Section 1 of this report argues the necessity for computers in higher education today, in terms of the objectives of the five systems of post-secondary education in Minnesota. Section 2 covers the present status of computer facilities and activities in Minnesota higher education. Section 3 contains a quantitative analysis of the needs for computing capacity over the next ten years. Section 4 converts this needed capacity into general computer hardware configurations and geographical deployments, and estimates the total costs involved. Section 5, the final section, presents 30 specific recommendations for providing Minnesota higher education with the computing capacity it needs over the next five- and ten-year periods, complete with estimated budget schedules and commentary on the relationship of the projected costs to national standards and other costs of higher education. It is suggested that the reader who lacks the time to digest the entire report will be exposed to most of the important points and recommendations contained in it by reading Sections 1 and 5. This report is included as Part IV of LI 002 385, "Information Systems in the State of Minnesota 1970-1980". Part II, the summary of the entire study is also available as LI 002 386. (Author/NH)