Corporate logo from 1976 to 1992 (ND) was a Norwegian manufacturer of which operated between 1967 and 1992. The company was established as A/S Nordata – Norsk Data-Elektronikk on 7 July 1967 and took into use the Norsk Data brand in 1975. The company was founded by, and, three computer engineers working at the which had just built the minicompter. ND's first contract was the delivery of a computer to. Initially in competition with, ND started delivering computers to Norwegian institutions. By 1972 the company had developed, the and a system. The international break-through came with the 1973 delivery of computers to and the company soon had half their sales abroad.
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Two years later the program had been completely ported and made available, and the following year a 150-terminal system connected via / based XMSG and a flight simulator backbone for the were delivered. In 1978 Norsk Data both bought and launched its, although Tandberg was sold again in 1980.
ND became the first foreign-listed Norwegian company in 1981, which also saw the launch of the 32-bit. Throughout the 1980s ND acquired a series of domestic and foreign hardware and software companies, many loosely oriented at increased hardware sales.
At the peak in 1986 and 1987, Norsk Data had 4,500 employees, 2.5 billion (NOK) in and was Norway's second-largest company by —having increased fifty-fold between 1977 and 1985. Despite late attempts to develop, ND never succeeded at entering the market which started to dominate in the late 1980s. The company's share value halved on and never recovered. The company went through a series of reorganizations, but the company never succeeded at making money on open systems and the last area with profits was sales to existing Sintran customers. From 1988 the company was gradually split up; parts were sold to foreign competitors while others were spun off as subsidiaries or sold. By 1993 all equity had been lost and the remaining parts of the company sold off or taken over by the creditors.
The main parts of company were bought. Twin unit ND bid sixty percent lower than the prototype supplyer, and ND was only underbid by three manufacturers, all which were found to not meet their technical criteria by CERN. A decision was taken by CERN's technical committee on 19 September 1972, in which German and French interest failed to get their technically disqualified and higher priced and computers selected. The decision fell on Norsk Data, with the contract signed in January 1973.
The computer was delivered and accepted on 12 July 1973, twelve days after the contract specified. The contract included twenty-four computers and a revenue of NOK 12 million. Norsk Data took a strategic decision to abandon their role as system suppler for a few, large customers and decided to become a European-wide minicomputer supplied which could compete directly with American manufacturers. Was launched as a further development of Sintran II which included Nord-TSS and introduced, which was launched with a new generation of hardware, the, in 1973. CERN later followed up with purchasing a Nord-10 in 1975 for their largest department. Additional orders were made and by the end of 1976 CERN were operating fifty ND computers. The delivery to CERN combined with a more efficient software portfolio with the Nord-10 were key factors in the continued growth.
For instance, ND delivered a turn-key system for meteorology in Algeria in 1974, complete with software developed in-house. Half the company's revenue came from international sales that year. Market orientation Norsk Data continued to undermine marketing until the mid-1970s. Sales personnel had low wages, little to no influence on product development, high, and were often trained in engineering rather than business. In the first years, ND sales representatives wore jeans and would present the products to other engineers and computer personnel, with the focus on the technical details. This changed in the mid-1970s when the company started selling computers to the business sector, where the customer representatives typically were heads of the accounting or warehouse departments.
These instead expected suit-dressed salesmen and were interested in issues regarding efficiency and reliability. Profits, and the profit-based bonuses, sank through these years, giving an incentive for technical personnel to give marketing increased importance. The first sale in Sweden was to in 1974 to control. A Swedish subsidiary was established the following year.
Because of the proprietary system architecture of each manufacturer, companies would fall into a; therefore purchase of computer systems were often more of a strategic than product-specific purchase. An important aspect for ND was therefore to convince their potential customers that they would be able to deliver in the long run.
A Tandberg keyboard and monitor tailor-made for Norsk Data and Notis Development of the started in January 1978 out of the existing expertise in typesetting and a desire to sell computers to the public sector. The section was based on a program which had been developed by an employee while working at CERN and this was combined with systems for incorporating tables with figures such as budgets. The system also features search. At first the text editor was used, but this was later replaced with TED, developed. Notis was installed on all systems from 1980 and quickly became popular among customers. Because ND's screens were not optimized for text processing, from 1982 Tandberg Data delivered tailor-made keyboards and keyboards. Because text processing required high performance and extra peripherals, ND made high margins on the implementation.
ND bought the typesetting system Comtec in 1981, which was combined with Nortext and resulted in large increases in the sale of the systems. Boom The was introduced in 1979, which was specialized at flexibility and focused on administrative applications. When Digital launched their in 1977, Norsk Data had the Nord-5 32-bit computer ready for CERN. As the VAX-11 was 32-bit and regarded as a, Norsk Data did not initially see it as a competitor since the Nord-5 had much better processing power. Had similar processing power to the Nord-5, but was not a general-purpose computer. The 32 bit computer used a Nord-10 front processor that ran the SINTRAN III operating system. Development of the started in 1978 and had so fundamental changes to the (was not made from bit-slice components but microprammed with a new instruction set) that all software had to be rewritten - except for the SINTRAN.
The computer was launched in 1981, but with fundamental shortcomings imposed by the OS It was much faster than the VAX, but did not meet the general customers' expectation of being a multi-purpose computer. Later models improved the performance and tweaking of the system allowed it to become a multipurpose system.at the performance of a special purpose super computer as sold. A major contract with the ND-500 was the project, which took delivery of twenty-seven ND-100 and -500 units.
Development of the started before the ND-500 was completed. The design was changed to become more modular; this increased the development costs, but reduced production costs and increased scalability.
On the ND5000, components were placed in cards that were interconnected, initially to simplify cooling but also to enable the high clock frequency If an electric current is switched at a clock frequency of 1GHz, it travel about one foot per cycle, so 10cm is a delay of a clock cycle at 3GHz. The ND-500 computers had timing problems caused by wire-distance, and going faster just required everything to be close. ND's European sales operations were based at in, England Norsk Data's sales in the United Kingdom was originally carried out by the agent Richard B. A ND-owned subsidiary was established in 1980 and based at, which the company bought and renovated. Between 1972 and 1981 the company had an average annual revenue increase of forty-five percent.
It split its profits seventy percent to reinvest in the company and thirty percent as. Such bonuses were only paid in good years and for the best years was equal to the salary.
The company was a and only paid marginal. Norsk Data became the second Norwegian company, after, to be listed on a foreign stock exchange. The company was listed on the in July 1981. It carried out a placement of shares worth NOK 30 million in August 1981 and for NOK 100 million in March 1982. ND received the Company of Year Award in 1983. The company's was NOK 9 million in 1977, NOK 20 million in 1980 and NOK 4.5 billion in 1985.
ND introduced the marketing concept ND-SAFE in 1982, where the company focused on the scalability of the systems. Except for the municipal and university sectors, ND did not attempt at to capture customers within a specific industry; this often made it difficult to sell as clients often found it difficult to purchase from a non-niche manufacturer.
For instance, ND attempted to sell to the Scandinavian banking market; they were asked by clients if they would make this a prioritized market, but ND responded that they only would if they received sufficient sales. The answer caused the banking industry to go elsewhere for its products, despite an initial enthusiasm for ND's products.
Norsk Data's head offices at Skullerud in Oslo The company started the process of being listed on the exchange in in January 1983. No Norwegian company had previously been listed in the US; the legislation was not harmonized and there were restrictions on twenty percent foreign ownership of Norwegian companies. The limited was raised to forty-nine percent, but this was regarded by ND as too low, so they split the ownership into A- and B-shares, with and without voting rights. With this change, Norwegian authorities permitted an eighty percent foreign ownership in the company, but only the non-voting B shares were permitted to be listed on NASDAQ. The brought in NOK 400 million in capital. Norsk Data started a cooperation with for distribution of ND computers in Germany. ND became a majority shareholder in July 1983 and the following year Dietz was merged into ND.
By 1985 Dietz' plant was producing ND systems and their old systems taken off the market. On 30 October 1984 ND and signed an agreement where the latter would distribute ND computers in France. The company peaked its financial performance in 1986.
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That year ranked it the world's 75th largest information technology company, and the world's 13th largest minicomputer manufacturer. It was the world's third-most profitable and had the seventh-highest growth rate. That year the company's profits hit a record-high NOK 475 million from a NOK 2,576 million revenue. The peak revenue was 2,934 million in 1989, while the peak employment was 4,488 employees in 1987. In 1987 Norsk Data had the 50th highest revenue of Norwegian companies, but had the second-highest market capitalization, behind Norsk Hydro. Bust During the mid-1980s, the market shifted such that customers went away from purchasing hardware and instead wanted complete systems including software, preferably tailor-made for the industry. This was a disadvantage for ND, as they had their advantage in designing hardware systems.
Their lack of industry-specific software was combined with that all software development was, which meant that ND's most important sales arguments were being determined by a third party. Another development was the open standards, especially, which was disliked at ND. This would remove the vendor lock-in and the well-liked Notis, which was instrumental in creating profits. Management had a high pressure from investors to create high growth rates, which again caused the company to choose short-term profit margins ahead of long-term strategic positioning. As an increasing number of customers asked for open standard solutions, such as (PC) and Unix, ND started developing products to meet the demand. A ND PC was developed, but sold poorly.
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The Unix variant was launched in 1985, but was only offered as a last resort to customers only interested in Unix systems. Use of Ndix required separate hardware. The software was developed by a third party and was so slow that the hardware was out of date by the time the software was completed. Many competitors licensed an existing variant of Unix, but ND chose develop its own. In addition, ND chose to not port is software to Unix, despite demands from customers for Sibas and Notis on the Unix platform. Sales were further reduced by ND's reluctance to pay software developers to port common programs to Ndix.