Parallel Computers, Inc.

Parallel Computers, Inc.

Company type	Private
Industry	Computer hardware
Founded	1983
Defunct	1988
Headquarters	Santa Cruz , United States
Area served	United States, United Kingdom
Products	Fault-tolerant computer systems
Number of employees	40 (1986)
Parent	General Automation (1987–?), later Integrated Micro Products

Parallel Computers, Inc. was a U.S.-based computer manufacturer located in Santa Cruz, California, focusing on fault-tolerant systems that incorporated the Unix operating system and Motorola 68000 series CPUs.

History

Established in 1983, Parallel Computers sought to provide cost-effective fault-tolerant computing solutions aimed at smaller enterprises. The company secured nearly $21 million through venture capital funding and was part of the 1980s technology scene in Santa Cruz, alongside companies such as Santa Cruz Operation. It belonged to a group of fault-tolerant system vendors influenced by Tandem Computers, including competitors like Encore Computer and Stratus Computer.

The firm's offerings included redundant hardware components—ranging from processors to power supplies—with built-in error detection systems, catering primarily to the supermicrocomputer and minicomputer sectors. Despite this, substantial engineering difficulties arose, largely due to Unix's then-existing constraints regarding fault tolerance, which resulted in product launch delays, workforce reductions, and a change in leadership in 1984.

By 1986, Parallel Computers reported annual revenues near $6 million with a workforce of around 40 employees but had sold fewer than 100 units. The small business segment it targeted often did not prioritize fault tolerance, while the company’s limited sales and production capacities further restricted expansion. Parallel maintained original equipment manufacturer (OEM) partnerships with firms like Scientific Games Corporation and distributed products through UK resellers such as Systime Computers Ltd, yet sales remained relatively low.

Acknowledging the challenges of sustaining itself independently, Parallel was acquired by General Automation in 1987, becoming a fully owned subsidiary. After underwhelming sales performance in 1988, the company was sold to the British enterprise Integrated Micro Products (IMP), which subsequently shut down Parallel’s manufacturing site in Los Gatos and transferred production operations to northern England. IMP then concentrated on telecommunications hardware and was later purchased by Sun Microsystems in 1996 for $96 million.