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1987--The Year Strategies Emerged

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Lawrence J. Magid is a Silicon Valley-based computer analyst and writer

Every year brings new products but 1987 was something special, with major companies making major announcements. IBM and Apple announced new product lines, while Compaq and several other firms committed themselves to developing innovative machines compatible with the existing IBM PC standard. The software industry was busy, too, with some important new products.

The first big news came in March when Apple announced its Macintosh SE and Macintosh II models. The SE, the first Mac to come equipped with an expansion slot and a factory-installed hard disk, is an evolutionary improvement over its predecessors. The Mac II is a giant step forward, with six expansion slots, the ability to add a color monitor and a faster and more powerful central processing unit, or CPU.

IBM took center stage April 2 when it announced its new line of PCs. The Personal System/2 includes two low-end replacements for the standard IBM PC and XT models, as well as some heavy-duty models to replace the PC/AT and, in some cases, more powerful minicomputers. All but the low-end machines feature IBM’s new “Micro Channel” expansion slots, allowing for more sophisticated add-on equipment.

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The new IBM and Apple computers have been a hit. In November, IBM announced that it already sold more than 1 million of its PS/2 machines. And the Mac SE and II have helped give Apple its most profitable year.

IBM and Apple also began shipping new operating system software in 1987. Apple’s MultiFinder, released in November, makes it possible for the Macintosh to run two or more programs at a time. IBM’s Operating System/2, or OS/2, first shipped Dec. 4, also allows for what’s known as multitasking. In addition, the operating system makes it possible to run programs with more than 640 kilobytes of programming, a first for an IBM-style machine.

Apple’s new operating system generally is available at no extra charge and works with the vast majority of existing Macintosh programs. IBM’s operating system, which costs $325, displays all of its features only when used with new software. None of that software will be available until 1988, making OS/2 an as-yet-unfulfilled promise. Microsoft, the developer of OS/2, will offer versions of the operating system for any IBM-compatible machine equipped with an Intel 80286 or 80386 CPU.

Apple also was behind a major applications software announcement--it released HyperCard, a powerful new program heralded by some Macintosh enthusiasts as a revolutionary advance. It uses the Macintosh’s graphics prowess to make programming easier, especially for users who want to develop information retrieval systems with graphics.

Compaq introduced the first 80386-equipped machine in late 1986, but IBM, in 1987, helped launch an industrywide stampede to the chip by endorsing the technology with its new high-end models. The Intel 80386-equipped machines run existing software faster and have the muscle to run programs that other machines can’t.

Laser printers have been around for several years, but several new models were introduced in 1987. Hewlett-Packard, the largest maker of laser printers, released its LaserJet II, which is quieter, smaller and less expensive than the model it replaced. IBM introduced a laser printer with PostScript software. PostScript, which is also the brains behind Apple’s popular LaserWriter, enables printers to produce nearly typeset-quality fonts in any size or style and helps the printer handle graphics.

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Laser printers, by allowing computers to create attractive documents with graphics and near-typeset quality text, cleared the way for desktop publishing. First practiced with the Macintosh and Apple LaserWriter, desktop publishing came to the PC in 1987 with the release of compatible versions of PageMaker, Ventura Publisher, the Office Publisher, PagePerfect and several other programs.

For years, it has been possible to connect computers, via cable, so that they could exchange information or share such equipment as printers and hard disks. But 1987 was a banner year for linkups known as local area networks, including some that connect otherwise incompatible systems, including PCs and Macs.

Sending long-distance electronic mail also is easier now. This year saw the introduction of Lotus Express for the IBM PC and Desktop Express for the Mac. With these software programs, MCI mail, a popular electronic mail service, can be used to send complete documents, including illustrations.

Lotus Development has long dominated the spreadsheet software market with its highly successful 1-2-3 program, but subsequent Lotus products were less successful. The company recaptured the industry’s imagination in 1987, however, by announcing Agenda, which uses artificial intelligence to help organize information. Agenda won’t be available until 1988, so it’s too early to say how popular the program will be.

Meanwhile, Lotus is losing its grip on the spreadsheet market. Microsoft adapted Excel, its highly successful Macintosh spreadsheet, to run on the IBM PC. Excel, which was released in late 1987, produces stunning graphics on machines equipped with an 80286 or 80386 CPU. Borland International, another software giant, released Quattro. This spreadsheet can use the same data files as 1-2-3, but is faster, less expensive and better equipped to handle graphics.

This year also may be remembered as the year of the portable computer. Portables have been around for some time, but the 1987 models make the pickings far more interesting. Toshiba, the market leader, introduced several new models ranging from a 6.4-pound, $1,200 laptop that fits inside a briefcase to some hefty transportables that rival the power of full-sized desktop systems.

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Compaq, which came out with the first transportable IBM PC compatible computer and the first 80386-chip machine, in 1987 introduced an 80386-based transportable that weighs only 20 pounds. PC magazine called the Compaq Portable 386 “the hottest thing you can pick up with a handle.”

All told, 1987 was a year of clarification. The big players finally laid out their strategies for the rest of the decade and the early 1990s, and the products are just beginning to emerge. That leaves 1988 as the year to figure out how these things work. It should be fun.

Computer File welcomes readers’ comments but regrets that the authors cannot respond individually to letters. Write to Lawrence J. Magid, 3235 Kifer Road, Suite 100, Santa Clara, Calif. 95051, or contact the L. Magid account on the MCI electronic mail system.

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