DEC began small by making printed circuit
modules, with Olsen insisting that the new company’s
products be made with the new and expensive transistors.
In 1958 their first products were shipped, the Digital
Laboratory Modules and Digital Systems Modules. After
one year the company had sold $94,000 worth of logic
modules for memory testing.
Olsen realised that many of the functions
being performed by mainframes could be done by smaller
computers, and set out to produce them. So as to seem
less threatening to the computing giants, DEC’s
first computer came out in 1959 under the name Programmed
Data Processor (PDP-1), for a price from $125,000 to
$150,000. It was the first commercial machine that used
transistors rather than vacuum tubes. After slow sales,
DEC received an order for 15 PDP-1 units form International
Telephone and Telegraph (ITT) to control their message
switching systems. After five years in business, DEC
reported sales of $6.5 million and net profits of $807,000.
The 1966 release of the PDP-8 was very
successful, and it was comparitively cheap, at $18 000.
When one of DEC's salesmen took the small computer to
the UK, he compared it with the new 'mini-skirt' and
the phrase 'mini' computer was born. DEC's next triumph
was the PDP-11, which was simple to use and hard larger
memory and more processing power. The company also worked
on networking solutions, the DECnet, but this was never
a success.