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`Apple v. PMC
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`Interactive Videotex
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`Interactive
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`Videotex
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`The Domesticated
`Computer
`
`new york/prlnce'ton
`
`Dimitris N.Chorafas
`
`FBI
`0 petrocelll book
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`Copyright (6“. 1951 Petroceiti Books, Inc.
`All rights reserved.
`Printed in United States
`1 2 3 4 5 6 'I' B 9 10
`
`Designed by Bruce Campbell
`Typesetn'ng by Bach: Graphic:
`
`ISBN 0-89433-127-2
`
`Bibliography: p.
`Includes Index.
`1. Viewdata (Data transmisfion system) I. Ti tic.
`“(5105.052
`384.6318
`80-39566
`
`Library of Congress Cataloging in Publication Data
`Chorafas. Dimiuis N
`Intuactive Vidcolex.
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`Contents
`
`Preface
`
`1 Technology
`Early Discoveries I The Next Vital Steps I Quantification I
`Communications I Inventions I The Economy ofMass
`2 Interactive Videotex
`
`What Is Viewdata? I An intriguing Possibility I The Early
`Years I Gaining Experience I Working with the System I
`Dialing Up
`3 Using Viewdata
`Use at Home I Press the Button I Signal Processing I The
`Terminal Facility I Getting OnIine I Menu Selection
`4 The Viewdntabase
`Pages and Screenfulls I Queries I Information Providers I
`Gateways I Data Integrity I Viewdatabasc Organization
`5 An Information Utility
`Challenging the US. Postal Service and Ma Bell I Toward
`Economical Solutions I What Is a Utility? I A Range of
`Possibilities I The Cutting Edge of Competition I Paying the
`Bill I Connection Charges I Home Computers and the Income
`Tax
`6 Business Services
`
`Office
`
`The Business Viewpoint I A Case Study in Health Care I
`AddAOn Services I Facsimile I The Technical Angle I Teletext I
`Teleconferencing
`7 Whitbread
`
`The Whitbread Structure I A Crucial Problem I Developing an
`Interactive Management-Information System I Management
`Reaction I The Viewdatabase at Whitbread I Balancing
`Inventories I In-House Versus Public Viewdata Service I The
`Security of the Viewliatabase I The Challenge of Intelligent
`Terminals
`8 Homevision
`
`The Source I Viewtron I PCNET I The Next Generation of
`Television Ihogrammable Video Games I Merging Home and
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`9 The Personal Computer
`The Size of Personal Computers I The Do-It—Yourself Kit I
`What Is a Personal Computer? I The Coming YearsI Six
`Markets I Coinvolvement I Computers and Users I A Range of
`Services
`
`10 The Microprocessor
`Integrated Circuits I The Impact of VLSI I Miniaturization I
`The New Automobiles I Integrated Video Terminals I The
`Microprocessor and Houseplants I Portable Terminals
`l I Speak, Spell, and Videopaint
`Computer-Aided InstructionI Human Machine Communication/
`New Concepts I Let’s Talk I Videography I Superpaint I The
`Office of the Future
`-
`
`The Age of Datavision I The Knowledge Worker I Human
`Resources I The Information Needs of Society I A Learning
`Curve I Real Issues in Personal Computers I Machines Create
`Progress and Jobs
`Glossary
`
`139
`
`153
`
`17]
`
`185
`
`12 New Perspectives in Transmission and Storage
`Cable TV I Clear Signals I The Roosevelt Island Experience I
`Optical Storage I The Digital Option I Applications I
`Combining Optical Discs with Intelligent Copiers
`13 Software
`The Software Challenge I BASIC, Pascal, and Other languagesI
`Don’t RushI Interactive Software I Software for Home.
`Education, and Entertainment I Programming Products
`l4 Marketing
`Selecting a Personal Computer I Computer Shops I The
`Economics of Distribution I Franchising I Learning from
`Experience I The Industry Giants I Selling to Small BusinessesI
`Contracting for a Personal Computer
`I 5 Maintainability
`Reliability Statistics I Preventive Maintenance I Maintenance
`Policies I Telediagnostics I Network Assistance I Software
`Reliability I Software Diagnostics I A Maintenance Strategy
`16 Know-How
`
`Index
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`Preface
`
`The domesticated computer is a product of technology. Technolo-
`gy is the art of doing things using objects that are not part of the
`human body.
`There was a time in history when humans did not use technology,
`when they did not make tools out of rock, bone, Wood, or metals.
`What drOVe humans to develop technology was the realization that,
`by adapting the materials in the world for specific purposes, they
`could make themselves more comfortable.
`
`vii
`
`Putting technology to use involves change, and change upsets the
`way people have been accustomed to doing things—for decades
`and even for generations. Because change is rapid and our exposure
`to it is high, we must change our personal lives, as Well as the places
`where we work. If we do not, we will not be able to industrifilize
`the services now possible through technological advancement; nor
`will we be able to benefit from them. To assure the proper man—
`agement of change, we must close the communications gap.
`Computer specialists, TV designers, and telephone transmission
`experts, for example, are not always aware of the Social impact of
`the devices they invent. They know a lot about microprocessors,
`cathode-ray tubes, switching, and transmission lines. But they
`don’t necessarily understand consumer sensitivity. This explains
`why they are sometimes unresponsive to the requirements of the
`average person.
`A similar statement can be made about the consumer’s know-
`how in terms of computers and communications. Yet computer-
`based communication has become the veins and arteries of social
`
`life. Just as the human body cannot function with clogged veins
`and arteries, neither can large organizations and individual house-
`holds operate with clogged communications channels. This has
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`long been true of technology. Technology can be user—friendly.
`Computers are no cold neighbors, as conventional wisdom some-
`times suggests.
`
`Both business and the home user can benefit from Viewdata. Of
`these two groups, surely the more far-reaching is that of the home
`user. The home user can communicate directly with the computer
`storing the information, as well as interrogate and get realtime
`answers. It is possible for a user to make a direct purchase simply
`by supplying a credit card number in response to an advertisement.
`Viewdata can also be used to send bank statements to clients of
`banks who are participating in the system.
`Thistechnology is a new experience. As such, it has a lot of
`appeal. It’s an experience that could change our way of looking at
`just about everything. The private user with a personal computer
`can attach a machine to the system and communicate with data-
`bases. This user can send and receive electronic mail and do office
`
`Computers and communications are both the agents and the
`wheels of change. We know from experience that the more diverse
`technology’s components are, the greater the information exchange
`needed to master them. In this sense, Interactive Videotcx fills a
`private and an organizational need. By providing visual communi-
`cation between people and information, it broadens out horizon.
`Users may be divided into two broad categories. The first is the
`internal business environment in which Viewdata serves informa-
`tion purposes. Applications range from telephone directories to
`sales prices, stock levels, parts lists, expedited items, accounts re-
`ceivable, claims, and executives’ diary appointments. Many poten-
`tial user companies already have a computer. Why then, should
`they wish to buy Viewdata as well? The main reason is that View-
`data is designed to be much cheaper than most other computer
`systems. And it is a general-purpose, relatively low-cost, packaged
`service with terminals that support color.
`Easy access and immediate response have their impact. During a
`four-month trial period in 1978-79has basic computing service, an
`information provider reported-its pages were viewed 110,172
`times by users. No wonder that by late March 1979, one month
`after the introduction of Viewdata in England, there had been
`4,000 inquiries from parties interested in being connected to the
`service.
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`Let me close by expressing my thanks to everybody who contribu-
`ted to making this book successful: from my colleagues, for their
`advice, to the organizations I visited in my research, for their in-
`sight; and to Eva-Maria Binder for the drawings, typing, and index.
`
`Dimitris N. Chorafas
`
`work by remote control. With all this, it is hard to resist the con-
`clusion that Viewdata will have a major effect on society.
`Information exchange makes people more aware of things and
`sets the pace of development. Computers handle information, and
`information means knowledge;knowledge is power. Computers also
`mean automation—from transaction-processing to decision-making.
`The expansion of technology has blurred the distinction between
`the haves and the have-nots. By bringing people closer together,
`computers and communications erase the argument
`that 90%
`of science and technology has been developed for the rich. Tech-
`nology has turned the computer into a relatively simple inexpen-
`sive, and easy-to—use tool for everyone, and we should be ready
`for the coming changes.
`
`January 1981
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`Technolorgy
`
`microprocessors run nipg a variety of equipment from “whiteware”
`(refrigerators, ovens, washing machines) to video units, telephone
`stations, and digital terminals. Domesticated data-handling units
`may cost, at the start, between $1,000 and $2,000. But the cost
`will diminish even if the needed memory capacity increases be-
`cause of expanding use.
`Domestication is the issue. As human beings, we have always
`tried to domesticate our surroundings. We have used zoomorphic
`
`The first wave of evolutionary progress came when early humans
`abandoned caves to live in communities. This led to the agricultur-
`al revolution—the systematization of food production. The second
`wave was the industrial revolution, in which the rules of work were
`standardized and life in general became more rigid.
`[980, with communications spread around the globe, affecting
`everyone's life to some extent, computers are ready to expand the
`human experience. With semiconductor capabilities incorporated
`in practically every electronic product, a new era has begun.
`A movement is under way, however, to break up this central-
`ized, rigid system of control. The aftermath could he immense:
`change may be accelerated many times over, and society will most
`likely become increasingly complex.
`Speculation is mounting about many of the issues involved. The
`Age of Information, according to one school of thought, may raise
`personal income to a level 20 times that of the present level. Some
`experts predict a fiftyfold increase by the end of this century.
`Computers and communications are the crucial part of this change.
`For more than 25 years information machines were kept in offices
`and factories. Now they are swiftly being moved into homes.
`The domesticated computer center of the future will consist of
`
`(1)
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`Mail is one of the oldest forms of communication. As we will
`see in this book, all-electronic mail can both eliminate time delays
`and cut costs by reducinglong-distance telephone charges. Products
`now under development will offer capabilities in graphics, includ-
`ing limited-movement television. Nevertheless, some people object
`to the computer as an “intelligent” machine. Machines, however,
`are neither intrinsically bad nor intrinsically good. As is true of
`any tool, what computers do depends on the people who use them.
`Computers have no regard for motive or intent, good or evil. This
`is also true of science in general.
`The difficulty in domesticating the computer lies in the human
`interaction, where much depends on motivation. As information
`specialists, computer scientists have not done their share in moti-
`vating users in bringing them into the picture, in demystifying and
`knocking down the barriers between people and machines. [f past
`history is any guide, the bringing together of people and computers
`is at hand. To appreciate what is in store for everyone in this in—
`formation explosion, we must look at the long march of civiliza-
`
`to make it more
`approaches to humanize the world around us,
`familiar and less formidable, more comfortable for people.
`Humanizing means endowing inanimate things with a meaning
`beyond their connotations. Humanization is essential in establish-
`ing a habitat relationship among people, their environment, and
`their machines. And just because it is man-made, “humanization,”
`under scrutiny, reveals some of the mystifying foundations of the
`mind, such as the need to reach for data and communicate them.
`The advantages of computers and communications in the house-
`hold range from the immediacy ofinformation to the effective use
`of the other products of technology. By “immediacy” I mean access
`to a vast, updated database and the possibility of enlarging online
`capabilities by coupling a home computer to a telephone network.
`A database is an organized, computer-run, orderly collection of
`data designed in an application-independent manner to serve data-
`processing purposes. In Chapter 4 we discuss the component parts
`of the database as information elements, as things known or
`assumed, facts or figures from which conclusions can be dravm,
`information, quantities that have been measured and recorded,
`digital communications.
`
`tion, at how and when we acquired what we have.
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`Technology
`
`Early Discoveries
`
`Throughout history people have made important technological
`advances, only to discover that the consequences of their advances
`were not confined to the immediate effects. The first technological
`breakthrough—fire—influenced human development
`far beyond
`the expectations of early humans. Fire, and thus technology, al-
`lowed people to control their environment and tailor it to their
`needs. Metallurgy became possible only after humans learned to
`control fire. But metallurgy was developed thousands of years
`after fire was domesticated. (There is always a delay between a
`great discovery and its productive application.)
`Another result of the mastery of fire was the discovery that food
`heated by fire tastes better and becomes easier to chew and there-
`fore digest. As cooked food yielded pleasant new flavors, it became
`universally appreciated—a good example of the broadening effect
`of a crucial technological advance, the implications of which usu-
`ally are not at first known.
`Throughout history people have learned that technological de-
`velopments do not produce only beneficial results; they expose
`people to danger. Campfires sometimes destroyed the shelters they
`were intended to heat and light. People died in fires. And fire has
`often been used as a weapon to kill others. Even a fire carefully
`used may have undesirable side effects. Smoke fouls the air and
`irritates the throat and lungs. Should we, therefore, abandon the
`use of fire? Endure the pollution? Or should we devise a way of
`using fire without some or all of these side effects?
`Far from being an academic curiosity, technology and its effect
`should be of intense interest to everyone. Throughout recorded
`history, technology has had an immense impact on people.
`Technology creates opportunities. But because of its scope and
`the immensity of its impact, it’s like Gulliver in the land of the
`Lilliputians: every step ought to be studied thoughtfully. Not only
`scientists but the average citizen should understand the breadth of
`change involved in science and technology, and they should pre-
`pare for this change.
`It is entirely lilier that in the computerized society of the fu-
`ture, those who are unwifling or unable to use computers will be
`
`excluded from Work positions of power. Also, because the com-
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`Scientific discovery brings new processes, and new processes
`result in new ideas that upset the existing order. Because of these
`processes and ideas, and the pace at which they develop, the per-
`son who is last today, but who nevertheless tries, may be first
`tomorrow.
`
`All this must be considered in discussing the impact—social and
`economic—of the new scientific ideas and processes that occur.
`The agents of change do not always answer the curse of modern
`times: gigantism. The most intriguing agent of change in the short
`term may very Well be the microprocessor.
`
`puterized society will be leisure-oriented, this exclusion will mean
`that, as usual, the brighter people will Work, and it will be they who
`will struggle for that power. What will happen to those who are less
`bright? They will probably have the time free to enjoy themselves,
`since there will be no work for them to do. The computer-based
`society of the year 2000 may contain a privileged class of“infor—
`matlon providers," on one side. and. on the other, everybody else.
`People make history, and people make science. But science is a
`peculiar creature. It is amoral; it has no morals or politics. It is
`neutral, neither good or bad. The goal of science is efficiency, in
`the pursuit of which friends and foes alike will be eliminated if
`necessary.
`
`could produce more food than was needed for subsistence.
`
`The Next Vital Steps
`
`With every important technological advance, we face a challenge.
`We know all too well that once we have reached a certain level of
`development, any retreat means a significant reduction of capabili-
`ties, as Well as a lowering of the general standard of living, a reduc-
`tion society will allow only reluctantly.
`.
`There is enough historical evidence to document this view. Look
`at the next great technological advance after the domestication of
`fire: agriculture. The systematic cultivation of crops began about
`12,000 years ago in Egypt and Mesopotamia, and agriculture has
`been in use ever since.
`
`Agriculture has had a profound impact on civilization. Its de-
`velopment led to farming communitieSche first organized human
`societies. It also meant that, for the first time, a group of people
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`Technology
`
`Artisans, and then merchants, poets, and artists, could now exist.
`Later came thinkers, doctors, and scientists. The life of the mind
`began, not because people discovered that
`they needed an intel-
`lectual life but because the domestication of agriculture made pos-
`sible professions other than the original one of cultivating crops.
`The third great development was that of communication. Com-
`munication began with speech and was formalized when writing
`was invented. Through the development of language, then writing,
`and eventually printing, mankind moved out of its ancient ignor-
`ance, opening the way for science. Science actually consists of
`doing experiments and publishing the knowledge gained from them.
`Otherwise, science would not be disciplined human action but
`merely a hobby.
`Speech and the methods for recording it have made a significant
`difference between humans and the lower animals. As long as direct
`speech was the sole means of human communication, however,
`communication was limited to an individual's hearing range. Writing
`changed this perspective. It was now possible to communicate
`without fear of distortion. Speech makes us human; writing makes
`us think.
`Speech allowed experiences to be passed on. Writing made the
`experience cumulative. Both facts and vision could be recorded.
`on which new generations could build. Communication became
`synonymous with intelligence. Writing now permitted the transfer
`of abstract information among human beings. With writing, the
`process of communication accelerated. Knowledge could not only
`be stored but improved upon.
`
`and writing as the most significant steps in civilization.
`
`Quantification
`
`With the thirst for expression satisfied, people needed a system of
`signs and rules with which to record and transfer data, as well as
`experiment with their thoughts.
`Through mathematics, people's ability to calculate and think
`logically improved. Positional notation opened the gates in arith-
`metic. The discovery of the zero—making something out ofnothing
`and giving it a name—ranks with the domestication of fire, speech,
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`The next big step was printing, including the development of
`paper,
`ink, and metal alloys. The earliest storage media was clay,
`stone scrolls, or papyrus. With printing. mankind advanced to the
`stage of making multiple copies.
`If agriculture made possible the first human community larger
`than the family, printing made possible the first community that
`included thinkers. A rapid scientific and technological advance re-
`sulted. The 16th-century revolution of thought became pDSSiblc
`only after the establishment ofnrintingon the continent ofEuroDe.
`The transmission of messages was for centuries limited by the
`physical problem of transporting them. Information sometimes
`had to be carried great distances by people on foot or on horse-
`back. The steam engine, as it was applied in locomotives and steam-
`ships, sped the carrying of messages relatively little. Then came
`a genuine breakthrough: electricity.
`
`Communications
`
`Interactive l'ideotex
`
`electrons sent through a vacuum can be deflected, started, stopped,
`
`The world began to be wired for the transmission ofmessages and
`their reception about the middle of the |9th century. By 1866,
`cables stretched across the Atlantic. enabling the Old World to
`communicate with the New World in terms of seconds rather titan
`the weeks or months of the era of slow-moving ships, trains, and
`horses. Communications was the first great area where electricity
`was put to use. It all started with Michael Faraday‘s dynamo (1831}
`and Samuel F. B. Morse's telegraph (1835). In 1858 came the
`steam—driven electric generator, and during the 18705 Thomas A.
`Edison invented the incandescent light bulb and the phonograph
`and Alexander Graham Bell the telephone.
`The era in which the breakthroughin electronic communications
`occurred started in 1887 when Heinrich Hertz learned to produce
`and detect radio waves. By 1901, Guglielmo Marconi was using
`them to send measages across the Atlantic. Radio made it possible
`to transmit wireless messages,
`thus creating the potential for a
`greatly simplified and expanded communications network.
`By the mid-18905, scientists had learned that electric current
`involves particles smaller than the atom. In 1897, J. J. Thomson
`discovered the electron. Under the proper conditions a stream of
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`Technology
`
`Communications via satellites continue to cost less every year
`despite inflation. In 1979 the International Telecommunications
`Satellite Organization (Intelsat) credited improved technology and
`the efficiency of its network of satellites when it out its monthly
`charge by 16% for a full-time,
`two-way telephone circuit. (The
`new price is $960. When Early Bird was launched in 1965, the
`same service cost $533. If the charge had risen at the same rate as
`
`inflation, the cost in 1980 would be more than $2,000.) Because
`of technology, the United States benefits from a 10% to 12% annual
`
`diminished, and intensified. Operations once requiring mechanical
`switches could now be performed by manipulating electrons in a
`vacuum. Because electrons are so lightweight, this could be accom-
`plished with much greater speed, precision, and saving of energy.
`Development of an electronic switch by scientists such as John A.
`Fleming and Lee De Forest led to the development of the radio
`tube, which made possible a host of electronic instruments, not
`only for radio but for television and Datavision.
`Satellites have opened another frontier in communications. In
`1965 Early Bird, the first commercial communications satellite.
`was launched. Weighing 88 pounds, it had a capacity of 240 voice
`circuits and one television channel.
`In 197]
`Intelsat [V was
`launched. It weighed nearly a ton and had a capacity of 6,000
`voice circuits and 12 television channels. Today the Intelsat sys-
`tem has seven satellites in orbit and is used by means of I IS termi-
`nals on earth in 65 nations. The worldwide investment in this
`system and others like it is well Over 5] billion.
`
`'
`
`reduction in communications costs, a reduction ofabout 24% per
`year in computer logic and a decrease of 30% to 40% in computer
`memory. This makes an average decrease per year of 20%. Mean-
`while, personnel costs are increasing about 9% annually in real
`terms (Figure 1.1).
`Although communications costs are dropping. so is the price of
`memory devices. The ratio of the former to the latter is roughly
`1:3.5. This suggests that we would be well advised, both in the
`home and the office, to substitute cheap memory for the more ex-
`pensive lines. That‘s what Viewdata proposes to do. Such ad-
`vances, it should be noted, come none too soon. Communications
`costs in business and industry are high and getting higher all the
`time, whereas, as Figure 1.2 indicates, both unit costs and packag-
`ing are increasingly attractive to users.
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`
`PERSONNEL +93’o/YEAR
`
`COMMUNICATIONS
`~10 - 121’a/YEAR
`COMPUTER LOGIC
`~ EEK/YEAR
`
`PUTER M MD Y
`
`Scizoe/YEAE R +
`TlME
`
`
`
`this true.
`
`In terms of functions, We are talking about network systems. In
`computer handling, office processing, home usage, even voice com—
`munications, we are moving toward all-digital service. One network
`will be able to handle all needs, be they voice, image, or data,
`whether they are destined for the factory, the sales office, general
`management, or the home and inventions are needed to make
`
`\
`TIME, USE A
`
`—|
`
`FACKAGING
`
`5qu \
`
`
`
`_L_fi_____
`J
`VLSI TIME —9
`
`Inventions
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`Technology
`
`About 18,000 patents have been issued to Bell Laboratoriesdur—
`
`ing its 50 years of existence. That is more than one patent per day.
`Among them are coaxial cable transmission, microwave radio relay,
`the modern (data set), the transistor, the laser, direct distance dial-
`ing, electronic switching, the picturephone, the commerical exploi-
`tation of domesticated radio transmission, the first synchronous
`sound motion picture system, the pioneering electrical relay digital
`computer, and the negative feedback amplifier.
`Besides making possible transcontinental telephone transmission,
`for which the negative amplifier was developed, it paved the way
`for high-fidelity recording and basic computer circuitry. This is
`another example of the initially unknown effects of technological
`innovation. Recall that, in the past, as each scientific breakthrough
`became known to the general public, the new technology vastly ex-
`ceeded people’s ability to deal with it productively. As technology
`moves faster and faster, the gap grows between those who know
`about a particular development and those who do not.
`
`The Economy of Mass
`
`Commercial data communications Service began around 1960, ini-
`
`Evolving communications facilities have opened a new industry
`standard:
`the economy of mass. Delivering a message from, say,
`Paris to Chicago by hand is much cheaper than constructing a tele—
`phone system. Nobody, however, thought of building a netwoflt
`for transmitting just one message. The inVestment will be made if
`it can bejustified.
`Once communication by wire became available, people discover-
`ed that they had a great deal to say and a great deal to hear. If
`few long-distance messages were transmitted before the era of elec-
`tronic communication, it wasn’t because there was nothing to say
`but because of the time, effort, and cost of delivery involved.
`Computers and communications are fast becoming the basis of
`the economy of mass (Figure 1.3). Although computers and elec-
`tronic communication have not followed parallelcourses, they have
`been integrated into the field of data communications.
`Data communications over the analog voice netWork available
`at the time began in the 19505. At the time the U.S. government
`needed a way to transmit aircraft radar data to central locations.
`
`PMC Exhibit 2124
`Apple v. PMC
`IPR2016-01520
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`

`COMMUNICATIONS
`N ETWORK
`
`STAND-ALONE; ONLINE
`MEDIA
`
`OFFICE
`AUYOMAUON
`J
`
`PERSONAL COMPUTER POWER
`
`PERSONAL AND HGME
`COMPUTERS AND
`COMMUNICATIONS
`
`Interactive Videorex
`
`LARGE
`CENTRAL INFORMATION
`SYSTEM
`U I PM NT
`E
`
`E0
`
`DISTRIBUTED
`COMPUTER
`POWER
`
`capabilities—because of the needs of the communications industry.
`
`tially with speeds ranging from about 100 to 2,400 bits per second
`(BPS) {a bit is a binary digit; for explanations of this and other
`technical terms, consult the Glossary). (Telex operates at about 70
`BPS and a modern voice-grade line at 2,400 BPS; the average and
`most common voice line operates at 1,200 BPS.)
`In the late 19505 data transmission service was still slow; 600
`BPS was typical. By 1960, however, reliable transmission at speeds
`up to 1,200 BPS had been established. Although the signal format
`(start/stop, or asynchronous) was not very efficient,
`it was the
`easiest format to implement, and is still in use.
`We often fail to appreciate the impact ofdigital communications
`on the advancement of technology and the shaping of society in
`general. Yet this technological advance has been of fundamental
`and far-reaching importance. In the 19th century the new modes
`of transportation—roadsI canals, and railways—made possible the
`acceleration of the industrial revolution. which led to a more in-
`dustrialized society. In the 19705 we saw the forging of digital-
`communications links and the birth of a technology that promises
`to have a greater impact than 19th-century industrialization.
`The computer itself has changediin its structure, design, and
`
`PMC Exhibit 2124
`Apple v. PMC
`IPR2016-01520
`Page 20
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`

`

`Technology
`
`( 1 1)
`
`Gone is the time when batch processing was king. Today we speak
`of queries, on-Iine access, interactivity. This is where the main tech-
`nical effort of the 19805 will be. Soon the history of the computer
`will be divided into four “epochs"—the paleolithic, the neolithic,
`the copper, and the iron, to use the metaphors ofgeology.
`The paleolithic epoch started with the commercialization ofcorn-
`puter power around 1950. Computer mainframes were the dino-
`saurs of this epoch. They dominated the field for some 15 years.
`Univac I opened the market, and IBM conquered it, eventually
`gaining 60% to 65% of the world market.
`
`be displaced. The way management makes decisions will change.
`
`In the neolithic epoch, smaller, more flexible and efficient com-
`puters with greater capacity were designed that made the main-
`frames of the paleolithic epoch extinct. By 1965 the age of the
`minicornputer had begun. The age opened with the launching of
`Digital Equipment's PDP-S. Until
`the management of the giant
`companies got wind of what was happening, little Digital Equip-
`ment had a large portion of the Worldwide market.
`By the early 1970s information technology had entered the cop-
`per epoch. The microprocessor came along, soon to be upgraded to
`the microcomputer—all accompanied by a host of peripheral prod-
`ucts. Intel's standard microprocessor of 1972 will one day be re-
`garded as the turning point in the development of computing power.
`The trend toward making the computer available to the public
`started here, although it would be another IO years before the
`practical results were evident. Strategic studies have demonstrated
`that innovative products, often produced by new firms as new en-
`trants in the market, take business away from established firms that
`are not aware of, or do not care about, adapting their products and
`services to the latest developments in technology. The transition
`from the dinosaur epoch of the mainframe to that of the minicom-
`puter is one example, although the advent of the minicomputer
`was not as drastic as that of the microprocessor.
`For information technology, the iron epoch is the epoch of the
`19805. Far from being a terminal point, it is a new beginning that
`one day will result in many processes and products, with the sys-
`tems concept as the basic link.
`Just because systems and not single devices will be the focal point,
`the effect of the iron age of computers will probably have a lasting
`effect, in both the home and the office.