Ibm History PDF

a history of progress
1890s to 2001
1890s to 1937
Early Ambitions
A merger of three 19th-century companies—the Tabulating Machine Company,
the International Time Recording Company and the Computing Scale Company of
America—creates the Computing-Tabulating-Recording Company (CTR) on June
16, 1911. CTR is the precursor to IBM. Thomas J. Watson Sr. joins CTR in 1914 and
over the next two decades transforms it into a growing leader of innovation and
technology and a prototype for the newly emergent multinational corporation.
This shift is signaled in 1924, when the company’s name changes to International
Business Machines Corporation (IBM). From the beginning, IBM defines itself
not by strategies or products—which range from commercial scales to punch
card tabulators—but by forward-thinking culture and management practices
grounded in core values. By adhering to its vision and values throughout the
Depression—providing continued employment, even adding engineers and
other staff in order to sustain its production output—IBM is able to play a pivotal
role in enabling the U.S. government’s Social Security Act of 1935, “the biggest
accounting operation of all time.”
in 1914, thomas j. watson sr. joins ctr, a company

with 1,346 employees and $9 million in revenues.
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ibm – a history of progress
1886 1888
first test of hollerith’s dial recorder 1890

tabulating system Invented in 1888, this visually striking
daily attendance recorder from IBM’s u.s. census
Dr. Herman Hollerith conducts the first
International Time Recording Company Dr. Herman Hollerith’s tabulating system
practical test of his tabulating system
will be marketed to employers well into is used in the U.S. Census, reducing a
by recording and tabulating vital
the 1930s. nearly 10-year-long process to two-
statistics for the Baltimore, Maryland,
and-a-half years and saving $5 million.
Department of Health. He will later
patent this system and form one of
IBM’s predecessor companies.
1906 1910
united kingdom germany 1911
The Tabulating Machine Company, an IBM Representatives of the Tabulating
predecessor, gives an exclusive license to Machine Company reach an agreement
canada
the British Tabulating Machine Company to manufacture and market the The Computing-Tabulating-Recording
of London to market its Hollerith-designed company’s products in Germany. Company forms in Canada as a merger
punch card technology in Britain. In of the Computing Scale Company,
1912, the International Time Recording Tabulating Machine Company and the
Company—the precursor to IBM United International Time Recording Company
Kingdom—is formed. Limited. Six years later, the International
Business Machines Company Limited
incorporates to run the Canadian
operations, marking the first formal use
of the IBM name.
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1890s to 1937 - early abmitions
1914
1911
france
ctr is formed 1914 CTR establishes a branch of the
Charles R. Flint arranges the merger
first disabled employee International Time Recording
of the International Time Recording
IBM hires its first employee with a Company in Paris, France. Six
Company, Computing Scale Company,
disability—59 years before the passage years later, Thomas J. Watson Sr.
and Tabulating Machine Company
of the Rehabilitation Act of 1973, and will establish a new company—
to form the Computing-Tabulating-
76 years before the Americans with Société Internationale de Machines
Recording Company. The new
Disabilities Act. Commerciales—to promote CTR
organization is based in New York
tabulating machines in 10 European
City and has 1,300 employees.
countries.
1917
brazil
1914 1915 IBM appoints its first sales representative
in Brazil. The country’s operations grow
thomas j. watson sr. ibm band rapidly in size and scope, and in the
joins ctr At Thomas J. Watson Sr.’s behest, five 1930s IBM opens manufacturing facilities
Thomas J. Watson Sr. joins CTR as Endicott employees form a band to in São Paulo and Rio de Janeiro.
general manager. The next year he is perform at a CTR sales convention. A
elected president of the company. year later, 32 employees will formally
organize a concert band, starting a
musical tradition that will last until 2001,
when the IBM Band in Endicott plays its
final notes.
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1920 1921
first printing tabulator south africa
The printing tabulator is introduced by CTR. CTR equipment is used in the South Africa
It not only improves speed and accuracy, but national census. Although the company will not
1918
also sets the stage for further mechanization appoint a general manager for the country until
charitable contributions of the tabulation process. 1951, IBM products form a familiar part of the
This list of CTR’s diverse charitable South African business landscape throughout
contributions demonstrates philanthropic the intervening decades.
leadership and commitment to the
community dating back to the company’s
earliest years.
1923 1924
the ibm card quarter century club
CTR introduces the first electric key 1924 Thomas Watson Sr. establishes the Quarter
punch, setting its tabulating equipment Century Club (QCC), recognizing employees
ibm is named
apart from its competitors’ mechanically- with 25 years of service. Inaugural
driven systems. Five years later, the The Computing-Tabulating-Recording employees to the QCC include four women
company—by then known as IBM—will Company is renamed International and one African-American.
introduce a revolutionary 80-column Business Machines Corporation (IBM).
punch card design. The “IBM Card” The company has operated under the
becomes an industry standard. IBM name in Canada since 1917.
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1925
the hundred percent club
The first meeting of the Hundred Percent Club, composed of IBM
1925
sales representatives who have met their annual quotas, convenes
japan in Atlantic City, New Jersey.
IBM appoints its first sales representative
in Japan, and a tableware manufacturer
becomes the site of the first IBM
tabulating machine installation.
1930
1929
ibm baseball team netherlands
Just 10 years after appointing its first
1928 IBM Endicott forms an employee baseball
sales agent in the Netherlands, IBM
team to participate in a town league. Over
china the years, IBM will engage with the sport
sponsors a lavish exhibit to show off its
An agency is appointed to represent wares at a Dutch trade show.
in many ways, ranging from product lines
IBM in China. In 1934, the first IBM (IBM-produced stadium scoreboards) to
tabulating equipment will be installed services engagements (analysis of baseball
at Peking Union Medical College in statistics) to marketing opportunities
Peiping (Beijing), and two years later (tabulating All-Star ballots).
IBM China will be established, with
headquarters in Shanghai.
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1934
1934
ibm eliminates piecework
405 accounting machine IBM places all factory employees on salary,
1933 IBM introduces the 405 Accounting eliminating piecework and providing its
ibm schoolhouse and Machine. It will remain the company’s workforce an added degree of economic
engineering laboratory flagship product until it is taken out of stability. A group life insurance plan is
IBM dedicates its Schoolhouse and production in 1949. also initiated for employees, marking the
Engineering Laboratory buildings in beginning of IBM’s pioneering employee
Endicott, New York. The front entrance of benefits programs.
the Schoolhouse is engraved with Thomas
J. Sr.’s famous Five Steps to Knowledge:
“Read, Listen, Discuss, Observe, Think.”
1935
first class for women
systems service
1935
professionals
Under the innovative and visionary 1935
electromatic typewriter leadership of IBM’s Anne Van Vechten, the
IBM markets the first commercially
think magazine
company holds its inaugural systems service
successful electric typewriter, the The first issue of THINK® is published.
engineering class for women. The class,
Electromatic. The company will produce A magazine for IBM employees and
which trains employees for professional-
typewriters until 1990. clients, it features articles on such wide-
level positions, marks the start of an
ranging topics as education, science, art
increased business role for women at IBM.
and international relations.
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9
1936
social security
IBM installs punched-card equipment to support administration of
the U.S. Social Security Act of 1935. The project requires the creation
and maintenance of employment records for 26 million Americans.
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1936 social security
1937 1937
“we would have been lost” the job begins
The IBM Social Security sales team is a The United States Social Security payroll
1936
partnership between the Washington program begins with the issuance of 26
“it can’t be done” office sales personnel and engineers from million Social Security Numbers and 3.5
The initial assessment by United States IBM’s New York-based research group. The million Employer Identification Numbers.
Secretary of Labor Frances Perkins collaboration results in the IBM 077 Collator,
and other tabulating experts is one designed expressly for the Social Security
of extreme skepticism, but IBM CEO project. H.J. MacDonald, sales lead for the
Thomas Watson Sr. tells his Washington team, recalls, “We couldn’t have done a
sales representative, “We want that decent job with Social Security unless we
business and will give you anything you had the Collator.”
need to get it.” It takes almost two years
to develop a successful proposal, but
Watson ultimately gets his wish.
1937
“i think we’ve found it”
United States Secretary of Labor Frances
Perkins recalls fondly the day on which
an employee walked into her office
and said, “These new IBM machines—I
believe they can do it.” Perkins, always
nervous about the massive scope of
the Social Security project, would later
express her gratitude—and relief: “Out of
that really inventive group, that worked
in the IBM research group, we found a
1937 way by which this could be done.”
a heavy load
No building in Washington, D.C., has floors
sturdy enough to support the weight of
the paper records and IBM equipment, so
the Social Security tabulating installation
occurs in an old Coca-Cola factory in
Baltimore, Maryland.
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1915
think
Recognizing the motivational potential of the word “THINK” even
before joining CTR, Thomas Watson Sr. takes steps immediately
upon arrival to ingrain the concept into company culture. The
word quickly becomes synonymous with IBM.
Appearing on materials that range from plaques to banners to

employee publications, “THINK” remains a ubiquitous part of life
at IBM into the 21st century.
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1935 think
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1938 to 1951
Growing Influence
Although international commerce is brought to a halt by the Second World War,
IBM expands its manufacturing capacity to meet wartime demands—adding
to its Endicott, New York, plant, and opening new facilities in Poughkeepsie,
New York, Washington, D.C., and San Jose, California. Following the war, the
company accelerates its international growth, and in 1949, it forms the World
Trade Corporation to manage its foreign operations. In the span of two decades,
the organization will generate more than half of IBM’s bottom line. Business
innovation works hand in hand with social innovation during this period, as
IBM promotes diversity and corporate philanthropy in its policies. The company
begins to focus on opportunities for women, minorities and the disabled—years
before such considerations would become the norm.
in 1943, ibm hits the $100 million

mark in revenues.
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1938 1941
world peace spain
through world trade IBM Spain is established, 25 years after the
This IBM mantra encapsulates one of Thomas company first appointed a representative in
1939
Watson Sr.’s quintessential beliefs—that the country and 16 years after the first IBM
business holds the potential to influence international growth machines were installed there.
global society for the better. During the As IBM marks a quarter century of
1930s, Watson labors tirelessly on behalf of Thomas J. Watson Sr.’s leadership, the
world peace, traveling around the planet to use of the company’s products spans
meet with political and business leaders. the globe.
1943
1942
vacuum tubes
training for people IBM develops the Vacuum Tube Multiplier,
with disabilities which substitutes vacuum tubes for electric
1943
Michael Supa, a blind psychologist and relays and becomes the first complete
IBM employee, helps launch a corporate first female machine to perform arithmetic electronically.
program to train and employ disabled vice president
people in Topeka, Kansas. The next Ruth Leach becomes IBM’s first female
year, classes will begin in New York City, vice president. Between 1940 and 1943,
and soon the company will be asked one third of IBM’s manufacturing hires
to join the President’s Committee for are women.
Employment of the Handicapped.
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1938 to 1951 - growing influence
1944 1944
automatic united negro
sequence controlled college fund
calculator (ascc) Thomas Watson Sr. joins the Advisory 1945
IBM presents its first large-scale calculating Committee of the United Negro College
computer, the ASCC, to Harvard University. Fund™ (UNCF), and IBM becomes an
watson scientific
computing laboratory
Also called the Mark I, it is the first inaugural contributor to the organization.
machine capable of executing long The mission of the UNCF is to strengthen IBM creates the Watson Scientific
computations automatically. historically black colleges and universities Computing Laboratory at Columbia
and to promote interracial understanding University. It is the first IBM laboratory
in America. devoted to pure science, and it marks
the beginning of world-class scientific
research at IBM.
1946 1946
603 electronic multiplier first black sales
IBM announces the 603 Electronic Multiplier, representative
the first small commercial product to IBM hires its first black sales representative,
incorporate electronic arithmetic circuits. T.J. Laster, 18 years before the Civil Rights
Designed to outperform the gigantic 1946 Act of 1964.
ASCC, the 603 uses vacuum tubes to chinese ideographic
perform multiplication far more rapidly than character typewriter
electromechanical devices. IBM introduces an electric Chinese
ideographic character typewriter. Utilizing
a cylinder engraved with 5,400 ideographic
characters, the machine allows an exper-
ienced user to type at a rate of 40 to 45
Chinese words per minute.
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1946 1948
first ibm logo australia
IBM’s globe-shaped logo expresses the After decades of selling just scales and time recording
young company’s growing ambitions. equipment, IBM’s Australian subsidiary begins marketing
tabulating machines for the first time.
1951
india
1948 1948 IBM opens its first office in India. Over
selective thailand the next few years, the company opens

a punch card manufacturing facility and
sequence electronic The Royal Thai Government selects IBM
several service bureaus.
calculator (ssec) to provide equipment and expertise
IBM’s first large-scale digital calculating for Thailand’s first detailed census. The
machine, the Selective Sequence Electronic following year IBM will appoint a manager
Calculator (SSEC), features 12,000 vacuum to direct its business in the country.
tubes and 21,000 electromechanical
relays. It is the first computer capable of
modifying a stored program.
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19
1938
world headquarters
The IBM World Headquarters building, located at 590 Madison Avenue
in New York City, is dedicated.
20
1938 world headquarters
1936 1938
world headquarters building dedication
IBM Chairman Thomas Watson Sr. recognizes that IBM’s IBM’s newly acquired Madison Avenue building is extensively
current offices are insufficient to meet the administrative renovated, and in January 1938 it is dedicated as IBM
needs of the company’s booming domestic and international World Headquarters. Here, IBMers work in the accounting
sales. To consolidate IBM’s worldwide operations, he acquires department at the time of the building’s dedication.
a 20-story office building at the corner of 590 Madison
Avenue and 57th Street in New York City.
1938
office of the president
Thomas Watson Sr.’s office features a “THINK” plaque and bust
of Thomas Edison on the fireplace mantle.
1941
hall of products
The refurbished facility features an employees’ club
room, a library, a museum focused on international
contributions to the field of accounting and a space
for showcasing IBM’s wares (pictured).
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1938 world headquarters
1949
tabulation department
IBMers operate a row of Alphabetic Tabulators as a portrait
of Thomas Watson Sr. watches over them.
1942 1950s
giving thanks data processing center
IBMers gather in the Employees’ Clubroom to thank Situated in the lobby areas of the World Headquarters, the
Thomas Watson Sr. for increases in the group insurance Eliot Noyes-designed IBM Data Processing Center features a
plan and other benefits provided by the company. spare, modern design and a working IBM 702 system that runs
24 hours a day. Passersby on the sidewalk can look through the
plate glass windows to see well-dressed technicians tending to
the machines as they process client data.
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23
1940
tent city
IBM hosts qualifying sales representatives for the Hundred Percent Club
in a sprawling tent complex—officially known as Convention City—at the
IBM Country Club in Endicott, New York. In 1946, Tent City will comprise
seven acres of tents, housing more than 800 qualifiers.
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1940 tent city
1941 1941
an army of salespeople a full house
This aerial photograph captures the sweep of Tent City. The The chairs are uncomfortable. The main tent is hot. And
Main Tent (left), where Hundred Percent Club sessions are the bugs attracted by the stage lighting are annoying.
held, is a massive circus tent. The smaller tents are those in Nevertheless, the Hundred Percent Club program always
which attendees are lodged. attracts a crowd.
1946
tent city drive
Pedestrians walk along one of Tent City’s main thoroughfares
during the 1946 Hundred Percent Club convention.
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1940 tent city
1941
the main tent 1949
Festooned with THINK banners, IBM logos and Hundred Percent a pastoral setting
Club regalia, the main ent is where the bulk of the convention is This scenic image of Tent City captures the idyllic quality of
held. After inoculating its leading sales representatives with a heavy a summer day at the Hundred Percent Club convention. Club
dose of corporate culture, IBM sends them back into the field. members take advantage of the setting to play golf, try out
the shooting ranges, watch ball games at the local minor
league stadium and listen to outdoor concerts.
1950 1950
amenitites accomodations
Tent City is hardly a five-star resort, but IBM makes Hundred Percent Despite having water and electrical hookups, the roomy but
Club members as comfortable as possible. The tents sit on wooden spartan two-person attendee tents are a step down from the
platforms, and there are paved sidewalks so attendees can avoid ambience of the Waldorf-Astoria. Some IBMers think Chairman
muddying their shoes in rainy weather. There are medical facilities, Thomas Watson Sr.’s idea to reward his top salespeople with
shoe shine and laundry services, a daily newspaper and even a three days outdoors will backfire. But the representatives catch
Coca-Cola tent—in 1947, attendees drink more than 20,000 bottles the spirit of the convention and respond enthusiastically to the
of the soft drink over the course of three and a half steamy days. Tent City accommodations.
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1952 to 1963
Foundations of
Modern Computing
The ascension of Thomas J. Watson Jr. to IBM’s presidency in 1952 marks the
beginning of the company’s transition to a modern corporation. During the
first decade of his tenure, Watson Jr.—later labeled by Fortune as the “most
successful capitalist who ever lived”—begins to transform IBM from a leading
industry player into a business behemoth that spans the globe. He refocuses
IBM toward the development and commercialization of electronic computer
technologies, creates and institutionalizes professional corporate management
practices, and codifies unwritten IBM philosophy and behaviors into formal
policies and programs. These technological, business and social innovations
propel IBM into the 1960s as the world’s leading high-technology firm.
by 1957, ibm exceeds $1 billion

in revenues.
in 1960, ibm’s workforce reaches

the 100,000-employee mark.
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1950s 1950s
ibm sales force typewriter
The IBM sales force is widely lauded as supplies packaging 1952
a world-class organization. A symbol of Designed by Paul Rand, IBM’s packaging
that elite status is IBM’s traditional sales
magnetic tape drive
for its typewriter supplies uses bold,
“uniform”—dark suits, white shirts, quiet distinctive colors with a logotype and
vacuum column
ties and the ubiquitous hat. an informal script to help humanize the IBM introduces the magnetic tape drive
product and the corporation. vacuum column, which uses a vacuum
to prevent tape breakage caused by
sudden starts and stops. The innovation
paves the way for magnetic tape to
become a popular storage medium.
1952 1953 1953

new logo by paul rand 650 magnetic heart / lung machine
Designed by noted graphic designer Paul drum calculator Using a heart/lung machine built by IBM,
Rand, the new logo marks the transition IBM announces the 650 Magnetic Drum Dr. John H. Gibbon Jr. of Philadelphia’s
from Thomas Watson Sr. to his son, Calculator, a medium-sized electronic Jefferson Medical College performs
projecting both continuity and boldness. computer designed to handle widely the world’s first successful open-heart
diversified accounting and scientific surgery on a human.
computations. Nearly 2,000 will be sold
by 1962, making it the most popular
computer of the 1950s.
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1952 to 1963 - foundations of modern computing
1953 1954
singapore egypt 1954
IBM opens its first office in Singapore to IBM’s newly formed Egyptian organization sweden
sell electric typewriters and time participates in a worldwide tribute marking IBM’s Vällingby manufacturing facility, a
equipment. Four years later, IBM will Thomas Watson Sr.’s 40th anniversary with producer of IBM Model C typewriters,
install its flagship 405 punch card the company. is constructed as part of the original
accounting machine at a rubber design of Sweden’s famed New Town—
company—the first IBM data processing the nation’s “Town of the Future.”
equipment installation in the country.
1956
1956 1956 switzerland

corporate design program first “self-learning” IBM chooses Zurich, Switzerland, to
IBM launches its Corporate Design Program program serve as the home of its first research
lab outside the U.S.
under the direction of Eliot Noyes, shown Arthur L. Samuel of IBM’s Poughkeepsie,
here with Charles Eames and a team of IBM New York, laboratory programs an IBM
designers. In the ensuing decades, world- 704 to play checkers. It is believed to
renowned designers and architects like Paul be the first “self-learning” program, an
Rand, Charles and Ray Eames, Eero Saarinen, early demonstration of the concept of
Ludwig Mies van der Rohe, and Richard artificial intelligence.
Sapper will leave their creative imprints on
IBM graphics, products and architecture.
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1956
williamsburg conference
Thomas Watson Jr. gathers some 100 senior
1957 1957
IBM executives for a special three-day
meeting in Williamsburg, Virginia. This fortran hong kong
executive gathering, the first since the IBM makes the FORTRAN (FORmula IBM opens its first Hong Kong office,
passing of Thomas Watson Sr., results in TRANslation) scientific programming with four employees marketing
a new corporate organizational structure language—developed under the electric typewriters, time systems and
and marks the emergence of the second leadership of John W. Backus—available calculators. Within three years the
generation of IBM leadership. to clients. FORTRAN becomes an industry company will open a service bureau and
standard and the most widely used begin marketing its data processing line.
computer language for technical work.
1958 1958
belgium sage
The Eliot Noyes-designed IBM Pavilion at In the 1950s, IBM builds the core
the Brussels World’s Fair attracts nearly of the U.S. air defense system,
100,000 visitors—including European the Semi-Automatic Ground
royalty and high-ranking government 1958 Environment (SAGE) computer.
officials—in its first six weeks. In addition open door program
to its impressive display of IBM products, First implemented by Thomas Watson
the pavilion features a popular “Typing Sr. in the 1910s, the “open door” system
Bar,” where visitors can type postcards encouraged employees with complaints
to send home. to speak with senior executives, up to and
including Watson himself. In 1958, this
practice is formalized as policy with the
creation of the Open Door Program.
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1958 1959
salaried employees 1401 data processing
IBM becomes one of the first major system
companies to place all hourly U.S. IBM introduces the 1401 Data Processing 1960
employees on salary. System, the first computer system to reach denmark
10,000 units in sales. The system’s printer, The Datamobile featuring the new IBM 1401
the IBM 1403, launches the era of high- drives past Christiansborg Palace, home
speed, high-volume printing, and will of the Danish Parliament, in Copenhagen,
remain the standard for print quality until Denmark. The Datamobile spends four
the advent of laser printing in the 1970s. months traveling through Europe as part of
the 1401’s introductory tour.
1960 1961
stretch computing system thomas j. watson
1962
IBM introduces the Stretch computing research center a tradition of client service
system, the most powerful computer of IBM’s belief in the significance of client service
The Thomas J. Watson Research Center,
its day and the pioneer of such advanced is summed up in the words of Thomas Watson
headquarters for IBM’s Research Division,
systems concepts as lookahead, Jr.: “We want to give the best customer service
opens in Yorktown Heights, New York.
pipelining, the transistor and the byte. of any company in the world….The relationship
between the (IBMer) and the customer, their
mutual trust, the importance of reputation, the
idea of putting the customer first—always—all
these things, if carried out with real conviction
by a company, can make a great deal of
difference in its destiny.”
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1962 1962 1963

sabre the basic beliefs first ibm fellows
IBM develops the SABRE® reservation Thomas Watson Jr. codifies IBM’s unwritten The company announces its first eight
system for American Airlines. The industry’s core values into three basic beliefs, inductees into the IBM Fellows Program,
first system to work over phone lines in grounded in respect for the individual, which honors distinguished and sustained
“real time,” it links high-speed computers dedication to customer service and technical achievements in engineering,
and data communications to handle seat excellence in all that IBMers do. programming, science and technology. The
inventory and passenger records from title of IBM Fellow comes with a unique
terminals in more than 50 cities. opportunity to pursue special projects and
is the highest honor an IBMer can receive
for technical innovation.
1963
national urban league
IBM joins the National Urban League®
(NUL) to launch on-the-job training
for unemployed black individuals. NUL
President Whitney Young calls IBM’s
efforts “a classic example of a company
accepting its social responsibility.”
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35
1953
equal opportunity policy

Thomas Watson Jr. publishes the company’s first written equal
opportunity policy letter—one year before the U.S. Supreme Court’s
decision in Brown v. Board of Education and 11 years before the Civil
Rights Act of 1964.
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1953 equal opportunity policy
1949
1930s t.j. laster
erford willis T.J. Laster, IBM’s first black sales representative, sits
IBM’s inclusive workplace enables every employee with Thomas Watson Sr. at a sales event.
to contribute to the success of the company. Here,
Erford Willis—a blind IBMer—celebrates winning an
award in IBM’s Suggestion Program.
1966
beate e. hager
1949 IBM Austria’s first female Systems Engineer, Beate E. Hager,
ruth leach also becomes the first female instructor at the company’s
Ruth Leach, IBM’s first female vice president, poses Training Center in Vienna.
with colleagues outside the company’s San Jose,
California, office.
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1953 equal opportunity policy
1968
1968 joyce massengill
harry scott Joyce Massengill, IBM employee, works on software
There is more to career advancement than education for NASA in this advertisement.
and technical knowledge—character counts, too.
Here, IBM honors manager Harry Scott for the unique
qualities he brings to the organization.
1967
micahel supa
Michael Supa, an advocate for handicapped
employees, celebrates his 25th anniversary
with IBM.
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39
1956
random access method of

accounting and control (ramac)
IBM introduces its 305 RAMAC and 650 RAMAC machines. The first to use a
magnetic hard disk for data storage, RAMAC technology becomes an industry
standard. The storage capacity of the 305’s 50 two-foot-wide disks amounts
to five megabytes of data.
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1956 random access method of accounting and control (ramac)
1952
reynold b. johnson
IBM Fellow Reynold B. Johnson, one of IBM’s most 1959
innovative minds, forms a small team with a single
objective: to develop entirely new technologies for
latin american introduction
the company. Working out of a small rented building The first IBM RAMAC system delivered to Latin
in downtown San Jose, California, Johnson’s team America arrives at the office of Anderson Clayton and
focuses its efforts immediately on random access Co. in São Paulo, Brazil, on June 8, 1959. In the years
storage. The result? The world’s first commercial following the Second World War, IBM’s international
magnetic hard-disk drive—a technology that will subsidiary, the World Trade Corporation, proves to be
revolutionize data storage as well as launch a new a highly efficient channel for providing cutting-edge
computer peripherals industry. computer technology to businesses and governments
around the world.
1956
1956
ibm 305 ramac system ibm 350 ramac disk storage unit
The IBM 350 RAMAC Disk Storage Unit is a major
The original hard disk drive, the IBM 350 RAMAC
component of the larger IBM 305 RAMAC system—a
Disk Storage Unit, stores five megabytes of data
flexible, electronic, general-purpose data processing
on 50 magnetic disks, each 24 inches in diameter.
machine that enables businesses to record transactions
The disks spin at 1200 rpm, and read-write heads
as they occur. The system maintains records on a
locate and access data on the disks in less than one
real-time basis, provides random access to any record,
second. RAMAC stands for “Random Access Method
eliminates peak loads and simultaneously produces
of Accounting and Control,” a name that wins out
output by either print or punch cards.
over rejected labels for the system—DREAM (Direct
Reference Electronic Accounting Machine) and UNCLE
(Universal Numeric Calculating and Logic Engine).
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1958
enhanced 305
Two years after the product’s launch,
IBM enhances the 305 system
to permit an additional 350 Disk
Storage Unit—doubling maximum
storage capacity to an astounding 20
megabytes of data. The 305 RAMAC
is one of IBM’s last vacuum tube
systems, and the company produces
more than 1,000 RAMAC systems
before production ends in 1961.
ramac video transcript
Presenting RAMAC, Random Access Method of Accounting and Input and output tracks permit independence of input and output units.
Control. Another business service of tomorrow, made possible today The address register pinpoints the location of information in disc storage.
by IBM. Companies have long dreamed of an accounting system Each block of 100 characters has an address. The access arm, given any
capable, in a single operation, of recording transactions as they occur. address, will locate the information with a random access average of six
RAMAC is that dream-come-true, processing with amazing speed tenths of a second. Data can be read or written from a stored program
unrelated data, randomly presented and randomly transacted. instruction or from a manual inquiry station.
In the 305 RAMAC, IBM has combined the power, speed and flexibility For the first time IBM combines the stored program for data processing
of electronics required in the Random Access Method of Accounting and the wire control panel for logic elements and control. All these
and Control. Here is a data processing machine that is beautifully components that we have just seen are housed within the trim grey
designed, a machine whose compact, integrated construction makes process unit. Also compactly stored inside are miles of electronic
possible a multitude of operations. In addition to random or in-line circuiting, the very nerve network of the 305 RAMAC.
data processing, the 305 will serve as a flow of other information.
To provide flexibility and data processing, the 305 is equipped with two
This includes online printed documents and various types of punched- output devices, an IBM unit record card-punch and an online printing
card output. RAMAC also contains extensive facilities easily accessible device capable of accepting information directly from RAMAC in readable
for storing information. RAMAC requires a miracle memory; the 305 form.
has it. Five million characters magnetically recorded on 50 disks,
A forceful reminder of the 305’s processing ability is the rapid display
revolving 12 hundred times a minute. These 50 disks will hold as
of instruction execution, faster even than the eye can follow. In modern
much information as 32 cartons containing 64,000 IBM cards. Input
business, where time is money, the 305 RAMAC has made bookkeeping a
to RAMAC is by IBM unit record cards fed in at up to 125 per minute.
matter of split seconds.
Each card is read, recorded and checked.
The magnetic process drum, revolving 6,000 times per minute,

has recording tracks for stored program instructions, data storage,
arithmetic functions and inquiry data.
42
43
1961
selectric typewriter
IBM introduces the Selectric® Typewriter, known for its revolutionary
“golfball” replaceable typing element. One of the first IBM products to
reflect the influence of renowned design consultant Eliot Noyes, the
Selectric becomes a design classic.
44
1961 selectric typewriter
1961 1961
“golf ball” typing world-class design
element The Selectric is an early success for IBM’s
1961 The pedigree for the typing element dates corporate design program, led at the time
back to 1946 and an umbrella-shaped by famed designer Eliot Noyes. Featuring
a revolution in typing
development model called the “mushroom an innovative sunken keyboard, the
With the Selectric, switching typeface
printer.” It takes seven years of additional product is a striking departure from its
styles is as simple as changing the
development, however, before the boxy competitors and remains one of the
trademark “golf ball” typing element.
technology is perfected for the Selectric. 20th century’s classic industrial designs.
This revolutionary feature ushers in the
era of desktop publishing by enabling
users to quickly change font, print size—
even language.
1964 1970s and BEYOND

the beginning of the selectric lives
word processing More than 20 years after its introduction, an
The IBM Magnetic Tape Selectric Typewriter estimated eight million Selectrics were still
(MTST) pioneers the use of magnetic recording twisting, tilting and typing away in offices
devices and electronics in typewriters, and and homes around the world. Even today, in
marks the beginning of “power typing”—what the era of ubiquitous personal computers, the
we know today as word processing. The stored- Selectric remains a hot item and the focus of
text feature improves office efficiency by many online bidding wars. What made it a
allowing typists to type at “rough draft” speed best-seller then and a collectible now? Top
without fear of mistakes. quality, rugged reliability, classic design and
that famous snap-in, snap-out typing element.
45
1964 to 1970
The 360 Revolution

In the early 1960s, IBM sees its marketplace lead threatened by a series of worthy
challengers. In a bold business move—Thomas J. Watson Jr.’s legendary “bet
the company” decision—IBM develops the revolutionary System/360™ family of
mainframe computers. Sparked in part by the triumph of the System/360, IBM
experiences a nearly fivefold increase in revenues and earnings over the course
of the decade. The organization wears its mantle of success well, adopting a
host of progressive new employee and social programs that make it one of
the world’s most admired companies. If IBM ended the 1950s as a technology
leader, it ends the 1960s as a global business icon.
in 1967, ibm tops 200,000 employees

and $5 billion in revenues.
47
1960
mathematica
1964
IBM funds Mathematica, the first major
museum exhibit by famed modernist microelectronics
designers Charles and Ray Eames. IBM announces the System/360™ family 1964
Featuring interactive physical repre- of computers, featuring IBM’s Solid Logic
sentations of mathematical concepts Technology microelectronic circuits. The
new corporate
such as Bell Curves and Mobius Strips, System/360 is the first commercially
headquarters
the exhibit will remain on display at the available data processing system to IBM moves its corporate headquarters
California Museum of Science and have a design based on the use of from New York City to Armonk, New York.
Industry for four decades. microminiaturized computer circuits.
1964 1965
world’s fair eight bars
Noted architect Eero Saarinen designs the Paul Rand updates his earlier IBM
IBM Pavilion at the 1964 New York World’s logo, creating one of the world’s most
Fair, echoing the shape of the “golfball” recognized and imitated trademarks.
element of the IBM Selectric® typewriter. Horizontal stripes embody the
Famed graphic designer Paul Rand confidence, speed and dynamism of 1965
oversees the creation of a booklet for the the technology world’s new leader.
hong kong and shanghai
exhibit, which educates the public on how
banking corporation
computers work and the roles they play
The Hong Kong and Shanghai Banking
in society. When the IBM Pavilion closes
Corporation becomes the first Hong
in 1965, it will have hosted more than 10
Kong firm to order a System/360.™
million visitors over the course of two years.
48
1964 to 1970 - the 360 revolution
1965
1965
wild duck ad
ibm’s culture In IBM culture, the wild duck symbolizes the
There is little that represents IBM’s internal tension between the unbounded
technical culture in the 1960s better 1965
nature of innovation and the rigor of
than the accoutrements that will nasa operating a for-profit enterprise. As Thomas
eventually become synonymous with A 59-pound onboard IBM guidance Watson Jr. once said, “We are convinced
scientific and engineering “geekdom”— computer is used on all Gemini flights, that any business needs its wild ducks. And
black rimmed glasses, a slide rule and including the first spaceship rendezvous. in IBM we try not to tame them.”
a pocket protector. That same year, the NASA Space Center
in Houston, Texas, receives the IBM 2361,
the largest computer memory yet built
by the company.
1966
1967
dram republic of korea
IBM researcher Robert H. Dennard invents 1968
The first computer installed in the
Dynamic Random Access Memory (DRAM)
cells, one-transistor devices that store
Republic of Korea—an IBM 1401—is bedford-stuyvesant plant
used to process data collected during
each single bit of information as an At Senator Robert Kennedy’s urging, IBM
the 1966 Korean national census.
electrical charge in an electronic circuit. opens the Bedford-Stuyvesant Plant in
The technology permits major increases Brooklyn, New York, to train and hire local
in memory density, and is widely adopted residents. Over the next decade, the plant—a
throughout the industry. producer of advanced electronic units—will
grow from eight to 400 employees.
49
1968
customer information control system
IBM’s Customer Information Control System (CICS®), first developed in
conjunction with Michigan Bell in 1966, is introduced. Assigned to IBM’s Hursley,
England, facility in the early 1970s, CICS remains the industry’s most popular
transaction monitor to the present day.
1968
management seminars
IBM provides management seminars to organizations such as Opportunities
Industrialization Centers, the National Urban Coalition, the New York Coalition,
the Navajo Nation and the League of United Latin American Citizens.
50
1968
technology careers 1969
Computer usage increases dramatically italy

during the 1960s, giving rise to new IBM’s Scientific Center in Venice, Italy,
computer-related industries such as joins a multi-institutional study aimed at
1968 microelectronics and software. These preventing the eventual destruction of
laser optical memory emergent industries create a host of the city by high tides.
IBM researchers develop an experimental equally new job opportunities that hadn’t
laser optical memory system, eventually existed just a decade before.
producing devices that use laser beams
to store large amounts of information.
1969
speech recognition
IBM researchers develop techniques for
word recognition, speaker identification 1970
and advanced audio response. relational database
The relational database, conceived by IBM researcher Edgar F. “Ted”
Codd, calls for information stored in a computer to be arranged in
easy-to-interpret tables that allow non-technical users to manage
and access large amounts of data. Today, nearly all database
structures are based on the relational database.
51
1964
system/360
In the most important product announcement in company history to date, IBM
introduces the IBM System/360.™ Built on the industry-transforming concept
of a compatible “family” of computers, the 360 incorporates the IBM-designed
Solid Logic Technology (SLT).
52
1964 system/360
1962
a family of computers
Needing to update IBM’s current computer product
1962
lines, but uncomfortable with the thought of creating
betting on compatibility yet another proprietary computer architecture,
In 1962, IBM Chairman Thomas Watson Jr. decides Thomas Watson Jr. authorizes the creation of a
to “bet the business” on a revolutionary concept in compatible family of computers—the IBM System/360.
computing: compatibility. The concept of computer
compatibility enables clients to easily migrate their
data and applications to increasingly powerful
machines as their processing needs change.
1962 1962
killing the golden goose the technical challenge
Thomas Watson’s choice is not an easy one. The new Thomas Watson will later recall, “From the beginning
product line will force IBM’s clients to fundamentally we faced two risks, either of which alone was enough
change their data processing operations based on an to keep us awake nights. First there was the task of
unproven concept. In addition to posing this daunting coordinating the hardware and software design work
marketing challenge, it will also kill off IBM’s golden for the new line. We had engineering teams all over
gooses—a wildly disorganized but very profitable line America and Europe working simultaneously on six new
of existing computer products. processors and dozens of new peripherals.... In the end
all this hardware would have to plug together.”
53
1964 system/360
1962 1962
the coding challenge the component challenge
“The software was a bigger hurdle still,” Thomas According to Thomas Watson, “Our other source of
Watson would explain. “In order for the worry was that we were trying for the first time to
System/360 to have a consistent personality, manufacture our own electronic parts. Nobody was
hundreds of programmers had to write millions using integrated circuits in computers yet, but the
of lines of computer code. Nobody had ever System/360 called for a lot of them.”
tackled that complex a programming job, and
the engineers were under great pressure to get
it done.”
1964 1964
ibm’s $5 billion gamble the future arrives
The System/360 development effort takes two full years and “Within IBM there was a great feeling of celebration because
costs $5 billion—more than $30 billion today. It is the largest a new era was opening up,” Thomas Watson would later
privately financed commercial project ever undertaken. explain.
54
1964 system/360
1964 | left
announcement angst
On April 7, 1964, Thomas Watson unveils the
System/360 to the world. “But when I looked at those
new products, I didn’t feel as confident as I’d have
liked. Not all of the equipment on display was real;
some units were just mockups made of wood. [It was]
an uncomfortable reminder to me of how far we had
to go before we could call the program a success.”
1964 | below
be careful what you wish for
Within eight weeks of the announcement, clients
have ordered well over two thousand machines.
For Thomas Watson, the client enthusiasm for the
Systm/360 is a tremendous relief. But it will take
all the resources of the company, working 60-hour
weeks—and in some cases round-the-clock shifts—
for nearly two years before the System/360 can be
called a success.
55
1964
faith delivers 1964
Thomas Watson will later recount that “[the full circle
System/360] was the biggest, riskiest decision I ever The success of the IBM System/360 family of
made, and I agonized about it for weeks, but deep compatible computers changes the computer industry
down I believed there was nothing IBM couldn’t do.” forever, and makes the power of computers more
accessible to companies of all sizes.
system/360 video transcript
Thomas Watson, Jr.: random storage, constant communications readiness, comprehensive

programming support. A system to serve every application area. One
We’re not at all humble about asking you to come here today, because
system with full-circle capability, encompassing the needs of science,
we’ve asked you to be here to share with us the most important product
industry, business and government.
announcement that this corporation has ever made in its history. We’re
announcing not a product today, but a line of products, which expands System 360 starts here, in the world of the super small. This is IBM’s
a very wide part of our market area, and we think it represents a new Solid Logic Technology in production. Microelectronic circuits
tremendous step forward for us and, we hope, for our industry. more compact, making possible faster logical decisions than ever
before. The product of years of progress.
This begins a new generation of computers, and a new generation of the
way computers reply to the government, industry and science. 360 is a Another new concept in System 360: power for growth, single system
sharp departure from the past in designing and building computers. growth. Processors that offer many speeds, memory sizes, features,
select what you need to do your job best. You can start small, and
without reprogramming you can grow.
System 360 Promotional Video:
System 360: the beginning of a new age in processing power, in
Today IBM brings you that system. This is System 360. systems versatility, in programming efficiency. The entire concept
And so is this, and this, and this. A single system featuring of computers has changed. Memory in the millions, storage in the
unprecedented performance range, new microelectronic circuitry, over billions. Solid Logic Technology. System 360: full-circle capability,
eight million characters of core storage, speeds measured in billionths encompassing all your data handling needs. The beginning of a new
of a second, scores of input/output devices, billions of characters of age of data processing.
56
57
1969
moon landing
IBM computers help NASA land the first men on the moon.
58
1964 system/360
1960
simulated flight 1969
IBM computers and personnel were key preparing for launch
players from the very start of America’s 1969 IBM designs and builds the digital computer
space program. Here, Dr. Helmut Hoelzer
formulas for success and instrument unit that guide the massive
(left) and Dr. Rudolph Hoelker of the Saturn V rocket during the Apollo moon
Marshall Space Flight Center in Huntsville, A successful lunar landing requires
missions. Here, IBMers stand on the Apollo 11
Alabama, study the highly complex more than just rocket technology and
launch pad.
calculations of a lunar orbit. Flights of the computer power—it demands extensive
Saturn’s 30,000,000-horsepower super software programming, as well. In this
booster (model at right) will be simulated publicity still, three IBM programmers
on an IBM 7090 computer. pose with a representative sample of the
mathematical formulas involved in the
Apollo 11 mission.
1969
at the controls
The lunar module ascent and descent team
works in IBM’s Real-Time Computer Complex
at NASA’s Manned Spacecraft Center in 1969 1969
Houston, Texas. one giant leap congratulations to ibm
The cover of the August 11, 1969 issue of IBM In the euphoria that follows this historic
News Magazine features an illustration of the Apollo 11 moon landing, George E. Mueller,
first step on the moon. Associate Administrator for Manned
Space Flight at NASA, pens this letter of
congratulations to IBM Chairman,
Thomas Watson Sr.
59
1971 to 1992
Computing Gets Personal

Building on its success in the 1960s, IBM solidifies its position as the IT industry’s—and
the business world’s—most profitable, admired and iconic corporation, and continues
to develop innovative new products throughout the 1970s. From the magnetic-strip
technology used on credit cards, to floppy disks, to the Consumer Transaction Facility
(an early form of today’s ATM), IBM’s ingenuity is felt everywhere. As a new era of
computing begins to take hold in the 1980s, the company creates standards that
legitimize the PC, turning it from a hobbyist device into an indispensable tool of modern
life—in homes, businesses and schools around the world. The company also continues
to push the boundaries of scientific discovery, with five IBM researchers sharing three
Nobel Prizes in Physics. However, despite its depth and breadth of innovation, by the
late 1980s IBM finds itself thrown into turmoil by the very revolutions it helped launch—
initiating a downturn and period of unrest for the company that will persist into the
following decade.
by 1977, ibm’s workforce exceeds

300,000 employees.
in 1985, ibm reaches $50 billion

in revenues.
61
1970 1971
system/370 bay area rapid
The successor to the legendary System/360, transit system
the System/370® is fully compatible with its An IBM-built fare-collection system is
predecessor’s architecture and software installed for the Bay Area Rapid Transit
applications, but is more reliable and System (BART), the new San Francisco, 1971
several times faster. It is also the first California, commuter line. floppy disk
computer to feature a memory composed
IBM introduces floppy-disk magnetic
entirely of monolithic circuitry.
storage, so named because of its
flexibility. The new storage medium sets
a standard for small systems, allowing
information to be transferred easily from
one computer to another.
1972 1972
china israel
IBM hosts only the third official The IBM Haifa Research Lab opens
delegation from mainland China to the as the IBM Scientific Center. Over the
U.S. since 1949. The visitors, next several decades, the lab will be
1971 a group of leading Chinese scientists, the site of valuable research in areas
russia tour IBM’s Watson Research Laboratory such as storage systems, verification
IBM’s participation in a technology fair in in Yorktown Heights, New York. technologies, multimedia, information
Leningrad marks the first time in 33 years retrieval and life sciences.
that the company has conducted business
with the Soviet Union. (However, Soviet
Premier Nikita Khrushchev did visit IBM’s
San Jose facility in 1959.)
62
1971 to 1992 - computing gets personal
1973 1974
3340 disk unit telemetry online

IBM introduces the 3340 disk unit (also processing system
known as “Winchester” after IBM’s IBM signs a contract with NASA to develop
internal project name), an advanced a telemetry online processing system
1973
technology that more than doubles the (TELOPS) that will accept and process
information density on disk surfaces.
nobel prize experimental data from satellites and store
Dr. Leo Esaki, an IBM Fellow who joined the up to one trillion bits of information.
company in 1960, shares the 1973 Nobel
Prize in Physics for his 1958 discovery of
the phenomenon of electron tunneling.
1975 1975 1976

5100 portable computer fractal geometry u.s. space shuttle
IBM introduces the 5100 Portable IBM researcher Benoit Mandelbrot develops program
Computer, a 50-pound desktop machine the principles of fractal geometry, making The Enterprise, the first vehicle in the
that puts computer capabilities at the it possible to describe mathematically U.S. space shuttle program, makes its
fingertips of mobile problem-solvers. More the kinds of irregularities that exist in debut at Palmdale, California, carrying
“luggable” than portable, the 5100 can nature. Mandelbrot’s work in fractals flight computers and special hardware
serve as a terminal for the System/370® will earn him the 2003 Japan Prize for built by IBM.
and costs up to $20,000. outstanding achievements in the science
and technology of complexity.
63
1980
1979
ibm 3380 1980
UPC
IBM introduces a supermarket checkout
IBM introduces the 3380 Direct Access risc architecture
Storage Device. The 3380 gives users
station that uses holographic scanner IBM produces the experimental 801, based
the ability to store up to 2.52 billion
technology to read Universal Product on the Reduced Instruction Set Computer
characters of information—almost four
Code (UPC) stripes on merchandise. IBM (RISC®) architecture developed by IBM
times the amount afforded by previous
developed UPC in the mid-1970s to embed researcher John Cocke. RISC technology
IBM storage devices—while new film
pricing and identification information on is the basis of most workstations in use
head technology allows data to be read
individual retail items. today. Its simplified machine instructions for
and written at three million characters
frequently used functions boost computer
per second—two-and-a-half times the
speed greatly. Cocke receives both the
previous rate.
National Medal of Technology and the
National Medal of Science for his innovation.
1985 1986
ibm south africa corporate contributions

projects fund IBM’s corporate contributions total $189
million, establishing IBM as the largest
During apartheid, IBM creates the IBM 1985
corporate contributor worldwide
South Africa Projects Fund to maintain
its positive influence in the country.
working mothers
The fund’s contributions include both Working Mother Media’s “100 Best
economic and technical support in Companies for Working Mothers” award
the areas of education, health and job is bestowed upon IBM for its pioneering
creation for local citizens. work/life programs. The company will
remain on the “100 Best” list every
following year, holding a place in the top
10 starting in 1987.
64
1986
nobel prize
1988
IBM Fellows Gerd K. Binnig and Heinrich
Rohrer of the IBM Zurich Research 1987
national science
Laboratory win the 1986 Nobel Prize foundation network
in Physics for their work in scanning
nobel prize IBM collaborates with MCI Communications
tunneling microscopy. J. Georg Bednorz and IBM Fellow K. Alex and the University of Michigan to form
Müller of IBM’s Zurich Research Laboratory the National Science Foundation Network,
receive the 1987 Nobel Prize in Physics a computer network that provides the
for their breakthrough discovery of high- infrastructure and lays the groundwork for
temperature superconductivity in a new the explosive growth of the Internet in
class of materials. the 1990s.
1990
funding dependent care
IBM creates the IBM Funds for Dependent
Care Initiatives and commits $25 million
1990
to dependent care—the largest such
environmental program commitment of any U.S. corporation—to
IBM joins other leading U.S. corporations to help meet employees’ needs in balancing
establish a worldwide program to improve their work and personal lives.
environmental management practices and
performance. Since 1973, IBM has invested
more than $1 billion to provide environ-
mental protection for thecommunities in
which its facilities are located.
65
15 MICRONS
1991
poland
Having conducted business in Poland
since 1935, IBM forms a Polish subsidiary
in 1991. By the year 2000, IBM will be
1990
the country’s third largest information
spelling with atoms technology company.
IBM scientists discover how to move and position individual atoms
on a metal surface using a scanning tunneling microscope. The
technique is demonstrated at IBM’s Almaden Research Center, where
scientists assemble the letters “I-B-M,” one xenon atom at a time.
66
67
1981
computers for the masses

IBM’s leadership in personal computing dates to the mid-1970s, when the company
identifies opportunities for smaller, more user-friendly devices aimed at science,
engineering and business users. When the IBM PC is unveiled in 1981, it becomes
the first computer of its kind to be recognized and embraced as a valuable tool for
businesses, homes and schools alike. Over the next two decades, IBM continues to
expand and refine its line of personal computers, climaxing with the overwhelming
success of the ThinkPad at the turn of the 21st century.
68
1981 computers for the masses
1975 1981
5100 portable computer 5150 personal computer
Weighing approximately 50 pounds and sized slightly IBM unveils its smallest, lowest-priced computer
larger than an IBM typewriter, the IBM 5100 Portable system to date: the IBM Personal Computer. Designed
Computer puts computing capabilities at the fingertips for business, school and home, and selling for as little
of engineers, analysts, statisticians and other problem- as $1,565, the easy-to-use system relies on readily
solvers. Available in 12 models providing 16K, 32K, 48K available, “off-the-shelf” components from external
or 64K positions of main storage, the 5100 sells for vendors. This open architecture approach dramatically
between $8,975 and $19,975. accelerates the acceptance of the IBM PC as an
industry standard, and gives rise almost overnight to
the personal computer industry.
1983 1983
personal computer xt ibm pcjr
IBM extends its personal computer line with the With an entry-level configuration that costs less than
introduction of the Personal Computer XT. The XT’s $700—half the price of the immensely popular IBM
storage capability is nine times larger than that of PC—the PCjr targets the home, classroom and office
prior IBM personal computer models, and the machine markets as the most affordable personal computer of
features networking capabilities that make it ideal for the time. However, due to a widely criticized keyboard
businesses with established network infrastructures. design, as well as price and compatibility issues, it
With a price tag of $4,995, the XT is also affordable struggles to find acceptance in the marketplace.
enough to serve as a stand-alone productivity tool for
professionals and small businesses.
69
1981 computers for the masses
1987 1992
personal system/2 thinkpad 700c
Just six years after the introduction of the IBM PC, Although IBM has built portable computers since
the company launches its third generation of personal the 1970s, the ThinkPad 700C—reasonably priced at
computers with the introduction of the IBM Personal $4,350—represents the company’s renewed focus on
System/2. The PS/2 family of computers, with prices the needs of the mobile user. Featuring a stylish black
ranging from $1,695 to $10,995, comprises a variety of case, the innovative red TrackPoint pointing device
models that feature powerful new technologies while and the largest color screen ever available in a laptop,
remaining compatible with legacy IBM PC software the ThinkPad 700C quickly becomes the fashionable
applications. Although generally too expensive for the computing choice for business travelers
consumer market, the PS/2 is a hit in business circles.
1995 2001
thinkpad 701c thinkpad transnote
IBM introduces the ThinkPad 701C as a marvel of mobile Targeting mobile professionals, the ThinkPad TransNote
computing design. Open the 701C, and the machine’s combines a mobile computer with a digital notepad
two keyboards ingeniously spread and interlock to form in a stylish package to enable busy users to share
a comfortable 85-key typing surface that overhangs handwritten information via e-mail, word processing
the unit’s case by almost one inch on each side. documents and presentations.
70
71
1993 to 2001
The Birth of e-business

Entering the 1990s, IBM confronts its most significant strategic challenges
since the Depression and successfully undertakes one of the great turnarounds
in business history. It moves into major new growth businesses, principally
services and software, and embraces open standards for computing. The
company also fundamentally reshapes its culture to refocus on clients and
to be more agile, responsive and collaborative. This transformation coincides
with the advent of the Internet, and IBM is a pioneer in helping clients
capitalize on the new possibilities of global networked computing and
business—what it dubs “e-business.” As the 20th century comes to a close,
IBM stands, once again, at the forefront of global technology and business.
in 1996, ibm tops $75 billion

in revenues.
73
1994 1995
czech republic 1994 china research
With business dating back to the 1920s, laboratory
reinventing
IBM Czech Republic was one of the The IBM China Research Laboratory (CRL)
education program
company’s earliest European offices. The is the company’s first in a developing
IBM launches a groundbreaking school
operations were later nationalized, but country. CRL is a model for tapping and
reform program that demonstrates
were reestablished in 1991, with new nurturing local talent and expertise,
how technology can help spur and
offices built three years later. drawing the majority of its staff from
support higher student achievement and
China’s leading universities.
improve teacher instruction. Today, the
$75-million, global program has resulted
in significant gains in core academic
areas for students in grades 7 to 11.
1995 1995
global diversity task forces ibm 701c thinkpad
As part of its commitment to diversity, IBM convenes eight executive- IBM introduces an award-winning notebook
level diversity task forces representing Asians; blacks; gays, lesbians, design, the 701c “butterfly” ThinkPad.® The
bisexuals and transgenders; Hispanics; men; Native Americans; “butterfly” nickname stems from its split
people with disabilities; and women, to help the company continually keyboard design, which allows a full-sized
understand the interests, talents and needs of its workforce. keyboard to be housed in a subcompact
notebook computer.
74
1993 to 2001 - the birth of e-business
1995
y2k
Four years before headlines start to warn
of “millennium meltdowns” and “the 1996
1996
Y2K bug,” IBM begins to plan, staff and alphaworks/ ibm global services
implement a program to help its clients developerworks
prepare for the Year 2000 challenge. With the formation of IBM Global Services,
IBM introduces two Web portals aimed
which grows to become the world’s
at tapping into the creativity and
largest provider of technology services
entrepreneurial spirit of the masses:
and business consulting, IBM defines the
alphaWorks® offers direct access to the
outlines of a new model for the IT industry.
latest technologies from IBM Research
while developerWorks provides
resources for software developers using
open standards.
1996 1997 1997
w3 copper technology home page reader

IBM’s first Web-based intranet rolls out IBM scientists announce CMOS 7S, a IBM introduces Home Page Reader, an
in late 1996. By the following year, the breakthrough semiconductor manufacturing award-winning Web browser that uses
site’s search function handles two million process that uses copper instead of speech to help the blind and visually
hits per day. By the year 2000, it is rated aluminum to link transistors in chips. The impaired use the Internet. The first
by IBMers as their most trusted, useful culmination of 30 years of experimentation product of its kind, Home Page Reader
information source—ahead of managers and inquiry, the innovation results in about was developed by blind IBM researcher
and co-workers. a 33 percent boost in chip performance. Chieko Asakawa.
75
1998
blue pacific
U.S. Vice President Al Gore announces Blue Pacific, the world’s fastest
computer, developed by IBM and the U.S. Energy Department’s
Lawrence Livermore National Laboratory.
1997 2000
state hermitage museum linux
IBM launches a digital library project IBM announces the general availability
with Russia’s world-renowned State of Linux® for the System/390® (S/390) 2001
Hermitage Museum. Built with IBM mainframe platform. The company
eclipse
software and hardware, the library adds S/390 hardware to its supported
Based on a vision of community-style software
helps the Hermitage’s Web site become environments for Linux, completing a list
development, IBM publishes $40 million of
the museum’s face to the world. of systems that extend from laptops to
source code for the Eclipse® platform and
the largest mainframes it produces.
Java® Development Tools project. More than
150 companies unite around this seminal
contribution and form the Eclipse Foundation
to help the open-source developer ecosystem
grow and succeed.
76
2002
bladecenter
One of the most powerful blade systems in
the industry, IBM’s BladeCenter® maximizes
resource productivity while minimizing IT
2002 and network administration costs.
300mm fabrication plant
IBM begins operations at its state-of-the-
art chip production facility in Fishkill, New
York. The semi-conductor manufacturing
plant leverages real-time information
to control the fabrication process
automatically, enabling employees to
be more productive and responsive to
clients’ product-status inquiries.
77
1997
deep blue
In a six-game match, IBM’s Deep Blue®, an RS/6000® SP computer capable
of calculating 200 million chess positions per second, defeats the World
Chess Champion, marking the first time a reigning world champion has lost
a match to a computer opponent in tournament play.
78
1997 deep blue
1997 1997
1997
chess lessons chess technology
deep blue chess match
A. Joseph Hoane Jr., F.H. Hsu and Murray Feng-hsiung (F.H.) Hsu, IBM researcher and
Perhaps the most viewed chessboard in
Campbell of the Deep Blue team hone member of the Deep Blue team, holds a
history—the one on which IBM’s Deep Blue
the computer’s skills. circuit board equipped with chips optimized
supercomputer defeated the reigning
for playing chess.
World Chess Champion—is seen live by
millions on ibm.com.
2008
a supercomputing benchmark
Despite its victory against a human opponent, IBM’s
Deep Blue is not the most powerful supercomputer
of its day. Indeed, the true significance of the
machine lies in the attention it brings to the field of
supercomputing, both within IBM and throughout
the public sphere. More than a decade later,
Deep Blue will remain a global benchmark for
supercomputers like IBM’s Blue Gene.
1997
en route to the match
IBMers roll Deep Blue along a New York City
street on the way to the match.
deep blue video transcript
Paul Horn, Senior Vice President, IBM Research: If you could understand the human genome through protein folding,
we’ll be able to prescribe drugs that are tailored to your individual DNA,
Think about a computer that’s 1,000 times faster than Deep Blue,
perfect match, the drug for exactly what’s wrong with you and exactly
about a quadrillion operations a second. If you take all the world’s
who you are.
fastest computers, the top 40 of them, put them all together, Blue
Gene will be 40 times faster than the sum total of all of them. You can think of Blue Gene as Deep Blue having grown up to do a real
job. Think of a computer that, like Deep Blue, will allow us to change the
Today you walk into a doctor’s office and you get a drug that’s really
future of computing, but also change the future of health care.
independent of how sick you are, who you are personally, your age,
your height, even your weight.
79
1997
ibm introduces e-business

In a speech considered by many to be a wake-up call to Wall Street on the
implications of the networked world, Gerstner describes the Internet’s ability
to challenge centuries-old business models and to transform the nature of
transactions between individuals and institutions.
1997 e-business
1998 1998
ibm and the u.s. open ibm and videoserve
Through the use of IBM technology, the IBM helps VideoServe harness the power
official U.S. Open Web site is able to bring of the Internet to become the world’s
every detail of every point to fans around most complete home video store—
the world. offering virtually every VHS, LaserDisc
and DVD title on the market.
e-business video transcript
IBM e-business commercial Think about teachers, think about how we learn. Think about how
governments deliver services. All of these transactions are going to move
Man 1: Says here, “The Internet is the future of business.” We have to
partially or totally to a networked environment, and that creates very
be on the Internet.
different economic models. It reduces cost. It increases reach.
Man 2: Why?
So if your competitors get there before you do, you have a very serious
Man 1: Doesn’t say. problem. For every single industry in the world, what will be the changes
brought about by the networked world? What are the e-business
applications that they would want to implement in banking, in retailing, in
Interview with Louis V. Gerstner Jr., IBM Chairman & CEO
government, in communications? And so it’s the central driving strategy
e-business is about the search for new models: new models of behind the company’s products, and the way we go to market.
consumer behavior, new models of economic behavior, new models
of institutional competitiveness. The underlying driver is technology,
but sometimes I think the media gets carried away with some of the IBM e-business commercial
technology, and we fail to understand this is going to change every Man 1: What are you doing?
institution in the world. Everybody is going to change.
Man 2: I’m figuring out what our Web site should be. We can have the
This is like the harnessing of electricity or the Industrial Revolution. spinning logo, like this, or a flaming logo. It is cool.
This is the ultimate revolution of computers and communications. What
Man 2: You know what would be a great idea? If people with PCs,
do I mean by that? e-business is all about “everybody is going to be
anywhere, could order our products. And that was all tied together:
connected”, and when everybody gets connected, the implications
inventory, billing, vendors. You know, the works. Then that would
are profound.
change everything.
We need to think about all of the transactions that take place in
Man 1: I don’t know how to do that.
the world, because that’s what connection is all about. It’s about
transactions. So think about doctors, physicians: how they learn, how
they keep up-to-date, how they treat patients. It’s all going to be
enhanced through the use of network technology.
81
For more information about IBM and its history, visit

http://www.ibm.com/ibm/history/
For more information about IBM’s privacy policy visit

http://www.ibm.com/privacy/us/en/
© 2008 International Business Machines Corporation

alphaWorks, BladeCenter, Blue Gene, CICS, DEEP BLUE, developerWorks, Eclipse,
RISC, RS/6000, SABRE, IBM Selectric, System/370, System/390, THINK, ThinkPad, are
registered trademarks or trademarks of International Business Machines Corporation
or its wholly owned subsidiaries. Other company, product and service names may be
trademarks or service marks of others.
82

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a history of progress

in 1914, thomas j. watson sr. joins ctr, a company

first test of hollerith’s dial recorder 1890

1936 social security

Appearing on materials that range from plaques to banners to

in 1943, ibm hits the $100 million

selective thailand the next few years, the company opens

1938 world headquarters

1938 world headquarters

1940 tent city

1940 tent city

by 1957, ibm exceeds $1 billion

in 1960, ibm’s workforce reaches

1952 1953 1953

1956 1956 switzerland

1962 1962 1963

equal opportunity policy

1953 equal opportunity policy

1953 equal opportunity policy

random access method of

1956 random access method of accounting and control (ramac)

1956 random access method of accounting and control (ramac)

ramac video transcript

The magnetic process drum, revolving 6,000 times per minute,

1961 selectric typewriter

1964 1970s and BEYOND

The 360 Revolution

in 1967, ibm tops 200,000 employees

Computer usage increases dramatically italy

1956 random access method of accounting and control (ramac)

system/360 video transcript

Thomas Watson, Jr.: random storage, constant communications readiness, comprehensive

Computing Gets Personal

by 1977, ibm’s workforce exceeds

in 1985, ibm reaches $50 billion

3340 disk unit telemetry online

1975 1975 1976

ibm south africa corporate contributions

computers for the masses

1981 computers for the masses

1981 computers for the masses

The Birth of e-business

in 1996, ibm tops $75 billion

1996 1997 1997

w3 copper technology home page reader

1997 deep blue

deep blue video transcript

ibm introduces e-business

e-business video transcript

For more information about IBM and its history, visit

For more information about IBM’s privacy policy visit

© 2008 International Business Machines Corporation

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