DSM Announcement

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Paul Grabscheid

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Jan 2, 1995, 9:39:26 AM1/2/95
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The following is the text of a letter announcing InterSystems
acquisition of DSM. For more information, these files can be
downloaded from openmsql.intersys.com (198.133.74.1) in /pub/dsm:

dsmpr.txt press release
dsmqam.txt question & answer document
dsmlet.txt letter (included in this message)

Paul Grabscheid

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

30 December 1994

To the M Community:

I am pleased to announce that Digital Equipment Corporation and
InterSystems have formed a strategic partnership to expand the
worldwide use of M Technology, particularly in the enterprise
client/server arena. Simultaneously, InterSystems has acquired
the DSM software product line, Digital's implementation of M.

Given the rumors that have circulated about this topic and the lack
of factual information previously available, I am certain that
many in the M community have questions. The materials that
accompany this letter are designed to answer as many of those as
possible, but I would like to offer my perspective on a few key
issues.

- First, we will not kill DSM or force customers to migrate to
another platform. To the contrary, we will continue to
aggressively enhance and support DSM. As the press release
emphasizes: "Choice among platforms has always been a key
strength of M Technology. The choice of M implementations is
not decreasing because of this acquisition." DTM has
flourished under our stewardship.

- Second, we will provide a smooth transition for DSM customers.
A DSM Council comprised of executives from InterSystems,
Digital and key DSM customer organizations will be formed to
provide advice and feedback. Both Digital and InterSystems
will provide DSM support. In addition, InterSystems will
honor outstanding price quotes and will freeze DSM license and
maintenance prices at the level of Digital's current price
list for at least six months.

- Third, we will accelerate our efforts to expand the worldwide
awareness and use of M. For a long time, no single M vendor
had the resources to broadly market M technology. Over the
last six months, we have worked hard to increase the
visibility of M, generating a series of articles in major
publications. With the acquisition of DSM, we finally have
the resources to dramatically increase the exposure of M.

I know that many people are concerned about having fewer M vendors,
yet I believe this acquisition and partnership are vital to
competing vigorously with alternate technologies and preserving
the choice of M. Over the last few years, our market has changed
dramatically. Instead of asking "why should I use your M
implementation instead of someone else's?", customers now ask "why
should I use M instead of Sybase or Oracle or SQL Server?" For
M to grow in fact, for it to survive we must compete
effectively with these bigger and better-known database and
application development software vendors.

The good news is that M is alive and well! In international
markets our growth rate exceeds 100%. As one of the 100 largest
independent software companies in the U.S., InterSystems now has
the critical mass to compete in the 90s and beyond. We are now
able to carry out ambitious R&D plans that advance the state of the
art in database technology and that maintain the competitive edge
that M has always provided.

These events represent a major change for DSM customers, for the
entire M community, and for everyone here at InterSystems. While
we will work hard to make this transition as smooth as possible,
any change is unsettling and a period of adjustment is natural.
I urge you to keep this in mind, to contact us if you have any
questions, and to join with us in expanding the use of M throughout
the multi-billion dollar database market.


Sincerely,


Terry Ragon
President, InterSystems Corporation

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