The Ultimate Entrepreneur
| Industry | Computer hardware |
|---|---|
| Founder | Ken Olsen |
| Headquarters | Massachusetts , United States |
| Products | Minicomputers, PDP series, VAX product line, Ethernet technology |
The biography The ultimate entrepreneur: the story of Ken Olsen and Digital Equipment Corporation, narrates Ken Olsen's journey in developing minicomputers at the company he established, Digital Equipment Corporation. At the time of its release, Olsen faced competition from several Massachusetts-based companies including Data General (created by a former DEC employee), Prime Computer, Wang Laboratories, Symbolics, Lotus Development Corporation, and Apollo Computer. Although Olsen appreciated the importance of software, he was reluctant to support software that operated independently from hardware, which led to missed chances to invest in Lotus 1-2-3 and Visicalc. Additionally, he underestimated the potential of the personal computer market; however, his foresight regarding the Client–server model contributed to the development of Ethernet.
Context
This work was published following The Soul of a New Machine, a book that chronicled the rivalry between Data General and DEC in creating a 32-bit minicomputer. The narrative captures a critical period when both companies overlooked early microcomputer opportunities. By 1988, the IBM PC had become the industry standard. That same year saw a financial downturn that heavily affected DEC and its rivals, triggering a decline in sales from which recovery never occurred.
Despite these challenges, the minicomputer sector remained robust at the time of publication, and Olsen was recognized as a dependable employer. DEC’s community engagement was significant, particularly through Olsen’s backing of higher education and his contributions of PDP-8 computers to high schools in Massachusetts and Connecticut.
Themes
The book provides valuable insights into business strategy, emphasizing that corporate culture must adapt in response to evolving market conditions. Although DEC had not succeeded in producing competitive personal computers by the book’s release, Olsen’s innovations helped lay the foundation for the personal computing era.
The title highlights Olsen’s primary accomplishment: pioneering the minicomputer for small and medium-sized enterprises. Paradoxically, he failed to anticipate the surge of smaller personal computers. His attention remained fixed on advancing the Programmed Data Processor series—maintaining upward compatibility from the PDP-1 through to the successful PDP-8 and PDP-10. A significant event involved chief engineer Edson de Castro, who departed DEC after being refused permission to design a 16-bit version of the PDP-8; he subsequently founded Data General. Both companies then competed to create a 32-bit system—a contest depicted in The Soul of a New Machine. The VAX product line became DEC’s financial pillar, while partnerships with Xerox and Intel on the local area network technology Ethernet supported a decade of expansion.
References
- The ultimate entrepreneur: the story of Ken Olsen and Digital Equipment Corporation, authored by Glenn Rifkin and George Harrar, 1988, Chicago: Contemporary Books
- The Soul of a New Machine, by Tracy Kidder, Reprint 2000, Back Bay Books