Digital Equipment Corp., the No. 2 computer maker, is opening its doors to outside technology. Analysts say Digital's acquisition of a 5 percent stake in Mips Computer Systems Inc. marks a move to accept and implement technological advances occurring outside the company. Digital announced plans Wednesday to develop computer work stations based on the California company's technology. Work stations are expensive desktop computers that typically are used for work that requires extensive manipulation of numbers or sophisticated graphics, such as science, engineering, design and financial modeling. ``This is an acceptance on DEC's part that the computer user's dollar is being spent on work stations and small systems,'' said Bruce Watts, an analyst with Needham & Co. ``I think they feel that internally they've got enough on their hands in terms of keeping their own product line up to date and competitive, and if they want to tap other segments of the market they have to look outside,'' he said. Digital said it is lining up with Mips, based in Sunnyvale, Calif., to speed new work station products to the marketplace. The Maynard-based computer giant is second to Sun Microsystems Inc. in the fast-growing work station field. Under the agreement, Digital will used Mips-designed microprocessors that use reduced instruction set computing, or Risc, a way to speed up computing by simplifying the steps a processor has to carry out. The faster Risc microprocessors are used increasingly in work stations. ``With the addition of Risc technology, Digital will offer customers even more versatility in computer performance to match specific application demands,'' said William Strecker, a Digital vice president. Digital stock closed at $92.62{ in composite New York Stock Exhange trading Wednesday, up 12{ cents. Analysts said they expect Digital to unveil a work station using Mips chip technology by the end of the year. They said the decision by Digital marks the first time it has strayed from its reliance on its own Vax computer design. Analysts also said the Mips deal marks a concession to industry standards because Risc-based systems work well with Unix, the standard operating software made by American Telephone & Telegraph. Digital also acquired the right to use future Mips technology. In the past, Digital has designed all its computer components itself.
