Semiconductor Application Markets Newsletters 1985-1986 Oataoyest 3 company of ^ The Dun & Bradstreet Corporation 1290 Ridder Park Drive San Jose, California 95131-2398 (408) 437-8000 Telex: 171973 Fax: (408) 437-0292 Sales/Service offices: UNITED KINGDOM FRANCE Dataquest UK Limited Dataquest SARL 13th Floor, Centrepoint Tour Gallieni 2 103 New Oxford Street 36, avenue Gallieni London WCIA IDD 93175 Bagnolet Cedex England France 01-379-6257 (1)48 97 31 00 Telex: 266195 Telex: 233 263 Fax: 01-240-3653 Fax: (1)48 97 34 00 GERMANY JAPAN Dataquest GmbH Dataquest Japan, Ltd. Rosenkavalierplatz 17 Taiyo Ginza Building/2nd Floor D-8000 Munich 81 7-14-16 Ginza, Chuo-ku West Germany Tokyo 104 Japan (089)91 10 64 (03)546-3191 Telex: 5218070 Telex: 32768 Fax: (089)91 21 89 Fax: (03)546-3198 The content of this report represents our interpretation and analysis of information generally available to the public or released by responsible individuals in the subject com­ panies, but is not guaranteed as to accuracy or completeness. It does not contain material provided to us in confidence by our clients. This information is not furnished in connection with a sale or offer to sell securities, or in connection with the solicitation of an offer to buy securities. This firm and its par­ ent and/or their officers, stockholders, or members of their families may, from time to time, have a long or short position in the securities mentioned and may sell or buy such securities. Printed in the United States of America. All rights reserved. No part of this publica­ tion may be reproduced, stored in retrieval systems, or transmitted, in any form or by any means—mechanical, electronic, photocopying, duplicating, microfilming, videotape, or otherwise—without the prior written permission of the publisher. © 1988 Dataquest Incorporated \n January-March The following is a list of the newsletters in this section: • When Will The Integrated Voice/Data Terminal Market Take Off?, 1986-1 Table 1, Selected IVDT Market Participants And Products, Page 3 Table 2, Feature Comparison—Selected IVDTs, Page 4 Table 3, Estimated Shipments—1985 To 1989, Page 5 Table 4, Estimated Portion of Workday Spent Using Display Terminals And Telephones, Page 7 • Electronic Equipment Market Update: Stable Girowth To Continue, 1986-2 Figure 1, Historical Comparison of U.S. Semiconductor Comsumption And Electronic Equipment Production, Page 2 Teible 1, Segment Overview North American Electronic Equipment Forecast, Page 3 • 1986 Winter Consun^r Electronics Show, 1986-3 Table 1, North American Consumer Equipment Forecast, Page 1 • Video-7's Vega: Will The First IBM/Hercules Clone Succeed?, 1986-4 Figure 1, The Video-7 Vega, Page 2 Table 1, Estimated Graphics-Compatible PC installed Base $1,000 TO $10,000 Segment, Page 4 Table 2, Estimated Unit Shipments PC Graphics Add-On Boards, Page 5 (continued) SAM Newslettiers © 1986 Dataquest Incorporated April 3 ed. January-March Drawing Conclusions—Alphanumeric Terminal Vendors Dabbling In The Graphics Terminal Marketplace, 1986-5 Table 1, Graphics Terminals 1984 U.S. Shipments By Manufacturer Monochrome And Color Units, Page 4 Table 2, Graphics Terminals 1984 U.S. Shipments By Type Of Manufacturer, Page 5 Table 3, Independent Alphanumeric Terminal Vendors In The Low-End Graphics Terminal Market, Cage 6 Annual Semiconductor Procurement Survey: Preliminary Results, 1986-6 Figure 1, Procurement Survey Audience, Page 5 Table 1, 1985 Procurement Semiconductor Mix, Page 5 Table 2, 1985 Procurement IC Technology Mix, Page 6 Table 3, 1985 Procurement IC Product Mix, Page 6 Table 4, 1985 Procurement Distribution Purchases, Page 7 Sun Microsystems Introduces Low-End Technical Workstation Pushing Systems And Memory Prices To New Low, 1986-7 Table 1, Feature Comparison of Selected Technical Workstations, Page 3 Telecommunications Planning—Paying Attention To Market Forces is Vital For Survival, 1986-8 SAM Newsletters © 1986 Dataquest Incorporated April 3 ed. ii Dataquest RESEARCH , ;i «>mp;iny (li rhct>iinli.Kr3tistFvctCorponUii)n NEWSLETTER SAM Code: 1985-1986 Newsletters, January 1986-1 WHEN WILL THE INTEGRATED VOICE/DATA TERMINAL MARKET TAKE OFF? INTRODUCTION There seems to be no doubt that vendors of information display devices are now facing off to do battle for the desktops of knowledge workers worldwide. There are also strong indications that integrated voice/data terminals (IVDTs) will be strong contenders for those desktops. However, actual shipments of IVDTs have remained relatively low through 1984, and the needs of the market have been hard to define. In addition, the market has been dominated by telecommunications-oriented companies. Thus, traditional alphanumeric display terminal manufacturers face a considerable challenge if they wish to participate in the IVDT market. The purpose of this newsletter is to discuss the IVDT in terms of: • Products and market • Users' requirements • Product requirements • Distribution channels The newsletter concludes with an analysis that presents our observations on how display terminal manufacturers can best participate in the IVDT market. C 1986 Dataquest Incorporated Jan. 9 ed.-Reproduction Prohibited The content of this report represents our mlerprelation and analysis ol information generally available lo tfie pubiic or released by responsible individuals m the subject companies but is nol guaranteed as lo accuracy or compleleness It does not contain material provided to us m confidence by our clients Individual companies reported on and analyzed by DATAQUEST may be clients of lliIs and/or olher DATAQUEST servIces This information is nol furnished in connection with a sale or offer lo sell securities or m connection with the sdicitalion of an offer to buy securities This firm and its parent and/or their officers stockholders or members of their Families may from time to time have a long or short position in the secunties mentioned and may sell or buy such securities Dataquest Incorporated, 1290 Ridder Park Drive, San Jose, CA 95131-2398, (408) 971-9000, Telex 171973 PRODUCTS AND MARKET Products DATAQUEST categorizes four types of products competing in the integrated voice/data workstation market. They are: • Asynchronous voice/data terminals • Synchronous voice/data terminals • Voice/data personal computers • Voice/data add-on products for personal computers This newsletter focuses only on the asynchronous and synchronous voice/data terminal section of the larger integrated voice/data workstation market. Integrated voice/data terminals combine the functions of a telephone and a terminal in a single unit. IVOTs do not have mass storage capability and they communicate with a host in order to perform their primary task. This differentiates them from PC-based voice/data products. Integrated voice/data terminals typically consist of the following elements: • Display screen—commonly a CRT • Keyboard—alphanumeric cluster, function keys, cursor control keys, editing keys, numeric pad • Optional dashboard—special function keys, phone support • Telephone handset—either integrated or detached A listing of some of the companies and products competing in the integrated voice/data terminal market are shown in Table 1. - 2 - ^ Table 1 SELECTED IVDT MARKET PARTICIPANTS AND PRODUCTS Asynchronous Synchronous AMBI Corp.—AmbiTerminal, Ambiset DAVOX Corp.—811, 821 AT&T-IS—510A, SIOD, 515 BCT Intelligent Workstation Basic Telecommunications— Datavoice lOr 20 Data General—Dasher D555 InteCom, Inc.—Keystone ITT—Infestation Lee Data—2510, 2520 Liberty Electronics—Freedom 212, 222 Matra Communications—Scanset XL, XLHS Northern Telecom—Displayphone Plus, Displayphone, Meridian 4010, 4020 ROIJM Corp.—Cypress Sydis, Inc.—VoiceStation TeleVideo—Personal Terminal Thomson CSF—XT300, XT300E Zaisan—ES.l Source: DATAQUEST January 1986 The current crop of IVDTs indicates a wide range of approaches to the design and integration of ttie basic elements of ttie product. Their screen sizes range from 7 to 14 inches diagonally. Their keyboards tiave from 55 to more than 100 keys. Some IVDTs do not have a dasht>oard, while others tiave elaborate dashboards containing up to 42 keys. The terminals also provide a variety of methods of integrating the handset and speakerphone. Table 2 compares the features and prices of selected IVDTs. • - 3 - Table 2 FEATURE COMPARISON—SELECTED IVDTs Screen Nuiber of Integrated Integrated Speaker- Manufacturer/Model Size Keys Mode* Handset Phone Dashboard List Price* AMBI/AabiTeriinal 9" 84 Yes Yes Yes No $1,195** ATET/SIOA gn 72# Yes Yes Yes Phone pad, $1,645 speaker control OAVOX/821 Intelligent Workstation 12" 101 No Yes Yes No »1,995 Thoison CSF/XT300E gii 81 No Yes Yes No $1,645 liberty/Freedoi 222 14" 106 Yes No No No $ 945 Matra/Scanset XLHS gn 99 Yes Yes No No $1,395 northern Telecoi/ Oisplayphone Plus 7" 55 Yes Yes Yes No $1,395 Meridian U02(m 12" 109 No Yes Yes No $1,395 ROLM/Cypress gn 68 No Yes Yes Yes—42 $1,950 Keys TeleVideo/Personal Teriinal gn 75 Yes Yes • No No $1,127 Zaisan/ES.l 9" 70 Yes Yes Yes Yes—27 $ 995 Keys 'List price based on laxiiui configuration **Nith 300 bps aodei #Keyboard is an option it^tn be upgraded to a PC Source: DATAQUESl In addition to the variety of feature sets shown in Table 2, ttie voice/data terminals available today differ in a number of ottier aspects. Some IVDTs, such as those from InteCom, Northern Telecom, and ROLM, are designed to work only on those companies' PBX systems. Other IVDTs are more generic in this respect. Today's IVDTs have varying amounts of ROM and RAM memory. They display characters in matrices ranging from 5 by 7 pixels to 8 by 10 pixels. More importantly, there is a dizzying array of telephone and personal support functions available. These include dozens of phone features, clocks, alarms, calendars, directories of varying size, calculators, touch screens, password or security features, electronic mail, and on-screen help and tutorial features. - 4 - Products lilte Sydis' VoiceStation and DAVOX's Professional DesKset communicate specifically witn certain computer systems.