WHILE I WAS PREPARING THIS MEMO TO YOU YESTERDAY.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP88G01332R000800980001-6
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 6
• Document Creation Date: December 27, 2016
• Document Release Date: November 29, 2011
• Sequence Number: 1
• Publication Date: March 27, 1986
• Content Type: MEMO

Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
TRANSMITTAL SLIP
DATE
27 March 1986
TO:
DDA
ROOM NO.
BUILDING '
'
7D24
HQS
nn ipfc
\
REMARKS:
LOGGED
exo1
FROM:
ADDI
ROOM NO.
BUILDING
E
7E44
HQS
FORM NO.,, , , REPLACES FORM 36-8 (47)
Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
 Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
Central Intelligence Agency
Office of the Deputy Director for Intelligence
NOTE TO: Direor, Information Technology
While I was preparing this memo to
you yesterday, Dick Kerr walked into my
office. When he discovered what I was up
to, he asked that I send him a copy of
this memo for his information. I have
sent a drop copy to Dick at the same time
I forward this to you. I hope this causes
no problems at your end.
John.' Y. Helgerson
Ass iate Deputy Director
f r Intelligence
Attachment:
DDI #01602-86, dtd 27 Mar 1986
Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
 A TTA T ATT C TD A TT 17LV - T AT T LSD AT A T TTP D n1TT V
Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
DDI #01602-86
27 March 1986
MEMORANDUM FOR: Director of Information Technology
John L. Helgerson
Associate Deputy Director for Intelligence
DI Questions About IBM 3270 ATs
The DI has a near-term requirement to purchase as many
ae___]computer workstations for personnel who currently have no
access to computing at their desks. We understand OIT's
recommendation that we purchase IBM 3270 ATs. We are also aware
that there is a vigorous and competitive market (both in cost and
performance terms) in PC compatibles or clones. We are
attempting to derive a Directorate strategy to go with the IBM or
a clone, and would appreciate your views on the issues raised
below.
2. We understand that IBM 3270 ATs, as configured for NEWS,
cost between~7,000 and $8,000 without applications software. L&__
this a hard figure or can it be brought -down in time to-- get more
for our remaining 8 dollars? We -believe that we could purchase
IBM-compatible machines tom other vendors of equal or superior
performance for around $4,000, and basic, low-cost PCs (a less
attractive option) for under $2,000. The cost savings accruing
from buying "clones" thus is at least and could be
as much as I am still unclear about whether and
why it is really necessary to endure the extra cost of the ABM
equipment. If these savings were available to us, we would hope
to provide additional funds to OIT to use on the AIM project,
where performance is stretched beyond the limit and where neither
of us has significant other funds available.
3. As DI officers understand your plans, full SAFE Delivery
2 compatibility will not be available for the IBM machine until
a) the "Virtual CAM Terminal" program is finished, b) a PC-based
word processor is integrated with it and AIM and SAFE, c)
modifications are made to SAFE and other host-based applications
important to the DI to make them operate with the Virtual CAM
terminal, and d) IBM PCs can actually be connected to your
computers as 3270 devices in significant numbers. Are we correct -
that those are the necessary steps? If so, when do we
Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
 ALM1N1J1KA11Vt - 1N1r,1(NAL UJt, UNLY
Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
SUBJECT: DI Questions About IBM 3270 ATs
realistically expect all this to be accomplished? What fallback
positions do we have if the Virtual CAM Terminal program is
delayed or if it proves difficult to convert our existing
mainframe applications to work with it?
4. I understand that your motivation for selecting the IBM
3270 AT is to be in the"mainstream" of the commercial world, and
I support this goal fully. Yet as my staffers look at the
commercial PC situation, they see the 3270 AT as a costly,
specialized, hybrid device that has found uncertain commercial
acceptance. Instead, the PC marketplace seems to be evolving a
mainstream composed of PC clones connected to local area
networks. Do you believe our A encv can be confident-that- if we
embrace the 3270 ATE we w_ill not find ourselves outside the
mainstream instead of inside it?
5. We recognize that resources will have to be diverted to
the job of converting our current Delta Data-based applications
to work with the 3270 AT. What opportunity costs are we
incurring? Are there alternati_ves that a-6--no treAu3re conversion
of existing applications?
6. One possible DI strategy for dealing with an uncertain
future is to avoid overcommitting ourselves. For the decision at
hand, this would imply these objectives:
-- Minimize the initial investment in PCs, spending money
instead on such things as central services upon which our
dependence is unambiguous and unlikely to change.
-- Buy relatively basic equipment that can be upgraded as
necessary.
7. We are aware that DIA has decided to purchase
compatibles to be its SAFE terminals. We presume you will devise
and implement a scheme to make SAFE work with the DIA PCs. Would
it be in the best interest of all if a common be -solution rould found? Should we go the DIA route and b e What
would be 11ac on we did? What would DI users lose
with the that they would have with the 3270?
8. We have examined your NEWS initiative for FY '88 in an
attempt to understand the marginal costs associated with
converting from asynchronous to 3270 host connection. This
conversion would be required if the DI were to buy 3270 ATs and
exploit them as such. In the case of additional asynchronous
connections and neglecting continuing payments on any COMTENs
that we do not already fully own, we calculate the marginal cost
of the additional connections the DI requires to be essentially
-2-
ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
 ADMiN151KA1'iVr; - 1N'1'1KNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
SUBJECT: DI Questions About IBM 3270 ATs
zero. This is because the new PBX can be used as a port
contender; indeed, we understand that using it this way is part
of your strategy for the move to the new building. What is the
mar anal cost for 3270 connections? Our estimate, based on the
figures in the NEW ve, is $2,000 per device, implying an
additional cost of for the 3270 AT option compared with
PC compatibles. This is a big expenditure, even if it does not
have to be paid by us in the DI.
9. I have put these questions on paper to get myself better
informed and to help us in the DI weigh the various
considerations involved in this important decision. If your
office could clarify these points, it would bolster my confidence
that we are indeed making the right decision to go with the 3270,
or, perhaps, that we should explore more completely whether there
are less expensive options available to us. Whatever we do, I
want to be sure OIT and the DI have a common understanding of
where we are going and why as we decide how to spend our scarce
resources.
10. Thanks for your help.
oh . Helgerson
As o late Deputy Director
r Intelligence
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ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
 ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6
SUBJECT: DI Questions About IBM 3270 ATs
ADDI/JLHelgerson:sdsl k27Mar86)
Distribution:
Orig -
Adse
1 -
DDA
1 -
DDI Registry
1 -
C/DDI/ASG
1 - ADDI Chrono
-4-
ADMINISTRATIVE - INTERNAL USE ONLY
Declassified in Part - Sanitized Copy Approved for Release 2011/11/29: CIA-RDP88GO1332R000800980001-6