The Silicon Underground

What happened to Tandy computers? Tandy was a pioneer in the personal computer industry, one of three companies that introduced pre-built, ready to run computers in 1977. And for about 12 years, they were a force to be reckoned with. But depending on how you count it, it came to an end in 1993 or 1995. Here’s what happened to Tandy computers and why they fell so quickly.

In 1989, the Tandy 1000 was still the best selling computer in the world but it was no longer profitable and sales were fading fast. Turnaround efforts failed and on May 26, 1993, Tandy sold its manufacturing operations to AST, another maker of PC clones.

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I used AOL before it was AOL. And if you had a Commodore and a modem in the 1980s, you may have too. On May 24, 1985, Control Video reorganized and became Quantumlink, or Q-Link for short, on its way to reinventing itself as an online service for home computers. It opened for business November 5 of the same year.

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I hear the question from time to time what the advantages and disadvantages of Windows 3.0 were. Windows 3.0, released May 22, 1990, is generally considered the first usable version of Microsoft Windows. It was certainly the first one to see commercial success. The oft-repeated advice to always wait for Microsoft’s version 3 is a direct reference to Windows 3.0 that still gets repeated today.

Although Windows 3.0 is clumsy by today’s standards, in 1990 it had the right combination of everything to take the world by storm.

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Before Microsoft was obsessed with Netscape, it was obsessed with another piece of software: Quicken. Unable to beat it in the marketplace with a clone called Microsoft Money, Microsoft tried to buy its publisher, Intuit, outright. On May 20, 1995, Microsoft and Intuit abandoned that merger over antitrust concerns.

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On May 20, 1982, Kaypro shipped its very successful Kaypro II computer, a portable computer that ran CP/M and its associated software. Its main innovation was bundling a selection of popular software with the computer and selling the bundle for less than the combined suggested retail price of the software.

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On May 18, 1998, the Department of Justice filed an antitrust lawsuit against Microsoft, seeking ultimately to break up the company. The case was controversial at the time and remains controversial now, but I would also argue the case is misunderstood today, and the Microsoft of today is not the Microsoft of the 1990s, and the Microsoft Antitrust Case of 1998 had something to do with that.

It’s popular to say today that the Microsoft antitrust case of 1998 was unnecessary and the market figured out how to handle Microsoft. But provisions in the settlement kept Microsoft from behaving toward Google the way they behaved toward Netscape and Lotus.

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The dotcom bubble was full of absurdities. A common business model was giving away software or services and finding unconventional ways to make money off it, a model we today call “freemium” and that may or may not involve spyware. Geocities with its free web hosting was a good example. But Cyberrebate.com took it to an extra special level of absurdity. It gave away actual physical merchandise and had a scheme to try to make it profitable. Cyberrebate made its debut May 16, 1998, and closed its doors exactly 3 years later, on May 16, 2001.

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Processor Technology Corporation was a personal computer company founded in April 1975, by Gary Ingram and Bob Marsh in Berkeley, California. Their first product was a 4K byte RAM board that was compatible with the MITS Altair 8800 computer but more reliable than the MITS board. They followed it up with a series of memory and I/O boards including a video display module. But their most famous product was a computer called the SOL-20.

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On May 14, 1992, Texas Instruments licensed Cyrix‘s 486SLC and 486DLC technologies. The agreement allowed Cyrix to use Texas Instruments’ manufacturing facilities, and for TI to create derivative chips from Cyrix’s technology. In the end, TI didn’t make as many chips for Cyrix as SGS-Thomson or IBM did, but TI did end up making interesting derivatives of Cyrix’s CPUs, including the 486SXL-40, the fastest 386-class CPU ever made. But without the burst transfer feature that Intel and AMD 486s have, none of TI’s 486s ended up performing quite up to par with an Intel or AMD 486.

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Kevin O’Leary, who calls himself Mr. Wonderful, is one of the most divisive stars of the reality TV series Shark Tank. Like Mark Cuban, O’Leary made much of his fortune in technology. But while Cuban is a dotcom billionaire, O’Leary made his money through a different model, selling software at retail. In this blog post, we will map out how Mr. Wonderful became rich. May 13 is a happy anniversary for him, but I can think of a major toymaker who doesn’t call him Mr. Wonderful, and doesn’t think there’s much of anything wonderful about him at all.
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