory market had involved units designed for the IBM System/360 computers. Add-on memory for the IBM System/370 now dominates the market. The most active segment of this market belongs to Models 145, 155, and 158, with increasing activity in the Model 135 area.
Though some vendors had announced add-ons for the System/370 Model 168 as early as 1973, no Model 168 memory is known to be available at this writing. Some vendors plan to introduce add-ons for the 168 in late 1975 and early 1976. Other market segments are also under attack, though to a much smaller degree. These include UNIVAC and DEC large-scale computers and numerous minicomputers. Honeywell was still another target for the independent memory vendors until it announced that it would discontinue service on modified systems.
This report focuses primarily upon the add-on memories for IBM computers: their advantages, disadvantages, economics, maintenance considerations, selection criteria, and user experience. Most of the facts and guidelines, however, also apply to the add-on memories for computers produced by the other mainframe manufacturers, such as UNIVAC and DEC.
Add-On, Replacement, or Enhancement
The market for IBM-compatible main memory can be divided into three distinct submarkets:
• Add-on memory for purchased or leased IBM computers.
• Replacement of leased IBM memory.
• Enhancement (extension) of main memory to capacities beyond the maximum available from IBM.
To date, the great majority of sales have been in the add-on caiegory. The computer ieasing companies, as weB as many organizations that own their own computers, are understandably anxious to extend the useful lives of their ~ JUNE 1975 ©1975 DATAPRO RESEARCH CORPORATION, DELRAN, N.J. 08075
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How to Select and Use Add-On Main Memory l:> equipment. In many installations, the most cost-effective
technique for improving a computer's performance is to increase its main memory capacity. More memory enables the user to utilize larger input/output buffer areas, to take advantage of more powerful compilers and other sophisticated software facilities, and to use more and/or larger partitions in a multiprogramming environment.
Increased memory capacity also reduces the need for time-consuming overlays and makes it possible to keep frequently used systems programs in core rather than on disk or tape.
Clearly, expanded memory capacities can be of significant value in bringing the price/performance of the System/
360 computers more nearly into line with the System/370 and other current computers. But IBM is not currently willing to lease add-on memories for use with purchased IBM equipment, and most users are understandably reluctant to purchase the units outright at this stage of the System/360's life cycle. Thus, the door is wide open for the independents to satisfy the demand for add-on memories for purchased System/360 computers.
System/360 users who are renting their equipment have more options open. They can obtain significantly in-creased performance by moving up to a System/370 or some other computer, often at little or no increase in rental cost. Even so, the ability to expand their System/
360 main memory capacities at prices well below IBM's represents an attractive proposition for many installations that are seeking a quick, economical way to increase their throughput.
System/370 users who need additional main memory capacity for either rented or purchased systems can get it from independent suppliers at prices well below IBM's.
Users of IBM System/3, DECsystem-l0, and various UNIVAC computers can similarly benefit by turning to the independents when they need more memory.
Replacement of leased IBM main memory can be ac-complished by simply replacing your current System/360 or 370 processing unit with one having a smaller main memory capacity (or, in some models, no IBM memory at all), and then adding plug-compatible memory from an independent supplier to bring the capacity back to (or above) its original level. Although this move will un-doubtedly lead to strained relations with your IBM salesman, it can also lead to hard-to-ignore savings. For example, a System/370 Model 155 user upgrading from 512K to 2048K bytes who obtains 1536K bytes of main memory from Memorex rather than IBM can save $11,857 per month on a 3-year lease or $689,100 on outright purchase. Similar savings are available from other independent memory suppliers. What's more, there are no extra-use charges on the plug-compatible replacement memories.
h'nhancement is the term used by the independent memory suppliers for extensions of main memory beyond the IB.rv1-specified maximum capacities. IBM supplies a
maximum of 64K bytes for the System/360 Model 30 (or 96K bytes on an RPQ basis), 256K bytes for the Model 40, and 512K bytes for the Model 50. Similarly, IBM offers a maximum of 2 million bytes for the System/370 Model 145, 2 million bytes for the Model 155, and 3 million bytes for the Model 165. It has long been clear that these limits are imposed by marketing considerations rather than technical considerations; from IBM's point of view, it was comforting to know that a Model 40 user whose memory requirements expanded beyond 256K would have to moe up to the considerably more expensive Model 50 Processing Unit.
But that's no longer true. Most of the independent main memory suppliers now offer enhancement capacities up to twice the IBM-specified limits (i.e., up to 64K bytes for Model 22, 128K bytes for Model 30, 5I2K bytes for Model 40, and I024K bytes for Model 50). A few suppliers have gone even farther (e.g., CHCS offers up to 512K bytes for the Model 30, and Intermem offers up to 16 million bytes for Models 65 thr~)Ugh 75. As a result, a lot of System/360 and 370 users whose systems are now memory-bound can get the increased capacities they need without moving up to a faster, more expensive processing unit.
Extended Core Memories
It is important to distinguish between the add-on or replacement main memories, which are the principal subject of this report, and the extended or "bulk" core memories designed as replacements for IBM 2361 Large Core Storage.
IBM developed the 2361 LCS units to provide auxiliary core storage, in multi-million-byte capacities, for System/
360 Model 50, 65, and 75 computers. The contents of LCS are directly addressable, but cycle time is a com-paratively slow 8 microseconds per 8-byte access.
IBM 2361-compatible memories have been produced by Ampex, Data Products, and Fabri-Tek. All three deliver complete functional compatibility with the 2361 plus considerably higher speeds.
The 2361 replacement market, however is a limited one.
The 2361 was never widely accepted by users and is no longer in production; a total of about 250 reportedly were built. No device analogous to the 2361 is offered by IBM for use with the newer System/370 computers. In January 1971 IBM slashed the 2361 purchase prices by 40 percent in an apparent effort to clean out its inventory. But the much faster independently supplied units still offer significant price/performance advantages over the 2361, and their use has led to major improvements in through-put for many large-scale System/360 installations.
Because of the comparatively limited interest in the 2361-compatible extended core memories, the remainder of this report addresses itseH' exclusively to the add-on
main memory unils. t:>
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How to Select and Use Add-On Main Memory
TABLE 1: SUPPLIERS OF ADD-ON MEMORY FOR IBM AND UNIVAC COMPUTERS Compatible with:
Supplier Manufacturer Storage
IBM System/370 Model IBM System/360 Model IBM UNIVAC Medium*
135 145 155
Ampex Ampex Core
•
Business Systems Business Systems Core Technology Technology
Cambridge Memories Cambridge Memories Core
I .1. I·
Cambridge Memories SC CF I Memories CF I Memories SC
CIG Fabri-Tek Intel Core SC
•
• •
CHCS CHCS Core
Control Data AMS Fabri-Tek SC Core
• • •
Econocom Standard Memories Core
EM&M EM&M EM&M Core SC
•
•
Fabri-Tek Fabri-Tek Core
•
I nformation Control Information Control Core
Intel Intel SC
• •
Intermem Intermem Core
Itel AMS, NSC SC
• • •
Memorex AMS SC
• • •
Standard Memories Standard Memories Core
*SC-Semiconductor.
I> The Add-On Memory Market
When this report went to press in May 1975, a total of 16 companies were marketing add-on main memories for IBM and/or UNIVAC computers. Table 1 identifies these companies and shows which models they currently offer.
You'll also find the full name and address of each company listed at the end of this report. And, most important, you'll find detailed reports on their individual product lines in the Peripherals section of DATAPRO 70.
158
•
•
•
•
•
•
165 168 20 22 25 30 40 44 50 65 67 75 195 S/3 494 1106 1108
• • • • • • • • • • •
•
• I I· • ·1 1·1· ·1 I I
•
• • • • • • • • • • • • •
• • •
• • • • •
•
• • • • • •
• • • • • • • • • • • • • •
• • • •
• • • •
• • • • • • •
• •
• • • •
vendors, with Europe developing as "a huge, continuing market" but the Japanese market lasting "for the short term only."
Firms which integrate their production will be the most successful, says F & S, citing Cambridge Memories (CMI) as an example. CMI established two semiconductor facili-ties and hired IBM semiconductor production experts to enter the component business. F & S observed that while Cambridge was "integrating downward," semi-conductor producer Intel Corp. was "integrating upward"
into system production. Two other semiconductor houses are producing add-on memory systems besides Intel.
These are Advanced Memory Systems (AMS) and National Semiconductor Corporation (NSC); however, both of these firms market their add-on memories to end users through a third-party arrangement. F & S warns that "it is uncertain whether the traditional semiconductor suppliers will have the necessary expertise with which to market memory systems directly to end users."
I
According to a recent Frost & Sullivan study, the computer memory system market will climb from an estimated value of $415 million in 1974 to $525 million in 1975 and to $1 billion by 1983. Add-on memories for large-scale computers will account for most of the growth.
The study projects that sales of magnetic core memories will drop from an estimated $200 million in 1974 to $85 million in 1983. According to the study, semiconductor memories will become cost-competitive with core in 1975.
The study aiso forecasts that add-on memories for the IBM 370 market are to be "the most lucrative market of all." Overseas markets are described as promising for U.S.
Semiconductor technoiogy, specificaily N-channei MOS static 4K-bit RAM's, dominates the current add-on memory industry. Memory production from now on will
r:>
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How to Select and Use Add-On Main Memory I:> be largely composed of MOS semiconductor arrays, while
production of traditional core memories will decrease sharply. Bipolar semiconductor memories (which are more expensive to produce and which exhibit higher power consumption and heat dissipation than the MOS tech-nique) will eventually give way to the new N-channel MOS memories once production rates are up. New memory technologies such as charge-coupled devices (CCD's) and magnetic bubble memories are in the wings, but it is unlikely that these devices will significantly impact the currently dominant semiconductor technology for several years.
The leading producer of semiconductor add-on memories is Advanced Memory Systems, with over 800 delivered units (500 System/370 installations and 300 System/360 installations) totaling some 500 million bytes. AMS began delivering its Monolithic Main Memory for the System/
360 in June 1971, and it now offers models for System/360 Models 30 through 67 and System/370 Models 135 through 158. AMS-built memories are cur-rently being marketed to end users by Itel Corporation (for both the System/360 and System/370) and by Control Data Corporation and Memorex Corporation (for the System/370 only). Itel alone has already made more than 500 installations with a total of about 300 million bytes of memory. Memorex, which entered the market in January 1975, produces the memory boards used in the AMS memories that it markets.
Other major suppliers include Cambridge Memories, with about 500 million bytes of installed memory for the System/360 and 370 computers; CIG, with 250 million bytes of installed memory for the System/360 and 370, including over 800 System/360 installations; and Elec-tronic Memories and Magnetics (EM&M), with 400 install-ed units totaling about 300 million bytes.
Seven companies are currently offering add-on main memories for the System/370 computers; aU at prices significantly below IBM's. To date, the great majority of the installations have been on System/370 Model 145, 155, and 165 computers, and their users are generally well pleased with the reliability and performance of these units. Add-on main memories have also been introduced for the System/370 Model 135 and 158 and announced for the 168, but the smaller Model ll5 and 125 systems have not yet attracted any attention from the inde-pendent memory makers.
The IBM System/3 represents a potentially large but not necessarily lucrative market for the add-on memory suppliers. IBM has already installed more than 20,000 of its small-scale System/3 computers, and at least three companies currently offer add-on units that can replace most of the IBM memory and/or increase its capacity.
One of these companies, Business Systems Technology, has already delivered 1,000 of its System/3 add-ons.
Aside from many of the popular minicomputers, the only non-IBM computers for which add-on memory units can currently be obtained from independent suppliers are the
large-scale UNIVAC and Digital Equipment mainframes.
Both Ampex and CIG currently supply add-on memories for the UNIVAC 494, 1106, and 1108, and Ampex also has units for the UNIVAC 418 III and the DECsystem-l0.
In general, though, the marketing prospects for add-on memories for most other computer systems are simply not large enough to be nearly as attractive as the vast System/360 and 370 markets.
The pioneer and early leader in add-on main memories was Data Recall Corporation. The first Data Recall unit was installed on a System/360 computer in February 1970, and by mid-1972 nearly 300 installations had been made. A major factor in Data Recall's early success was its exclusive marketing tie-in with Computer Investors Groups (CIG), a leasing firm that owns over $45 million worth of System/360 equipment. Most of the early Data Recall installations were on CIG-owned computers, pro-viding the two companies with an enviable opportunity to demonstrate the feasibility of the add-on memory concept in user installations throughout the country.
CIG reinforced its claim to the title of leading marketer of add-on main memory through a complex series of transactions announced in October 1973. First, CIG purchased Fabri-Tek's entire installed base of IBM-com-patible memories. Second, Fabri-Tek announced an agreement in principle, which has since been consum-mated, to acquire Data Recall Corporation. Third, CIG and Fabri-Tek signed a marketing agreement under which CIG purchased, marketed, and serviced the Fabri-Tek and Data Recall add-on core memories in the United States, Canada, and Western Europe. As a result of these transactions, CIG now boasts over 800 add-on memory installations on System/360 computers, as well as a growing number of installations on System/370 and UNIV AC computers. CIG also markets semiconductor memories producted by Intel Corporation for the 370/135 and 370/145. In mid-1974, the marketing agreemeni between CIG and Fabri-Tek was terminated (probably because of the declining System/360 market), and Fabri-Tek once again markets directly to end users.
Core vs. Sem iconductor
Current magnetic core memories are the products of a comparatively old and well-established technology that has been refined to a high degree of reliability. By contrast, semiconductor memory technology is a young and highly promising one that had been largely ignored in commercial computers until late 1970, when IBM gave semiconductor main memories its stamp of approval by using them in the System/370 Model 145 and in all subsequently announced models. Though most vendors use core memory for their System/360 add-ons, only six vendors offer core memories for the System/370, and these are for Models 155 and 165 only, in which IBM also uses core memory.
The principal advantages of semiconductor memories are their potentially higher speeds and lower costs. Other
r
©1975 DATAPRO RESEARCH CORPORATION, DELRAN, N.J. 08075
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70D-01 0-60e Peripherals
How to Select and Use Add-On Main Memory t::> notworthy potent ial advalltages include reduced space
Icquirc1l1cnts. lower power consumption. nondcstructive IcadouL alld sill1plifiL'd 11laintenancc. (A sillgle c~lId.
containing perhaps 8K to 1.2~K bits
or
semiconductor memory. can readily bc slipped out and replaced.) Two distinct types of LSI (large-scale infegration) tech-nology are being used in today"s semiconductorcontaining perhaps 8K to 1.2~K bits