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ZDS lost a lot of money as a result of the US Air Force contract Desktop IV.
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Two key reasons for the ZDS/Groupe Bull merger with Packard Bell were the cost of repairs and cost of software upgrades for a large US government contract. In October 1989, Zenith sold ZDS to the French company Groupe Bull for $635 million.
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of being the first service academy class to receive a mandatory desk top computer. In 1986, Doug Hall, from Company D-1, was interviewed by telephone about his experience at U.S.M.A.
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In 1986 it won two other large contracts, one for portable computers for the Internal Revenue Service, and a $242 million contract-the largest in history-for 90,000 computers to the United States Department of Defense. In 1984 ZDS won a $100 million contract with the United States military for Tempest-shielded computers. In October 1983, the United States Navy and Air Force awarded a $27 million computer contract to ZDS. ZDS at that time believed government was a more important customer than consumers or even businesses. Air Force followed with an initial purchase of 46,000 laptops from Zenith. Next, in 1987, followed the Intel 8088-based Zenith 181 and Zenith 183, the latter being one of the first laptops to be equipped with a hard disk. Internal Revenue Service for use by their field audit agents that worked at company sites auditing businesses. under an OEM agreement, and first purchased in large numbers (20,000) by the U.S. įirst in large volume laptop computers, Heath / Zenith pioneered the laptop computer market in 1985, with "lunchbox" portable computer Z-171, the first MS-DOS based small portable computer fit with two 5"1/4 floppy disks and blue LCD screen, that was built for Heath / Zenith by Vadem Corp. ZDS's 1985 revenue grew to $352 million, and in March 1986 The New York Times called the division's success one of Zenith's "proudest accomplishments" amid the company's losses in the television market against Japanese competition.
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ZDS's CEO that year attributed its success to recognizing, unlike other computer companies, that the PC compatible was a commodity with falling prices like televisions: "Basically, we move boxes". ZDS avoided the retail consumer market, instead focusing on business and government customers, such as companies, universities, and government agencies an executive said, "We'd like to have, but we don't need them." The company stated in 1982 "We have no expectations of being first or second in the desktop market", but in fiscal 1984 sold 16% of the 37,000 computers the United States government purchased, second to IBM's 27%, and by 1985 was overall the second-largest PC-compatible company after Compaq. (In particular, the floppy-disks were not IBM-PC compatible). It could either boot the CP/M operating system, or Z-DOS, a modified OEM version of MS-DOS that wasn't fully PC compatible. Targeted for professionals, it had an S-100 bus, high performance color graphics, an 8-bit Z80 and an 8088 processor. ZDS introduced the Z-100, its first computer not based on a kit design and second 16-bit product after the H11 minicomputer, in early 1982.
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The company also continued Heath's practice of publishing unusually clear product documentation, distributing schematics, and selling the source code to HDOS and other software in printed form. It continued selling computers in kit form-the equivalent of the ZDS Z-150 IBM PC compatible was the Heathkit H-150, for example -and opened more Heathkit Electronic Centers while also selling through Zenith dealers and seeking corporate customers. As subsidiary of a television company, ZDS could obtain monitors at cost. ZDS's first computers were preassembled versions of Heathkit computers. Next, the early Heath/Zenith computers (H88/ H89 and Z-89) were based on the Z80 processors and ran either HDOS or CP/M operating systems. The CP/M operating system was adapted to all Heath/Zenith computers, in 1979. It ran K7 audio-tape software, punched tape software (with puncher/reader H10) and HDOS (Heath Disk Operating System) software on 5¼" hard-sectored floppy disks.
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The first Heathkit H8 computer, sold in kit form, was built on an Intel 8080 processor. Conversely, Microsoft programmers of the early 1980s did much of their work using Zenith Z-19 and Z-29 CRT display terminals hooked to central mainframe computers. Zenith was an early partner with Microsoft, licensing all Microsoft languages for the Heath/Zenith 8-bit computers.