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<H1>Ken Olsen Interview</H1>
<HR>
Interview Conducted at<BR>Digital Equipment Corporation<BR><BR>Digital=20
Historical Collection Exhibit
<HR>

<H3>Transcript of a Oral History Interview with <BR>Ken Olsen =
<BR>Digital=20
Equipment Corporation<BR></H3><I>Interviewer: David Allison <BR>Division =
of=20
Information Technology &amp; Society<BR>National Museum of American =
History,=20
Smithsonian Institution<BR>September 28, 29, 1988</I>=20
<HR>

<P>
<H2><A name=3DContents>TABLE OF CONTENTS</A></H2>
<UL>
  <P>
  <LI>
  <H3><A name=3Dbt1></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc1">Learning=20
  about Radio and Electronics</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt2></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc2">Radio=20
  and Vacuum Tube Innovation</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt3></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc3">Electronic=20
  Developments at the Navy</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt4></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc4">Electronics=20
  After the War</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt5></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc5">The=20
  M.I.T. Experience</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt6></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc6">Undergraduate=20
  Studies</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt7></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc7">Description=20
  of the WhirlWind Computer</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt8></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc8">History=20
  of the Whirlwind Computer</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt9></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc9">The=20
  Basis for Computer Design in the 1950's</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt10></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc10">The=20
  Whirlwind Computer - Origins of the Name</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt11></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc11">Inventing=20
  Core Memory</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt12></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc12">The=20
  M.I.T. Lab</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt13></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc13">Listening=20
  to the Computer Late at Night</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt14></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc14">Modular=20
  Computer Design</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt15></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc15">Making=20
  Test Equipment</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt16></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc16">The=20
  Impact of Core Memory</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt17></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc17">The=20
  TX-0 Computer</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt18></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc18">The=20
  American Research Company</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt19></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc19">Digital=20
  Equipment Corporation - The Early Days</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt20></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc20">Digital's=20
  PDP-1 Computer</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt21></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc21">The=20
  Concept of an Interactive Computer</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt22></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc22">Real-Time=20
  Data Processing</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt23></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc23">M.I.T.=20
  Students Learning Computing on Digital's PDP-1</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt24></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc24">Digital's=20
  Customers Develop Software</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt25></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc25">Selling=20
  Computers to Government</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt26></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc26">Unique=20
  Features of the PDP-1</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt27></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc27">PDP=20
  - The Origins of the Name</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt28></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc28">DEC's=20
  First Trademark</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt29></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc29">Software=20
  on the PDP-1</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt30></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc30">Managing=20
  the Success of the PDP-1</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt31></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc31">Running=20
  a Program on a PDP-1</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt32></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc32">Designing=20
  the PDP-8</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt33></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc33">Networking=20
  PDP-8 Computers</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt34></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc34">Developing=20
  the PDP-11</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt35></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc35">The=20
  Role of the Personal Computer</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt36></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc36">Observations=20
  About the Computer Industry</A></H3>
  <P></P>
  <LI>
  <H3><A name=3Dbt37></A><A=20
  =
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#tc37">Future=20
  Computer Inventions</A></H3></LI></UL>
<HR>

<P>David Allison (DKA): I'm interested in how you first became =
interested in=20
electronics. I read that you set up your own radio station. Whether =
that's true=20
or not, how did you first get interested in electronics?=20
<P>
<LI>
<H3><A name=3Dtc1></A>Learning About Radio and electronics</H3>
<P>Ken Olsen (KO): When I was a teenager in the late 30's and early =
40's,=20
electronics wasn't a word. You were interested in radio if you were =
interested=20
in electronics. Most of the information came from POPULAR MECHANICS and =
POPULAR=20
SCIENCE magazine. The books in the library had very little on radio. I =
remember=20
very clearly they stopped at a, the spark _____ transmitter which was=20
approximately World War I time. Anything I could get hold of I seized =
and=20
studied and read. And any chance to experiment. If anybody threw out a =
radio,=20
which they didn't do very often during the Depression, I, of course, =
stripped=20
the parts and used it to do experiments. The experiments were limited =
because we=20
could never get enough parts to do anything very exciting. The war =
helped.=20
<P>DKA: Ken, was this something that you did alone? Did you do it with =
other=20
members of your family? Or was there a club?=20
<P>KO: Most of this I did alone. I had a brother who was two years =
younger and=20
we sometimes experimented together. One thing we did was make a one tube =
radio.=20
Before that we made all kinds of crystal radios which were very limited =
in their=20
selectivity. You could only get one or two of the local stations. We =
made a one=20
tube radio. With this we could buy battery cells for a penny a piece on =
sale.=20
And get up to twelve volts. The normal voltage of 200 volts or so was =
beyond our=20
budget. But we made a one tube radio. It worked very well. We built it =
and=20
rebuilt it and rebuilt it again. And learned a lot on the way.=20
<P>DKA: Where was this, Ken?=20
<P>KO: I was brought up in Connecticut, outside of Bridgeport. It was an =
area=20
where machine tools were built, where you were normally expected to =
learn=20
machine shop practice. And I did. But there wasn't much in the way of=20
electronics going on. When I was drafted for World War II, I had the =
enormous=20
opportunity to go to electronics school in the Navy. It was a great =
school. It=20
lasted a year, or at least eleven months. It was set up by competent =
people and=20
they gave an excellent education in electronics. They taught us all the =
tricks,=20
manipulating, calculating circuits, the rules of thumb for electronics, =
and went=20
through all of the gimmicks and tricks and things one should know about =
radio.=20
And then radar, and counter measures. It was the most exciting thing a =
young=20
kid, a lot of the electronics could go through.=20
<P>DKA: How old were you when you went to school?=20
<P>KO: When I was 18 I went off to the Navy.=20
<P>DKA: Where was this school?=20
<P>KO: After a few months at Great Lakes at Boot Camp, I went to =
downtown=20
Chicago for two months. I lived in the high school [where] they taught =
us the=20
basis of electronics. I'm not sure we even used the word electronics at =
that=20
time. The program was set up for the Navy by someone named Captain Eddy =
who was,=20
before the war, the one who set up television in Chicago. The Kukla, =
Fran and=20
Ollie stories were, I think, one of his projects. We then went out to =
Monterey,=20
California for three months, nine months in the middle of San Francisco =
Bay on=20
Treasure Island. It was a dream for someone who loved electronics.=20
<P>DKA: Ken, was this the first time you really had a group of people =
around you=20
that you could talk to?=20
<P>KO: Oh yes, yes.=20
<P>DKA: What was that like?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt1">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc2></A>Radar and Vacuum Tube Innovation</H3>
<P>KO: It was just exciting because everybody was thrilled with what =
could be=20
done with electronics. Vacuum tubes were largely just for radio. The =
development=20
of radar opened up the use of vacuum tubes in such wonderful ways that =
we never=20
conceived of. We'd known what radar was in very general terms. But not =
in=20
exactly the detail which how everything was done. And some of the =
inventions in=20
radar just thrill me today to think about them.=20
<P>DKA: Ken when were you drafted? You were drafted because =
you...struggled to=20
get into radio electronics?=20
<P>KO: The Navy gave tests to people ahead of time who wanted to go into =
this=20
program. And if you were accepted you were then drafted. But my serial =
number=20
always had on the end of it, SV, Selective Volunteer. That is selected =
ahead of=20
time and then volunteered. So we went in a special program right away. =
And stuck=20
with electronics all the way.=20
<P>DKA: What were they grooming you to be?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt2">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc3></A>Electronic Developments at the Navy</H3>
<P>KO: Oh technician...technician. Their goal was to train enough =
sailors to=20
maintain the vast amounts of electronics that were being put on =
shipboard. The=20
war demonstrated the importance of electronics. The radar, the radio, =
the sonar,=20
the navigation and countermeasures were all very intensive use of =
electronics.=20
There also were analog computers for antisubmarine work. And all of =
these needed=20
large numbers of technicians. And so they set this massive program up to =

generate thousands and thousands of technicians. The result was, I =
believe, a=20
major influence on the development of electronics in this country. After =
the war=20
when we all went to school, everybody wanted to be in electronics. And =
out of=20
that came I think the success this country has had in electronics.=20
<P>DKA: What happened to you in particular? You went to your school in =
Illinois=20
then out to the West Coast, and then what happened?=20
<P>KO: We went through the usual red tape of sitting in camp and going =
on a=20
troop ship. And by then the war was over. And I ended up in China and =
was=20
assigned then to an admiral's staff and we lived on one cruiser and then =

another, maintaining communications for the admiral. While we were there =
we had=20
an opportunity to see China and Korea but we had enormous time for=20
experimenting. In the radio shack where most of the time we were on duty =
with=20
nothing to do, the crew was broken into three groups. The card players, =
the=20
sleepers and the experimenters. It sometimes rotated. We had access, one =
way or=20
another, to all kinds of electronic parts, and we did some fascinating=20
experiments.=20
<P>DKA: Why do I not have to ask you which group you were in.=20
<P>KO: [LAUGHS] Then there were things that always had to be done =
somewhat=20
illegally. The bureau ships laid down rules on how things were to be =
done. But=20
they didn't know what things were like 8,000, 12,000 miles away. And we =
had to=20
make things and redo things and get our major projects and...=20
<P>DKA: What's an example, Ken?=20
<P>KO: Oh... the communications suddenly, within a harbour, were done on =
radios=20
that were made for tanks, and ran on 12 volts. There's no 12 volts on a =
ship.=20
Well, we could listen with 12 volts, alright, [but] when you transmit we =
need a=20
lot of power. Everytime we went to transmit, we had to turn on a motor =
generator=20
set. You couldn't call a technician in to turn it on everytime you're =
going to=20
transmit. So we had to make a major switching system to allow an =
operator far=20
away to turn on the ______ system automatically. None of this was legal =
by the=20
rules but we got the job done.=20
<P>DKA: You mentioned awhile ago growing up, Ken, [about] machine shop=20
practices. I wondered if that began to pay off in your work in the Navy =
and=20
later on.=20
<P>KO: My father was a machine designer. He said it was okay to go into =
radio=20
but it was a business you went into because you loved and therefore you =
starved.=20
People in the radio business or electronics then really didn't make a =
reasonable=20
living. So he insisted I learn machine shop practice first, and I did =
that=20
afternoons when I was in high school. It paid off very well, in the =
Navy,=20
because I was the only one who could sharpen a drill and do simple =
things like=20
that. [And] when we started Digital I was the closest thing we had to a=20
toolmaker, not a good one, but I made the original tools. We used =
cutting sheet=20
metal in making parts. I can at least carry on a conversation with =
people today.=20

<P>DKA: When you were in the Navy and had all this time, were you =
prepared when=20
the war ended? Were you ready to function? Were you ready to go to work =
in a big=20
way? Or were you still in training?=20
<P>KO: The plan was obviously to go to college. After the war, we had =
developed=20
a lot of self confidence that we could fix anything. Part of it was true =
because=20
we were trained in a way. And other parts were very naive. But we didn't =

understand. We had to go to college. The government did wonderful things =
in=20
encouraging people to go to college with the GI bill of rights. So =
almost all of=20
us had the ambition to go right into college.=20
<P>DKA: The feeling must have been very strong to see all this =
development in a=20
field that you loved. And we'd won the war. How did you feel coming out? =
Did you=20
feel about opportunity?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt3">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc4></A>Electronics After the War</H3>
<P>KO: Oh, yes. We felt a lot of opportunity. We felt electronics was =
going to=20
revolutionize industry. We could see so many opportunities for =
electronics. It=20
was discouraging to see how slow it picked up. After I had been in =
college I=20
thought I'd find a summer job that could be useful. Electronics just was =
not=20
finding a place in industry. It took a long time.=20
<P>DKA: I want to go back to that transition from training when you were =
in the=20
Navy to your working. Was going to China the first work? That admiral's =
staff,=20
was that the first time that you were deployed?=20
<P>KO: Yes. Being on shipboard was the first time we really had an =
opportunity=20
to practical measure use our training. We probably learned technology =
but also=20
learned enormous confidence, maybe way out of line for our skills but =
we'd=20
tackle anything. Except once. I remember that the ship's navigator =
wanted me to=20
fix this flashlight. And I said, any electronics, yes, but a flashlight, =
no.=20
[LAUGHS]=20
<P>DKA: What were you good at in the Navy? I don't really have a picture =
of what=20
you did. I know you were fascinated by all the stuff, but what did you =
find=20
yourself doing individually the most?=20
<P>KO: The job I had in the Navy with a group of two dozen people, was =
to keep=20
all the electronics going. And we always had someone on duty. When =
transmitters=20
had to be changed, we had to do the changing. When anything went wrong, =
we had=20
to fix it. When preventive maintenance was needed, that was our job. =
When there=20
was some logistical problem in the operation of _______, that was our =
job. So=20
the area of troubleshooting particularly fascinated me because it was an =

interested puzzle. Finding out was wrong and fixing it as soon as =
possible.=20
<P>DKA: What did you think of the quality of Navy equipment?=20
<P>KO: Most of it very good. At that time, now looking back at it, it =
was heavy=20
and somewhat crude. But that time it was beautiful, elegant, =
magnificent, with a=20
few sad exceptions.=20
<P>DKA: Was it well organized?=20
<P>KO: Yes. Very sturdy and very well built. With a few pieces that they =
should=20
have left on shore. I was still in school at Treasure Island when the =
war ended.=20
I finished soon afterward and after a number of stops on the way, I went =
to sea=20
for eight or so months.=20
<P>DKA: What were you on? Was it a destroyer or battlewagon?=20
<P>KO: I ended up on a cruiser because that was a cruiser because that =
was a=20
flagship. And when the war was over we didn't really think about going =
out. We=20
knew we still had a long time to go. People joked about the war lasting =
many,=20
many years. [I] never really thought about getting out, you know you're =
just=20
there forever almost. When it was time to get out the first idea was to =
relax=20
for awhile and then get ready to go to school. But I think most people =
really=20
planned to go to school. Some people had no preparation for it at all. =
Tried...=20
because the spirit, because of the GI bill, was unique, I think of all =
previous=20
wars the drive was to go to school and get education. And I think it =
made that=20
generation of, from that war, different from all others. People really =
drove to=20
go to school. I went to work at General Electric which was in town, =
where they=20
were making radios. We made very expensive FM radios. I was a =
troubleshooter on=20
the end of the line, [doing] mass production troubleshooting. I loved =
it, it was=20
fun. This was in '46. My folks were still in Connecticut. After they =
mustered me=20
out I went home and spent a month or two going to the beach and then =
went to=20
work for General Electric who were hiring anybody they could get who =
could do=20
work in electronics. They had a whole war time of backlog to catch up =
with. They=20
were making very expensive FM radios. I enjoyed it and learned a lot. At =
the=20
same time I was studying for a college entrance exam. I applied only to =
one=20
place, MIT, took the exam and was accepted.=20
<P>DKA: Why did you only apply one place, Ken?=20
<P>KO: There was only one place I wanted to go. My grades weren't all =
that great=20
but I... [PAUSE] didn't think far enough ahead to think of an alternate. =

<P>DKA: What did you know about MIT to have made you want to go?=20
<P>KO: It had a good reputation in electronics from the war and I =
suppose that=20
was all.=20
<P>DKA: And what was it like to be at MIT as a student compared to =
today?=20
<P>KO: We were a extra class brought in February. Largely of veterans so =
we fit=20
right in. And we kind of ran the place.=20
<P>DKA: What does that mean?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt4">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc5></A>The M.I.T. Experience</H3>
<P>KO: Well there was nobody who was young and scared, you know. Very =
serious in=20
a way and yet very carefree also. I went there in February of '47. And =
then went=20
four terms straight without vacation. The first two years were a =
standard course=20
for everybody. Interestingly, when it came time to select the major, =
many people=20
went into electronics, wanted to go into electronics because they had =
exposure=20
to it during the war. MIT set about to interview everyone with a goal of =
talking=20
a certain percentage of them out of electronics, because there really =
wasn't=20
room. They had calculated that there wasn't going to be that much future =
for=20
electronics, so they tried to talk people into going into chemical =
engineering.=20
I remember the questions in the interview, and I remember the professor =
who=20
interviewed me. I was accepted to stay in; course six of electrical =
engineering.=20
Electrical engineering was particularly useful for the future, our =
future in=20
computers because many of the people who laid out the course of study =
came from=20
the radiation lab and the war time experience. One of the things they =
clearly=20
said they had in mind was that if another war started, there was going =
to be=20
somebody able to design magnets. Because when they tried to use the =
magnetron in=20
World War II, they couldn't find anybody to design magnets. So, out of =
these=20
classes came a large number of people who had some simple basic theory =
of=20
magnets. And out of that came very useful knowledge for us in the =
development of=20
the core memory, the key part of computers. People who came from other =
schools=20
without that background were at a serious disadvantage.=20
<P>DKA: Did you study from the radiation laboratory textbook series that =
became=20
so famous, Ken?=20
<P>KO: No, I don't think there were ever classes. There may have been. =
They did=20
develop a number of classes, though, where you could see the influence =
of the=20
people who wrote the rad lab series and who took part in their work. One =

interesting experience, when we studied circuits, probably the first =
course in=20
electrical engineering, I had learned all the tricks and all the ways of =
doing=20
fast computation. And manipulation in...in one's head in the Navy. We =
could do=20
X, Y transformations and do parallel series networks of components and =
do it=20
very quickly. And for several weeks [in] the MIT course, I could do all =
the=20
answers in my head. Suddenly it got beyond what I could do in my head. =
And with=20
a panic I had to go back and learn the systematic approach to it that I =
had just=20
lost in those weeks. Fortunately I caught up and I was able to do it. =
But I=20
almost lost out completely because I had learned so much before I got =
there. But=20
I didn't learn the systematic approach that would take you to the really =
complex=20
questions. There was quite a bit of laboratory work at MIT at this time, =
very=20
much so in physics and in chemistry. The most memorable laboratory which =
I feel=20
badly has disappeared is the motor laboratory. They had a very large =
room, very=20
high ceiling. Quite dusty and dark. Large generators and motors. Oh, six =
feet in=20
diameter that you'd set up and run and learn by the sound of them and by =
the=20
sound of the sparks and the dramatic result of making a mistake and the =
wire=20
would evaporate. A feeling for electricity that too many students missed =
today=20
because it's all simulated on a computer. It's not quite the same as =
hearing a=20
motor run away and about to explode if you don't dive for the switch and =
turn it=20
off. So we did learn some things there that are missing in today's =
education, I=20
think.=20
<P>DKA: Are you the kind of guy that liked to spend lots of time in the =
lab at=20
this period?=20
<P>KO: Oh, I enjoyed it. The electrical engineering laboratory =
experiments took=20
a lot of time. Many nights we literally stayed all through the night =
working on=20
the experiment, writing up the experiments. So you never went and did =
any more=20
of those than you had to because they were so time consuming.=20
<P>DKA: I haven't heard anything about what you were getting interested =
in.=20
<P>KO: [My interest] was still in electronics. Oh, I didn't know what a =
computer=20
was. One of the fascinating things was electronics were medicine and =
healthcare.=20
Also machine tool control. Being brought up in the machine tool =
industry, the=20
control of machine tools with electronics was interesting.=20
<P>DKA: It's numerical control.=20
<P>KO: Numerical control, the like. MIT was making a numerical control =
milling=20
machine. When I was out looking for a job, I went to the head of that =
project=20
who later became head of the department and I said, I'd like to go to =
work here.=20
And he said, "Well, we don't have a contract. We don't have any money, =
so we=20
can't hire you." About then I got an invitation to come join the =
computer=20
laboratory. They hired only the top ten percent of the class to the =
computer=20
laboratory which I think I wasn't quite there. But my love for =
electronics had=20
caught the imagination of one of the professors and he recommended me =
even=20
though I wasn't the top ten percent. And I accepted. And a day later =
Gordon=20
Brown, head of the numerical control machine was running down the hall =
and=20
saying, "Ken, Ken, we got money." I said, it's too late. I've already =
got a job.=20

<P>DKA: Probably the most lucky lack of funds in the history of =
computers.=20
<P>KO: Yeah. At least for me.=20
<P>DKA: How'd you feel to be able to go? What did you know about the =
computer=20
lab?=20
<P>KO: Oh, I knew nothing. Nothing at all. It was classified. It was =
military.=20
So no one knew what was going on inside.=20
<P>DKA: Did you know it was Navy at that time? Was it still Navy?=20
<P>KO:It was Navy but nobody outside knew what it was except those who =
had legal=20
access to it. I was graduating and going on to graduate school and =
needed a job=20
as a research assistant. That was 1950.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt5">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc6></A>Undergraduate Studies</H3>I'll make a few more =
comments back=20
in the undergraduate area. Some of the things that I found particularly =
exciting=20
and fascinating in the undergraduate study is the technology or the =
techniques=20
for testing, proving or learning things. In physics they would say, =
suppose you=20
looked at an area like a pill box and it got skinnier and skinnier and =
skinnier.=20
What would happen? Or in the shape of a tube and it got skinnier and =
skinnier=20
and skinnier, what would happen? Or suppose something went to zero, what =
would=20
happen to the rest of it? Or went to infinity, what happened to the rest =
of it?=20
And looking at problems this way. It is ingrained in you. [It] is =
surprisingly=20
useful all through engineering and also in business. That part of the=20
undergraduate training is still one of the most fascinating and one of =
the most=20
useful mathematics. A lot [of] time was spent in complex mathematics. =
But the=20
key part of mathematics is the simple concepts of calculus where one =
looks at=20
everything in terms of slopes, simple derivatives. It gives insights =
into so=20
much phenomena, including business phenomena. You never talk of business =
in=20
terms of calculus, but it sure is a handy way to look at it because the =
balance=20
sheet is an inner glow of the P&amp;L statement. You really have to look =
at the=20
derivative of the P&amp;L statement in order to gain knowledge. And =
sometimes a=20
second derivative. All of this helps in looking at phenomena we work =
with every=20
day outside of the academic world.=20
<P>DKA: Are you [saying] that calculus gives you a sense of trends in =
business?=20
I'm not sure I get the parallel.=20
<P>KO:If the company is growing, you look at the derivative of the =
P&amp;L=20
statement. There are factors there that, for example, show that it costs =
to=20
grow. You stop growing, the cost disappears. And the usefulness is, for =
example,=20
if you stay at a constant growth, that cost should stay constant. But if =
that=20
rate of growth is changing you have to take another derivative. And =
there's=20
another cost which should go up and down. Looking at it that way you can =
draw=20
conclusions, simple conclusions on a financial statement which are not=20
immediately obvious unless you think of it in those terms.=20
<P>DKA: So it's a kind of discipline of thinking?=20
<P>KO: It's just mathematical tricks at looking at things. Now that's of =

probably no general interest but... There are a number of things that =
are taught=20
in engineering and science that sometimes aren't taught very much today =
and I=20
think are lacking. One thing still taught in many places that's still =
very=20
important is that every engineer keeps an engineering notebook. =
Everything you=20
do, everything you learn, everything you run into, even if it's a phone =
number=20
or a piece of data you collected, you write in a notebook. You never =
correct it.=20
If it's wrong you cross it over and do it again but leave record of what =
you had=20
there. Everything is kept there permanently. It may be written poorly, =
but at=20
least it's there. Then there is the belief that [there is] absolute =
honesty in=20
what you're doing. If a piece of data doesn't come out right you flag it =
as it=20
didn't come out right. But you never adjust it so it looks right. In any =

experiment, you may have mistakes in it. But no one would ever waiver or =
even,=20
the thought of having any dishonest is...the tradition.=20
<P>KO:Part of the ideas of science were traditional [and] came from many =
years=20
past and from reading and being exposed to scientists. I bought a =
recording=20
barometer and a recording thermometer a few years ago, and I felt this=20
overwhelming obligation to keep all the records of temperature and =
pressure=20
perfectly dated and filed. For no reason. It's just that if you're =
taking the=20
data, you're just supposed to do that. I knew it was foolishness because =
there=20
was never no need for me to have it. But it's just part of that =
tradition. This=20
comes about from reading of scientists and how things are done. The =
other idea=20
that I developed before MIT and afterward is the parallel between =
Christianity=20
and science. The books written before those years often were about the =
conflict=20
of Christianity and science. But it's obvious that the main theme of =
both is the=20
same, which is searching for the truth, which implies a certain =
humility. This=20
has turned out lately to be a very important idea, I believe. The =
traditions of=20
the church were never absolutes, but searching for the truth. The =
scientist says=20
there are very few absolutes but searching for the truth. Today the =
scientist,=20
because he's on some kick for ecology or something, will talk about =
absolutes he=20
knows nothing about. And we've been exposed to so many people in the =
church who=20
are absolutely sure about things they know nothing about. It's =
interesting to=20
see how in both cases we've deviated from the original traditions. Some =
of the=20
people in the church today would say by the way they act. St. Paul and =
Christ=20
were of course, in ignorant times, but we know. And scientists today =
will say,=20
"All those old scientists who always cautioned that they didn't have the =
final=20
truth." That was the old times. Now we know. It happens all the time =
today.=20
<P>DKA: I guess I'm curious that you talk much about scientist and not =
about=20
engineers in your training. Do you see a distinction there, Ken?=20
<P>KO: They blend together. Engineers should follow the tradition of the =

scientists. The engineer is the more practical scientist based on=20
data....[NOISE]=20
<P>KO: Very few people do much philosophical thinking after they leave =
school.=20
When you're in school you think, when I have time, I'll think about =
these=20
things. When I was ready to graduate and I was accepted into graduate =
school, I=20
had to find a job as a research assistant.=20
<P>DKA: You were going to graduate school at MIT?=20
<P>KO: At MIT. Do you remember [in] "Fiddler on the Roof," they asked =
"Why do=20
you stay in this town?". He says, "It's home." That's part of it. =
Interestingly,=20
the class in those days didn't like MIT. Afterward they did, but I never =
thought=20
of leaving and go[ing] anywhere else.=20
<P>DKA: What do you remember about learning about what was going on in =
the=20
computer laboratory? What had you heard?=20
<P>KO:We heard nothing about the computer laboratory. No one knew =
anything about=20
it that I had any contact with. Students tend to know a lot about what's =
going=20
on. We had the equivalent of hackers who had access to the telephone =
system.=20
People had access to all sorts of things. We knew nothing about the =
computer=20
laboratory. There was nothing particularly military going on there. =
There was no=20
real project except make a computer. But we knew nothing about it =
because the=20
security was that good.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt6">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc7></A>Description of the Whirlwind Computer</H3>
<P>DKA: Was there any doubt in your mind what the computer was?=20
<P>KO:Oh, I had no idea what it was. The concept of the computer, I had =
no idea.=20
Entering the laboratory was a little bit like going into a religious =
order as a=20
neophyte. They had an attitude about reliability and how you build =
electronics=20
which they believed religiously. You had to follow the rules. It was =
almost a=20
fixed procedure that you had faith in rather than something you knew =
worked. The=20
problem they had is very obvious. They're building a ten thousand vacuum =
tube=20
computer with vacuum tubes that had a design life of 500 hours. So, if =
you do a=20
simple arithmetic, you could easily conclude the thing should never work =
under=20
any circumstances. Very special care had to be taken to make things =
work. The=20
vacuum tubes were never turned on. They were slowly turned on. They were =
never=20
turned off then. The designs were done with utmost care. Everything was =
tested=20
and wide margins were held in every component so that anything could =
vary and=20
the thing would still work. Then to top it off they built this whole =
computer=20
with ten thousand vacuum tubes in a room, oh, twice as big as this one, =
[THE=20
INTERVIEW SITE IS 2500 SQUARE FEET] with long racks. The racks are 22 =
inches=20
wide, 11 feet high. Each rack was a digit, so there were 16 of them plus =
a=20
couple on the end, filled with vacuum tubes. Every vacuum tube had one =
grid, the=20
screen grid, which was brought back to a large telephone switch. So any =
tube or=20
any collection of tubes could have that screen grid voltage varied until =
the=20
computer failed. You could tell in that grouping if anything was =
deteriorating.=20
That way the beginning of the day you could replace any tubes that were =
turning=20
weak. The utmost care was in reliability. That was one of the secrets =
[of]=20
Whirlwind, and it was one of Whirlwind's contributions to the world of =
computing=20
with that extreme care for reliability.=20
<P>DKA: So you got in the Whirlwind project and you began to see the =
whole=20
project. What was your feeling about recognizing what they were =
attempting to=20
do? Was this brand new to you?=20
<P>KO: Oh, it was brand new. I was awestruck. And I loved it. Anybody =
who put=20
10,000 vacuum tubes together, I used to tell my wife it was a bridge =
builders=20
personality that would build anything that big. Imagine 10,000 tubes in =
a room.=20
<P>DKA: Had you ever seen anything that big electronically before?=20
<P>KO: Oh, no, you see, during the war a radar set with 150 tubes was =
amazing.=20
150 tubes was just out of this world. You couldn't conceive of that. =
That=20
building, what with 10,000 tubes, that just was way out. Now a large =
part of it=20
was war surplus equipment. Many of the tubes were war surplus. One way =
of=20
getting large numbers of things at an inexpensive price. The history of=20
Whirlwind goes something like this. I joined there in 1950. It started =
during=20
World War II. The government wanted a computer to run a wind tunnel. =
They=20
started off, [while] the war was still going, to make an analog =
computer. I have=20
one of the parts of the analog computer in my office. Analog comput[ing] =
was too=20
slow and they built a serial digital computer. In time it was discovered =
it was=20
too slow. So they built a parallel computer, which is what Whirlwind =
ended up to=20
be. It had to be exceedingly fast. Whirlwind had just [a] 16-bit word =
length,=20
which in those days was considered ridiculously small. But they were =
working on=20
physical phenomena which 16 bits described as very well. People doing=20
mathematics had 48-, 64-bit word length. But the circuits were made very =
fast.=20
Exceedingly fast. Each circuit was intensively engineered and put =
together in=20
very simple logic to maintain the speed. The thoroughness to the =
engineer and=20
the insight into how he did use vacuum tubes, I found fascinating. I =
found out=20
who the smartest designer was and sat on his side and learned from him=20
immediately. It was Dick Best, now at Digital. [Dick Best] would design =
things=20
in a way that everything was tested, and then draft in a way that =
anybody could=20
see how it worked. Instead of having drawings made, all the data is =
there and=20
then forget it, he would study it until it was in the form that anybody =
could=20
look at it and figure out how it worked. Exceedingly objective. One of =
the=20
problems we had in those days was that there was no oscilloscopes to =
look at=20
high speed circuits. Tektronix was not yet in business. We had war =
surplus,=20
Sylvania cyncroscopes which were quite a large box with almost nothing =
in the=20
box. The five inch cathode ray tube, and in order to use it we cut a =
hole in the=20
top. Every engineer did his own. I learned from Dick Best how to do it. =
Cut a=20
hole in the top and put the wire right into the deflection plate with no =

amplifier. The deflection plates had sensitivity as 60 or 70 volts per =
inch. So=20
if you were looking at 10 volt pulses, you would see about a sixth of an =
inch=20
high pulse on the screen. You also had problems, if you used wire to do =
this it=20
would ring and you'd get all sorts of spurious signals. But with that we =

developed a technique, or I probably learned it from others, where we =
could=20
measure a fraction of volt and amplitude even though the picture was =
that small=20
because it was all technique for making measurements, and there being no =

amplifiers available to make a bigger picture.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt7">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc8></A>History of the Whirlwind</H3>Dick [Best] was a =
great=20
designer of circuits. When he was working I'd look over his shoulder and =
learn=20
from him. Others were logic designers and there was something to learn =
from=20
[them]. The difference between Whirlwind and the other computers at the =
time,=20
there were about three or four being built, they were all six months =
from=20
completion. Every year they were six months from completion. All three =
or four=20
of them. There's a story which my friends at Harvard say was apocryphal. =
But the=20
story says that, Professor Aiken at that time said, "When all the =
computers then=20
being built were complete, they take care of all the computation needed =
in the=20
world." And he, or whoever said that, was, of course, looking at the =
computation=20
then being done and divided that into the capability of a computer and =
[it]=20
look[ed] like you didn't need very many. Nowadays we have thousands of =
times=20
more computing on a desk and we're still looking for more because as we =
get it=20
we find more uses for it.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt8">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc9></A>The Basis for Computer Design in the =
1950's</H3>[The logic=20
for] the computers then being built was designed by using boolean =
algebra. It=20
was the mathematics used to design large networks and switches. And it =
was=20
directly _______ to computer type work. However the people doing =
Whirlwind, Bob=20
Everett, probably being the leader, approached it differently. They =
approached=20
design of mathematics and the logic of the computer as if it were a =
puzzle,=20
considering all possibilities and picking out the best ones. The result =
was=20
exceedingly simple, elegantly simple way of building a computer. The =
boolean=20
algebra people ended up with very complex computers. They had simple =
circuits=20
and complex logic. Bob Everett's approach was very complex, thoroughly=20
engineered circuits, but very simple logic and very fast. I like to =
think that=20
we, Digital, were missionaries to the world to convince them that the =
MIT way=20
was the best way. Because the MIT way is what's commonly accepted today. =
And I=20
like to think we helped sell the idea. But it definitely was unique. =
When we=20
started Digital, we sold modules, little blocks of logic that people =
could use.=20
People would ask us how many levels of logic we could do in the speed we =
said we=20
could do arithmetic. We couldn't answer that because we followed the MIT =

tradition where you did it all in one step. Everybody else did it in =
several=20
steps and therefore it was a lot slower.=20
<P>DKA: You mentioned that sometime in this period you got married. Do =
you want=20
to say a word about that?=20
<P>KO: While I was still an undergraduate, before my senior year, the =
neighbor=20
next door to my parents had a Finnish girl visit them for the summer who =
was a=20
student in this country. I didn't make out well with her at all. She =
went back=20
to Finland and the summer between undergraduate school and graduate =
school, I=20
got a job in the ball bearing [factory] in Goteberg, Sweden, as an =
excuse to go=20
to Finland and see how I would do with her. So that summer I got there =
and in=20
two weeks, became engaged to her. My approach to things often is [to] be =

somewhat systematic. I kept a notebook of all the things I wanted in a =
wife for=20
a number of years. Every time I heard a preacher preach on the subject, =
when=20
preachers used to preach on practical things, you see, not like today, =
or=20
anybody would have a lecture, or any ideas [would] come, I'd write down =
what I=20
want[ed] in a wife. And when I found her, she kicked off perfectly on =
every=20
point; I knew she was the one. She didn't agree that quickly. She was a =
Finn,=20
[a] very nationalistic Finn. Leaving Finland was a just strange idea. =
When I=20
went there that summer, her brother wouldn't shake my hand because Finns =
are=20
Finns and they don't leave. But she agreed to marry me. Then we had a =
terrible=20
time getting her into this country because the rules were very strict. =
We=20
couldn't get her in as a tourist or as a student or any other way. The =
Iron=20
Curtain was expected to come down and then close. The Korean War was on =
and I=20
had a friend from MIT who went over to Europe with me but couldn't get =
his wife=20
out of Poland and [was in the] terrible position of being engaged [with] =
no hope=20
of ever getting his wife out. So I went home, engaged, with a concern =
whether=20
I'd get my fiance out. I went back in December at Christmas vacation, =
and stayed=20
six weeks til I got permission to bring her in. And got behind in =
school. [But]=20
with the generosity and patience of MIT I kept my job there. And with =
her=20
patience, [I] got the work done at MIT. It was an important part of =
getting=20
anything done I got done.=20
<P>DKA: Is it true that the term Whirlwind came from your romantic =
affair and=20
that was applied to..[LAUGHTER]=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt9">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc10></A>The Whirlwind Computer - Origins of the Name</H3>
<P>KO: Oh, no, see Whirlwind was well underway by the time I showed up. =
The=20
story, before my time, was that its military code name was "tricycle" or =
"kiddy=20
car." Something trivial like that. Jay Forrester, the boss, one day came =
by and=20
said, "That name has to go. From now on it's Whirlwind." So that's the =
only=20
story I know. And it was a good name for it.=20
<P>DKA: Your fiance must have been amazed. Did she know you were coming =
over to=20
work on?=20
<P>KO: Oh, we exchanged mail so she met me there, yes. We bicycled =
around=20
Finland together.=20
<P>DKA: She must have known you were serious if you'd come across the =
world for=20
her.=20
<P>KO: Yes, yes. She never went back to Finland for 16 years. People =
can't=20
understand why, [but] if you saw the film, "Dr. Zhivago" you realize =
that in war=20
time you had idea[s] never to leave your family. Once she had a new =
family she=20
wasn't going to leave. Once she got back she saw the world was different =
and she=20
went back every year to see her mother. But when the memory was of =
wartime=20
Finland, she wasn't going to take any chances with the military or =
immigration=20
people of ever getting separated again.=20
<P>DKA: Back to work in the lab, what was your work? What were you doing =

yourself?=20
<P>KO: First I was doing small projects. My first job was to make a =
digital to=20
analog converter to drive the cathode ray displays. This sort of thing =
we take=20
for granted today on our personal computer[s] where we have pictures on =
a=20
cathode ray tube. At that time [it] was a rather unusual idea, one of =
the=20
developments that came out of MIT and influenced the world of computing. =

Converting the signal from a Digital number to an analog voltage to =
drive the=20
cathode ray tube was one of the devices I'd had. My contribution was to, =
here=20
was a clever little circuit that used very few vacuum tubes and made a =
precise=20
unit. This circuit then became a very important part of the core memory. =

<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt10">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc11></A>Core Memory</H3>
<P>KO: The core memory was invented by Jay Forrester, a brilliant idea. =
The core=20
memory idea was not the idea of storing information in a core. That had =
been=20
done before. The clever idea of Jay Forrester's invention was the way of =

selecting the core. So you could put thousands of cores together and =
select them=20
very quickly and easily. It still took a large number of current sources =
to=20
drive it. The number of current sources stifled the future development. =
No one=20
had the nerve to build that many current sources. The [original] memory =
for the=20
Whirlwind computer was a storage tube. The storage tube was quite large =
with a=20
neck coming out of it about 8 inches in diameter. It was really a =
cathode ray=20
tube with two guns coming into it. Stored on the face, on the form of =
dots on=20
this, were the ones and zeros. And when it was working well, (and it was =
hard to=20
get 32 of them ever working together, all you got was 256 bits per tube =
which=20
meant when the whole thing was working), you had 512 bit words of memory =
which=20
is a joke today, [and] even then was marginal. It took great cleverness =
to solve=20
problems without much memory. The pressure was really developing more =
efficient=20
memory. Jay Forrester came up with this brilliant idea of using cores. =
His first=20
idea was a gas discharge where you have a big bottle of neon and near, =
crossed=20
wires a spark would develop. Would stay there for one and would =
disappear for=20
zero. This idea then was to put a core at each intersection. And use =
that for=20
memory. And this progressed as great excitement.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt11">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc12></A>The M.I.T. Lab</H3>
<P>KO: The laboratory had some very productive ideas, or ideas that made =
the=20
laboratory very productive. There was a lot of trust, a lot of freedom, =
a lot of=20
competition between very bright people. But a lot of openness. And with =
that=20
communication was free. And we all had to write a report every two =
weeks, maybe=20
only one paragraph or a few sentences. Even if we did nothing we had to =
write=20
down that we did nothing. With that the communication was very open. =
When you=20
had an idea you immediately had everybody knowing about it. And if it =
was a good=20
idea you had support. And if it was a bad idea you quickly realized you =
should=20
just quietly go away with it. So with the idea of how to do a memory, =
there was=20
no problem of getting it across. We started a single plain memory, 16 by =
16=20
cores. Each core was a ceramic bobbin, about a quarter of an inch in =
diameter,=20
maybe an eighth of an inch diameter inside. Wound on that was a very =
thin foil=20
of magnetic material and then heat treated to make sure there were no =
tensions=20
in it and that was the core. There were four wires strung and then in =
order to=20
drive it, it took 16 current sources times four. Two for each coordinate =
and=20
that same thing again for reading and writing. The idea worked but it =
still had=20
so many vacuum tubes in it scared people. People still didn't feel bold =
enough=20
to build a big core memory. I had an idea for using a magnetic switch to =

eliminate all the current sources. Get rid of all the tubes and drive =
them with=20
magnetic switch or drive them with cores which were selected the same =
way memory=20
cores were selected. So when I quick changed my thesis, somebody else =
finished=20
the original one. And it worked. It never was a great success. It never =
really=20
contributed an enormous amount to anything except for one thing. It was =
a great=20
academic interest. At least to me. But what it did do was, for awhile, =
got rid=20
of the hangup people had about having too many tubes. So there was a =
spurt of=20
interest in core memories. It solved the problem in people's heads. They =
went=20
off and built it with vacuum tubes. But the contribution of the core =
switch was=20
it got people's hangups to disappear long enough to get enthusiasm. The =
story=20
[that] goes parallel with that is (and I didn't know about this until =
just=20
lately), IBM's next generation of computers use core memory ________ =
switches.=20
But I never knew that. The problem we had with the core memory, (the =
first one=20
was going to be 16 by 16 or 256 words, and 16 digits long), was how to =
test it.=20
We understood from experience that you really had to test every possible =

combination. Because [no matter] how thoroughly you designed things =
there's=20
always something that might go wrong or some combination of things that =
might be=20
wrong. And people were not about to trust the core memory unless it was =
truly=20
tested in an environment that was tested. So we set about to build what =
we=20
called a memory test computer. It was supposed to be an honest to =
goodness=20
computer that would really run and test the memory, but not a computer =
that=20
designed to be useful. I was given the job of building the computer just =
as soon=20
as my thesis was done. I think I was still a graduate student and it =
cost a=20
million dollars. I can remember being impressed of how much a million =
dollars=20
was. How much work it took to spend a million dollars. Now I'm impressed =
at how=20
little effort it takes to spend a million dollars. So we built a 16-bit =
machine.=20
My way of showing off was to build it in a room in a straight row of =
racks with=20
a console in front of it, with enough room for the photographer to stand =
back=20
and take pictures of it. We naively showed off by saying, look how easy =
it is.=20
That's kind of the young academic approach. The problem with that was =
that=20
people believed it was that easy and never took it seriously. We learned =
later,=20
for the next machines I was responsible for, to do it with a little more =
flair=20
than that. We made a homemade wooden console with cabinets from the =
local=20
distributor. Afterward we learned to put color in it.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt12">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc13></A>Listening to the Computer Late at Night</H3>
<P>KO: The machine ran well. The first night it ran, my wife was out of =
town.=20
And we stayed late at the lab and it finally worked. Everybody else went =
home=20
and I stayed there and listened to it work. We put a loud speaker on =
every=20
computer we built because you always wanted to be able to play music or =
make it=20
do things. So I had the computer on the loud speaker and as long as the =
tone was=20
constant I knew it was working. So I went in the ladies room and laid =
down on=20
the sofa with the door open and fell asleep with my ear tuned to that =
sound so I=20
knew that it went all night long without a glitch and that was a =
significant=20
test. As soon as the machine was truly completed and within one day of =
it being=20
working, the people in charge made the decision to shut down the storage =
tube=20
lab and switch everything over to the core memory. The second memory was =
started=20
immediately. The first one, we painted everything. The second one was =
bare=20
aluminum because we weren't going to take the time. So we had two =
memories=20
there. Whirlwind, the memory test computer was there without a memory. =
The=20
machine we worked so hard on suddenly, instantly was sitting there with =
no=20
memory. And therefore quite useless for awhile.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt13">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc14></A>Modular Computer Design</H3>
<P>KO: Today we tend to build computers by putting them on a small board =
and=20
designing everything right there. But an important part of the early =
development=20
of computers was to make them modular so that things that were used many =
times=20
were made identical and used over and over again. It wasn't always =
obvious. Not=20
everybody agreed with it that way, but one of the first modular =
approaches was=20
Whirlwind. This is one of panels of Whirlwind. [HOLDING RACK FROM =
WHIRLWIND=20
COMPUTER] There were probably 16 of these all in a row, all identical. =
The=20
original theory was, if one went bad, you took it out, replaced it. At =
Whirlwind=20
it never quite worked that way because it was easier to troubleshoot in =
place=20
because you could reach behind, take out a vacuum tube. Those tubes had =
the=20
advantage because they didn't fall out easy, but they didn't come out =
easy=20
either. You could change a part and troubleshoot without turning off the =
power.=20
There was 250 volts positive, 150 volt negative. You could learn by =
touching it,=20
approximately [what] the voltage was. But shutting it down was such an =
operation=20
you never thought of shutting it down. You did things carefully, you =
never=20
thought of hurting yourself, but [because] you could ruin something if =
you did=20
it poorly. The parts today looked antique. The capacitors were mica with =
foil=20
between them embedded in plexiglass. The resistors were carbon and =
normally not=20
very precise. The terminals were, for some reason I can never explain,=20
silver-plated. It sounded quality. But they corroded, were impossible to =
solder=20
and created all kinds of problems. But that was the tradition of the =
day. The=20
Whirlwind was made up of these modules. I don't know what this one did. =
This one=20
was a program counter. This was one digit of a program counter. So, as =
your=20
program went step by step, it kept track of what the last step was and =
set up=20
the next step. I think there were twelve digits of the program counter =
so there=20
are twelve identical units. They're put in a row and they would keep =
track of=20
how many steps the program went through. Supposedly there was a spare =
and you=20
could have swapped it. It just happened to never to be done. The next =
step in=20
modules development at MIT was to make true modules where there was a =
large=20
number of the same thing and they look something like this one where you =
not=20
only made it easy to swap units that were defective, but you also gained =
density=20
in the third dimension so that you could get a lot more stuff in a much =
smaller=20
area. This was a module used for building MTC computer out of...=20
<P>DKA: How many tubes did the MTC have?=20
<P>KO: Thousands of tubes.=20
<P>DKA: And this was the reason why because you had thousands of these=20
components?=20
<P>KO: Yes. So there was hundreds of these components. Most of them had =
just two=20
tubes in them. With transistors it was much easier because with these, =
each tube=20
had approximately five, ten watts of filament power. That meant that =
every time=20
you built something, you had huge transformers just to drive the =
filaments. The=20
voltage on the plates were 250 volts. Any current of 250 volts had a lot =
of=20
power. With transistors, life became easy. The first transistor computer =
we=20
built at MIT was the TX-0 computer. I didn't have faith in putting =
[transistors]=20
in circuit boards. Maybe poor judgement on my part. But we built them =
into a=20
tube like this. [HOLDS BOTTLE FROM TX-0] There was one transistor. They =
were fit=20
in a small socket. Then you could have a high density, and they had =
color codes=20
on the top so that if a red one went bad, you'd just put another red one =
in.=20
These transistors were made by Philco. They were the last of the high =
speed=20
transistors. No one else could make high speed transistors. So we =
grabbed hold=20
of and designed circuits to match their characteristics. They were so =
delicate=20
that if you combed your hair and touched one, you burned it out. It took =
a=20
special set of circuits to do it. They cost several dollars each. The =
next=20
computer module we built was the TX-2. We had printed circuit boards. =
[HOLDS=20
TX-2 MODULE] This module we designed for high density. We had real =
solid, secure=20
sockets we thought at the time. The printer circuit boards were here in =
special=20
metal size. It looked quite attractive. It also was color coded with =
colors on a=20
handle. The transistors are through that hole there and other components =
are=20
laid out and you can see the components become more moderate now. =
They're more=20
compact. They look a little more professional. The connector is solid =
and rugged=20
and shows our lack of faith in connectors at the time.=20
<P>DKA: Ken, is this again something that you designed all the circuitry =
on?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt14">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc15></A>Making Test Equipment</H3>
<P>KO: In general [the design of] the circuits involved many people. The =
idea=20
[of] these circuits, I probably did when I was all alone on a project. =
But in=20
time many people got involved. One of the ideas they had at MIT before I =
showed=20
up was to make what they called test equipment. It was a set of modules =
that=20
would do single operations like a flip flop, a gate, a delay unit. With =
those=20
you put on your experimental bench, develop an environment for testing a =

circuit. That detail[ed] testing of circuits was possible because of =
testing=20
equipment. When we started Digital, the first product we had was the =
equivalent=20
with transistor computers and this is one of those. [HOLDS DEC LAB =
MODULE] You=20
could arrange these in a rack and do specific operations at a speed that =
no one=20
else could accomplish at the time. But you would wire them together with =
these=20
pig tails and make a counter, set up pulses or anything you want to do =
for=20
testing. That was our first product. It allowed the rest of the world to =
design=20
the logic they needed for military projects and other computer projects. =
When we=20
wanted to make something permanent like a computer, our first computer, =
we took=20
the same circuits and put them into a frame which could be stacked quite =
densely=20
without the cover. These we called our system modules. They were a key =
part of=20
the business for many years. The transistors had changed by this time. =
The=20
components had gotten smaller. We had a unique idea in driving these. We =
said we=20
would make a simple rugged power supply and design the circuits to =
tolerate the=20
variations in the power supply. We also used diodes to generate three =
volts, the=20
base voltage right on a board which meant this was almost completely =
tolerant of=20
noise on the power line, lightning or anything else that wiped out =
computers at=20
the time. That made our computers very rugged. When some of the space =
programs,=20
everybody's computer was down. Ours was still running because we =
generated our=20
base voltage right on the board.=20
<P>DKA: You were talking about what service that component provided. =
Could you=20
go through a bit of that again.=20
<P>KO: We had a box for every circuit you'd want to build a computer or =
computer=20
environment. This one happened to be a pulse amplifier. If you look at =
the=20
diagram, there's a gate and an amplifier. So, if you put in two signals =
here and=20
they were in the right combination, you'd get a pulse out here at a =
standardized=20
size. Other boxes would be a flipflop that would store information. A =
complex=20
set of gates which would allow you to do logic and delay units that =
would allow=20
you to accomplish other activities. With that set of pieces, people =
could do=20
almost anything they want to do at high speed.=20
<P>DKA: The degree to which you did modular thinking, was that unusual =
in this=20
business at this point?=20
<P>KO: No, no. By this time it was quite commonly done.=20
<P>DKA: And what's unusual is the ruggedness with which your components =
were=20
designed?=20
<P>KO: On almost anything someone does in the computer business, you can =
go back=20
in the literature and prove someone had done it earlier. In the case of =
going in=20
the business selling modules, there was 45 people doing it at that time =
we went=20
in business. All doing poorly. Our contribution was first of all we had =
the=20
circuits we took from MIT which were fast. No one else could do fast =
runs. We=20
also had an interesting business idea. Most of them went into the =
customer and=20
said we will charge you ten percent less than what the other guy offered =
to sell=20
the same thing for. We went in and said, here's our literature, tell us=20
everything we know about the circuits and here's a fixed price list. And =
there's=20
no dickering. With that we changed the industry in a year. Everybody had =
a set=20
of literature and everybody had a price list. That was our main =
contribution=20
besides speed.=20
<P>DKA: You had good circuits but you also had a winning strategy.=20
<P>KO: Yes.=20
<P>KO: The chronology, as I remember it, this [HOLDING WHIRLWIND MODULE] =
was=20
probably designed in '48 or '49, well before I came to Whirlwind. =
Probably [at=20
that time] the first module was built as part of the control element of=20
Whirlwind. This module then was designed about 1950, '51, for more or =
less high=20
production. The transistor work, the transistor computers we started '55 =
or so,=20
'54. We were working on air defense system. I spent a year at IBM =
representing=20
MIT. As a rest cure, they allowed me to work on transistors, outside of =
the=20
defense part of the business which everybody else was working hard on. I =
could=20
have no staff or space. And then these came [HOLDING TX-0 MODULES] =
probably '54,=20
'55 and this one '56 [HOLDING TX-2 MODULE]. And then as we started =
Digital, this=20
one [HOLDING DEC LAB MODULE] was '57, '58 and then on. We felt quite =
confident=20
with the way we were building computers. We knew we could do almost =
anything we=20
wanted to do, but the big limitation was the memory. Storage tube =
memories=20
weren't reliable, worse than that. And they would never be big or fast. =
[When]=20
the idea of the core memory came along, it just raised the possibility =
of making=20
real computers. Here's a plane from one of the first ones we built. =
[HOLDING=20
WHIRLWIND CORE PLANE] You can see there's a thousand-twenty-four [1024] =
cores=20
arranged in a square array. The way it worked was quite simple. The =
direction of=20
the magnetization in a core decided whether it was a one or a zero held =
there.=20
If you put current on one line it never was enough current to switch the =
core=20
from one state to another. But if you put current in two lines, where =
the=20
current went from two wires to the same core was enough to switch it =
over. With=20
that you could select a core and read a one or zero into it. This meant, =

however, 32 drivers on this side and 30 drivers on this side for just =
one=20
direction of current. Plus another 32 and another 32. That meant 4 times =
32=20
drivers. You can see those on the memory here. Here's 32 drivers. And =
here's 16=20
drivers times 8 around here which ended up being able to drive 32 lines, =
4=20
directions. Each driver just contained one tube and one small tube. That =
drove a=20
good half ampere into each wire. This plane comes from one of the first =
two core=20
memories built. And right here we have a complete memory which happens =
to be the=20
third one. [POINTS OUT WHIRLWIND CORE MEMORY STACK] By the time we made =
the=20
third one, the plane's a little smaller. But you can see there was one =
plane for=20
every digit of the memory stacked up here. The drivers going in each =
direction=20
came from these four sides top and bottom. There's a wire for each of =
the digits=20
here. This made a thousand twenty-four [1024] quite reliable core =
memory, and=20
this made computing truly possible.=20
<P>DKA: How many numbers could you store?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt15">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc16></A>The Impact of Core Memory</H3>
<P>KO: The 16-bit word, they called two bytes. So there's a thousand =
words, or=20
2,000 bytes, which then was a large number. Today a kid with a personal =
computer=20
would laugh at you for having that small a memory. The core memory=20
revolutionized computing because it gave the promise of great things. At =
the=20
time we never dreamed of large memories because every core has to have =
five or=20
six wires put through it. But in time, as the demand grew, the =
capability of=20
making them grew. People invented all kinds of machines to do this=20
automatically. But to the very end, the bulk of it by far was done by =
girls=20
stringing wires with long needles. We at Digital at that time were a =
small part=20
of the computer industry. But at the peak of the core business, we alone =
made=20
four billion cores a month. We had girls in Taiwan string each one of =
those with=20
five wires through them. Now I have in this little salt shaker some of =
the cores=20
we made. [HOLDS SALT SHAKER CONTAINING CORES] When it was full it held a =
million=20
cores. They are so small that I can't see the hole in them, even with my =

glasses. I think they're about 8-thousandth of an inch in diameter, and =
the hole=20
is about 4-thousandth. And they're the size of pepper grains. I can see =
the=20
hole, but the idea of putting four wires in there and doing it with 4 =
billion a=20
month is just astounding. Here's the specifications for its size and its =

chemical mixture. Now with that, people made big memories. And the =
computer=20
business spurted forth. The minicomputer business became practical =
because we=20
could make inexpensive, very powerful, quite large machines for very =
little=20
money. Since then, the semiconductor memory has taken over. It is just =
so much=20
easier to use. It's so inexpensive and when you hear about one, four, =
eight,=20
sixteen megabyte memories, they're made up of little tiny chips of =
ceramic doing=20
the things that we used to do with cores. So as miraculous as these =
little cores=20
were, the miracle of the semiconductor memory is much more so. And it =
continues=20
to get better every year. The prices go down, the size goes down and =
there seems=20
to be no end. The little things that we take for granted, now we have =
computers=20
in our automobiles and computers, in our microwave ovens, and computers =
in our=20
washing machines. It comes about because the memories now are so cheap. =
But a=20
key part in the history of computers was this ceramic core memory. The =
first=20
core memory we made, we only made an experimental one plane one. It had =
metal=20
cores. It made a very thin foil to make them fast. We knew that it was =
possible=20
to get magnetic ceramics called ferrite that would have the =
characteristics we=20
wanted, but the builders of ferrites didn't think it was very promising. =
One day=20
a company in New Jersey brought some samples made on a washer dye, about =
a=20
quarter-inch diameter. We jumped at those. My thesis came out of using =
those.=20
And with that small, then very large, about a quarter - we call[ed] them =

Cheerios because they're the size of the breakfast cereal ring. From =
that came=20
smaller and smaller ones and the small ones I still get stuck to my =
hand, are=20
the limit in how small they got. But developing the material was a =
different=20
story. MIT set about the traditional scientific way to pick the best =
mixture of=20
materials to make these. There were three components to the ferrite; =
ferric=20
oxide, ferrous oxide and magnese dioxide I believe. They all cost about =
a dollar=20
a pound. But the mixture of the three compounds took a long series of=20
experiments. They tried every combination, plotted them out, fired them, =
tested=20
them, and decided what the mixture was. The ceramics company in New =
Jersey, an=20
old German ceramacist who by guess or by intuition, or years of =
experience,=20
mixed up his first mixture and hit exactly the same spot as all the =
research=20
done at MIT. It shows a place for science and there's also a place for=20
intuition.=20
<P>DKA: Describe this computer for us.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt16">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc17></A>The TX-0 Computer</H3>
<P>KO: [STANDING AT THE TX-0 COMPUTER] When I was given the opportunity =
to work=20
on a transistor computer, the idea was kind of new, it was exciting and =
we had=20
knowledge of the very fast _______ transistor _____ which we had built a =
very=20
fast computer. The rules were, I could hire nobody and have no space. I =
studied=20
the rules carefully and found all the loopholes. I somehow was able, one =
way or=20
another, to get three or four people to work with me. We discovered that =
hallway=20
was not space. So we moved my office into the hall and put walls around =
it. We=20
then traded that space for a space in the basement which was less =
desirable but=20
bigger. With that we were able to do our work. We discovered that part =
of the=20
basement in Lincoln Laboratory was nonfinished. It was just dirt. We =
talked=20
people into pouring concrete floor there and then we talked people into =
putting=20
a light colored floor. When they discovered what we had done they said, =
never=20
again. We talked them into twice the light level of anyplace else in the =

laboratory. And when they found that out they said, never again. And =
then we had=20
the walls with different color. The walls there are just normal military =
type. I=20
can't remember if it's beige or green, you know it was just a bland =
color. We=20
had a bright color. And then we set about to make a computer that would =
attract=20
attention. We discovered with the MTC [MEMORY TEST COMPUTER] computer, =
that blah=20
looking computers, never really attract attention. People, you'd think,=20
particularly scientists, would be interested in the specification, the=20
capability. But things have to be colorful to attract attention. So we =
set about=20
to make as modern a design as we could. Now it looks quite naive. But =
this is=20
it. You know it had rakish lines like race cars were supposed to have =
because of=20
the way they took pictures of them. And we picked a color which is just =
as=20
opposite from the traditional black wrinkle finish which was World War =
II. The=20
modern color used by the laboratory was gray hammertone. It looks so =
military=20
and blah. So brown and beige just seem like a dramatic change. And =
that's why we=20
picked this color. And we tried to make it look a little modern. About =
as modern=20
as we could. The result was when head of the laboratory had visitors he =
of=20
course brought it to our laboratory because we set the computer back =
from the=20
door for good pictures and showed it off with a little bit of flair. It =
was the=20
place they took visitors. Even though we didn't break any rules, we =
exploited=20
all the things they didn't have rules on yet and made one that was more=20
exciting. The construction of it is all the things we had learned to put =
in=20
computers. There's a loud speaker and amplifier underneath the table for =
playing=20
music or anything else you want with the computer. The cathode ray tube =
we=20
automatically built into the computer. At that time there were 4,000, I =
think=20
4,000 lines because we focused on one spot at a time instead of a raster =
like we=20
do today. We use the light pen which is the equivalent of the mouse [or =
joy=20
stick] we use today. This is what we use in the aerodefense system. With =
that=20
you could draw, play games and all the things you do for the house =
today. We=20
used to have a light bulb for every flip flop. We used Japanese model =
rail road=20
lamp bulbs. We were joking that we probably confused the industry =
watchers over=20
there with that order for lamp bulbs. The model rail road business was =
booming.=20
The machine is made of these little tiny bottles and larger modules. It =
made it=20
quite easy to make the unit. The transistor was fast but very fragile. =
The=20
circuits had to be designed around the transistor. It took 12 =
transistors to=20
make a flip flop. I believe it is the design that grew into that =
integrated=20
circuits logic which has become very popular. Because they have exactly =
the same=20
problem with the power and the transistors as we had there. And so these =

circuits, I think, were the basis for the modern computer circuits.=20
<P>KO: The circuitry in this computer was built around the Philco =
surface=20
barrier transistor, a magnificent piece of design for a style transistor =
which=20
was just about to become obsolete. It was very expensive but very fast, =
and very=20
intolerant of power or spark or discharge of any kind. But we designed =
the=20
transistor circuits around this. And we made them very fast and the =
circuits, I=20
believe, were the basis for the commonly used T-squared-L [TTL] logic =
that=20
people build computers out of today. The reason for building the TX-O =
computer,=20
this was about 1955, was to demonstrate how efficient in power, how fast =
in=20
speed, and how easy it would be to build a computer for a defense. Now =
the=20
project wasn't classified. We published everything. We told everybody. =
Had a lot=20
of interchange with the rest of the world. But the goal was clear that =
if we had=20
a chance to make defense computers over again, it's obvious that doing =
it with=20
transistors would just save so much heat and so much space and be so =
much=20
faster. This is a very close to being equivalent to the modern personal=20
computer. Someone sits down in front of the oscilloscope, with a light =
pen and=20
plays games, does things, is creative. Word processing wasn't yet =
developed.=20
Games weren't yet well developed. But in general it was, you might say, =
one of=20
the first personal computers. We designed it as a demonstration but then =
people=20
did computing on it. When they had a problem that would lend itself to =
this they=20
used it for computing. They'd bring it [THE PROGRAM] in the form of a =
paper tape=20
which they generate on a flexowriter. As they typed it, the paper tape =
would=20
write the information. In the same way we store things on a disk today, =
the high=20
speed photo electric tape reader would read that tape very quickly and =
then they=20
would go ahead and do programming.=20
<P>DKA: When you say this is kind of a personal computer and you talk =
about=20
pictures, [CREATING IMAGES ON A CRT WITH A LIGHT PEN] it really confuses =
me=20
because it so little resembles the PC and I still don't know.=20
<P>KO: Oh it's exactly the same as a PC. You see what you see in a PC is =
the=20
keyboard. The cathode ray tube and the light pen. So this is indeed a =
PC. This=20
[THE TX-0] was designed to be a demonstration of the reliability, the =
capability=20
of transistor circuitry. And making a fast, inexpensive low-powered =
computer.=20
The unit itself really could do what a personal computer does today =
limited only=20
by the fact that the memory was small. You could make pictures on the =
cathode=20
ray tube, change them, modify them. Read your program in, take your =
program=20
home, play games, do the things you do today on a much smaller scale =
because the=20
memory was very small.=20
<P>DKA: Did you see text on the screen?=20
<P>KO: Oh yes, the text was very commonly done on the screen. Now as I =
remember=20
this was an 18-bit machine. All the machines we had up until then were =
16-bit.=20
It was 18 because we stored a character in 6 bits. Therefore we could in =
one=20
word store three very efficiently. So we went to 18 bits just to store=20
characters. When we started Digital we also had 18 bits because we could =
store=20
6-bit characters. The world standard later on became 8-bit characters =
and we all=20
went to 16-bit or 32-bit computers, interestingly, which was the ones we =
had=20
originally. So this is in a very real sense a personal computer. You =
could even=20
say that of Whirlwind. It took 2500 square feet. The console was a =
walk-in room=20
as big as this loft here. But in a real sense it was a personal computer =
and did=20
personal computer things.=20
<P>DKA: Do you want to talk, Ken, about how some of the ideas and some =
of the=20
thoughts and plans that you had when you developed this computer led you =
to=20
think about your own computer business?=20
<P>KO: When this [THE TX-0 COMPUTER] demonstrated the usefulness and =
[the ease=20
of making] computers we started a bigger one called TX-2. People often =
ask what=20
happened to TX-1. TX-1 was the first one designed and I said, "no way =
are we=20
going to build that one. It's too complicated for a first one." So we =
built the=20
simplest possible machine which was this one and then skipped TX-1 as a =
name and=20
went to TX-2 which was a very large machine. I was building the =
hardware.=20
Somebody else was designing the logic and they couldn't settle down. So =
after a=20
year or two of that I got impatient and left. That was '57. There [were] =
a=20
number of reasons for leaving. One was we [had] published what we had =
done,=20
demonstrated that you could make computers very effectively, much better =
than=20
anything done with vacuum tubes by far. The commercial world just smiled =
at us=20
and said we were just academic. Of course, today, we smile at people at =
MIT and=20
say they're just academic. So just showing them it could be done was one =
of the=20
reasons for going into business. The things we took from MIT were first =
of all,=20
the idea of an interactive computer which was unique. In those days you =
dropped=20
your problem in the form of a stack of IBM cards in a slot. It went into =
the IBM=20
machine. The next day you got your answer back, and it usually was =
[that] you'd=20
made a mistake. With interactive computing, you put a problem and you'd =
try=20
something and you [were] instantly told it was a mistake. You could =
interact,=20
get things done fast, the things we see in personal computers all the =
time. That=20
concept was strange and the idea that that concept should be introduced =
in the=20
world. Even more important than that, however, was the demonstration we =
had at=20
MIT that where you had a group of people who were bright, wanted to work =
hard,=20
but if you showed trust and openness and confidence and let them work =
hard, they=20
could turn out amazing work. So the human ideas that came from MIT were =
probably=20
the most important. These are the ones we tried to maintain at Digital =
where we=20
hire the best and we can hire the best because we have the ideas. And =
then trust=20
them, set the general goals so they know where they're supposed to go, =
but then=20
give them freedom to be creative. Propose, argue, and then show great =
trust and=20
great confidence and they do wonderful things. Those are the ideas we =
had at=20
MIT. There's one other reason, too. I always thought that what I wanted =
to do=20
was experiment with electronics. I'd gotten to the point where I thought =
I could=20
talk people into any project I wanted. That probably wasn't true but I =
had that=20
feeling. There was one thing missing which I never thought of before, =
and that=20
is nobody cared. It was important to do something they would care about, =
so we=20
set about to do something in business that people would care about. And =
that's=20
how we started Digital.=20
<P>DKA: What was it that people didn't care about? And what was it that =
made=20
people care about?=20
<P>KO: We demonstrated all the ideas of high speed transistor computers, =
and we=20
thought the world would be waiting in open arms for this. Nobody cared. =
And it=20
turns out that it takes more than ideas. You've got to sell your idea. =
So we set=20
about to sell the idea. Now there's some lessons there for people. One =
of them=20
is it seems like being left alone doing research would be satisfying. =
Basically=20
it's not. Unless somebody notices it. And secondly, getting an idea, no =
matter=20
how good it is, isn't enough. You've always got to sell the idea. =
Putting color=20
into this thing was part of selling the idea. And that's what we set =
about to do=20
at Digital. The idea of starting a company was not well developed then. =
It was=20
strange. A number of companies had started during the Korean War. A =
number were=20
no longer in existence. In 1957, many of them were in trouble. A =
recession was=20
starting. The idea was not a popular idea. We were told that the =
American=20
Research and the Development Corporation were set up just to do this so =
we went=20
to see them. That's the business they were in. But they were worried =
because=20
some of their investments hadn't paid off very well. But they were =
fascinated=20
enough to listen to our proposal. They told us we could go to their =
board of=20
directors and present it and see what happened. They gave us three bits =
of=20
advice. One was, don't use the word, "computer." Because FORTUNE =
magazine said=20
no one was making money in computers and no one was about to. So we took =
that=20
out of our proposal. We were going to make modules first, anyway. And =
they said,=20
"don't promise five percent profit." You see we looked in the library. =
All good=20
companies seemed to make about five percent on sales. The staff said =
that if=20
you're asking someone to give you money, you've got to promise better =
results=20
than that. So we promised ten percent. And we made about ten percent =
most of our=20
history. If we had looked for five, or aimed at five, we probably never =
would=20
have made much more than five. The third thing they said was, "most of =
the board=20
is over 80, so promise fast results." So we promised to make a profit in =
a year.=20
The other side of the story is that we really did, after 12 months, make =
a=20
profit. It was so small you couldn't tell if it was plus or minus. But =
it was=20
like $3000 plus. And we brought it down to General George Doriot. [HEAD =
OF=20
AMERICAN RESEARCH AND DEVELOPMENT] We dropped the financial statements =
on his=20
desk. He looked them over and looked up and scowled at us, which kind of =
set us=20
back. He said, "Sorry to see this. No one has succeeded this soon and =
ever=20
survived." His lesson of course, was, success is the worst danger in =
business=20
and in everything else. Maybe because of his warning we're still here. =
But=20
that's also proved to the rest of Digital that success has done more =
harm to=20
people than anything else.=20
<P>DKA: Who is General Doriot?=20
<P>KO: General Doriot was a Frenchman, came to MIT, but went to Harvard =
instead.=20
And became a professor at Harvard Business School, for many, many years, =
in the=20
20's. [During] World War II he became a general in the American army =
with a=20
terrible French accent so that when I met him I didn't know which army =
he was a=20
general in. But he was very popular as a professor. [He] has a strong =
following=20
still through the business world, his lessons being very practical. =
Integrity,=20
quality, honesty, doing the right thing. He also then became President =
of=20
American Research, just to start new companies. His contribution to us =
was to=20
encourage us, give us support and show patience and encourage the=20
characteristics which he always taught in his classes.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt17">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc18></A>The American Research Company</H3>
<P>KO: American Research was unique in a number of ways, probably all =
based on=20
General Doriot. First of all, they were the granddaddy of all risk =
capital=20
companies. Since then there have been many risk capital companies. None =
of them=20
have accomplished what American Research did. Some of them are =
financially more=20
successful, but they never made the contribution. American Research, the =

General, had the belief that they made the long-term investment. They =
wouldn't=20
buy and sell companies at the first opportunity. They would stick with, =
[and]=20
work with, the company until they were successful, or until they failed. =
This=20
sounds obvious, but it's very hard for someone who owns a major part of =
the=20
stock to be patient. The General really preached this and really =
practiced it.=20
It was his contribution. We did well for most of the years. Any other =
company=20
would have attempted to sell when somebody was doing well and clean up =
on the=20
profit. When things were going poorly, people would be tempted normally =
to sell=20
to get rid of the problem. The General was patient then, too. He also =
had a lot=20
of simple rules for running a business which are always helpful to keep =
in mind.=20
Most of his ideas he didn't present in a way you had to accept. He =
presented=20
them in a way which, after it was done, you thought [you had thought] of =
them=20
youself. Or if you didn't accept them, there was no hassle. There are a =
few=20
exceptions. He said you never want a lawyer on your board, you never =
want a=20
banker on your board. These are black and white and you'd have to =
definitely go=20
against the General to pick either one of them. He was always there as a =
mentor=20
and for help.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt18">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc19></A>Digital Equipment Corporation - The Early =
Days</H3>
<P>KO: When we started Digital there were three of us. I had asked a =
friend from=20
Lincoln [Laboratory] whom I had worked with to work with me on a =
proposal. I=20
pretty much had the technology worked out and Harlan Anderson and I =
studied=20
history of other companies and the financial statements and laid out a =
proforma,=20
financial plan for the company. And then proposed it. When we started, =
my=20
brother [Stan Olsen] joined us the first day. We bought the machinery =
and=20
started the processes and made the silk screens, and etched the boards =
and=20
dipped them in solder. We did everything, the three of us. In time we =
hired=20
secretaries and a few other people. We grew quite slowly. American =
Research gave=20
us $70,000 and that lasted eight years. The nice thing about $70,000, =
you can=20
watch each one of them. We bought things in the hardware store. We were =
very=20
cautious and very careful, and learned a lot. We learned a lot about =
accounting.=20
We learned a lot about manufacturing. And we grew consistently. The =
opportunity=20
to do everything is something exciting in itself and very satisfying, an =

important part of starting a business. That part I would recommend to =
anybody=20
[who] had the opportunity to do.=20
<P>DKA: You said you learned a lot of things. I assume the things you =
learned=20
helped you succeed.=20
<P>KO: Well, we learned a lot of things. Some were useless and some =
were... how=20
to keep pigeons out of the building. Not particularly useful afterward. =
But just=20
understanding how accounting systems work and personnel problems. How =
you hire=20
and how you fire. How you purchase. How other companies work. [These] =
are all=20
things you learn when you're small.=20
<P>DKA: What did your customers think?=20
<P>KO: The potential customers were readily easy to define because they =
were=20
people who wanted high speed circuits. And so we went to trade shows and =
we'd=20
call on the people we knew. It was always touch and go. We were =
profitable every=20
year but you very rarely have so many orders that you feel completely =
secure.=20
It's just the nature of business.=20
<P>DKA: What was it you were offering?=20
<P>KO: To start with, we were offering modules for laboratory use that =
were=20
faster than anyone else [was making]. So people would buy our modules =
and=20
experiment with high speed computer technology or test devices they were =

building. This was our first offering. Later on we offered modules =
people would=20
use to build things they were going to sell to others. Then we offered =
computers=20
made out of these modules; called the first one our PDP-1.=20
<P>DKA: What else do you want to say about these early days? How did =
your wife,=20
for example, feel about your going into business? Did she feel worried =
that you=20
were taking this big step? Or was she supportive?=20
<P>KO: I can't tell you why, but she was never worried. We probably came =
from a=20
different world. You never had much in the Depression and you didn't =
worry about=20
having much. She had come through two wars in Finland, and much of her =
life,=20
never had enough food to be completely satisfied. You never really =
worried about=20
failure because you know, it didn't make any difference. So we didn't =
have=20
anything, we didn't worry about anything. So that was part of it. The =
pay was=20
what I had gotten at Lincoln Laboratory. So the risk we never really =
worried=20
about. Now the risk in business is the different risk. And that is, when =

companies fail, it's a miserable death. They fail and if anyone has an =
emotional=20
involvement, it really is agony. But it's not the risk you think of =
normally,=20
the financial risk or something. It's the risk of watching something =
die. So=20
that risk we didn't worry about. We didn't think of.=20
<P>DKA: What was your own personal challenge? What was the demand on you =
that=20
was most acute in those very early years?=20
<P>KO: The excitement, the fun, the thrill was to do everything. This =
also, of=20
course, put certain demands on. There's only so many days of the week =
and so=20
many hours in the day. Balancing that with family was always a =
challenge. But it=20
never really got out of hand. I never really felt overworked. In general =
it was=20
very exciting. I came home for supper every night, spent the weekends =
with my=20
kids. There's always a list of things to do. And you just systematically =
go=20
through the list. Early in the morning, walking in the woods. Just =
generating=20
that list of things, keeping on balance. And then click them off one at =
a time.=20
And as long as it's approached systematically there's no great tension. =
If they=20
ever jumble up in your head and you get behind there can be quite a bit =
of=20
tension. But in general it's quite clear what should be done. And not =
trying to=20
do things that are impossible. And not worry about the pressures that =
other=20
people would like to impose on you. The pressures on someone in business =
are to=20
take part in every outside activity, go to dinner for something or other =
every=20
night of the week. Most of them are useless and most of them have =
nothing to do=20
with the business. Saying no to them is a major operation, a major key =
to=20
survival. Another story which I tell when people ask me what they should =
do to=20
learn to run a business, I say, jump at the chance to run something. If =
you're=20
working, offer to run the cafeteria, the parking lot, things nobody else =
wants=20
to run. If you have an opportunity to run something in town or in =
church, just=20
run something. Manage it. You learn to manage by managing. But don't =
think=20
management comes from a book and then you're suddenly going to do it. I =
told the=20
story of how I got started from an MIT point of view. The other story I =
tell was=20
that when I was 30 I was drafted to run the Sunday School of a large =
Boston=20
church which to me looked kind of large and stuffy. Everybody was old. =
They must=20
all have been fifty. Some of them quite a bit older. I accepted the job. =
The=20
first thing I did was go to the Lexington library and take out all the =
books on=20
management. I can remember what I learned then. I can't remember =
anything I=20
learned since then. But approaching every job because it was a =
management job,=20
and learning, it's an excuse to learn something. My taking that job was =
probably=20
a key part in learning and being interested in taking on a management =
job. The=20
other thing is that getting people to work enthusiastically is always a=20
challenge. You obviously can't do very much yourself. But if you can get =
others=20
to feel it's their job, their invention, their contribution, they can =
get an=20
enormous amount done. Making sure they feel that way is a key part of =
it.=20
<P>DKA: I wondered if you wanted to talk this morning about the team of =
people=20
that you brought together to work with you and the principles that you =
had them=20
follow as you moved towards this first product, the PDP-1.=20
<P>KO: Developing and managing an organization like Digital is a =
compromise or a=20
set of paradoxes, or conflicts between leadership and giving =
responsibility to=20
others. It's obvious that leader, myself in this case, can never be =
expert in=20
everything. We have to be dependent on those people who are. They =
obviously have=20
to do the design, set the goals. They have to have the motivation that =
comes=20
from them, setting the goals. And yet we have to have a common goal and =
that's=20
obviously the job of the leader. What I did for good, or for not so =
good, is=20
probably demonstrated many of our products. Here we have our PDP-1. The=20
background I had, the experience I had was the design of circuits, the =
design of=20
logic, how you did arithmetic with transistors. But early in the history =
of=20
Digital we could hire people who were expert in that. The area we =
couldn't hire=20
people were the making of power supplies, the putting together the =
packing, the=20
industrial design. So, in that case, I gave the responsibility for the =
things I=20
had been expert in to those who[m] we could hire.=20
<P>DKA: Ken, what would you say was the overall goal in making the =
PDP-1?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt19">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc20></A>Digital's PDP-1 Computer</H3>
<P>KO: The goal of the PDP-1 was to introduce a new type computer to the =
world.=20
In the tradition that was developed at MIT where the computer was very =
simple,=20
very fast, relatively inexpensive. In this case, [the price was] =
$110,000 with=20
only 4,000 words of memory. Because it was simple, easy to use, =
interactive with=20
the cathode ray tube and light pen, it could be used by an individual. =
Someone=20
could afford to sit there and use the computer like we do [with] a =
personal=20
computer today. You could also use the same equipment interactively with =

equipment, that is, with a machine or a telephone system because the =
price was=20
relatively low. $110,000 thirty years ago was a lot of money, but =
computers then=20
cost one, two and three million dollars, so it was relatively =
inexpensive. And=20
it did open up new applications that people hadn't thought of before.=20
<P>DKA: Why hadn't anybody done this?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt20">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc21></A>The Concept of an Interactive Computer</H3>
<P>KO: First of all, we had experience with the technology. After years =
at MIT=20
it was just natural to us. The concept of an interactive computer was =
strange.=20
Some people thought it was wrong. Almost spoke in ethical terms. =
Computers are=20
serious, you shouldn't treat them lightly. You shouldn't have fun with =
them.=20
They shouldn't be exciting. They should be formal and distant with red =
tape=20
involved. That was the atmosphere at the time. So it was a strange idea. =
The=20
other motivation we had was that we believed computers should be fun. =
They were=20
exciting. They could do so many things. The opportunities were just =
without=20
bounds. This was a great motivation in building a computer. But it was =
not=20
commonly shared in the industry. Now, the other reason of course, was =
that using=20
vacuum tubes in the older technology, the machines were big. They were =
huge. And=20
they were expensive.=20
<P>DKA: As you look at the history of computers in this period, you see =
people=20
focusing on operating systems and getting batch processing and more =
efficient=20
use of computers. Was there a thought that this wouldn't be an efficient =
use?=20
Was that part of the concern?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt21">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc22></A>Real-Time Data Processing</H3>
<P>KO: The original computing was based on the way people had done =
computations=20
before. You'd collect all the data, bring it together, process it and =
send the=20
answers back. The idea of processing it, real time, took a long time to =
develop.=20
In the world of commercial processing, it's just in the last few years =
that=20
batch processing has started to disappear. The replacement for it is now =
called=20
transactional processing, where if you make a transaction with a bank, =
it is=20
instantly taken care of. Your accounts are updated. And you could have a =
new=20
transaction almost immediately. So, 30 years later, it has influenced =
the=20
commercial market. That was dependent on software and large computers =
that were=20
fast.=20
<P>DKA: Did this PDP-1 conceptually have any relationship to what you've =
just=20
described?=20
<P>KO: The PDP-1, we like to think, along with the circuits we were =
selling, was=20
a vehicle for introducing the MIT ideas into the rest of the world of =
computing.=20
The idea of fast simple machines was strange in those early days, and we =
like to=20
think that we helped change the world. The MIT tradition came about =
because we=20
were working with physical phenomena. In aerodefense we divided the =
country up=20
into 16 bits and that was close enough for defending it. For most =
physical=20
phenomena, 16 bits is enough. The rest of the world ridiculed anything =
[with]=20
that short word length. And, as you well know, 16 bits is the most =
common of the=20
powerful personal computers today, and up until just lately, most =
minicomputers.=20
So even the word length probably came out of the MIT tradition, and the =
PDP-1=20
tradition.=20
<P>DKA: Ken, did your whole team have a common feeling about this =
objective, or=20
was there difference in opinion as to which direction you should go in=20
computers?=20
<P>KO: When it came to details, we had all kinds of opinions. We spent a =
lot of=20
time arguing, and openly exposing all the differences. But the firm =
belief that=20
the world needed fast, inexpensive computers that were interactive was =
just=20
accepted, without question. We also believed, now maybe this sounds a =
little=20
naive, that every computer had to have a cathode ray tube. I mean it was =

inconceivable. But that you wouldn't have one with a light pen. Also, =
every one=20
had an audio output. I think somewhere, under this console there's one. =
Because=20
it goes with interactive computing. If you lost interest in everything =
else and=20
you were alone with the computer, you could always write music at night. =
So that=20
sort of thing was just accepted in the environment. Along with the idea =
that=20
computers are fun, exciting, and that anybody can learn them. From a =
young child=20
on up. When we asked for money we may not have mentioned that computers =
should=20
be fun. But every time we reported to them, we reported that computers =
should be=20
fun and exciting and therefore very productive. The demonstrations we =
put on in=20
the stockholder's meeting of American Research, which owned almost all =
the=20
stock, demonstrated the fun and the interactiv[ity] and the =
responsive[ness] and=20
the productivity that came from it. So we openly presented this.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt22">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc23></A>M.I.T. Students Learning Computing on Digital's =
PDP-1</H3>
<P>KO: When we were at MIT, we at Lincoln Laboratory gave to the =
educational=20
part of MIT at the TX-0 computer. Then when we started Digital we gave =
one of=20
our first PDP-1's to MIT for use by the students. The students could =
then have=20
opportunity to use that machine anytime, 24 hours a day, and they could =
sign up=20
for it months ahead and do anything they wanted. They learned more about =
the=20
computer and how to do things with it than probably anybody had before =
that=20
because you had dozens of bright people spending all hours of the day =
studying=20
this. Out of this came what we know of today as video games. We had =
played fixed=20
games before in an oscilloscope like kalah and the Asian games that you =
could=20
demonstrate here. But what we know of as video games came out of that =
group at=20
MIT. These always made great demonstrations. Spacewar! being the most =
exciting=20
one. It's] still showing in the [Computer Museum] museum. And very =
close, you=20
can just see that out of that came what we know today as video games. =
This made=20
a great demonstration for stockholders. We also played music. I think we =
had a=20
four part Bach we could play. We did feel passionately that we had an =
approach.=20
We were too much scientists to say we invented anything or it belonged =
to us, or=20
uniquely ours. But we did have this missionary zeal to introduce these=20
technologies to the world. And we got great satisfaction to see it =
develop, both=20
in the world of human interaction and machine interaction. Interacting =
with=20
machine tools or laboratory devices or telephone lines. It was the goal =
we set=20
out to do. It was a goal we formally stated. And this worked out very =
well.=20
<P>DKA: Ken, you talked a lot yesterday about the modules that DEC first =
made as=20
being your initial product. What's the relationship between the modules =
and this=20
initial computer?=20
<P>KO: Digital devices are made up basically of just a small number of =
circuits.=20
Flip flop holds two states which it holds the ________. Gates, you'll =
put=20
various combinations of signals in and if the right combination is met, =
the=20
signal gets through. Then there are amplifiers and things to allow you =
to run by=20
drive things, or run distances. In making up modules out of these =
building=20
blocks our original customers could build up computer like devices, or =
actually=20
computers. We then used them to build the PDP-1. This is the back of the =
panel=20
but those modules plugged into the back. [POINTING OUT PARTS OF THE =
MACHINE]=20
These were all wired up and soldered by hand. But the correct modules =
plugged in=20
the back. If they were defective you could change them easily. If you =
designed=20
them once and tested them thoroughly and then you used the same ones =
many=20
places. I think there were probably 20 across, 20 times 20 or 400 =
modules. Maybe=20
it was 600.=20
<P>DKA: How did you make it so fast?=20
<P>KO: The approach to the circuits which evolved at MIT was to set =
about to=20
make the circuits fast and then the computer simple. It meant very =
expensive=20
circuits. The transistors cost $12 each. Maybe by the time of the PDP-1 =
they=20
were down to $6 or $8. That's very expensive. So that the circuits in =
the=20
modules were very expensive. But the result was basically a very simple =
machine,=20
and one we could readily build and that operated very fast.=20
<P>DKA: Tell me about the sales of this machine. Who wanted it and what =
did they=20
think about it when they got it?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt23">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc24></A>Digital Customers Developing Software</H3>
<P>KO: We had contracted with some professors at MIT to do the software =
for us.=20
They didn't come through. We then announced the machine as the machine =
without=20
much software. So, this was a challenge to a group of customers who =
wanted to do=20
their own software. The applications normally went to the scientists. =
[REFERENCE=20
TO MACHINE ON EXHIBIT - This machine here is not as good looking as the =
original=20
one. The frame over the cathode ray tube is for hanging a camera on. =
This ugly=20
bracket was for holding a camera. And it probably was used for high =
energy=20
physics experiments. They could take the data, project it on a tube and=20
photograph it. And that was the general application.] The American =
International=20
Telephone &amp; Telegraph bought a large number of them to collect =
teletype=20
messages, stored them and then distributed them to the phone lines that =
were=20
free at an optimum rate rather than storing on paper tape and doing it =
manually=20
like they did before. So that was an obvious application for it.=20
<P>KO: [Our early customers] jumped at the chance to [develop their own=20
software] for their special projets.=20
<P>DKA: One of the things that DEC is well known for is working closely =
with=20
customers. Was that part of what you had to do then almost as a =
necessity?=20
<P>KO: One of the exciting things about this business is that you have =
such an=20
interesting, diverse set of customers with very interesting problems. =
Each one=20
is different. Most of them are quite exciting, all the way from physics =
to=20
telephone controls...education to medicine. Working with them is =
important.=20
Through our history, many of the ideas came from our customers. We =
obviously=20
were never limited by my knowledge or my ability to come up with ideas. =
But we=20
also were not limited by even the people who were responsible [for] =
various=20
parts of the technology. Customers, when you're close to them, often =
have ideas.=20
Sometimes [they] actually do the development, and are excited if we take =
them=20
and produce them. Being close to the customer was very important.=20
<P>DKA: Is that a sort of philosophical principle that runs through your =

company?=20
<P>KO: It's much simpler than that. It's an obvious philosophy. It's =
very=20
productive. Computer people sometimes think more highly of themselves. =
So=20
there's a tendency to not be humble enough to take someone else's idea. =
But the=20
idea itself is so obvious you should just jump at any opportunity to get =
better=20
use out of your computers.=20
<P>DKA: You were mentioning several of the uses of the PDP-1 and you =
mentioned=20
the telephone usage and the scientific usage. What else were people =
doing with=20
these new machines?=20
<P>KO: Some of the things we didn't know. Some of the things people =
wanted to=20
keep to themselves, either because they were government applications or =
things=20
they wanted to keep private. In the laboratory area you could do things =
that=20
were so tedious before. One of the first applications for this type of =
computer=20
that gave dramatic results were to automate the x-ray defractometers. =
These are=20
devices where people would put a specimen in, take pictures and then =
take days=20
or weeks analyzing the results. The computer would give them results=20
immediately. If the experiment wasn't done right, they could do it over =
again.=20
But they could run through many experiments very quickly just because =
the data=20
was processed automatically. Another time we put these machines, or one =
like=20
this, on a Coast Guard ship doing oceanography work in the ocean. It=20
revolutionized their work. They could collect data, process it, [and] if =
the=20
data wasn't coming out right, they could do the collection over again. =
The=20
thought that devastated them all throughout a cruise was, if things =
weren't=20
going well, they wouldn't find out until they were home and it was too =
late to=20
redo the data. So, it just revolutionized their enthusiasm. [There were] =
just an=20
infinite number of applications.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt24">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc25></A>Selling Computers to Government</H3>
<P>DKA: We hear so much about the Defense Department in the early days =
of=20
computers, particularly the large computers as being their principle =
sponsor.=20
Did this new, less expensive device, open up new areas of markets for =
you or was=20
it still mostly defense and defense-related business that you got into?=20
<P>KO: When we started, we had the policy that we wouldn't sell to the =
Defense=20
Department. [For reasons of] the accounting they demand, not [that we =
were]=20
pacifists. And the products they develop are just contrary to commercial =

activities, the commercial way of doing business. We felt and still =
feel, still=20
very clearly, that doing business with them hurts one's position in the=20
commercial market. Now we do a lot with them, we sell to them freely =
because=20
it's our duty to do so. We normally do it on commercial terms, because =
we still=20
are afraid of changing the nature of a commercial company if you aim =
your=20
business to satisfy their way of doing business.=20
<P>DKA: Can you characterize a little bit more the difference between =
working=20
for a defense market and a commercial market? Is it flexibility and =
freedom or=20
is it something else?=20
<P>KO: The government business...the way Congress sets it up and the way =
that=20
people want to run things...worr[ies] about you making profit. They =
worry less=20
about what they get. That's absolutely contrary to the commercial =
activity. Most=20
commercial customers want to do business with you only if you make a =
profit, and=20
like you more if you make a good profit because it shows you're doing =
things=20
wisely and you'll be around for awhile. The commercial companies always =
want to=20
buy the best product and they have learned, those that are successful, =
to trust=20
their suppliers. There's a relationship between the suppliers. The way=20
government business is set up it's always distrust. The supplier is =
always the=20
enemy. There's always someone who wants to find something. You're =
treated like a=20
criminal. It's just not a good way to do business. Their accounting is =
contrary=20
to common sense and contrary to commercial business practice. If you set =
it up=20
that way you're really not competitive in a commercial market. So we =
originally=20
made the rule we would sell nothing to them. They, in time of course, =
insisted=20
because they needed what we had. And we, to this day, limit our business =
with=20
them to commercial terms.=20
<P>DKA: In the early days of computing when the business was government, =
[that=20
must have been a] risky principle, wasn't it?=20
<P>KO: No, it was just common sense. It was risky to do anything else. =
The=20
financial community didn't understand this. We said we wouldn't do =
business with=20
them. The financial community thought that if you took government money =
to do=20
your research it was free research and then you had a head start. It =
doesn't=20
really work that way.=20
<P>DKA: Why not?=20
<P>KO: The red tape they put in and their goals are just contrary to =
commercial=20
goals. Therefore they're always behind.=20
<P>DKA: As I look at this equipment, I'm curious to know how this =
differed from=20
what other companies had out. Was this innovative? Was this bringing =
something=20
to market the market wanted but couldn't have before?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt25">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc26></A>Unique Features of the PDP-1</H3>
<P>KO: The thing that's unique about the equipment is the fact that it's =
simple,=20
very fast, and interactive. The market wasn't demanding this. People had =
never=20
seen it, didn't know about it, and didn't ask for it, with very few =
exceptions.=20
Some of the students who had used it at MIT when they got to their new =
company=20
they said, where's the PDP? Our generosity at MIT paid off very well. =
But in=20
general, the market wasn't asking for it. Market surveys came to the =
conclusion=20
that people wanted exactly what they had. That's because that's all =
they'd ever=20
seen. And that's why you get into trouble if you believe market surveys =
all the=20
time because they never come out with anything useful on new products. =
So we had=20
to, in general, sell the idea to most of the customers. We are not =
considered a=20
marketing company because we don't spend money on _______ markets. We =
don't=20
exaggerate. We try tediously, sometimes boringly, not to mislead or be=20
dishonest. Therefore we're not considered marketers. We refuse, when we =
have the=20
opportunity, to sell to someone who doesn't need our equipment. If it =
won't do=20
the job for them, or won't do it optimally, we don't want to sell it to =
them.=20
That's considered non-marketing. But on the other hand, the goal we set =
about=20
was to sell this product to people who needed it. It often didn't look =
flashy=20
but it worked for 30 years. Now there was a certain other flashy =
marketing which=20
did help. It turns out that physicists love color and a little bit of =
spirit.=20
Now this machine [THE PDP-1] today is a little naive from industrial =
design. But=20
the color, the consistency did give a little more pizzazz and jazz than =
most=20
computers; people loved it just for that sake. So that was part of the=20
marketing. The shape of the monitor in that time was unusual. The =
console really=20
was designed to look good, to have something you like to work with and =
would=20
attract people. That was part of the marketing.=20
<P>DKA: Were you involved in the looks of this stuff yourself?=20
<P>KO: My job was to make sure we had goals and to make sure that people =
knew=20
them and that we were all running in the same direction, and running =
with=20
enthusiasm. And then quietly to pick up the pieces that other people =
left=20
behind, or that we didn't have people to survive. The mechanical design =
was one=20
of those. So, yes, I was involved in that. It normally is not one of the =
things=20
people notice, but because I did some of it, I of course will talk about =
it.=20
It's relatively unimportant. But some of the ideas are interesting. =
Early in=20
computers people built a console on the table with all the instruments =
and=20
lights in front of them, very much like you see in a power plant. Our =
first=20
PDP-1 was that way. It had all the controls on the table, and big heavy =
cables=20
going over the computer to connect the tube. Finally it dawned on me. =
Maybe the=20
first in the industry. Something very simple. In the control, in the =
power=20
plant, they have a console that way so they can look over at that big =
array of=20
lights and heaters(?). Sitting at a computer console, the only thing you =
look=20
over at are dull racks. So the whole thing's stupid. We got the idea of =
putting=20
it on the end of the computer. After that everybody followed. Now that's =
a=20
trivial thing, but maybe that was a contribution I made. You never can =
say for=20
sure because somebody else might have done it first. We got the idea =
from them.=20
But that's a small contribution. Picking a color, picking the logo type, =
this=20
sort of thing. There was no one else to do it so those were left for me. =
I did=20
have a little machine shop practice so I knew how to design. I know how =
to use a=20
drafting table.=20
<P>DKA: What's PDP mean? Where did that come from?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt26">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc27></A>PDP - The Origins of the Name</H3>
<P>KO: When we were almost finished with the computer, before we had =
picked a=20
name for it, we had a request from the government to build a machine to =
look for=20
earthquakes. To collect the seismographic information. We didn't quite =
believe=20
the story that people were that interested in earthquakes but we were =
willing to=20
let it go at that. The Congress, in their wisdom, said that no more =
computers=20
will be bought until all the computers in Washington are used 100 =
percent of the=20
time. Now it seemed unlikely that earthquakes would wait until the =
accounting=20
machines were unused before they went or the Russians would be so =
helpful as to=20
not try out a bomb at the time when the machines were available. So they =
needed=20
a machine but they couldn't buy a computer to run their seismographic =
machines=20
just because Congress had this rule. We said you could call it something =
else.=20
It's really a Programmed Data Processor. So we called our machines, PDP, =
for=20
Programmed Data Processor. They were able to buy the machine, hook up =
their=20
seismographic devices, and not [have them] break, and not be challenged =
on their=20
purchasing of the computer. It was a good name and that's where PDP came =
from.=20
The job of the leader is to fill in those tasks which no one else is =
going to=20
do. But never claim credit for them because that's just contrary =
leadership.=20
You're supposed to be getting everybody else to work and if you pick up =
some of=20
the pieces, you should never brag about it. The story I tell people who =
get=20
confused on this is [a] fable. It used to be in THE FIRST GRADE READER, =
"The=20
Turtle That Wanted To Fly." He talked the crows into putting a stick =
between=20
their mouths, and he held on the center of the stick and flew with them. =
Someone=20
on the ground said, "That's a clever idea, who thought of it?" He =
couldn't keep=20
his mouth shut. He had to say, "It was me." So my advice to people who =
want to=20
be leaders is, remember the task as a leader is not to claim credit, but =
to be=20
the leader and get the job done. The other advice is you've got to make =
sure=20
everything gets done. And so the logo type, we... I did. I did it myself =
and I=20
can tell you pretty much where it came from. The first one had a =
vertical of=20
DEC. It was very clever.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt27">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc28></A>DEC's First Trademark</H3>
<P>KO: Our first trademark was the vertical DEC. I got the idea for that =
right=20
from the cover of a magazine. It was a magazine that's probably changed =
its name=20
two or three times since then. I don't remember which one it was. But =
having the=20
"D" reverse color at the top of the square I thought was clever. So we =
simply=20
adapted it to this. We silkscreened our printed circuit boards. We made =
up=20
screens with a trademark on it and the name on it, and then we did it=20
everywhere. We put it on our doors. We put it on our used Volkswagen =
bus. Once=20
the screen was going, you know, we'd put it up everywhere. In time we =
found that=20
people called us Digital and not DEC. So we made the decision quite =
formally to=20
change our name to our shortened name, our trademark to Digital instead =
of DEC.=20
Another magazine, I think it was called machine design at the time, had =
their=20
name in blocks like that. It looked attractive. Those days lower-case =
letters=20
were the smart thing to do. So we designed this logotype, and it became =
the=20
standard. It might also have been that the rest of the machine design =
magazine=20
used the rest of the word like this. But the ideas came right from the =
cover of=20
a magazine.=20
<P>DKA: I've often heard that it had something to do with the storage =
register=20
of...=20
<P>KO: No. Not at all, not at all. Now one time our experts suggested =
that lower=20
case letters were passe. That these were hard to read. There was a newer =

alphabet. They proposed a variation of this with more modern letters. We =
brought=20
it to our Board of Directors and I said we want to do it and they said =
yes. That=20
night we happened to have dinner with the wives and the directors. One =
of the=20
directors said, "I'd like to call the meeting to order and re-open this=20
question." He was sitting with my wife...my wife doesn't take part in =
business=20
except a few times and [this] being one of [those times], where they =
proposed=20
that that may not be the best, but it's Digital, and they proposed we =
stay with=20
the old one. So we stayed with Digital.=20
<P>DKA: What did your wife have to do with that?=20
<P>KO: At dinner, the question of changing it to a more modern type face =
came up=20
and she and this director connived together to raise the issue again. =
When they=20
called for a vote, wives don't have any vote, but we counted 18 together =
in this=20
informal vote. I said I claim 19 votes and we're going to stick with the =

original decision. The next day of course we formally went back to the =
original=20
and never changed it since.=20
<P>DKA: On signs, there was another story. We put signs outside of =
buildings and=20
after awhile the sign people had very complicated signs. They had =
Digital=20
Equipment Corporation, and then the name of the location and something =
else on=20
it. It didn't feel right. So, as I drove with my wife we looked at =
signs. We=20
concluded that the most effective signs like Mobil or Esso were just the =
simple=20
name. So we decided to use that, and that alone, for our signs. It's =
very=20
presumptuous because not everybody knew who Digital was. But challenging =
them by=20
being a little presumptuous was also a fascinating idea. It is sure more =

effective to just [use] that simple word than have a whole lot of other =
words.=20
So the other story is people still call us both DEC and Digital. There's =
always=20
the challenge, the question by our people from all over the world, we =
should go=20
back to DEC because their people use that. I of course answer, no way. =
We've got=20
so much invested here I'm not going to raise the issue again. If you =
look=20
carefully, it's about 50/50. And if you listen to me, I may say half the =
time=20
"Digital" and half the time "DEC." It's not worth changing. The press =
uses=20
whatever they want to use regardless of what we call ourselves; they're =
going to=20
use what they want anyway. So, that's it for a long time to come. If =
people say=20
they propose changing it, I'll say you can bring it to the Directors. =
You won't=20
win.=20
<P>DKA: So those little rectangles behind each lowercase letter do not =
have=20
anything to do with modularity?=20
<P>KO: No, no they just look good from an artistic point of view.=20
<P>DKA: Ken, let's go back and talk about the software issue for the =
PDP-1. You=20
mentioned initially it came out with very little software. As the =
machine=20
started to sell, what was the company's position on software =
development? How=20
did you tackle that problem?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt28">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc29></A>Software for the PDP-1</H3>
<P>KO: In time we invested as much in software as we did with hardware. =
For a=20
long time we had the same number of people doing both software and =
hardware. The=20
concentration on the software was never in applications but on the =
systems to=20
make it easy to write software, also on the discipline to make the =
software very=20
robust and very reliable. One of the results of this is that almost =
every year=20
of our history, except the very start, there has been someone who's had =
a faster=20
computer at a lower price than we have. By concentrating on the =
discipline, both=20
the hardware and the software, but even more on the software. Extreme=20
discipline. And every year making it better and better. Keeping the =
hardware=20
architecture roughly the same so that things were compatible. And just =
building=20
on more discipline and more security and more robustness. In time every =
one of=20
those quick upstarts who offered something faster have disappeared. The =
belief=20
there is that in computers you really want, above all, reliability. You =
don't=20
want to lose things in a thunderstorm. If everything goes the power =
disappears.=20
You want all the things you worked on, all your data tucked away nicely =
so when=20
power comes on you can get it back again. This has been our approach in =
software=20
and the thing that's made us unique in the last number of years is this=20
continuation in an organized way of discipline documentation and =
sticking with=20
standards. So our approach to software has been quite consistent, but =
it's been=20
in the area of discipline and documentation. For many years we made the =
same two=20
computers, the PDP-8 and the PDP-11. We kept that design consistently so =
that=20
software the customers wrote would continue to work on newer models and =
the=20
software we wrote would continue to work and get more and more robust. =
By that=20
we mean, regardless of what happens it will be safe and secure. This was =

dependent on a high level of discipline and organization and =
documentation.=20
Software is something which you can't look at and understand right away =
because=20
it's a series of numbers, and pages and pages of them. You never know if =
parts=20
are even used. You might have a million instructions and in no way can =
someone=20
tell whether parts of it or most of it are just left over and never used =
at all.=20
When people have trouble transferring software to new machines, they =
hate to=20
admit that it's often the lack of discipline in the software. So by =
adding this=20
discipline and the systems to it, we've gotten people to be dependent on =
our=20
machines and because they have the commitment from us that we will stick =
with it=20
and continue to maintain it and with discipline. When the Russians want =
to steal=20
a computer they want to steal a VAX. The reason they want to steal a VAX =
is=20
that's where the software is. The reason the software is there is that =
it's=20
disciplined and easy to use, and built upon for many years. In today's =
world of=20
software, we have our VAX system. We call the software VMS. We have =
basically=20
one system. It has about a 12-foot long shelf of books to describe it. =
Anything=20
you want to do you'll find in there if you look long enough. Every =
change is=20
tested and retested, and everything is safe and as secure as we can do. =
The=20
problem with this is that it is a 12 foot long shelf. To take advantage =
of it=20
all takes some time. Another system was developed even before we =
developed VMS=20
called UNIX. It was designed in reaction to complex business systems. It =
was=20
designed for one person to work alone. It was designed to be without =
discipline,=20
freeflowing, and it became very popular in the academic world because it =
was=20
easy to learn. It's easy to do simple things in workstations. And we've =
sold=20
more of that than anyone else has partly because it was designed for our =

machines. We've been the biggest player in that market, and encouraged =
it=20
because there's a place for that casual undisciplined work, and a place =
for the=20
discipline work. So today, UNIX is very popular for workstations where =
one man=20
works alone, where if he loses everything because of a thunderstorm, =
he'll feel=20
bad. He's lost a whole day's work. But it's not the same as a bank who =
just=20
under no circumstance can ever, inconceivably lose anything. These are =
the two=20
different realms of discipline and security. Now the promise is we =
promise that=20
we'll make UNIX secure, and robust, and formal and disciplined, with a =
lament=20
secretly that when we do, we will lose that free-wheeling, fun, casual,=20
easy-to-use UNIX system that made it so popular.=20
<P>DKA: I'd like to take you back to the PDP-1. One of the things that =
you've=20
said is you learned a lot from your customers. What went right with the =
PDP-1,=20
and what went wrong? What did you want to do different as you moved? Or =
did you=20
just want to do more of the same? As you saw the company growing, which=20
direction did you want to take it?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt29">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc30></A>Managing the Success of the PDP-1</H3>
<P>KO: We had large orders from ITT, for telephone, telegraph type =
systems. They=20
decided to go out of that business, which left us with more production =
than we=20
had orders for. At the same time, NASA was getting ready for their big =
projects=20
and they wanted to buy 100 computers. And I said, no. The engineer who =
designed=20
it left us after that because 100 machines would have made it a great =
success.=20
But growing that fast would have ruined the company. We were making 2 or =
3 a=20
month. Getting an order for 100, we couldn't have tolerated. Then if =
that order=20
disappeared, we'd be in terrible shape. So I said, no, we won't bid on =
it. It=20
must have taken years before NASA got over that.=20
<P>DKA: That must have been a hard decision, Ken?=20
<P>KO: No, it was an easy decision. Suicide is something you don't have =
to do.=20
My first rule of business [is] you don't have to commit suicide. People =
think=20
it's a hard decision. [It's] not a hard decision at all. It's like =
hanging over=20
a cliff on a narrow piece of rope. That's not a hard decision. Some =
people felt=20
it was hard because the short term result could have been exciting. But =
we had=20
to grow slowly and consistently or we would lose everything. Now each =
step of=20
improvement afterward was quite obvious. The technology got better =
consistently=20
as time went on and we understood more how to build machines.=20
<P>DKA: What was getting better? Can you be a little more specific?=20
<P>KO: The old typewriters which we bought were crude and expensive. As =
we got=20
better typewriters it just made the computer available to the masses. =
The=20
transistors got better. Eventually, circuits came into play. We learned =
how to=20
put more on a printed circuit board. We learned better ways of packaging =
and as=20
computers developed, more and more of every kind of component with =
better=20
quality and lower price. That meant we could cut the cost significantly =
and=20
increase the power. The industrial design was always important because =
people=20
did buy [computers] for looks. They liked something, it was easy to use, =
it was=20
very productive, but the looks were important. We always had either a =
rented=20
industrial design[er] or part of our own staff. And this [THE PDP-1] we =
thought=20
was quite good looking. The console had the same general shape as the =
display.=20
And [the] layout of switches was studied very precisely. We made special =
knobs=20
for it. It was readily accessible to the tape reader. The tape storage =
was=20
obviously patched in later on. But it did make a very efficient way of =
doing it.=20
The punch tape came out here. It made a very efficient and attractive =
system, we=20
thought.=20
<P>DKA: Ken, was it all paper tape or did you have magnetic tape at all =
for the=20
PDP-1?=20
<P>KO: The software people brought to the machine with them was paper =
tape.=20
There was magnetic tape for storage but people didn't normally bring the =

[magnetic] tape with them. They usually brought the paper tape, or =
they'd bring=20
a tray like this [DEMONSTRATING PAPER TAPE TRAY]=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt30">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc31></A>Running a Program on a PDP-1</H3>
<P>DKA: Now what would it be like for somebody to run a program? How =
would they=20
set it up?=20
<P>KO: [DEMONSTRATING USE OF PAPER TAPE READER] They would take the tape =
out and=20
put it inside here, string it through the tape reader and set it up so =
it would=20
fold here and the tape would come off and this fanfold. When he left he =
would=20
have all his tapes put in a tray like this or several trays like this. =
Any new=20
tape he generated while working on it, he put in trays also.=20
<P>DKA: What was he doing on the control panel below? What would a =
programmer=20
do?=20
<P>KO: As he was debugging his system, he could watch what was happening =
all=20
through the computer by looking at the lights. He could introduce =
information=20
through six switches which the computer would sense. If you wanted to =
play a=20
game, you'd play it by entering information in the switches. The =
computer would=20
light up lights here, special program lights to tell him various things, =
or tell=20
him what was going on if he was playing a game. These were just start =
and stop=20
and continue. [POINTING OUT SWITCHES] If he examined, he'd press this =
one that=20
would stop the program. He could see from the lights what was going on. =
He could=20
step the program along one step at a time, and just watch what was =
happening=20
with his program as he went through. In time, slowly over a period of =
many=20
years, we got rid of all of this. Now people don't need that at all.=20
<P>DKA: What was the relationship between what people saw on the control =
panel=20
and what they saw on the CRT?=20
<P>KO: The control panel showed exactly what was going on in the =
computer. The=20
CRT would present pictures that someone worked hard to generate. At that =
time=20
you couldn't debug from what you saw in the cathode ray tube. Today you =
don't=20
need this because the cathode ray tube does it so well. We always had =
very good=20
documentation. [For the] PDP-1, we worked very hard on a manual, and it =
wasn't=20
very big. People loved it. The competition thought they'd do the same =
and were=20
dismayed to find out how hard it was to write a simple small manual.=20
Unfortunately, not being a normal user, there's always one thing we left =
out. We=20
never told which way you put the tape in. I never figured it out. I =
never=20
remembered it. So there's one weakness in our literature. There's =
another=20
literature story: by policy, we would write everything we do in book =
form for=20
the customer. We formally decided we would print things in a paperback =
format,=20
and put in everything we knew about a computer. We put a manual out that =
told=20
absolutely everything. At that time we could have that book printed for =
twelve=20
cents. Our experts in publishing thought it was a disgrace. Paperback =
books were=20
inexpensive paper, obviously not glossy and polished photography. But =
the=20
difference was, a brochure which could say almost nothing would cost a =
dollar. A=20
paperback would cost twelve cents and we could tell everything in it. =
One time=20
after meeting on a Friday afternoon, my brother, [STAN OLSEN] to =
demonstrate=20
something, ripped one of the paperback books apart, and laid it on a =
table.=20
[Then] he ripped some literature apart and laid it on the table. Come =
Monday,=20
the janitor had thrown the ripped literature away but carefully put the=20
paperback together. Everywhere you went in the world -- India, China --=20
engineers had those paperbacks on their bookcase because they were that =
popular.=20
We gave them away freely and we got a lot of information out. They were =
very=20
valuable even to those people who couldn't afford a computer; [they] =
educated=20
them about every single detail of our machines. So, since then we've =
been free=20
in literature; we print everything we know [about the system] and [the=20
handbooks] make a real contribution to the customer.=20
<P>DKA: Is DEC more open with its information about machine design than =
other=20
companies?=20
<P>KO: Probably so, because of [our] academic background. But even more=20
important, it takes a lot of discipline to get people to write. After =
you're=20
finished with a job, it's very hard to write about you've done because =
you're=20
ready to go on to something new. Getting people to write down all they =
know=20
about the project they worked on takes discipline and effort. It's one =
of the=20
things we're never satisfied with but we keep trying to do a better job. =
As=20
[computer] software became developed, it [software] helped him [the =
programmer]=20
find the problems and correct them in this interactive way. This is very =
much=20
more productive than getting your results back once a day. Getting your =
results=20
immediately allows you to fix it immediately. As you get clever, it =
allows you=20
to use the computer to help you fix it.=20
<P>DKA: Ken, did you use card readers at all with the PDP-1?=20
<P>KO: In general, we used paper tape. The scientific users used paper =
tape. We=20
always had a card reader available because commercial users or some =
people whose=20
data came in punched card form did have to have access to punch cards. =
But the=20
paper tape was much easier to use for the casual user.=20
<P>DKA: [Was] memory an important consideration of the PDP-1?=20
<P>KO: Yes. The memory, for many years, was the limiting factor in a =
computer.=20
We decided to build this PDP-1 a little earlier than we had budgeted =
because our=20
friends at RCA called us one day and said we have a thousand word memory =
the=20
customer ordered and doesn't want. We'll sell it to you cheap. So we =
quickly=20
bought it and said, now we've got to make our computer. The computer was =

designed around the thousand word memory. That was the impetus to get =
going. We=20
sold that 1000 word memory many times. It deserves a place in the =
museum. We=20
don't know where it is though because people would buy the machine with =
a 1000=20
words. Before they got it delivered they needed more. And they needed =
eight;=20
four, eight or twelve thousand words. And we'd then sell the machine, =
that 1000=20
words over again to someone else. Now those numbers are ridiculously =
small. But=20
the price and the size of the memory has been growing, the size has been =

growing, the price has been going down dramatically. It probably is the =
most=20
serious limitation in the computer at any one period in the history. =
Every=20
component has to work and be available. The typewriter, transistors, and =
the=20
memory. Every single piece has to be available. Probably the hardest =
one, the=20
most serious limitation in any time was the memory. So as we learned to =
do=20
memories better, as the people that made the cores learned to make the =
cores=20
better, and to assemble them better, and at lower prices, it just opened =
up=20
whole new opportunities for computers. In time we bought RCA's core =
making=20
facility and the facility in Taiwan for stringing them. And when we were =
going=20
at our peak, we were making 4 billion cores a month, and stringing them =
in=20
Taiwan. At that time cores were cheap, memories were bigger than we ever =
had=20
dreamed, and then we were able to make a large number of computers.=20
<P>DKA: Did the development of this machine, once you got the idea and =
had the=20
core and decided to go ahead, did it go smoothly? Or did it have, was it =
a rocky=20
road? How do you remember the development path?=20
<P>KO: The first one we built we bought standard cabinets from a =
supplier. They=20
were rounded and kind of plain and ugly, with a separate console. It =
became=20
obvious we had to make a better looking cabinet. One that was more =
modular, we=20
could increase the size of and that would look unique and more colorful. =
So, the=20
first one was really plain. But in time we came out with this design and =
going=20
through that transition frustrated some people because it did take some =
time.=20
But it probably took less than a year to build the machine. [SETTING IN =
FRONT OF=20
THE PDP-8 COMPUTER]=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt31">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc32></A>Designing the PDP-8</H3>
<P>KO: One time in the 60's, the Atomic Energy Research group in Chalk =
River,=20
Canada, asked us to bid on a specially designed digital device to =
control an=20
atomic pile. They gave us a whole list of equations they wanted built =
into it.=20
We looked it over and decided we didn't have anybody with enough =
patience to=20
design a special device to do those, solve those equations. We told them =
that we=20
would sell them a very simple computer, at a price as if it were a =
production=20
machine and that they could then program it to do these equations. They =
liked=20
the idea because they said they didn't really know what the equations =
were=20
anyway. We then, with that contract, designed our PDP-4 [PDP-5] which at =
the=20
next go round was called the PDP-8. This machine was just 12 bits long, =
the=20
shortest we could conceive of. It had the simplest order code and the =
simplest=20
organization that we could think of. It was not designed to compute, it =
was=20
designed to control something like... like a pile. Customers bought the =
machine=20
and started doing programming with it. The great appeal it had was it =
was=20
inexpensive. We did a number of bold things. First of all it was bold to =
make=20
one that simple. The competition laughed at us. It didn't have the=20
characteristics of the computer. We also standardized a teletype printer =
which=20
was not designed for continuous use. We very formally made the decision =
that we=20
would gamble on that teletype and work hard to make it reliable enough =
for=20
continuous use. That one gamble, and that one small success, probably =
was a key=20
part in the introduction of minicomputers and personal computers. =
[REFERRING TO=20
THE ASR-33 TELETYPEWRITER] Printers before that were very expensive. You =
could=20
not have an inexpensive machine just because of the printer. That =
machine was=20
quite an expensive, very cleverly designed but made for offices where it =
was=20
used intermittently. Computer users are continuously at a very high =
rate. And so=20
it was a very important development in the history of computers from our =
point=20
of view. It was a bold thing. Because teletype [manufacturers] said, =
don't do=20
it. It's not designed for this. In time they appreciated it and together =
we made=20
it reliable enough for this use. People fell in love with that machine =
because=20
of the cost. And because of the simplicity, it was easy to teach people. =
Out of=20
that came very sophisticated software. It could safely be said that for =
many=20
years that the PDP-1 was the one machine that introduced computing to =
much of=20
the world who had any contact with computing. That's because it was =
readily=20
available and inexpensive.=20
<P>DKA: Were you surprised at how successful?=20
<P>KO: Oh, yes. We were brave making a machine at all. We never were =
brave=20
enough to think that it would become such a popular computer to do =
computing.=20
The PDP-4 [PDP-5] was built like the old machines. When we were going to =
redo it=20
and call it the PDP-8, we wanted to introduce new technology. Sylvania =
had made=20
a new socket that IBM used and it took modules like this. [HOLDING FLIP =
CHIP=20
MODULE] We went one better than IBM in that we used glass boards with =
high=20
tolerance on the boards. We had 18 connections instead of 16. We had a =
clever=20
looking handle that really became our trademark for many years. [HOLDING =
A PDP-8=20
FLIP CHIP MODULE] We then had a set of technology that last[ed] us for =
15 years=20
or more. Maybe 20 years. It was something we just built on from there. =
The=20
modules became quite long and quite high, in time. But for the PDP-8, =
this was=20
the module. We also set about to use the technology that was developed =
for home=20
appliances and automobiles. The technology we used before that was =
basically=20
built upon military technology. So with this machine, we set about to =
study all=20
the technology used for appliances. I went to several discount stores =
for hours,=20
studying every single washing machine, dryer, stove, to see how they =
built=20
things and what we could use. The [idea for the] switch handles came =
from a=20
Maytag dryer. Using a glass panel without separate lights showing was =
the=20
technology used in appliances. The silkscreen on the back looks quite=20
attractive. Inside we used the slip-on connectors that were commonly =
used in=20
automobiles. We tried every way we could to take the technology that =
made mass=20
production possible in appliances. The design of this has no screws =
showing, it=20
is basically held together by these two lock switches. We always had a =
lock on=20
our computers but only one. We obviously needed two in order to hold =
this=20
together so we invented a use for the second switch. This one turned the =
thing=20
off and on and this one disconnected the console so you couldn't mess up =
things.=20
The fascinating thing is that after[wards] every computer had two =
switches. Even=20
the Japanese computers had two switches. No one ever knew why there were =
two=20
switches; it was to hold this panel together. But they just followed.=20
<P>DKA: When they looked at some of the home appliances, what was the =
driving=20
reason?=20
<P>KO: The technology we used was expensive. There's very few inventions =
that=20
come out of the blue completely. Most inventions come from adapting =
ideas from=20
other people. This goes for ideas of organization, motivating people, =
how you do=20
things mechanically, how you do things electrically, and just being =
exposed to=20
all the things that people are learning in the appliance industry. =
Opened up new=20
sets of technology to make things inexpensive. They mass produce things =
at very=20
low price and we had to do the same. They also had more years of =
industrial=20
design experience. They, every day, sold things on looks. And it was =
more=20
important to us. So this was part of that. We had an industrial designer =
who=20
said we should show off our new plastic handles by covering it with =
smoked=20
glass, smoked plastic. I didn't like that idea but it turned out to be =
great. It=20
helped sell. We had rosewood formica on the side which added a richness =
to it.=20
This machine became the standard for industrial design for computers for =
some=20
time. It opened up nicely on a hinge so you have access to the inside. =
It gave=20
people the feeling it was put together with thought and easy to fix and =
easy to=20
assemble. That machine then made a very important contribution to the =
company=20
and to the industry. There's another story with respect to this that you =
could=20
tell many times over. Our first PDP-4 [PDP-5] was laughed at by the =
competition=20
because it was so simple. So naive. But in time, they learned to respect =
it. We=20
knew they were coming out with an equivalent. We also knew that they =
were making=20
the classic mistake that is made over and over again which is to look at =

someone's old product and think you can do better than that. The thing =
they've=20
forgot and they should have known better is that we also were working on =
new=20
products. So one came out with their announcement, two weeks later the =
other one=20
came out with theirs. And a week after that we announced this one at a =
much=20
lower price and a much more elegant machine. That story happens so many =
times in=20
business where people forget that their competition is not the old =
machine but=20
the one the competition is working on. The computer is made up of =
hundreds of=20
modules like this. [HOLDING A FLIP CHIP MODULE] They plug in from the =
front side=20
into sockets which are assembled in the rack. And these sockets then are =

automatically wired by a very large automatic machines. [REFERENCE TO=20
GARDNER-DENVER WIREWRAP MACHINE] So, all that wiring was put on =
automatically=20
and it was one of the new technologies that were available at this time. =
So this=20
panel we put into a machine and [could] take it out all wired. Put the=20
appropriate modules in the appropriate slots and assemble two of them =
and we had=20
a computer. The one gap which maybe you can see is the memory itself and =
the=20
circuits that drove it are also on these same modules. The modules =
filled the=20
whole area except this one area which is core memory. [POINTING TO BOX =
WITHIN]=20
It's got a fan on to keep it cool and is driven by circuits also on =
these=20
modules and together it makes a whole computer. In the MIT tradition, we =
had the=20
system divided into sections. With these switches we could separate one =
section=20
and vary the voltage to see if any section was deteriorating and check =
the=20
margins and replace it if it was in trouble. The power supplies were in =
the=20
bottom. The whole unit was quite heavy. But as machines went, it was =
very small=20
and very light. People then had opportunity to have a machine that was =
all their=20
own and operate it in the same way we operate a personal computer today. =

<P>DKA: How is the business changing? Is the computer business a =
different=20
business at this point?=20
<P>KO: In one sense the computer business stayed the same. It's just =
that as=20
things got less expensive, more and more people were able to buy =
equipment and=20
to use it. With a $110,000 machine you couldn't afford to give one to =
everybody.=20
At $18,000 [THE PRICE OF THE PDP-8] you were getting close. As this =
machine got=20
down to $12,000 and $8,000, it became possible to give it to every =
technical=20
person to use. He'd could use it to do all sorts of operations.=20
<P>DKA: Who were your customers?=20
<P>KO: Schools were one important customer. Because with this you could =
really=20
give students the opportunity to understand what a computer would really =
do. It=20
was also very popular in controlling instruments and machine tools and =
medical=20
devices. Anyplace where you had simple operations, this was just ideal.=20
<P>DKA: Are people starting to use your equipment by this stage for word =

processing, or any type of business application?=20
<P>KO: We believe the first word processor was done on a PDP-1 at MIT by =
the=20
students. They called it "Expensive Typewriter" because it would tie up =
a whole=20
machine and an expensive electronic typewriter. It would do many of the=20
wonderful features we take for granted today. In time we offered word =
processing=20
on every machine that people bought. The technical world had been using =
word=20
processing long before the commercial market showed any interest in it. =
The DEC=20
computers were the standard for word processing. We were slow in getting =
into=20
the commercial area because the technical area kept us busy for a long =
time.=20
<P>DKA: As your company was growing, Ken, in delivering more and more =
products,=20
was the nature of the company changing?=20
<P>KO: The company changes consistently and regularly. The people we =
hired=20
initially of course were not trained in computers. They came from all =
kinds of=20
backgrounds. Musicologists was surprisingly popular. Then in time we =
could hire=20
very well educated and trained people in computers. This made it change. =
The=20
initial applications didn't need all the formality and discipline =
because they=20
were small. The operator kept them in his head and he understood them =
all. In=20
time, many people had to work on them. The applications had to last =
longer than=20
individuals stayed on the job. This meant a lot of formality and =
discipline in=20
the software and the hardware also. So the business changed over a =
period, many=20
years from getting the fastest, most exciting thing out to supplying all =
the=20
discipline necessary to make sure it worked forever. The question's =
often asked=20
what part the military or the US government play[ed] in the development =
of=20
computers in developing the advantage the US has to the computer market. =
In=20
general, I would say they played little part. Obviously, Whirlwind was =
financed=20
by the military. But during its development, it really didn't have an=20
application, so it wasn't driven by the military. The big drive came =
because of=20
the high demand in the competitive situation in computers. The advantage =
the=20
U.S. had was with a few exceptions. Not the fact that the government was =

involved in the computers or financed things. But the fact that our =
government=20
never could catch up and try to help us. Most other countries' =
government=20
stepped in and tried to help the industry, and once the government did =
that we=20
knew that that country was not in competition. Every time our government =
tries=20
to step in, (and they're frustrated often because they can't run things =
and they=20
can't tell us what to do), they mess up everything. Fortunately the =
industry has=20
been running so fast they couldn't grab hold of things. When they tried =
before=20
they did, they were left behind. I'm sure it's the goal of people to run =
the=20
whole industry, and if it disappears and goes somewhere else in the =
world,=20
they'd love to see that, too. But the biggest contribution our =
government's made=20
is that they never got up with the computer industry in order to help. =
No one=20
else except the Japanese have been successful. I think a big part of =
that is=20
that their government's helped and they tried to be dependent on the =
government=20
and that always sets them back.=20
<P>DKA: So that relates back to your philosophy of commercial =
independence.=20
<P>KO: Yes. The military is always several years behind in computers, =
and=20
getting farther and farther behind. They're not in a position to lead =
the=20
computer industry just because of the way they're organized.=20
<P>DKA: Does that mean that you don't think your relationship with the =
Japanese=20
government to that industry is a threat to our way?=20
<P>KO: The Japanese government appears to be the only government that =
can help=20
industry. It might be because they don't consider industry an enemy like =
western=20
governments do, particularly our government. But somehow, most of the =
time they=20
do, they help. But I'm not sure that it's helped them to compete in =
general.=20
Good commercial competition is what drives industry. We may be losing =
that now,=20
unfortunately. We may lose it because the government wants to control =
things. We=20
may lose it because the attitude today is stockholder's rights, they =
call it,=20
where you take all the resources and give it to the stockholders =
immediately and=20
invest nothing in the future and get rid of all the assets. [You] don't =
invest=20
in research at all and that's the fad today. That's considered the =
ethical,=20
American, moral way and if we continue that way we're sure going to lose =
it to=20
anybody because there won't be anything left. But if we can avoid that =
somehow,=20
we should be able to stay ahead.=20
<P>DKA: What's your view of the right recipe?=20
<P>KO: One has to believe in capitalism, not the rampant, stealing, =
robber baron=20
type capitalism, but competition in order to do a good job and continue =
to grow=20
and develop. When our government tries to resort to protectionism, or =
thinks=20
they're going to control the world supply of memory chips, they just do =
no end=20
of mischief. If they continue that way, you don't know they'll stop in =
creating=20
mischief. If you believe in competition, you will buy from whatever part =
of the=20
world does the best. And they'll buy from you where you do best. But if =
you lose=20
one part to somewhere in the world because the cost of capital is less =
there or=20
because they concentrated, because they worked harder, because they have =
some=20
natural assets, if you try to change that by laws, you get up into an =
impossible=20
situation and you'll destroy the advantages of competition. A politician =

inherently doesn't believe in capitalism because it doesn't make good =
politics.=20
Our biggest danger I think in technology is not the Japanese, it's our =
own=20
politicians. Their claim to their constituency is they're going to =
manipulate=20
everything. They just aren't able to do that in a wise way. All that =
we've=20
gained we could lose very quickly by just following our trend of =
protectionism=20
in the technical area, and also our trend in looking out for short term=20
interests.=20
<P>DKA: As an international company, does your worldwide reach protect =
Digital=20
from that type of influence?=20
<P>KO: We do have the advantage of having access to every part of the =
world. We=20
freely buy from any part of the world. We trust the Japanese. We have =
operations=20
there. They are part of Digital. We'll trust any company or country that =
makes=20
good products and is a reliable source, because we buy and sell =
internationally.=20
This is what we say our country believes in, in theory, and it works =
well and we=20
follow it.=20
<P>DKA: Going back to the PDP-8, was this one of the machines that =
people then=20
began to network together? When did that notion get started?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt32">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc33></A>Networking PDP-8 Computers</H3>
<P>KO: One idea we took from MIT was the idea of networking. The =
aerodefense=20
system was made up of 23 sites; each one having a very elaborate, very =
high=20
performance local area network. There was a large number of display =
terminals.=20
Then each of these 23 [sites] were networked to two arrays of radars =
across=20
northern Canada. Airborne radars on the coast, human being spotters on =
top of=20
the tall buildings. It was one very large network. So networking became =
a theme=20
in everything we did. We always were able to hook our computers together =
and for=20
almost all our history we were able to hook to IBM. Networking was =
always part=20
of it. The big change in networking came 15 years ago or so when we =
decided that=20
we'd have to network in a very standardized way. Everything we did we =
used the=20
same networking protocols, and the same networking technologies. That =
really=20
made networking a major part of our organization. It's these =
standardized ways=20
that we've been encouraging the world to accept so that we and they can =
all work=20
together on the same network. We're well under way in that and the new =
standards=20
will make that possible.=20
<P>DKA: Ken, were you unique in the industry pushing for that type of=20
discipline?=20
<P>KO: I think we were quite unique. There's a normal tendency to keep=20
everything you do secret so that others can't come into your area, just =
like the=20
railroads in Europe used to have different gauge railroad tracks. The =
reason=20
they did that, was that if someone was invading them, they couldn't =
drive their=20
trains into your country without stopping to reload. This created an =
enormous=20
bottleneck for any invader. People tried to maintain their own standards =
so that=20
anybody coming into their customers would have a terrible time. We had a =

different idea. It was clear to us that we never could own every =
computer a=20
company had. It was clear that ideally everybody's computer would be on =
the same=20
network. So we've been pressing for standards to make this possible for =
along=20
time. The standards that we've had with great discipline within our own =
company=20
means that we can tie anything we make together, anywhere in the world =
quite=20
easy and simply and elegantly. As other people accept the standards, we =
can=20
accept them in the network. Eventually if all the plans now follow =
through, the=20
major companies will all accept the same standards.=20
<P>DKA: How are all the companies reacting to this?=20
<P>KO: They all have great plans. Some of the standards were basically =
ours,=20
some of them were IBM's, and some of them were generated independently. =
There=20
seems to be common agreement that once they're accepted, everybody will =
follow=20
them, independent of where they came from.=20
<P>DKA: Thinking about networking on one hand and the type of hardware=20
development that goes along with that, it seems that you followed a =
pattern in=20
Digital starting with the modules, [and] state of the art memory systems =
that=20
continued through the PDP-8. How did that hardware pattern continue into =
your=20
later machines? Or did it?=20
<P>KO: The hardware continued to evolve as technology evolved. If you =
look at=20
what we do today, it bears no relationship to the early modules. But =
step at a=20
time you can see the evolution was quite clear. Today we tend to build =
things on=20
large boards with large integrated circuits, and the amount of handwork=20
decreases every year. In the last six years I think we doubled our size =
twice,=20
approximately, and we increased a number of people in production by =
almost zero.=20
This comes about because our way of building things gets to be more and =
more=20
efficient, and more and more gets built into the integrated circuits. If =
you=20
look at it that way, things have changed dramatically. But if you look =
at each=20
step, each step was a small one.=20
<P>DKA: What resemblance do integrated circuits bear in terms of logic =
to the=20
earlier modules?=20
<P>KO: At first, integrated circuits would have maybe the equivalent of =
this.=20
Now the integrated circuit has the equivalent of ten of these. I don't =
know,=20
maybe it's a hundred of these. Because they're so cheap they're used=20
differently. We had to be very economical on how we used these because =
they're=20
expensive and took a lot of room. The logic is so cheap with integrated =
circuits=20
that you use it freely and do things that are inexpensive because you =
use so=20
much of it. So it's a little hard to weigh the differences. But it's =
created a=20
revolution, a slow revolution because they started off small and now =
they=20
include so much. But as they get bigger we want to do more. As they get =
bigger=20
we have the problem of cooling them, connecting them together and the =
technology=20
puts new demands on how we do things. We even cool some of them with =
water=20
because they get so much concentrated on one area that takes different =
ways of=20
cooling them. So things are, over a period of years, quite different. =
Even=20
though any one year they don't change very fast.=20
<P>DKA: And as you move from the PDP-8 to the PDP-11 family, was that a =
major=20
shift in your computer company?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt33">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc34></A>Developing the PDP-11</H3>
<P>KO: The PDP-11 was a machine we took a long time to design, and =
worked hard=20
to make it one that would last a long time and have innovation in it =
that would=20
make it unique for a long period of time. It's still a major product for =
us, and=20
it must be 15 or more years old. We set about to continuously improve it =
but=20
still keep it an 11. We had many software systems, each one did unique =
things.=20
One of them was the predecessor for the common PC software today. Others =
did=20
other things especially well. The difference in the 11 is that it became =
the=20
center of the corporate strategy and the resources were all put on it =
and yet it=20
was maintained with discipline so that the same software played on each =
machine.=20

<P>DKA: When you say it became the center for corporate strategy, what =
does that=20
mean?=20
<P>KO: Before that, we had several computers going at one time. Almost =
all our=20
work was concentrated on that one. We also had a very large machine, =
called the=20
PDP-10. But the small minicomputer area was concentrated on that 11. The =
next go=20
around with computers, we carry this to a farther degree. The VAX =
computer was=20
done with a lot of planning before it was started. It was planned so =
that=20
eventually it would span a range of sizes from very tiny. It was =
designed so=20
that the same software written ten years ago would play today and ten =
years from=20
now. It was designed so that any part of it could be taken out, =
improved, redone=20
and a new one put in and it wouldn't upset the whole system. It was =
designed=20
with just one software system. It also did UNIX, ten percent of our =
machines=20
were sold to do UNIX, but the basic software system was only one called =
VMS.=20
This is obviously very productive, everybody works on it. It gets better =
and=20
better every year. If the whole company works on one [operating system], =
it gets=20
to be quite good after a period of ten, fourteen years. But it is =
contrary to=20
the normal inclination of engineers. With our PDP-11, and like most =
other=20
companies, the tendency is to say, with a new software system I can make =

something special. It does things so much better. Having discipline to =
avoid=20
that made everything so much better just because we could concentrate on =
the one=20
thing we were doing. That's what made the VAX very popular.=20
<P>DKA: And that was a discipline that was hard to maintain in your =
company?=20
<P>KO: It was easy for me because someone else did it. Our strategy said =
we=20
would have one protocol for networking which the idea is somewhat unique =
to be,=20
have only one. One computer architecture which was the VAX, one software =
system=20
which is the VMS, and one way of doing local area networking which is =
Ethernet.=20
The discipline came automatically. Parts of it I really had to take part =
in=20
because without corporate discipline, people would use different kinds =
of=20
networking, and you would lose the whole strategy. So it was not my job =
to=20
develop the strategy. People did that very well without me. Even forcing =
it=20
through and getting corporate approval wasn't my job. But in time it was =
clearly=20
my job to make sure we followed it. In general people liked to work with =
a clear=20
strategy. They like to know where the goals are. The basic decision on =
projects=20
are already made. That gives them great freedom to be creative in the =
areas=20
where we need creativity. Not everybody likes it. When we finally got =
around to=20
enforcing the strategy we had all along, a large number of the vice =
presidents=20
quit because they wanted freedom to do what they wanted to do. But the =
result of=20
the whole company working in one direction was obviously very good.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt34">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc35></A>The Role of the Personal Computer</H3>
<P>DKA: Most people think about computers as having fundamentally =
changed. When=20
the personal computer came, truly to be on their desks at home, at work, =
how did=20
the advent of the microcomputer effect your business? And how did you =
see it and=20
how did you respond to it?=20
<P>KO: The goal we set about when we started the company was to =
introduce=20
interactive computing. We did that first with the PDP-1. Then with =
timesharing,=20
where one computer has many terminals and each person thinks he has a =
computer=20
to himself. With the timesharing end of the terminals, people then were =
able to=20
do those things which we see with personal computers today. As they did =
word=20
processing, they did computation. They eventually did spreadsheets and =
many, and=20
did games and other things. At one time at my home we used to play =
Scrabble on a=20
terminal plugged into the telephone with a VAX at Digital. When you had =
a=20
terminal you had everything that we see now on a personal computer. So =
that's=20
been around for many years. We saw in the early 70's that it was going =
to be=20
easy for people to make computers. The type of computers, we had made =
more=20
powerful than this one, were going to be able to be made by anybody very =
simply=20
and very cheaply. At that time we set about to do something more =
difficult which=20
was to integrate or network a whole organization around the world =
together.=20
Within one room, within the building, within a campus, a city or the =
world. And=20
that was our thrust. We concentrated on that because the PC, as it was =
being=20
developed, was so easy there'd be many people making it. So, we in =
general=20
avoided it and [instead concentrated] on the problem of networking them =
but not=20
planning to be the large producer of PC's. We concentrated on the making =
of=20
networks of small computers and large computers which is a much more =
challenging=20
job and devoured all the resources we had. The PC itself was a component =
to the=20
network. We made some PC's designed to be part of the networking but the =
general=20
PC market was not for us. There were too many people in it and it turned =
out to=20
be true. At one time I think there was 500 or 700 people making PC's. =
Anybody=20
could build them. You could build them in your basement. That was not =
for us.=20
<P>DKA: Was there doubt about that decision? Or debate about that =
decision?=20
<P>KO: No, because you see our goals were clear and when anybody can do =
it and=20
there's nothing particularly unique that we can contribute, it's clear =
it's not=20
for us. Now we had PC's demonstrated here long, probably long before =
anybody=20
else did. Individually people would make them. But we very formally =
decided that=20
was not what we were going to do. It would basically be a very good =
decision.=20
The IBM success in that business was, for a number of reasons, partly=20
happenstance, partly luck, but to a large degree because they had the =
size, the=20
resources and the experience to set up the infrastructure to deliver =
millions of=20
these. It was not a matter of invention, it was a matter of management =
and=20
resources. They were the ones who could do it. After they had done it, =
it became=20
easier for others to enter the market. But their contribution was good,=20
competent management. And we were off doing other things. Now the =
argument we=20
have today is an interesting one. We believe in PC's. We encourage them. =
We=20
network them. We use them in large numbers. But we still believe that =
most=20
people in an organization want terminals. Terminals you don't have to =
worry=20
about data management, you don't have to worry about floppy disks. You =
just sit=20
down and it does the work for you automatically. So our most =
experienced,=20
educated computer scientists and my secretary who has access and =
experience with=20
everything, always want a terminal. It's just so simple to use. There's =
nothing=20
there. And the secretary doesn't want to take her hand off the keyboard =
and run=20
a mouse, so the terminals we feel will always be important. That's a =
major part=20
of our business. We do supply PC's, we will supply more PC's, we =
integrate and=20
work with other suppliers, all the suppliers of PC's, to network them. =
They have=20
a very key part in this system. Now there's the large expensive, very =
competent=20
PC called a workstation, offering a whole new realm of things. That's a =
very=20
important market. These cost twice as much as PC's. They have a very =
beautiful=20
display, sometimes with beautiful colors, always with fine detail, and =
are used=20
for designing automobiles and airplanes, and for many things for which =
you want=20
very precise pictures or a lot of material on this display. They get to =
be=20
powerful when they're hooked up to networks. Now there's an interesting =
mistake=20
that people make, the press makes out of innocence. Six years ago they =
announced=20
that the PC's in a operation have enough computer power to replace the =
big=20
machine. That turned out to be foolishness. Now they're announcing that =
PC's,=20
that workstations networked together, have more power than a big =
computer, and=20
they'll replace the big computers. That's nonsense too. They replaced =
some of=20
the things big computers were doing because they can do the jobs, but =
they don't=20
replace the big ones because in any organization you have data that you =
cannot=20
afford to lose under any circumstances. The last thing you're going to =
do is=20
have your key data in somebody's workstation where somebody can mess it =
up. All=20
the protection for precise data has to be separated in a place that can =
never be=20
lost, never be damaged. And no way are you going to leave it out in the =
open on=20
a small machine. So there's a place for everything. The PC's will play =
part of=20
it, terminals another part of it, workstations another part of it, =
medium=20
computers and large ones other parts of it. There's a place for all of =
it.=20
<P>DKA: You've been in a relatively unique position for the past three =
decades,=20
four decades maybe, to watch this industry, and to think about where =
it's going.=20
What really stands out as the key developments in a large social sense =
in the=20
elevation of the computer and the way it's effecting our society. What =
do you=20
see as some of it?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt35">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc36></A>Observations About the Computer Industry</H3>
<P>KO: I think the interesting thing to observe about computers and =
computer=20
technology is that the most significant changes people don't notice. =
Things they=20
worry about never become a problem. For example, the hand calculator =
really was=20
a revolution. No one predicted it, no one worried about it. It sneaked =
up on us=20
and suddenly we all have them, we all use them, and we never thought of =
it as=20
revolution. It just sneaked up on us. All through our life there are =
computers.=20
Our cars, our homes have computers, and so many things, and we don't =
notice it.=20
We worried about privacy, worried about computers running our lives, and =
those=20
didn't happen. The issue of privacy is that with computers you can =
specify,=20
society can decide exactly what level of privacy we want. You can have =
anything=20
you want, which you didn't have before. You're going to run your private =

finances with [the personal computer]. They're going to run your menu. =
They're=20
going to run your social affairs...didn't happen. You don't want it and =
it=20
didn't work. The things we feared usually don't happen. The things of=20
significance sneak up on us and we take them for granted like they =
always were=20
there. When I was young in the Boston area, you had one charge card in =
the big=20
department store in town. Always in trouble. They never got anything =
right. And=20
always patching up something. Now you couldn't carry all your credit =
cards, and=20
very rarely do you have trouble with them. That's a revolution. Now we =
expect=20
not to have trouble with our credit cards. We don't expect them to make=20
mistakes. That's the computer revolution that we just take for granted. =
And it=20
goes on and on and on. We have a long way to go. When we ever straighten =
out=20
medical billing, it will be computers that do it. And after it's =
straightened=20
out, we'll never remember that it wasn't straightened out. There's two =
things I=20
would say to people about computers. One is, don't fear them. Most of =
the time=20
they're doing good for you. The other thing is, don't ever become lazy. =
Remember=20
that you only have fun in life and you only can stay ahead if you keep =
learning.=20
Calculators are not an excuse for learning how to do arithmetic. As for =
things=20
that computers do, you've always got to be sure that you can do a =
certain amount=20
of things by hand and know something and learn something. Always learn, =
and=20
don't ever let computers fool you into thinking you don't have to. I =
tell our=20
people when I'm asked to lecture, look at the old people you want to be =
like. I=20
can tell you ahead of time that if people continue to learn, are excited =
and=20
know about things, and the ones who are boring are those who stop =
learning and=20
don't think about things. Just don't let computers cause you to get in =
the trap=20
of not losing things.=20
<P>DKA: What's coming?=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#bt36">TO=20
CONTENTS</A></H4>
<P></P>
<LI>
<H3><A name=3Dtc37></A>Future Computer Inventions</H3>
<P>KO: From a technological point of view, I think we can be confident =
that=20
computers are getting more powerful, and less expensive. This means that =
we can=20
do things we never thought of doing before. It means that people can use =

techniques for doing computation which are wasteful, devouring memory =
and=20
devouring computation and doing things in a way which is so much easier =
because=20
the computer does all the work. But what it means to the private =
citizen? It=20
means that your automobile will run better, your house should run =
better, and it=20
means that we can, little by little, get better service from all the =
things we=20
struggle with today. And for the people who really have a use for the =
computers,=20
they'll do things a much more exciting way. It also means that every =
student=20
should learn to type. Anyone who does any writing at all should have a =
word=20
processor. It means that people shouldn't be afraid of computers even if =
they=20
don't have any need to learn. But anyone who has any reason to learn, in =
all=20
young students, really are in that category. They should have a feeling =
for=20
computers. It will just continue to be a contribution to society.=20
<P>DKA: Does anything scare you about what's coming ahead?=20
<P>KO: I used to think that computers could do no harm. But there are =
some=20
things which do worry me. Some people study computers and don't learn =
anything=20
else. Computers are just tools to do something; you better be expert in=20
something and consider the computers the tool. The computers are fun and =

exciting but they're just tools, and we better make sure that we know =
something=20
about what the computers are supposed to solve not just the computers. =
Computers=20
also produce an enormous amount of data and people get confused with =
that. Data=20
is not information. That's been pointed out. You put the data in a form =
which is=20
useful and you have some information. But a large amount of data isn't=20
information. I think in business making graphs is a menace. Very few =
people know=20
how to make graphs. They don't know why they make graphs. They make =
graphs=20
because they think you're supposed to make graphs, but they don't know =
what=20
they're trying to get across. They don't know the reason for it, and if =
they had=20
the reason, most of the time they wouldn't do it. In that way, computers =
are a=20
menace to business. We have more graphs that mislead or cause confusion =
than we=20
ever did before. But, in general, I think computers do a lot of good. We =
have=20
too much information, but it's so much better to have free flow of =
information=20
even though it turns out to be a little too much than limiting =
information.=20
Computers are going to revolutionize business and society, even maybe in =

particularly the closed societies because with a free flow of =
information, it=20
just changes the way we do things. Looking at the big old machines, =
there's=20
almost no relationship to, or no indication of what a computer will do.=20
Computers will do almost anything you want. If we can't afford to do it =
now, it=20
can [be done] in the future. The one thing to learn about computers is =
that they=20
do give us the opportunity to accomplish things we've never been able to =
do=20
before. This means that our big problem is we've got to decide what we =
want to=20
do. Most people don't know what they want. Often in society we don't =
know what=20
we want. But if we decide what we want, most of the time the computer =
will play=20
a key part in giving it to us.=20
<P>
<H4><A=20
href=3D"http://www.americanhistory.si.edu/collections/comphist/olsen.html=
#Contents">TO=20
CONTENTS</A></H4>
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