Daniel Alroy.In 1970, while Alroy was philosophy
student at the City University of New York, he was
offered a quarter of a million dollars by a group of
private investors, headed by James Walden, of
Philips, Appel and Walden, to form a new computer
company. The Company, Q1 Corporation, then
developed and manufactured the world first
microcomputer system, which was delivered to
Litcom, a Division of Litton Industries, on December
11, 1972. That system utilized the Intel 8008, which was introduced in
April that year.
The 8008 was the first 8-bit, single-chip, microprocessor, and was the first
member of what has become the Pentium series. In 1973, these systems were also
the first microcomputers to be installed in Asia (Hong Kong and Taiwan)
and Europe (Germany). That year Nixdorf Computer of Paderborn,
Germany, provided funds for the development of the next generation
systems based on the Intel 8080 processor.
Photograph of the desktop console
of the world's first microcomputer
system. It utilized the Intel 8008
single-chip microprocessor.
The computer system was
developed and manufactured by
Q1 Corporation, and delivered to
Litton Industries, Litcom
Division, in Melville, New York,
on December 11, 1972.
In 1973, Q1 microcomputer
systems were installed in Europe
(Germany) and Asia (Hong
Kong).
The Q1 System remained the
world's only self-contained,
general purpose microcomputer
system until Intel introduced the
8080 second generation
microprocessor.
The Advent of the Microcomputer Era: An Eyewitness Account
In October, 1969, Computer Terminal Corporation (later renamed
Datapoint) of San Antonio, Texas, raised $4 million through an Initial
Public Offering. The underwriters were Phillips, Appel & Walden (PAW), a
Wall Street firm, and Hambrecht & Quist of San Francisco. At the time I
was the high technology consultant to PAW, as well as a doctoral student in
Philosophy at the City University of New York. Before the IPO, I went to
San Antonio to evaluate Datapoint. They had designed a terminal, the
Datapoint 3300, which was intended to be used in a remote computing
environment. My assessment of the 3300 was influenced by my evaluation,
a few months earlier, of Advanced Memory Systems, of Sunnyvale,
California prior to their IPO by Philips, Appel and Walden in April 1969.
Advanced Memory Systems was the first company to develop a
semiconductor chip with 1,024-bit random access memory (RAM). Recall
that it all began with the invention of the transistor at Bell Telephone
Laboratories in 1947. In 1957, Robert Noyce and Jack Kilby independently
implemented an entire transistor circuit as a single semiconductor chip: The
integrated circuit (in 2000 Jack Kilby was awarded the Nobel Prize in
Physics for that achievement). The 1,024-bit RAM represented a thousand-fold increase in the number of the transistors on a single chip.
The chip size and cost remained substantially the same. Hence, the
increased density translated directly into a thousand-fold decrease in the
cost per bit. It was evident that the semiconductor technology is the engine
that drives the computer revolution. Evaluating AMS required that I
estimate the future rate in the increase in the transistor density per chip. I
sought the view of Professor Carver Mead, who was at the California
Institute of Technology at the time. After addressing the physical limits of
such increase, he suggested that it will continue at somewhat slower rate.
This trend led me to conclude that local computing would replace remote
computing, and that point-of-use computing would replace locally shared
computing.
I did not have the competence to determine whether transistor density at
that time (1,024-bit RAM on a chip of about 4 square millimeters) was
sufficient for implementing a basic CPU design on a single chip, but it was
intuitively clear that with the increased density of transistors per unit-area,
a single-chip CPU is unavoidable. It is against the background that I
evaluated the Datapoint 3300 terminal, which was designed for remote-computing environment.
During my initial visit to San Antonio, Texas, I conveyed to the VP for R&D,
Austin (Gus) Roche, my view that I anticipated that remote computing would be
short-lived, and pointed out the implications for their so-called "dumb"
terminal. I urged him to put a central-processing-unit (CPU) in the point-of-use
and convert it into an independent work station. Gus accepted the future need to
incorporate a CPU at the point-of-use. Impressed with the technical, managerial,
and manufacturing capabilities of the company, I recommended that PAW go
ahead with the IPO. A month prior to the public offering, the company began
the development of Datapoint 2200. Then in November that year, the CPU
design was given to Victor (Vic) D. Poor and Harry S. Pyle, who were at the
time outside consultants to Datapoint. While I had communication with neither
at that time, they planned, from the outset, to have the CPU fit on a single chip.
In December, 1969, Datapoint asked Intel and Texas Instruments (TI) to
implement the CPU design on a single chip. Intel agreed, and initially called the
processor 1201. It was later renamed 8008. Intel's main business at that time
was to design and manufacture of 1,024 bit random access memory (RAM).
Intel also undertook to design a programmable calculator chip-set for Busicom
of Japan (later renamed the 4004). When Intel realized that the capacity of the
technical staff was insufficient for the development of both products at the same
time, the development of the 8008 was shelved.
Datapoint then let Texas Instruments (TI) implement the design on a single
microprocessor chip. TI promptly filed for a patent application on such
implementation. But after TI encountered yield problems, Datapoint
implemented the 2200 CPU using random logic. (Malone, 1995; Noyce and
Hoff, 1981; Poor, 1996). The 8008 led first to the design of the 8080, and
eventually to the Pentium processor. Naturally, there was no design commonality
between the 4004 and the subsequent microprocessor family. But, faced with the
fact that the logic design of the 8008 was made by Datapoint, and its initial chip
implementation was covered by TI's patent application, Intel declared the 4004
to be the first microprocessor. As soon as I heard that Intel stopped the
development of the 8008, I asked to meet with Dr. Noyce. I expressed to him my
view that the 4004 was unsuitable for general purpose use because, among other
things, its 4-bit-wide word was insufficient to represent alphabetical characters. I
conveyed to him my conviction that an 8-bit single chip microprocessor would
revolutionize the computer industry. I urged him to resume the project. Dr.
Noyce agreed to do so after completing the 4-bit chip-set for Busicom. He
indicated the need to obtain a release from Datapoint for Intel to proceed with
the project on its own. I told Dr. Noyce that I would talk to Phil Ray, the
president of Datapoint about granting the needed release. I returned to San
Antonio and met with Phil Ray, who then agreed to provide Intel with the
requested release.
Datapoint's contribution to the advent of the microprocessor era was virtually
unknown. I felt that this ought to be corrected. In 1975, I was scheduled to chair
the opening session at the IEEE International Conference in New York, which
was titled "The Microcomputer Revolution." I asked Gus Roche to present a
paper on Datapoint contribution. He agreed. However, shortly before the
Conference, he died in a car accident.
Prior to Datapoint's public offering, I discussed with Jim Walden, the Managing
Partner of Phillips, Appel & Walden, my view that the Datapoint 3300 was
based on flawed assumptions. His response was to suggest that if I could design
a better product, I should do so, and that he would get together some private
investors and provide me with seed capital. As a result, Q1 Corporation was
formed. The computer system I set out to develop was based on two
assumptions. The first relates to semiconductor technology. It was assumed, as
suggested before, that there would be a continued rapid increase in the number
of transistors per unit area, and a corresponding decline in the cost-per-transistor. From this, I concluded that that there would be a trend away from
remote, and toward local, computing; and, in local computing, that there would
be a shift from shared minicomputers to having a computer at each point-of-use.
The second system design assumption borrowed from the philosophy of
science: i.e. that a major new theory is typically characterized by:
- Having a wider scope of applicability
- Having a smaller number of necessary assumptions
- Making possible more precise measurements
If this was true for science, it ought to be true for technology - the application of
science. This assumption contrasts with the commonly held view that custom-made solutions are the most effective. Microfilm as a method of saving space
for information storage represents this common-sense view, but now it has
already been recognized that it is not feasible to treat information storage in
isolation (Metz, 1971). In addition, it is often felt that increased generality
necessarily involves the loss of specificity. But consider, for example, the
facsimile function. Given the ubiquity of a personal computer with a laser
printer, scanner, and a modem, it can replace a fax machine, perform fax
functions better than a fax machine, and do so at no additional hardware cost.
The CPU is a general-purpose computer. In contrast, in a computer system this
general-purpose character is lost to limited-purpose peripherals and software.
My aim was to strive toward making a general-purpose system (Alroy 1978).
Such a general-purpose design would:
- Replace a multiplicity of limited-purpose systems
- Perform the functions with greater specificity
- Accomplish both of the above goals at a lower cost
Q1 Corporation delivered the first microcomputer system to the Litcom
Division of Litton Industries in Melville, Long Island on December 11, 1972
(and a second system in February, 1973). In April 1974 Intel introduced the
second-generation, single-chip 8-bit microprocessor, the 8080. Until then, Q1
systems were the only self-contained, general-purpose microcomputer systems
in the world.*
* In 1973, two limited-purpose products that utilized the 8008 were introduced:
In May 1973 Micral, in France, introduced a special-purpose process controller;
and in the fall, Jonathan Titus offered the Mark-8, an 8008 assembly-kit for the
hobbyist market (Titus 1974). Neither product was, nor intended to be, a self-contained, general-purpose computer system.
Dr. Ron Sommer, who had recently joined the Company, arranged a meeting
with the Nixdorf Computer Company in Paderborn, Germany. Subsequently,
Nixdorf Computer paid Q1 $40,000 per month for a ten-month period in
exchange for know-how (Electronic News, June 18, 1973). This funded the
development of the Q1 Lite microcomputer system, which utilized the 8080
microprocessor. At that time, the National Aeronautic and Space Administration
(NASA) was looking to install computer systems in their Space Centers. Based
on the study and recommendation of the Computer Science Corporation, Q1
Lite systems were installed in all eleven NASA bases.
Running a computer company was a full-time job, and I had to drop out of the
doctoral program. Still, I found myself preoccupied with theoretical questions
that were unrelated to the work of running a computer company. I therefore
intended to return to my primary interests, and began looking for someone to
take my place. An opportunity to step down came in 1979 after the National
Enterprise Board, an entity of the British Government, invested $11 million in a
joint venture with the Company, under which they manufactured our equipment
in the UK for marketing in Europe (
Electronic News, August 20, 1979).
References
- Alroy, Daniel, Chair. The Microcomputer Revolution. IEEE International Conference. New York. April, 1975.
- Alroy, Daniel. The convergence towards the multifunction microcomputer system. International Word Processing Association. New Orleans, LA. February, 1978.
- Electronic News. January 29, 1973
- Electronic News. June 18, 1973.
- Electronic News. August 20, 1979.
- Malone, Michael S. The Microprocessor: A Biography. NY: Springer-Verlag. 1995.
- Metz, Robert. An Interview with Daniel Alroy. New York Times. October 6, 1971.
- Noyce, Robert N. and Marcian E. Hoff, Jr. A history of microprocessor development
at Intel. IEEE Micro. 8-21. February, 1981
- Poor, Victor D. Personal Communication. September, 1996.
- Titus, J. Build the Mark-8: Your Personal Minicomputer. Radio Electronics. July
1974.
Images

Daniel Alroy comments on the Microcomputer Revolution at the opening session
of the 1975 International IEEE Conference, which he organized and
chaired.

The Q1 Lite, which was installed in all eleven NASA bases. It utilized
the Intel 8080 second generation microprocessor.
A printed circuit board of the Q1 Lite microcomputer system.

A sophisticated customer reports on its experience with the Q1 Lite.

The Q1 facility in Hauppauge. The flags indicate some of the countries
where Q1 computers were installed.