Transcript Di Chen, Chen and Associates August, 2010 AML-Advanced Memory Lab  MPI (Magnetic Peripherals Inc., a Joint venture of Honeywell and CDC) appointed.

Di Chen, Chen and Associates
August, 2010
AML-Advanced Memory Lab
 MPI (Magnetic Peripherals Inc., a Joint venture of
Honeywell and CDC) appointed Steve Popovich in
1979 to organize AML in Colorado Springs to develop
optical data storage drives.
 In October 1979, I joined Steve, together with Bill
Stanis, Mike Konshak , Dorrel Silvy, and later Dennis
Weid, Curt Shuman, Chuck Ernst and others, to start
engineering design of a recordable optical drive.
Searching for Joint venture
Partners
 MPI, under president Tom Kemp, realized that we must
seek joint venture partners to carry this project to fruition.
 Serious discussion of joint development effort with Philips
and Hitachi, including technology exchange and business
development took place in 1980 and 1981.
 Two organizations, Optical peripheral Lab, OPL (Between
Philips and MPI) and Optical Media Lab, OML (Between
Philips and Control Data) were formed in 1982. Hitachi
withdrew from the joint venture effort.
 OPL in Colorado Springs was charged with the
development of a 12” WORM optical drive, and OML in
Eindhoven was to develop the 1 GB 12” optical disc.
Joint Venture discussions with
Philips
Joint venture discussion with
Hitachi
OPL and OSI
 A number of Philips engineers and managers, including Maarten
de Haan, Chris Steenbergen, Roeland Hekker, Hans Verboom,
Kurt Getreuer, Rien Monen and others joined OPL
 New manager Todd Olsen took over the OPL operation in 1982,
and renamed it Optical Storage International (OSI). Additional
members including Bob Biggs, Chris Pollard, Russ Meyer, Haim
Haskal, Neal Hall, Chris Miller as well as member of MPI
manufacturing engineers from the Bay area, lead by Amyl Ahola,
joined OSI
 Semiconductor laser in place of HeNe laser was adapted to the
optical head, 12” sealed glass substrate Te alloy WORM disc was
developed at OML.
OPL at 1982 Comdex, and up
Pike’s Peak
Early Joint Publication
Successful Delivery of the first
12” WORM drive
 In late 1982, an alpha WORM drive with 1 GB per disc
capacity was successfully delivered to Digital
Equipment.
 I and others proposed to OSI management for the
development of a 5 ¼” WORM drive. This was rejected
by the top managers, believing that 12” drive, not the
5 ¼” drive was the path to success.
OIS Celebrated the delivery of the
first 12” 1 GB WORM Drive
Optotech was born
 I left OSI in 1984 and joined force with my Stanford
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schoolmate Nelson Yew, to start Optotech Inc. for the
development of a 5 ¼” WORM drive.
Start-up funding for Optotech came from Kliner-Perkins,
H & Q, Master Fund and AVI
Initial group includes Mike Konsak, Dorrel Silvy, Leslie Zak
and later we have Bill Stanis, Jeff Delude, T.C. Lee, Pete
Berg, Jim MacDonald and many others
A feasibility model was demonstrated at Comdex, Fall 1984,
First prototype model 5984 drive with 200 MB per disc
capacity was delivered one year later
Based on our design spec, Olympus provided the optical
head and Dicel manufactured the 5 ¼” WORM discs
Optotech 5984 drive and first
purchase order
WORM disc discussion with Dicel
Optotech at Comdex 1986
Optotech changed Direction
 Manufacturing of 5984 drive starts in 1986, supported
by the second round funding from initial investors.
Phil Shire was hire as COO.
 By the end of 1986, Optotech achieved the first month
of positive cash flow. IPO was proposed but on hold.
 Recordable CD (CD-R) drives using dye-polymer
media, was introduced by major Japanese companies
and Philips in early 1987, Optotech lost its competitive
edge in WORM drive.
 Development of rewritable 5 ¼” MO drive started in
1987.
Optotech 5984 WORM Drive
Exciting Moments at Optotech
Optotech sold to HP
 Don Muller replaced Nelson Yew as CEO in 1988.
 Believing that MO drive was ready to transfer from
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engineering to manufacturing, major staffing build up
consumed much of the third round funding.
Continuous delay in MO drive development caused
diminishing investors’ support.
Optotech was sold to HP and ceased operation in 1989
Based on Optotech technology, HP completed the MO
drive development and used it in their successful Jukebox
products.
For a brief period, I joined Steve Popovich at Literal.
I became a consultant thereafter.
The Passing of Optotech in 1989
Life is a Journey
 The exciting period of the pioneering
work in optical disc drives and optical
media has concluded.
 We should be content that we all had a
part in the success of this remarkable
Optical Storage Industry.
 We have been at the mountain tops and
the deep valleys, now they are all buried
in our shares memory.
 Life is a journey. Hopefully the foot
prints we left behind would help others
to find their way to success.
Thank You