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Jump to: navigation, search It has been suggested that Computing Tabulating Recording Corporation be merged into this article or section. (Discuss) This article is about the technology company sometimes referred to as "Big Blue". For other uses of these terms, see IBM (disambiguation) and Big Blue (disambiguation).
International Business Machines Corporation


Public NYSE: IBM

Traded as

Dow Jones Industrial Average Component Computer systems Computer hardware and software Information technology consulting IT service management Endicott, New York June 16, 1911 Armonk, New York, United States Worldwide



Headquarters Area served Key people

Samuel J. Palmisano

(Chairman, President and CEO)

Products Revenue Operating income Net income Total assets Total equity Employees

See products listing US$ 99.870 billion (2010)[1]

US$ 19.273 billion (2010)[1]

US$ 14.833 billion (2010)[1] US$ 113.452 billion (2010)[1] US$ 23.172 billion (2010)[1] 426,751 (2010)[1]
Subsidiaries list[show]



International Business Machines (IBM) (NYSE: IBM) is an American multinational technology and consulting firm headquartered in Armonk, New York. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology.[2] The company was founded in 1911 as the Computing Tabulating Recording Corporation through a merger of four companies: the Tabulating Machine Company, the International Time Recording Company, the Computing Scale Corporation, and the Bundy Manufacturing Company.[3][4] CTR adopted the name International Business Machines in 1924, using a name previously designated to CTR's subsidiary in Canada and later South America. Its distinctive culture and product branding has given it the nickname Big Blue. In 2011, Fortune ranked IBM the 18th largest firm in the U.S.,[5] as well as the 7th most profitable.[6] Globally, the company was ranked the 33rd largest firm by Forbes for 2010.[7] Other rankings for 2010 include #1 company for leaders (Fortune), #2 best global brand (Interbrand), #3 green company (Newsweek), #15 most admired company (Fortune), and #18 most innovative company (Fast Company).[8] IBM employs more than 425,000 employees

(sometimes referred to as "IBMers") in over 200 countries, with occupations including scientists, engineers, consultants, and sales professionals.[9] IBM holds more patents than any other U.S.-based technology company and has nine research laboratories worldwide.[10] Its employees have garnered five Nobel Prizes, four Turing Awards, nine National Medals of Technology, and five National Medals of Science.[11] The company has undergone several organizational changes since its inception, acquiring companies like SPSS (2009) and PwC consulting (2002) and spinning off companies like Lexmark (1991).



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1 History o 1.1 1880-1929 o 1.2 1930-1979 o 1.3 1980-present 2 Corporate affairs o 2.1 Corporate recognition and brand o 2.2 Working at IBM 3 Research 4 Selected current projects o 4.1 Internal programs 5 Environmental record o 5.1 Solar power o 5.2 Green Sigma 6 Company logo and nickname 7 See also 8 References 9 Further reading 10 External links

[edit] History
Main article: History of IBM

[edit] 1880-1929

Thomas J. Watson led IBM from 1914-1956. Starting in the 1880s, various technologies came into existence that would form part of IBM's predecessor company. Julius E. Pitrap patented the computing scale in 1885,[12] Alexander Dey invented the dial recorder in 1888,[13] and a year later Herman Hollerith patented the Electric Tabulating Machine,[14] and Willard Bundy invented a time clock to record a worker's arrival and departure time on a paper tape.[15] On June 16, 1911, these technologies and their respective companies were merged by Charles Ranlett Flint to form the Computing-Tabulating-Recording Company (C-T-R).[16] The New York City-based company had 1,300 employees and offices and plants in Endicott and Binghamton, New York; Dayton, Ohio; Detroit, Michigan; Washington, D.C.; and Toronto, Ontario. It manufactured and sold machinery ranging from commercial scales and industrial time recorders to meat and cheese slicers, along with tabulators and punched cards. Flint recruited Thomas J. Watson, Sr., from the National Cash Register Company to help lead the company in 1914.[16] Watson implemented "generous sales incentives, a focus on customer service, an insistence on well-groomed, dark-suited salesmen and an evangelical fervor for instilling company pride and loyalty in every worker".[17] His favorite slogan, "THINK," became a mantra for C-T-R's employees, and within 11 months of joining C-T-R, Watson became its president.[17] The company focused on providing large-scale, custom-built tabulating solutions for businesses, leaving the market for small office products to others. During Watson's first four years, revenues more than doubled to $9 million and the company's operations expanded to Europe, South America, Asia, and Australia.[17] On February 14, 1924, C-T-R was renamed the International Business Machines Corporation (IBM),[8] citing the need to align its name with the "growth and extension of [its] activities".[18]

[edit] 1930-1979

NACA researchers using a IBM type 704 electronic data processing machine in 1957 In 1937, the U.S. Government deployed IBM tabulating equipment to maintain the employment records for 26 million people pursuant to the Social Security Act.[19] In 1938, the IBM World Headquarters Building, located at 590 Madison Avenue in New York, New York, was dedicated. In 1952, Thomas J. Watson, Jr., became president of the company, ending almost 40 years of leadership by his father. In 1956, Arthur L. Samuel of IBM's Poughkeepsie, New York, laboratory programed an IBM 704 to play checkers using a method in which the machine can "learn" from its own experience. It is believed to be the first "self-learning" program, a demonstration of the concept of artificial intelligence. In 1957, IBM developed the FORTRAN (FORmula TRANslation) scientific programming language. In 1961, Thomas J. Watson, Jr., was elected chairman of the board and Albert L. Williams became president of the company. IBM develops the SABRE (Semi-Automatic Business-Related Environment) reservation system for American Airlines. In 1963, IBM employees and computers helped NASA track the orbital flight of the Mercury astronauts, and a year later, the company moved its corporate headquarters from New York City to Armonk, New York. The latter half of that decade saw IBM continue its support of space exploration, with IBM participating in the 1965 Gemini flights, the 1966 Saturn flights, and the 1969 mission to land a man on the moon. On April 7, 1964 IBM announced the first computer system family, the IBM System/360. Sold between 1964 and 1978, it was the first family of computers designed to cover the complete range of applications, from small to large, both commercial and scientific. For the first time, companies could upgrade their computing capabilities with a new model without rewriting their applications. In 1973, IBM engineer George J. Laurer developed the Universal Product Code.[20]

000 employees exchanged best practices for 72 hours.000-square-foot (26. and in 2002. Brazil. Other campus installations include towers in Montreal. In 2011. and Atlanta. Using its Jam technology. India . "Trust and personal responsibility in all relationships".for our company and for the world". "Innovation that matters .S.[21] In 1991. United States.000 employees over 3 days. IBM sold Lexmark.[22] In 2004. New York. and Zurich²with Watson (dedicated in 1961) serving as headquarters for the research division and the site of its annual meeting. Haifa. In 2003.[citation needed] The company has nine research labs worldwide²Almaden. Later in 2009. The discussions were analyzed by sophisticated text analysis software (eClassifier) to mine online comments for themes.[23] In 2005 the company sold its personal computer business to Lenovo. IBM gained worldwide attention for its artificial intelligence program Watson.300 m2) IBM building has three levels of custom curtainwall. which was exhibited on Jeopardy! where it won against game show champions Ken Jennings and Brad Rutter. Tokyo. They focused on finding actionable ideas to support implementation of the values previously identified. and in 2009. . it acquired PwC consulting. [edit] Corporate affairs IBM's headquarter complex is located in Armonk. another Jam was conducted during which 52.[24][25][26] The 283. IBM initiated a project to rewrite its company values. Austin. Town of North Castle. The building is located on a 25 acre site. As a result of the 2003 Jam. 2009 [edit] 1980-present Financial swaps were first introduced to the public in 1981 when IBM and the World Bank entered into a swap agreement.S. the company hosted Internet-based online discussions on key business issues with 50. software labs in Raleigh-Durham. IBM's Blue Gene supercomputing program was awarded the National Medal of Technology and Innovation by U. President Barack Obama. President Barack Obama on September 18. Paris. it acquired software company SPSS Inc. which were awarded the National Medal of Technology and Innovation by U. Watson (New York). the company values were updated to reflect three modern business. marketplace and employee views: "Dedication to every client's success".One of IBM's Blue Gene supercomputers. China.[27] IBM has been headquartered in Armonk since 1964.

[28] IBM's Board of Directors. Belda '08 (Alcoa). buildings in Chicago. the remaining 13 members (along with their affiliation and year of joining the board) are as follows: Alain J. Andrew N. and Lorenzo Zambrano '03 (Cemex). Liveris '10 (Dow Chemical). The company also operates the IBM Scientific Center. Eskew '05 (UPS). Jr. the Hursley House.[29] Various IBM facilities IBM Rochester (Minnesota). Joan Spero '04 (Doris Duke Charitable Foundation).Rome and Toronto. James McNerney. Johannesburg. including Chicago's 330 North Wabash building designed by Ludwig Mies van der Rohe. were recognized with the 1990 Honor Award from the National Building Museum. The company's contributions to architecture and design. James W. with 14 members. Samuel J.M. is responsible for the overall management of the company. P. Kenneth Chenault '98 (American Express). designed by I. Spain Somers (New York) Office Complex. and facilities in Hakozaki and Yamato. nicknamed the "Big Blue Zoo" IBM Avenida de América Building in Madrid. Sidney Taurel '01 (Eli Lilly). Palmisano '00 (IBM). Shirley Ann Jackson '05 (Rensselaer Polytechnic Institute). Michael L. IBM Rochester. Owens '06 (Caterpillar). '09 (Boeing). With Cathie Black's resignation from the board in November 2010. Brody '07 (Salk Institute / Johns Hopkins University). and the Somers Office Complex. Pei . and Seattle. W. William R. the Canada Head Office Building.

and furnishing a company band. a drop of 30.7 billion. Israel IBM Kolkata Building. Kolkata..000 workers in the U.[31] [edit] Working at IBM In 2010.[6] Globally.000 since 2003.[32] IBM's employee management practices can be traced back to its roots.000 people in India. In 1924. Fortune ranked IBM the 18th largest firm in the U. IBM's brand was valued at $64. which recognizes employees with 25 years of service. was organized and the first issue of Business Machines. the Quarter Century Club. IBM's internal . CEO Thomas J.IBM Japan Makuhari Technical Center. India [edit] Corporate recognition and brand In 2011.S. up from 9. IBM employed 105. In 1914.S.000 seven years previous.. Watson boosted company spirit by creating employee sports teams.[7] Other rankings for 2010 include the following:[8] y y y y y #1 company for leaders (Fortune) #2 best global brand (Interbrand) #3 green company (Newsweek)[30] #15 most admired company (Fortune) #18 most innovative company (Fast Company) For 2010. the company was ranked the 33rd largest firm by Forbes for 2010. designed by Yoshio Taniguchi IBM Haifa Research Lab. hosting family outings.[5] as well as the 7th most profitable. Haifa. and 75.

was published. he could be clear that IBM would not build "separate-but-equal" workplaces. In 1932 IBM created an Education Department to oversee training for employees. IBM's nondiscrimination policy is expanded to include sex. In 1947.. published the company's first written equal opportunity policy letter. The company stated that this would give IBM a competitive advantage because IBM would then be able to hire talented people its competitors would turn down. IBM was among the first corporations to provide group life insurance (1934). the company hired its first black salesman. In 1952.S. and soon the company was asked to join the President's Committee for Employment of the Handicapped. Supreme Court decision in Brown vs. Jr. On September 21. ethnic origin. convened in Atlantic City. South. In 1961.[35][36] On October 10. one year before the U. IBM became the first major company in the world to commit formally to not using genetic information in employment decisions. New Jersey. and in 1963. Kansas. 18 years before the Civil Rights Act of 1964. 2005. and age. In 1942. In 1925. He also publicized the policy so that in his negotiations to build new manufacturing plants with the governors of two states in the U. IBM engineer George J. In 1946. the first meeting of the Hundred Percent Club. 1953. the employee magazine Think was created. Jr. IBM hosted its first Invention Award Dinner honoring 34 outstanding IBM inventors. the company's president at the time.[33] In 1984. which oversaw the completion of the IBM Schoolhouse at Endicott in 1933. IBM launched a program to train and employ disabled people in Topeka. The following year. the company named the first eight IBM Fellows in a new Fellowship Program that recognizes senior IBM scientists. and one of two technology companies in 2005. IBM added sexual orientation to its nondiscrimination policy. . engineers and other professionals for outstanding technical achievements. Watson.publication. Laurer developed the Universal Product Code in 1973.S. composed of IBM salesmen who meet their quotas. sent out a controversial letter to all IBM employees stating that IBM needed to hire the best people. IBM announces a Total and Permanent Disability Income Plan for employees.[34] IBM was the only technology company ranked in Working Mother magazine's Top 10 for 2004.. Board of Education and 11 years before the Civil Rights Act of 1964. A vested rights pension is added to the IBM retirement plan. regardless of their race. Thomas J. national origin. or gender. IBM held its first training class for women systems service professionals. Also that year. survivor benefits (1935) and paid vacations (1937). Thomas Watson. In 1935. The announcement was made shortly after IBM began working with the National Geographic Society on its Genographic Project. The next year classes begin in New York City.

and began supporting Linux in 1998. IBM UK was ranked first in Stonewall's annual Workplace Equality Index for UK employers.[37] In 2007 and again in 2010.[citation needed] [edit] Research An anechoic chamber inside IBM's Yamato research facility In 1945. relaxed these codes. During IBM's management transformation in the 1990s. In 1966. CEO Louis V.[42] The company invests billions of dollars in services and software based on Linux through the IBM Linux Technology Center. Gerstner. such as the platform- . IBM scored 86%).[38] The company has traditionally resisted labor union organizing.[40] A dark (or gray) suit. The Human Rights Campaign has consistently rated IBM 100% on its index of gay-friendliness since 2003 (in 2002. IBM has been a leading proponent of the Open Source Initiative. the year it began compiling its report on major companies. one-transistor memory cells that store each single bit of information as an electrical charge in an electronic circuit. In 2009. white shirt. normalizing the dress and behavior of IBM employees to resemble their counterparts in other large technology companies. which today operates research facilities around the world. Dennard invented Dynamic Random Access Memory (DRAM) cells. Since then IBM's dress code is business casual although employees often wear formal clothes during client meetings. The technology permits major increases in memory density.[43] IBM has also released code under different open source licenses. The renovated fraternity house on Manhattan's West Side was used as IBM's first laboratory devoted to pure science. which includes over 300 Linux kernel developers. The lab was the forerunner of IBM's Research Division. Jr. the Unite union stated that several hundred employees joined following the announcement in the UK of pension cuts that left many employees facing a shortfall in projected pensions.IBM provides same-sex partners of its employees with health benefits and provides an antidiscrimination clause. The Watson Scientific Computing Laboratory was founded at Columbia University in New York.[39] although unions represent some IBM workers outside the United States. and is widely adopted throughout the industry where it remains in widespread use today. New York. IBM researcher Robert H. and a "sincere" tie[41] was the public uniform for IBM employees for most of the 20th century.

net. Lotus. IBM announced separate agreements with . relying instead completely on voice-controls.[44] the three-sentence International Components for Unicode (ICU) license. It contains how-to articles and tutorials. Unstructured Information Management Architecture (UIMA) SDK ± A Java SDK that supports the implementation. Toshiba. Ajax. and Sony. Accessibility Browser ± A web-browser specifically designed to assist people with visual impairments.[47] In March 2006. evolving documents and the interactions of multiple collaborating authors. IBM Linux on POWER Performance Simulator ± A tool that provides users of Linux on Power a set of performance models for IBM's POWER processors. IBM History Flow Visualization Application ± A tool for visualizing dynamic.independent software framework Eclipse (worth approximately US$40 million at the time of the donation). These technologies include: y y y y y y y y Flexible Internet Evaluation Report Architecture ± A highly flexible architecture for the design. Also known as the "A-Browser. In May 2002. as well as software downloads and code samples. Wii. The older Nintendo GameCube utilizes the Gekko processor. Inc." the technology will aim to eliminate the need for a mouse. SOA and web services. however (see SCO v. wikis. Policy Management for Autonomic Computing ± A policy-based autonomic management infrastructure that simplifies the automation of IT and business processes. discussion forums. and XML to IBM's products (WebSphere. and reporting of Internet surveys. PHP. web development. developerWorks was inducted into the Jolt Hall of Fame. Linux. The Xbox 360 contains a PowerPC tri-core processor. blogs. announced the Butterfly Grid. Nintendo's seventh-generation console. features an IBM chip codenamed Broadway. Database File Archive And Restoration Management ± An application for archiving and restoring hard disk drive files using file references stored in a database. FairUCE ± A spam filter that verifies sender identity instead of filtering content. podcasts. In 2007. display. a commercial grid for the online video gaming market. and deployment of applications working with unstructured data. Subjects range from open. also designed by IBM. and other resources for developers and technical professionals. buttons and predefined shortcut keys. IBM and Butterfly. IBM's open source involvement has not been trouble-free. to be released as open source software. and the Java-based relational database management system (RDBMS) Apache Derby.[46] Sony's PlayStation 3 features the Cell BE microprocessor designed jointly by IBM.[45] alphaWorks is IBM's source for emerging software technologies. industry-standard technologies like Java. composition. Rational. IBM). Tivoli and Information Management). [edit] Selected current projects developerWorks is a website run by IBM for software developers and IT professionals. Virtually all console gaming systems of the latest generation use microprocessors developed by IBM. which was designed and produced by IBM in less than 24 months.

IBM unveiled Project Big Green. instant messaging and blog tools as well as an Internet Explorer competitor ± the Mozilla Firefox web browser. a re-direction of $1 billion per year across its businesses to increase energy efficiency. They describe the products features.Hoplon Infotainment. Available formats are Redbooks. Palmisano (far right) speaking with interns at Extreme Blue in 2009 Extreme Blue is one of IBM's internship programs. The company states that its new product allows businesses to offer employees a choice of using the same software on Windows and its alternatives. There will be no necessity for companies to pay Microsoft for its licenses for operating systems since the operating systems will no longer rely on software which is Windows-based.[48] IBM announced it will launch its new software. . One alternative to Microsoft's office document formats is the Open Document Format software. called "Open Client Offering" which is to run on Linux. such as the Lotus based Sametime. IBM plans to install Open Client on 5% of its desktop PCs. and RenderRocket to provide on-demand content management and blade server computing resources. [edit] Internal programs IBM CEO Samuel J. which tasks students with developing highvalue technology. The software based on UC2 platform will provide major enterprises with easy-to-use communication solutions. This means that "Open Client Offering" is to cut costs of managing whether to use Linux or Apple relative to Windows. The Linux offering has been made available as the IBM Client for Smart Work product on the Ubuntu and Red Hat Enterprise Linux platforms. It is going to be used for several tasks like: word processing.[52] In May 2007. It will offer the numerous Eclipse application developers a unified platform for an easier work environment.[51] In 2003. In the future the Sametime users will benefit from such additional functions as click-to-call and voice mailing. whose development IBM supports. Online Game Services Incorporated (OGSI).[49] UC2 (Unified Communications and Collaboration) is an IBM and Cisco Systems joint project based on Eclipse and OSGi. field experience and dos and don'ts. Redpapers and Redpieces. while leaving aside marketing buzz.[50] Redbooks are publicly available online books about best practices with IBM products. along with collaboration with Lotus Notes. Microsoft Windows and Apple's Mac OS X. presentations. participants in the program filed 98 patents.

IBM has redesigned processes to eliminate almost all closed loop recycling and now uses more environmental-friendly materials in their place. though traces of contaminants from a local dry cleaner and other polluters were also found. suffered pollution for decades. outlined a new agenda for building a Smarter Planet. IBM Endicott has been identified by the Department of Environmental Conservation as the major source of pollution.. benzene and perchloroethene to the air and allegedly caused several cancer cases among the townspeople. Smarter Planet @ IBM [edit] Environmental record IBM has a long history in dealing with environmental problems.On November 2008. called CIGS (Copper-IndiumGallium-Selenide) solar cell modules. Over the years. such as CIGS. IBM has also now built a modelling solution to help protect the environment and reduce its own Carbon Footprint using Lean and Six Sigma principles Green Sigma.[54] IBM was recognized as one of the "Top 20 Best Workplaces for Commuters" by the United States Environmental Protection Agency (EPA) in 2005. however. According to city officials. and six spills and leaks were recorded. IBM's total hazardous waste calculation consists of waste from both non-manufacturing and manufacturing operations. Despite the amount of pollutant. state health officials could not verify whether air or water pollution in Endicott has actually caused any health problems. its total hazardous waste decreased by 44% over the past five years. IBM used liquid cleaning agents in circuit board assembly operation for more than two decades. and has decreased by 94. during a speech at the Council on Foreign Relations. but the levels are within regulatory limits.100 gallons from an underground tank. rather than just disposing of them and using new chemical materials.[53] In addition. an official company blog exists. including one leak in 1979 of 4. low-cost methods for bringing the next generation of solar energy products. Use of thin film technology. Trace elements of volatile organic compounds have been identified in Endicott¶s drinking water. freon.000 gallons of chemicals. (TOK) and IBM are collaborating to establish new. Endicott. has great promise in reducing the overall cost of solar cells and further enabling their widespread adoption. These left behind volatile organic compounds in the town's soil and aquifer. with the support of a comprehensive global environmental management system. According to IBM. Sam Palmisano. from 1980. The award was to recognize Fortune 500 companies which provided employees with excellent commuter benefits to help reduce traffic and air pollution. tests show that the water is safe to drink.6% since 1987. Ltd. Waste from manufacturing operations includes waste recycled in closed-loop systems where process chemicals are recovered for subsequent reuse.[57][58] . including trichloroethane.[55] The birthplace of IBM. IBM¶s CEO. It established a corporate policy on environmental protection in 1971. to market. IBM has pumped out 78. Also.[56] [edit] Solar power Tokyo Ohka Kogyo Co.

[61] Logos designed in the 1970s tended to be sensitive to the technical limitations of photocopiers. which were then being widely deployed. developing new solution processed thin film photovoltaic devices. The system focuses on carbon. so companies preferred logos that avoided large solid areas. The 1972 IBM . solid waste. Its goal is to manage and reduce IBM's carbon footprint and achieve associated economic and environmental benefits. concentrator photovoltaics. atmospheric emissions.[60] [edit] Company logo and nickname IBM logo history Logo Years 1924±1946 1947±1956 1956±1972 1972±present IBM's current "8-bar" logo was designed in 1972 by graphic designer Paul Rand. ground emissions. and future generation photovoltaic architectures based upon nanostructures such as semiconductor quantum dots and nanowires. both for economic benefits for the business and a reduction of the company's impact on the environment. water. A logo with large solid areas tended to be poorly copied by copiers in the 1970s. and the reporting on these elements. liquid waste. IBM Green SigmaTM consultants continually work with the client team to establish optimization of core processes and KPMGs.IBM is exploring four main areas of photovoltaic research: using current technologies to develop cheaper and more efficient silicon solar cells. y y y y y Phase I: Define Key Performance Indicators (KPIs) Phase II: Establish Metering Phase III: Deploy Carbon Console Phase IV: Optimise Processes Phase V: Control Performance IBM¶s goal with the Green Sigma offering is to business partner with clients.[59] [edit] Green Sigma Green Sigma is an Active Management Six Sigma system which is currently being developed and enhanced through the Innovation Centre in Dublin.

"True Blue" was a term used to describe a loyal IBM customer. making blue the defining color of the company's corporate design. abbreviated IBM and nicknamed "Big Blue". A third theory suggests that Big Blue refers to a former company dress code that required many IBM employees to wear only white shirts and many wore blue suits. and business writers later picked up the term. more plausible reason for the term. the free encyclopedia Jump to: navigation. One theory. [edit] See also New York portal Companies portal Computer Science portal y y y Institute of Electrical and Electronics Engineers List of computer system manufacturers Top 100 US Federal Contractors [edit] References History of IBM From Wikipedia. Big Blue is a nickname for IBM. referring to the color of the mainframes IBM installed in the 1960s and early 1970s. and some other manufactured devices have played on the "Big Blue" concept. substantiated by people who worked for IBM at the time. typewriters. IBM keyboards. which might be another. is a . using the color for enter keys and carriage returns. IBM has also used blue logos since 1947. is that IBM field representatives coined the term in the 1960s. With the advent of digital copiers in the mid-1980s this technical restriction had largely disappeared.logos are an example of this tendency.[62][64] In any event.[62][63] Another theory suggests that Big Blue simply refers to the Company's logo. the 13-bar logo was abandoned for almost the opposite reason ± it was difficult to render accurately on the lowresolution digital printers (240 dots per inch) of the time. at roughly the same time. search International Business Machines. There are several theories explaining the origin of the name.

6 Midrange systems  2.[2] With over 388. and offers infrastructure services. & Sales Analysis)  2.8 1990 2005: IBM's near disaster and rebirth 2 Topics. trends.5 IBM and AIX/UNIX/Linux/SCO  2.1. and five National Medals of Science. five National Medals of Technology. New York. IBM holds more patents than any other U.1 1885 1924: The origin of IBM o 1.000 employees worldwide. four Turing Awards.1 International subsidiaries growth o 1. IBM manufactures and sells computer hardware and software (with a focus on the latter).7 1975 1992: Information revolution. consultants.1. and consulting services in areas ranging from mainframe computers to nanotechnology.1.2 Evolution of IBM's computer hardware  2. Inventory Control.3 ROLM Communication Systems Division o 2.5 1960 1969: The System/360 era o 1. based technology company and has eight research laboratories worldwide.2.7 Non-computer lines of business o 2.[1] Samuel J Palmisano is the chairman and CEO of IBM.S.2. rise of software and PC industries o 1. and technologies o 2.3.2 Organization  2. The company is one of the few information technology companies with a continuous history dating back to the 19th century.2 Unbundling of software and services in 1969 3 Key events .[5] Contents [hide] y y y 1 History o 1.4 High-level languages  2. IBM is one of the largest and most profitable information technology employers in the world.2.2 1925 1938: IBM's early growth  1.1 Corporate Design Program  2.3 1939-1945: World War II o 1. and sales professionals in over 170 countries.4 1946 1960: Postwar recovery and the rise of business computing o 1.[3] The company has scientists.6 1970 1974: The challenges of success o 1. IBM has been well known through most of its recent history as one of the world's largest computer companies and systems integrators. United States.1.1 BICARSA (Billing.1 Products and technologies  2.3 Topics and events[4] IBM employees have earned Five Nobel Prizes. hosting services. Accounts Receivable.1 Federal Systems Division  2.2 IBM service organizations  2.multinational computer technology and IT consulting corporation headquartered in Armonk.3.1. engineers.3 Evolution of IBM's operating systems  2.

6 1993 present 4 See also 5 References 6 Further reading 7 External links o o o o o o [edit] History [edit] 1885±1924: The origin of IBM Year Gross income (in $m) Employees 1890 1895 1900 1905 1910 1915 4 1920 14 1925 13 1.2 1938 1951 3.5 1972 1992 3.1 1880s 1937 3.3 1952 1963 3.698 .y y y y 3.731 3.672 2.4 1964 1971 3.

By drawing upon his managerial experience at NCR. automatic meat slicers. and completing the project with amazing speed. the International Time Recording Company (founded 1900 in Endicott). founded by Herman Hollerith. Watson Sr. Hollerith's series of patents on tabulating machine technology. attempting to identify industry applications for his automatic punching. D. Hollerith. Hollerith was initially trying to reduce the time and complexity needed to tabulate the 1890 Census.C.2 million). The company was formed through a merger of four different companies: the Tabulating Machine Company (with origins in Washington. custom-built tabulating solutions for businesses. Washington.[8] CTR was incorporated on June 16. He also stressed the importance of the customer. Flint remained a member of the board of CTR until his retirement in 1930.300 employees and offices and plants in Endicott and Binghamton.[6][7] The merger was engineered by noted financier Charles Flint. a lasting IBM . Watson focused their attention on providing large-scale. the most technologically significant was the Tabulating Machine Company. New York. 2 executive at the National Cash Register Company. weighing scales. dark-suited salesmen.S. 1911 in Endicott. and the Bundy Manufacturing Company (founded in 1889). In 1911. Census Bureau from 1879±82.. D. who then created C-T-R. and Toronto. U. but Flint believed that since they all focused on equipment that made businesses more efficient. Hollerith was faced with the challenge of sustaining the company in non-Census years. leaving the market for small office products to others. the new company had 1. Of the companies merged to form CTR. New York. His development of punched cards in 1886 set the industry standard for the next 80 years of tabulating and computing data input.S. Ohio. As the sales force grew into a highly professional and knowledgeable arm of the company. punched card equipment. decades before the development of electronic computers. USA). now 51 and in failing health sold the business to Flint for $2.[9] The companies that merged to form CTR manufactured a wide range of products.3 million (of which Hollerith got $1. Watson became General Manager of C-T-R in 1914 and President in 1915. Michigan. After winning the government contract. and the new company was called the Computing Tabulating Recording (CTR) Corporation. Thomas J.Tabulating Machine Corporation plant in 1893. Based in New York City. and most importantly for the development of the computer.[10] In 1896 the Tabulating Machine Company leased some machines to a railway company[11] but quickly focused on the challenges of the largest statistical endeavor of its day ± the 1900 US Census. an insistence on well-groomed..C. The roots of IBM date back the 1880s. the Computing Scale Corporation (founded 1901 in Dayton. Ontario. tabulating and sorting machines. The product lines were very different. in the 1880s). and an evangelical fervor for instilling company pride and loyalty in every worker. Dayton. Flint turned for help to the former No. drew on his work at the U.A. and specialized in the development of punched card data processing equipment. Watson quickly implemented a series of effective business tactics: generous sales incentives. When the diversified businesses of C-T-R proved difficult to manage. coffee grinders. first applied for in 1884. a focus on customer service. there were synergies and cross selling opportunities to be had. including employee time-keeping systems. Ohio. He returned to targeting private businesses both in the United States and abroad.. Detroit.

At the helm during this period. and on February 14. In 1928. It launched a flagship newspaper. and company operations expanded to Europe. family outings and a company band. Watson found the C-T-R name too limiting. He launched a number of initiatives that collectively demonstrated an unwavering faith in his workers: he hired the company's first disabled worker in 1914. Asia and Australia.tenet. It introduced the Quarter Century Club. believing that employees were most productive when they were supported by healthy and supportive families and communities. he formed the company's first employee education department in 1916. The strategy proved successful. the Suggestion Plan program ± which granted cash rewards to employees who contributed viable ideas on how to improve IBM products and procedures ± made its debut.. 1924. as during Watson's first four years. He also sponsored employee sports teams. which unified coverage of all of IBM's businesses under one publication. and launched the Hundred Percent Club. .654 The newly minted IBM continued to develop its core cultural attributes during the 1920s. Watson boosted company spirit by encouraging any employee with a complaint to approach him or any other company executive ± his famed Open Door policy.698 6. Business Machines. South America. These initiatives ± each deeply rooted in Watson's personal values system ± became core aspects of IBM culture for the remainder of the century. Please help improve this article by adding reliable references." which quickly became a corporate mantra.346 8. and in 1915 he introduced his favorite slogan. A name of a publication from C-T-R's Canadian operation caught his eye. "THINK. Watson played a central role in establishing what would become the IBM organization and culture. revenues doubled to $2 million. [edit] 1925±1938: IBM's early growth This section needs additional citations for verification. to honor employees with 25 years of service to the company. the C-T-R name was formally changed to International Business Machines Corporation. Given the company's geographic growth (including the completion of three manufacturing facilities in Europe). (August 2010) Year Gross income (in $m) Employees 1925 13 1930 19 1935 21 3. Unsourced material may be challenged and removed. to reward sales personnel who met their annual quotas. and his own expansive vision. later to be abbreviated IBM.

culminating in the 1958 sale of the IBM Time Equipment Division to Simplex Time Recorder Company. he hired additional employees in support of President Franklin Roosevelts¶ National Recovery Administration plan ± not just salesmen. In 1920. IBM and its predecessor companies made clocks and other time recording products for 70 years.Early 20th century time clock made by IBM. In 1928. Three years later the company introduced the first electric keypunch. job recorders.[13] The company also expanded its product line through innovative engineering. This new format. soon dubbed the "IBM Card". recording door locks. manufacturing. The day and time of entry and exit was punched onto cards inside the box. and technological innovation despite the difficult economic times. Behind a core group of inventors ± James Bryce. and 1924's Carroll Rotary Press produced punched cards at previously unheard of speeds. continuing to invest in people. The face shows employee numbers which would be dialed up by employees entering and leaving the factory. In the optimistic years following World War I. the company held its first customer engineering education class. and Watson met the challenge head on. It also introduced an 80-column punched card. but engineers too. and Royden Pierce ± IBM produced a series of significant product innovations. . demonstrating an early recognition of the importance of tailoring solutions to fit customer needs. and launched the Electric Accounting Machine. which doubled its information capacity. became and remained an industry standard until the 1970s.[14] in 1928. The Great Depression of the 1930s presented an unprecedented economic challenge. Rather than reduce staff. Clair Lake. time stamps and traffic recorders. the company introduced the first complete school time control system. Fred Carroll. which he joked that he had a lifelong weakness for. C-TR's engineering and research staff developed new and improved mechanisms to meet the broadening needs of its customers.[12] IBM manufactured and sold such equipment as dial recorders.

His avowed focus on international expansion proved an equally key component of the company's 20th century growth and success. Japan. Czechoslovakia. the Soviet Union. Watson was. but the risk paid off handsomely. [edit] International subsidiaries growth Main article: International subsidiaries of IBM IBM had subsidiaries and operations in 70 countries in those early years. IBM's successful performance on the contract soon led to other government orders. They included Austria. and Watson campaigned tirelessly for the concept with global business and government leaders. it had risen to the forefront of the industry. And he greatly increased IBM's research capabilities by building a modern research laboratory on the Endicott manufacturing site. When the Social Security Act of 1935 ± labeled as ³the biggest accounting operation of all time´[15] ± came up for bid. survivor benefits (1935) and paid vacations (1936). Italy. IBM was the only bidder that could quickly provide the necessary equipment. in essence. Watson's factories. the food services equipment business. Germany.Watson not only kept his workforce employed. Switzerland. Watson's gamble brought the company a landmark government contract to maintain employment records for 26 million people. He served as an informal. he felt so strongly about the connection between the two that he had his slogan ³World Peace Through World Trade´ carved into the exterior of IBM's new World Headquarters (1938) in New York City. created a huge inventory of unused tabulating equipment. Sweden.[16] The slogan became an IBM business mantra. [edit] 1939-1945: World War II This section needs additional citations for verification. he increased their benefits. It was IBM's first µBet the Company¶ gamble. and his commitment to the data processing product line laid the foundation for 50 years of IBM growth and successes. Romania. Yugoslavia. (August 2010) . gambling on the future. With all this internal investment. and received numerous awards from foreign governments for his efforts to improve international relations through the formation of business ties. Poland. Bulgaria. He sharpened the company's focus on data processing by selling off one of IBM's original product lines. He saw business interests and peace as being mutually compatible. He upped his ante on his workforce by opening the IBM Schoolhouse in Endicott to provide education and training for IBM employees. France. envisioned commerce as an obstacle to war. education to expand the breadth of those capabilities. Norway. Watson's Depression-era decision to invest heavily in technical development and sales capabilities. In fact. Holland / Netherlands . and by the end of the decade IBM has not only safely negotiated the Depression. having witnessed the havoc the First World War wreaked on society and business. Belgium. running full tilt for six years with no market to sell to. Please help improve this article by adding reliable references. unofficial government host for world leaders when they visited New York. and others. IBM was among the first corporations to provide group life insurance (1934). Unsourced material may be challenged and removed. Watson.

New York (1941). government. ballistics. Navy ± the first large-scale electro-mechanical calculator in the U. .[19] During the War. Washington. also known as the Harvard Mark I for the U. When the Second World War began ± well before the United States was formally engaged in the conflict ± Watson placed all IBM facilities at the disposal of the U. the interests of international commerce failed to prevent the breakout of war. and engine parts ² in all. IBM greatly expanded its manufacturing capacity. IBM added new buildings at its Endicott. New York plant (1941).656 18. California (1943).C. accounting and logistics. D.S.[18] Allied military forces widely utilized IBM's tabulating equipment for mobile records units. There was extensive use of IBM punched card machines for calculations made at Los Alamos during the Manhattan Project for developing the first atomic bombs. To meet wartime product demands. and opened new facilities in Poughkeepsie. Watson set a nominal one percent profit on those products and used the profits to establish a fund for widows and orphans of IBM war casualties. IBM's product line[17] shifted from tabulating equipment and time recording devices to Sperry and Norden bombsights.257 Browning Automatic Rifle M1 Carbine Despite Watson's efforts on behalf of world peace. (1942).Year Gross income (in $m) Employees 1940 45 1945 138 12. IBM also built the Automatic Sequence Controlled Calculator.[21] IBM's decision to establish a presence on the West Coast took advantage of the growing base of electronics research and other high technology innovation in the southern part of the San Francisco Bay Area.S.[20] and San Jose. Browning Automatic Rifle and the M1 Carbine. and other war-related purposes. an area that came to be known many decades later as Silicon Valley.. more than three dozen major ordnance items and 70 products overall.S.

Sr. [edit] 1946±1960: Postwar recovery and the rise of business computing IBM 7090 installation Year Gross income (in $m) Employees 1950 266 1955 696 1960 1. IBM and the Holocaust.261 56.297 104. A book published in 2001. received and subsequently repudiated and returned a medal presented to him by the German government for his role in global economic relations. These well-known facts appear to be the primary underpinning for these recent allegations.. as well as a dismissed lawsuit against the company treats the use of Hollerith equipment by the Nazi government and IBM's role. Watson. Several were involved in the holocaust. As with hundreds of foreign-owned companies that did business in Germany at that time. It is also widely known that Thomas J. Dehomag came under the control of Nazi authorities prior to and during World War II." IBM responded in February 2001 that It has been known for decades that the Nazis used Hollerith equipment and that IBM's German subsidiary during the 1930s ± Deutsche Hollerith Maschinen GmbH (Dehomag) ± supplied Hollerith equipment.[22] After the war these subsidiaries were fused back into IBM.Many international subsidiaries of IBM in Axis territory were legally cut off from IBM starting in Dec 1941 after Pearl Harbor. see IBM during World War II. both before Dec 1941 and after.241 IBM had expanded so much by the end of the War that the company faced a potentially difficult situation ± what would happen if military spending dropped sharply? One way IBM addressed .[23] For more details on these allegations.810 30. In a "IBM Statement on Nazi-era Book and Lawsuit.

Under the leadership of Watson's youngest son. no new commercial machines or devices shall be announced which make primary use of tube circuitry. Internally. Jr. Major facilities would later follow in Rochester. The company was in the midst of a period of rapid technological change. IBM experienced its first leadership change in more than four decades. The new chief executive faced a daunting task. with nascent computer technologies ± electronic computers. Kingston. Supreme Court decision in Brown vs. creating organizational pressures and significant management challenges. Watson. Greencastle. Jr. Minnesota. programming ± creating new competitors and market uncertainties. and Open Door and Speak Up! Perhaps the most significant of which was his shepherding of the company's first equal opportunity policy letter into existence in 1953.S. Arthur K. ³in grave danger of losing our ³eternal´ values that are as valid in electronic days as in mechanical counter days. and Lexington.[25] In 1954. Jr.. one year before the U. IBM's president since 1952. Thomas J. also continued to partner with the United States government to drive computational innovation. Sr. culminating with the formation of the World Trade Corporation in 1949 to manage and grow its foreign operations. IBM was named as the primary computer hardware contractor for developing SAGE for the United States . Watson. and drove major Department of Defense supported computer development projects in the 1950s. and his senior executives privately wondered if the new generation of leadership was up to challenge of managing a company through this tumultuous period. Lacking the force of personality that Watson.[24] He continued to expand the company's physical capabilities ± in 1952 IBM San Jose launched a storage development laboratory which pioneered disk drives. disk drives. none was more important than the SAGE interceptor early detection air defense system. 1956 at age 82.´ Watson. The emergence of the Cold War accelerated the government's growing awareness of the significance of digital computing. New York..that concern was to accelerate its international growth in the years after the war. the company was growing by leaps and bounds. Indiana.´[25] Watson. but the two organizations finally hammered out a design by the summer of 1953..[24] He codified well known but unwritten IBM practices and philosophy into formal corporate policies and programs ± such as IBM's Three Basic Beliefs. Kentucky. Furthermore. The merger of academic and business engineering cultures proved troublesome. Watson. Jr. magnetic tape storage. µDick¶ Watson. on June 19. and IBM was awarded the contract to build two prototypes in September. responded by drastically restructuring the organization mere months after his father died.´ wrote one longtime IBM executive in 1956. Sr. had long used to bind IBM together. IBM began working with MIT's Lincoln Laboratories to finalize the design of an air defense computer. the WTC would eventually produce half of IBM's bottom line by the 1970s. In 1952.[24] ³We are. Of these. With the passing of Founding Father Thomas J. A new IBM emerged in the 1950s. Board of Education and 11 years before the Civil Rights Act of 1964. creating a modern management structure that enabled him to more effectively oversee the fast moving company. The mantle of chief executive fell to his eldest son. And he ended a raging internal debate about computer architecture with this unambiguous 1957 product development policy statement: ³It shall be the policy of IBM to use solid-state circuitry in all machine developments.

digital computer. however.[24] [edit] 1960±1969: The System/360 era Year Gross income (in $m) Employees 1955 696 1960 1. Thomas J.241 172.810 1965 3. because. These government partnerships. Working on this massive computing and communications system. IBM gained access to pioneering research being done at Massachusetts Institute of Technology on the first real-time.500 56. Watson. the first effective algebraic computer language..Air Force. In the five years since the passing of Watson. IBM neglected. an integrated video display. light guns. IBM built fifty-six SAGE computers at the price of US$30 million each. to gain an even more dominant role in the nascent industry by allowing the RAND Corporation to take over the job of programming the new computers. was the access to cutting-edge research into digital computers being done under military auspices."[26] IBM would use its experience designing massive. Sr. IBM was the largest of the .445 269.291 Just as his father saw the company's future in tabulators rather than scales and clocks. which shows how well we were understanding the future at that time. a large real-time operating system. combined with pioneering computer technology research and a series of commercially successful products (IBM's 700 series of computer systems. foresaw the role computers would play in business. more than 4000 were IBM machines. analog-to-digital and digital-to-analog conversion techniques. digital data transmission over telephone lines.750 1970 7. and geographically distributed networks). the IBM 305 RAMAC (with disk drive memory). had answered his self-doubt. Jr. according to one project participant. integrated real-time networks with SAGE to design its SABRE airline reservation system. Watson Jr. however. and at the peak of the project devoted more than 7. Robert P.[25] More valuable to the IBM in the long run than the profits from governmental projects.297 104. IBM was two and a half times bigger. which met with much success. and of the 6000 computers in operation in the United States. SAGE had the largest computer footprint ever. and continued in service until 1984. This included working on many other computer technology advancements such as magnetic core memory. the IBM 650. Crago. multiprocessing. duplexing. and the IBM 1401) enabled IBM to emerge from the 1950s as the world's leading technology firm. "we couldn't imagine where we could absorb two thousand programmers at IBM when this job would be over some day. its stock had quintupled. and in less than twenty years he led IBM's transformation from a medium-sized maker of tabulating equipment and typewriters into a corporate giant that was the world's leading computer company..000 employees (20% of its then workforce) to the project.

even to the present day. General Electric.eight major computer companies (with UNIVAC.'s bet paid off. By the end of the decade.'s leadership. under Watson. Its international operations grew rapidly. the first large ³family´ of computers to use interchangeable software and peripheral equipment. Most of those companies are now long gone as IBM competitors. effectively launching today's multi-billion dollar software and services industry. California. People in this business would talk jokingly of "Snow White and the Seven Dwarfs". when he committed to developing the System/360. and brought all its facilities into compliance with those standards. unbundling hardware from software and services. It led efforts to improve data security and protect privacy. like his father 30 years before. the System/360 became the dominant mainframe computer in the marketplace. It became a recognized leader in corporate social responsibility. NCR. it would have to cannibalize IBM's existing. so dominant that its architecture became a de facto industry standard. But in order for it to succeed. Watson. Jr. the Seven Dwarfs were forced to reconsider their place in the computer industry. IBM became one of the world's most admired companies. if Watson hadn¶t taken the biggest risk of his career. joining federal equal opportunity programs in 1962. On April 7. one-size-fits-all mainframe. with a nearly fivefold increase in revenues and earnings during the 1960s. See unbundling of software and services. unproven system. Riding the crest of the S/360 compatibility wave. a legitimate business icon. IBM introduced the revolutionary System/360.[27] Moreover. which is the result of multiple mergers that included Sperry Rand. and General Electric. But Fortune magazine dubbed it ³IBM's $5 billion gamble. opening an inner city manufacturing plant in 1968. RCA and Honeywell) through most of the 1960s. So. It opened one of the world's most advanced research centers in Yorktown. 1964. was literally betting the company. IBM cemented its leadership position in the computer industry throughout the 1960s. In that same year it changed the way it marketed its technology to customers.´ because there was no guarantee the concept of computer compatibility was going to succeed in the marketplace.. below. Control Data Corporation. It set environmental air/water emissions standards that exceeded those dictated by law. except for Unisys. New York. IBM's existing computer product line would be rapidly outpaced by competitors. If the S/360 failed. producing more than half of IBM's revenues by the early 1970s and through technology transfer shaping the way governments and businesses operated around the world. and then some. UNIVAC and Burroughs. The company began four decades of Olympic sponsorship with the 1960 Winter Games in Squaw Valley. Burroughs. And it was massively profitable. Jr. Both scenarios were fraught with risk. But it might not have turned out that way. like it did for his father. revenue-producing computer product lines ± current customers would have to be convinced to migrate from their current IBM systems to this new. Its personnel and technology played an integral role in the space program and landing the first men on the moon in 1969. Watson Jr.[28] See also: History of CP/CMS And. which has re-entered the . It was a bold departure from the monolithic. given the much smaller size of the other companies' computer divisions (IBM produced approximately 70% of all computers in 1964). Within two years. and creating a minority supplier program. The IBM mainframe that seized market share in the 1960s is the direct ancestor of today's IBM System z10.

Vincent Learson. Between 1971 and 1975. Jr. Following Learson in the CEO office was Frank T. v. IBM's dominant market share in the mid-1960s led to antitrust inquiries by the U. GE sold most of its computer business to Honeywell and in 1971. the company continued to dominate in hardware. UNIVAC. The suit alleged that IBM violated the Section 2 of the Sherman Act by monopolizing or attempting to monopolize the general purpose electronic digital computer system market. In 1982. NCR. During Cary's tenure as CEO. 1969.. and the 1970s got off to a troubling start when CEO Thomas J. IBM investigated the feasibility of a new revolutionary line of products designed to make obsolete all existing products in order to re-establish its technical in recent years. but by now in humorless. However.750 1970 7. turning into a resource-sapping war of attrition. The S/370 did not prove as technologically revolutionary as its predecessor. people then talked. Watson.291 288. But having to operate under the pall of antitrust litigation significantly impacted IBM's business decisions and operations during all of the 1970s and a good portion of the 1980s. NCR's being cash registers (hence the name.500 1975 14. National Cash Register).445 269. But by then it had consumed most of the high- . a hard-driving IBM executive.S.430 172. and Honeywell becoming the market leader in thermostats. IBM would suffer two in two years. of "IBM and the BUNCH. IBM in the United States District Court for the Southern District of New York."[27] NCR and Honeywell later dropped out of the general mainframe and mini sector and concentrated on lucrative niche markets. The case dragged out for 13 years. which filed a complaint for the case U.647 The Golden Decade of the 1960s was a hard act to follow. This effort was terminated by IBM's top management in 1975. For the first time since 1914 ± nearly six decades ± IBM would not have a Watson at the helm. and Honeywell producing mainframes. it more than sustained the cash cow status of the 360. T. succeeded Watson as CEO and then quickly retired himself upon reaching the mandatory retirement age of 60 in 1973. Moreover. the Justice Department finally concluded that the case was ³without merit´ and dropped it.[27] A less successful effort to replicate the 360 mainframe revolution was the Future Systems project. With only Burroughs. But from a revenue perspective. Cary. on January 17. blistering criticism. [edit] 1970±1974: The challenges of success Year Gross income (in $m) Employees 1965 3. Department of Justice.[citation needed] In 1970. the System/360. Control Data. after just one leadership change over those nearly 60 years.S. suffered a heart attack and retired in 1971. specifically computers designed primarily for business. The IBM System/370 was introduced in 1970 as IBM's new mainframe. a 26-year IBMer who had earned his stripes running the fabulously successful data processing division in the 1960s. RCA sold its computing division to Sperry Rand.

The litigation lasted until the late 1970s and was ultimately settled. IBM was litigating the massive anti-trust suit filed by the Justice Department in 1969. Also in 1973. federal court case was concluded in April 1973. IBM researchers perfected the use of organic photoconductors which avoided the Xerox patents. and withdrew from the marketplace in the 1980s. the world's first general-purpose electronic digital computer. also introduced in 1971. transfers and other account inquiries via the IBM 3614 Consumer Transaction Facility. Despite this victory. the landmark Honeywell v. thus putting the invention of the electronic digital computer into the public domain. A less successful business endeavor for IBM was its entry into the office copier market in 1970. and international computer networks.level technical planning and design resources. Organic photoconductors. IBM Research scientist Edgar 'Ted' Codd wrote a seminal paper describing the relational database ± an invention that Forbes magazine described as one of the most important innovations of the 20th century. 50 lbs. used holographic technology to scan product prices from the now the ubiquitous UPC bar code. IBM's 3660 supermarket checkout station. The IBM Portable Computer. SNA became the most widely used system for data processing until more open architecture standards were approved in the 1990s. Throughout this period. are now widely-used in office copiers. IBM was ruled to have created a monopoly via its 1956 patent-sharing agreement with Sperry-Rand. which itself was based a 1952 IBM patent that became a grocery industry standard. In 1975. SNA is a uniform set of rules and procedures for computer communications to free computer users from the technical complexities of communicating through local. In 1974. and are integral to the field of computer graphics and animation. But in a related bit of case law. IBM developed magnetic stripe technology in the 1960s. became the standard for storing personal computer data during the first decades of the PC era. . metallurgy. an early form of today's Automatic Teller Machines. art and health sciences. a networking protocol for computing systems. national.S. The company was immediately sued by Xerox Corporation for patent infringement. and it became a credit card industry standard in 1971. thus jeopardizing progress of the existing product lines (although some elements of FS were later incorporated into actual products). The IBM-invented floppy disk. Sperry Rand U. bank customers began making withdrawals. IBM had an innovator's role in pervasive technologies that were less visible as well. Fractals had a great impact on engineering. a decision that invalidated the 1964 patent for the ENIAC. introduced in 1973. Some 1970s-era IBM technologies emerged to become familiar facets of everyday life. Although Xerox held the patents for the use of selenium as a photoconductor. was introduced in 1975 and presaged ± at least in function if not size or price or units sold ± the Personal Computer of the 1980s. economics. IBM researcher Benoit Mandelbrot conceived fractal geometry²a new geometrical concept that made it possible to describe mathematically the kinds of irregularities existing in nature. IBM never gained traction in the copier market. and $9000 of personal mobility. IBM announced Systems Network Architecture (SNA). Winchester technology was adopted by the industry and used for the next two decades. however.[27] Other IBM innovations during the early 1970s included the IBM 3340 disk unit ± introduced in 1973 and known as "Winchester" after IBM's internal project name²was an advanced storage technology which more than doubled the information density on disk surfaces.

[edit] 1975±1992: Information revolution.347 .535 373.816 225. rise of software and PC industries The original IBM PC (ca. 1981) Year Gross income (in $m) Employees 1975 14.647 341.050 1990 69.279 405.430 1980 26.940 288.210 1985 50.010 1995 71.

Instead it sourced these vital components from Microsoft and Intel respectively. IBM's significant investment in building a world class research organization produced four Nobel Prize winners in physics. accommodate.565 it was affordable for businesses ² and many businesses purchased PCs. Typically. Up to this point in its history. it was this fateful decision by IBM that passed the sources of its monopolistic power (operating system and processor architecture) to Microsoft and Intel. Ironically. memory storage and telecommunications. . However. functions. and lost the lead in RISC technology to Sun. launched on August 12.Boca Corporate Center & Campus was originally one of IBM's research labs where the IBM PC was created. but IBM itself failed to recognize the importance of RISC. John Akers became IBM's CEO in 1985. including processors. these purchases were not by corporate computer departments. Despite a strong reputation and anticipating many of the features. as the PC was not seen as a "proper" computer. Though not a spectacular machine by technological standards of the day. In 1980. And it had the prestige of the IBM brand. paving the way for rise of PC compatibles and the creation of hundreds of billions of dollars of market value outside of IBM. In 1984 the company partnered with Sears to develop a pioneering online home banking and shopping service for home PCs that launched in 1988 as Prodigy. achieved breakthroughs in mathematics. Cocke received both the National Medal of Technology and the National Medal of Science for his innovation. and the appointment of John R. Florida. and in many cases could not. During the 1980s. but with a base price of US$1. operating systems. they began buying microcomputers on their own budgets aimed at numerous applications that corporate computer departments did not. the venture was plagued by extremely conservative management decisions. building most key components of its systems itself. the killer app. the IBM PC brought together all of the most desirable features of a computer into one small machine. With a team known as "Project Chess. IBM Research legend John Cocke introduced Reduced Instruction Set Technology (RISC). The company hired Don Estridge at the IBM Entry Systems Division in Boca Raton. databases and the like. IBM soon lost this early lead in both PC hardware and software. Purchases were often instigated by middle managers and senior staff who saw the potential ² once the revolutionary VisiCalc spreadsheet. peripherals. IBM immediately became more of a presence in the consumer marketplace. It had 128 kilobytes of memory (expandable to 256 kilobytes)." they built the IBM PC. It was not cheap. and technology of that characterize the online experience of today. In an attempt to speed time to market for the PC. one or two floppy disks and an optional color monitor. IBM chose not to build a proprietary operating system and microprocessor. Reassured by the IBM name. By the end of the 1970s. Opel as CEO in 1981 coincided with the beginning of a new era in computing ± the age of personal computing. Lotus 1-2-3. thanks to the memorable Little Tramp advertising campaign. had been surpassed by a far more powerful and stable product. IBM relied on a vertically integrated strategy. thanks in part to its unprecedented (for IBM) decision to contract PC components to outside companies like Microsoft and Intel. IBM had met and exceeded the legacy of the Golden Decade. in a decade which marked the end of IBM's monopoly. 1981. and made great strides in expanding computing capabilities.

which sought to link all of those PCs (the "clients") with larger computers that labored in the background (the "servers" that served data and applications to client machines). the PC. IBM also began shedding businesses that it felt were no longer core. By the late 1980s it was a bloated organization of some 400. dropped by more than a third to US$3 billion in 1989. permitted personal computer users to exchange information and share printers and files within a building or complex. Technologies IBM invented and or commercialized ± DRAM. disk drives. The IBM token-ring local area network.and was eventually sold in the mid-1990s. transactional. It sold its typewriter. A brief spike in earnings in 1990 proved illusory as corporate spending continued to shift from high profit margin mainframes to lower margin microprocessor-based systems. They combined to dramatically undermine IBM's core mainframe business. In addition. less diversified competitors. and online commerce in the 1980s that set the stage for the emergence of the connected world in the 1990s. where leaders emerged in their respective domains. Examples included Intel in microprocessors. And both fundamentally rocked IBM. hard disk drives. used and bought technology. HP in printers. thereby missing a boom market of the 1990s. But by the end of the decade. not on business applications across the enterprise. software. introduced in 1985. Akers tried to stop the bleeding ± desperate moves and radical changes were considered and implemented. corporate downsizing was in full swing. earnings ± which had been at or above US$5 billion since the early 1980s. The company had a massive international organization characterized by redundant processes and functions ± its cost structure couldn¶t compete with smaller. and printer business ² the organization that created the popular ³Selectric´ typewriter . Seagate in disk drives and Oracle Corporation in database software. it was clear that competition and innovation in the computer industry was now taking place along segmented. IBM investments and advances in microprocessors. The focus was on the desktop and personal productivity. with the support of the Board of Directors. Businesses' purchasing decisions were put in the hands of individuals and departments ± not the places where IBM had long-standing customer relationships. IBM partnered with the University of Michigan and MCI Communications to create the National Science Foundation Network (NSFNet). The PC revolution placed computers directly in the hands of millions of people. As a result. In 1988.000 employees that was heavily invested in low margin. Novell in networking. network technologies. IBM was clearly in trouble. As IBM assessed the situation. began to implement a plan to split IBM into increasingly autonomous business units (e. an important step in the creation of the Internet. commodity businesses. versus vertically integrated lines. Recognizing this trend. IBM's dominance in personal computers was challenged by the likes of Compaq and later Dell. keyboard. Both revolutions transformed the way customers viewed. storage. Still. printers. electric typewriters ± were starting to erode. software applications. But within five years the company backed away from this early lead in Internet protocols and router technologies in order to support its existing SNA cash cow. etc.g. It was followed by the client/server revolution. Piece-part technologies took precedence over integrated solutions. management. And then the back-to-back revolutions ± the PC and the client server ± did the unthinkable. services. Microsoft in desktop software.) to compete more effectively with competitors that were more focused and nimble and had lower cost structures. processors.

For the first time since 1914 IBM had recruited a leader from outside its ranks.400 405.090 2005 91. and had previously spent 11 years as a top executive at American Express. dramatic action. Recognizing that his first priority was to stabilize the company. between 1991 and 1993. the ensuing decline of mainframe sales.S. in the 1950s. But stabilization was not Gerstner's endgame ± the restoration of IBM's once great reputation was.000 employees in 1994).050 1990 69. including CEO John Akers. IBM announced a US$8. he adopted a triage mindset and took quick.455 In April 1993. Jr. A decade of steady acceptance and widening corporate growth of local area networking technology. and other vendors. Gerstner had been chairman and CEO of RJR Nabisco for four years. [edit] 1990±2005: IBM's near disaster and rebirth Year Gross income (in $m) Employees 1985 50. IBM hired Louis V. To . and became an independent company. Lexmark Inc.[30] These initial steps worked.303 398. selling the Federal Systems Division to Loral in order to replenish the company's cash coffers. as its new CEO. on January 19. brought about a wake-up call for IBM: after two consecutive years of reporting losses in excess of $1 billion. and driving significant cost reductions within the company. And hundreds of thousands of IBMers lost their jobs. which was then the largest single-year corporate loss in U.535 373. 1993. The computer industry now viewed IBM as no longer relevant. His early decisions included recommitting to the mainframe.816 225. Gerstner decided to reverse the move to spin off IBM business units into separate companies. continuing to shrink the workforce (reaching a low of 220.10 billion loss for the 1992 financial year.. turning profits of $3 billion. Dubilier & Rice Inc.010 1995 71. But these efforts failed to halt the slide. and its logical counterpart. Most importantly. Gerstner. history.with its floating ³golf ball´ type element in the 1960s ² to the investment firm of Clayton. the company posted net losses of nearly $16 billion. triggered by Watson Jr.. a trend headed by Novell Inc. Gerstner brought with him a customer-oriented sensibility and the strategic-thinking expertise that he had honed through years as a management consultant at McKinsey & Co. He recognized that one of IBM's enduring strengths was its ability to provide integrated solutions for customers ± someone who could represent more than piece parts or components. an organizational dinosaur.940 2000 85.347 316. Splitting the company would have destroyed that unique IBM advantage.[29] All told. IBM was in the black by 1994. was over. IBM's three-decade long Golden Age.

which made them among the most powerful and cost efficient in the marketplace. Part of this revival was based on IBM technology. Crucial to this success was the decision to become brand agnostic ± IBM integrated whatever technologies the client required. DB2. The company brought its world class research organization to bear more closely on its existing product lines and development processes.. The ThinkPad. Tivoli. WebSphere. removable 120 MB hard drive. included a 25 MHz Intel 80486SL processor. The company regained the business initiative by building upon the decision to keep the company whole ± it unleashed a global services business that rapidly rose to became a leading technology integrator. at the COMDEX computer expo. and 300 mm wafers in this decade. and Rational. 1992. Also helping the company reclaim its position as a technology leader was its annual domination of supercomputer rankings[38] and patent leadership statistics.[32] IBM augmented this services business with the 2002 acquisition of the consultancy division of PricewaterhouseCoopers for $3. Lotus. IBM divested itself of low margin industries (DRAM.[37] But it was the striking black design by noted designer Richard Sapper that made the ThinkPad an immediate hit with the digerati. IBM's software strategy focused on middleware ± the vital software that connects operating systems to applications. personal printers. Gerstner crafted a business model that shed commodity businesses and focused on high-margin opportunities. and hard drives). 4 MB RAM (expandable to 16 MB) and a TrackPoint II pointing device. a collapse in that. Instrumental too to this popular resurgence was the 1997 chess match between IBM's chess-playing computer system Deep Blue and reigning world chess champion Garry Kasparov. IBM built up its software portfolio from one brand. they were not relegated to stepchild status.4-inch active matrix display. Xbox 360. As Internet applications and deep computing overtook client servers as key business technology priorities. even if they were from an IBM competitor.[33] Another high margin opportunity IBM invested heavily in was software. mainframes returned to relevance. a premium machine which then cost US$4350. the 700c. IBM reinvigorated their mainframe line with CMOS technologies. and its higher margins improved the company's bottom line significantly as the century came to an end. IBM also regained the lead in supercomputing with high end machines based upon scalable parallel processor technology. where many of the edgy technology high flyers of the 1990s failed to ride out the downturn. a strategic move that proved equally visionary. Starting in 1995 with its acquisition of Lotus Development Corp.[36] IBM designed chips are currently used in PlayStation 3.[31] Over the next decade. Equally significant in IBM's revival was its successful reentry into the popular mindset.[35] Investments in microelectronics research and manufacturing made IBM a world leader in specialized. to five: DB2. he needed to come up with a winning business strategy. and Wii game consoles. Content to leave the consumer applications business to other firms.5 billion US. Deep Blue's victory was an historic first for a computer over a reigning world champion. The middleware business played to IBM's strengths. These collapses . high margin chip production ± it developed 200 mm wafer processes in 1992. On October 5. IBM announced the first ThinkPad laptop computer. and the cool factor of the ThinkPad brought back some of the cachet to the IBM brand that had been lost in the PC wars of the 1980s. a serendipitous contributor in reviving the company's reputation was the dot. IBM Network.[34] While IBM hardware and technologies were relatively de-emphasized in Gerstner's three-legged business model.[39] Ironically.

It ended its 40-year technology partnership with the International Olympic Committee after a successful engagement at the 2000 Olympic Games in Sydney.[40] As IBM recovered its financial footing and its industry leadership position. intended to represent a point of convergence for both System/36 customers and System/38 customers. Accounts Receivable. Inventory Control. employees of color. Fran Allen ± an early software pioneer and another IBM hero for her innovative work in compilers over the decades ± is inducted the next year. This brand chaos was attributable in part to the company having 70 different advertising agencies in its employ. The company's marketing during the economic downturn was chaotic. IBM's adoption and integration of diversity principles and practices was cutting edge. all written . In 1994. Palmisano. Accounts Receivable. The 1970s had seen IBM develop a range of Billing. Barbara Grant. IBM eliminated this chaos by consolidating its advertising in one agency. the highest ± placed technical woman in IBM. and in 1996 offered domestic partner benefits to its employees. The company is routinely listed as among the best places for employees. trends.discredited some of the more fashionable Internet-driven business models that stodgy IBM was previously compared against. couching the discussion in business-centric manners with initiatives like ecommerce and On Demand. And in 1988. It added sexual orientation to its non-discrimination practices in 1984.[42] Change was manifested in IBM in other ways as well.[44] Gerstner retired at the end of 2002.[41] And it supported open source initiatives. Ph. that it had learned from its near death experiences. and that it had been fundamentally changed by them. [edit] Topics. distribution (DMAS) and manufacturing (MMAS).. the company remained aggressive in preaching to the industry that it was not the Old IBM. and was replaced by long-time IBMer Samuel J. the first woman to hold an executive position at IBM. & Sales Analysis) 1983 saw the announcement of the System/36. It sought to redefine the Internet age in ways that played to traditional IBM strengths. and women to work. The result was a coherent. Another part of the successful reentry into the popular mindset was the company's revival of the IBM brand. forming collaborative ventures with partners and competitors alike. IBM announced the AS/400. consistent message to the marketplace. The company revamped its scattershot philanthropic practices to bring a sharp focus on improving K-12 education. On the human resources front. Inventory Control. and Linda Sanford. in 1995 created executive diversity task forces. Australia. and technologies [edit] Products and technologies [edit] BICARSA (Billing. first woman to be named an IBM site general manager.D. & Sales Analysis (BICARSA ) applications for specific industries: construction (CMAS).[43] And in 1996. sometimes discordant voices in the marketplace. the Women in Technology International Hall of Fame inducted three IBMers as part of its inaugural class of 10 women: Ruth Leach Amonette. the replacement for the System/34. presenting many different.

By the end of the 1980s. operating systems had assumed a much larger role. and risk. including: TPF. z/VM Special purpose systems. z/OS DOS family. IBM had almost completely withdrawn from the BICARSA applications the RPG II language. if they were to propose a third-party application to a customer. DOS/VSE. complexity. IBM sales representatives were now able to work openly with application software houses as partners. OS/VS2. to microprocessors and beyond. to integrated circuits. By the time of the System/360. to also list at least two other third-party vendors in the IBM proposal. a 'rule of three' operated.) [edit] Evolution of IBM's computer hardware The story of IBM's hardware is intertwined with the story of the computer industry ± from vacuum tubes. This caused some amusement to the customer. which obliged IBM sales representatives. Because of developments in the antitrust cases against IBM brought by the US government and European Union. importance. MVS. VM/370. and were essentially viewed as an adjunct to the hardware. OS/MFT. in terms of cost. operating systems represented a relatively modest level of investment. including: CP/CMS. VM/XA. who would typically have engaged in intense negotiations with one of the third parties and probably not have heard of the other two vendors. Mainframe operating systems include: y y y y OS family. DOS/VS. z/TPF Other platforms with important operating systems include: . On early systems. including: DOS/360. OS/MVT. The following systems and series represent key steps: y y y y y y y y y y y y y y y IBM 700/7000 series IBM 1400 series System/360 System/3 System/370 System/38 IBM Series/1 IBM 801 RISC processor IBM PC PowerPC System/390 AS/400 RS/6000 zSeries Cell processor [edit] Evolution of IBM's operating systems IBM operating systems have paralleled hardware development. to transistors. VM/ESA. however. including: OS/360. z/VSE VM family. (For a period in the early 1980s. OS/390. OS/VS1.

IBM often placed itself in a compromised position. . All IBM projects faced the risk of being seen as competing against company priorities. like those from many other vendors. gas. IBM had a significant role in the following major computer languages: y y y y y y y FORTRAN for years. This was because. IBM. The importance of IBM's large computer business placed strange pressures on all of IBM's attempts to develop other lines of business. IBM i5/OS and IBM i [edit] High-level languages Early IBM computer systems. and water utilities. in particular. Customers were forced to move on to new technologies from other vendors. It later became embroiled in a complex litigation with SCO group over intellectual property rights related to the UNIX and Linux platforms. A case in point is IBM's GFIS products for infrastructure management and GIS applications. IBM embraced open source technologies in the 1990s.y y y AIX family. SQL a relational query language developed for IBM's System R. now the standard RDBMS query language Rexx a macro and scripting language based on PL/I syntax originally developed for Conversational Monitor System (CMS) and authored by IBM Fellow Mike Cowlishaw [edit] IBM and AIX/UNIX/Linux/SCO IBM developed a schizophrenic relationship with the UNIX and Linux worlds. IBM stumbled badly in the 1990s trying to build workstation-based solutions to replace its old mainframe-based products. including: OS/400. including: AIX Linux family. standard language for business applications PL/S an internal systems programming language proprietary to IBM RPG originally an acronym for 'Report Program Generator' on the mainframes to produce reports from data files. Computer science efforts through the 1950s and early 1960s led to the development of many new high-level languages (HLL) for programming. helped create barriers that tended to lock customers into a single platform. if a customer decided to build an application on an RS/6000 platform. many felt betrayed by IBM. were programmed using assembly language. the dominant language for mathematics and scientific programming PL/I an attempt to create a "be all and end all" language COBOL eventually the ubiquitous. IBM played a complicated role in this process. Despite long having a dominant position in such industries as electric. including: Linux for pSeries OS/400 family. this also meant that a decision had been made against a mainframe platform. So despite having some excellent technology. General Systems Division enhanced the language to HLL status on its midrange systems to rival with COBOL. Hardware vendors were naturally concerned about the implications of portable languages that would allow customers to pick and choose among vendors without compatibility problems.

sorters. However. with a wide range of projects ranging from the U. artificial "armslength" relationship was created separating IBM's computer business from its service organizations. had experienced delays to its first customer shipment since announcement in 1978. a complex. collators.S.S. a huge services firm that competed with the likes of Electronic Data Systems or Computer Sciences Corporation. This situation persisted for decades. As a result. accounting machines) Punched card manufacture Military products (Browning Automatic Rifle. Instead. the "brains" of each Saturn rocket was the Instrument Unit built by the IBM Space Systems Center in Huntsville. The System/38. IBM disbanded the organization that had meant the Data Processing Division sold only mainframes to large customers while the General Systems Division sold only S/3x machines to small and medium-sized customers. These projects spanned mundane administrative processing to top secret supercomputing. Federal Government.S. An example was IBM Global Services. System/32 and System/34. computing cheese slicers. blood cell separators) [edit] Organization [edit] Federal Systems Division A significant part of IBM's operations were dedicated to the support of the U.[citation needed] [edit] Non-computer lines of business IBM has largely been known for its dominance of the computer business. [edit] IBM service organizations IBM's early dominance of the computer industry was in part due to its strong professional services activities. prostheses. the new ISM (for small and medium customers) and ISAM divisions (large customers) could sell from the entire IBM portfolio. IBM's advantage in building software for its own computers eventually was seen as monopolistic. copiers. it has had significant roles in many other industries. In 1982. east coast) Medical instruments (heart lung machine. computing scales) Time recorders (punch clocks. with its radical architecture. bombsights) Stadium scoreboards Real estate (at one time owning vast tracts of undeveloped land on the U. word processors. printers) Electric and electronic tabulating equipment (keypunches. . leading to antitrust proceedings. In NASA's Apollo Program. IBM consolidated the market position its General Systems Division had built in the 1970s with the System/3. Alabama. school and factory clocks) Typewriters and other office products (dictation machines.[edit] Midrange systems In the midrange arena. Census Bureau to the Department of Defense to the National Security Agency. Major areas of non-computer operation have included: y y y y y y y y y Food services (meat and coffee grinders.

This decision vastly expanded the market for independent computing services companies. Two of the most popular systems were the large scale PABX coined ROLM CBX and the smaller PABX coined ROLM Redwood. Marcel Breuer. and artists to design IBM products. At the time. which remained free to customers. which remained free and provided at the discretion of IBM. which were charged for. [edit] Topics and events [edit] Corporate Design Program In the mid-1950s. was struck by how poorly IBM was handling corporate design. Until this time customers did not pay for software or services separately from the very high price for leasing the hardware. designers. education and training. IBM software was divided into two main categories: System Control Programming (SCP). This helped enable the creation of a software industry. the unbundling of services was perhaps the most contentious point. Quoting from the abstract to a widely-read IEEE paper on the topic:[46][47] Many people believe that one pivotal event in the growth of the business software products market was IBM's decision.. IBM services were divided into two categories: general information. Jr. which were subject to a separate charge and were open to non-IBM customers. exhibits and graphics.[45] [edit] Unbundling of software and services in 1969 In 1969 IBM "unbundled" software and services from hardware sales. John Bolles. services (systems engineering. The list of Noyes contacts includes such iconic figures as Eero Saarinen. Isamu Noguchi and Alexander Calder. involving antitrust issues that had recently been widely debated in the press and the courts.[edit] ROLM Communication Systems Division In 1984 IBM partnered with ROLM Communications based in Santa Clara. and on-the-job assistance and training of customer personnel. system installation) were provided free of charge at the discretion of the IBM Branch office. in 1969. Thomas J. Paul Rand. He hired design consultant Eliot Noyes to oversee the creation of a formal Corporate Design Program. generally in source code form. . CA to develop digital telephone switches to compete directly with Northern Telecom and AT&T. This transformed the customer's value proposition for computer solutions. Watson. However. world class look and feel at IBM. to price its software and services separately from its hardware. IBM's unbundling of software had long-term impact. and charged Noyes with creating a consistent.[48][49] Similarly. structures. Mies van der Rohe. and Program Products (PP). After the unbundling. Over the next two decades Noyes hired a host of influential architects. Software was provided at no additional charge. giving a significant monetary value to something that had hitherto essentially been free. ROLM was later acquired by Siemens AG in 1990 and the ROLM name was eventually dropped by the mid-1990s and rebranded as Siemen's Hi-Com PBX's. This practice existed throughout the industry.

[55] 1923: IBM Germany . assumes the General Manager position for C-T-R.[52] 1914: First disabled employee IBM hires its first disabled employee. [edit] 1880s±1937 1890: Punched cards The U.S. the Computing Scale Corporation. reducing a 10-year process to two years and saving the government $5 million. Census Bureau contracts to use Herman Hollerith's punched card tabulating technology on the 1890 census. Less than a year later he becomes President of the firm. New York. Ontario. Michigan.TabulatingRecording Company (C-T-R) manufactures and sells machinery ranging from commercial scales and industrial time recorders to meat and cheese slicers. a noted trust organizer. Dayton.C. Detroit. Hollerith's Tabulating Machine Company is later merged into what becomes IBM. and the Bundy Manufacturing Company. volunteer study clubs. Over the next two decades the program would expand to include management education. Watson Sr. The combined Computing.[51] 1914: Watson arrives Thomas J. by era. D.[54] 1916: Employee education IBM invests in its employees and creates an education program.[edit] Key events A bullet point list of key events in IBM history. Watson. Washington. Sr. engineers the merger of four companies: the Tabulating Machine Company. based on the slogan coined by Thomas J. Based in New York City. Ohio.. the International Time Recording Company. and the construction of the IBM Schoolhouse in 1933.[53] 1915: "THINK" signs IBM's ubiquitous "THINK" signs. Hollerith's punched cards become the tabulating industry standard for input for the next 70 years. and Toronto. along with tabulators and punched cards.300 employees and offices and plants in Endicott and Binghamton..[50] 1911: Formation Charles Flint. and are used in the company for the first time. the new company had 1.

1934: Elimination of piece-work Watson. and records totals. C-T-R's name was formally changed to International Business Machines Corporation (IBM). IBM with its overstocked inventory is consequently positioned to win the landmark government contract. 1924. IBM keeps its factories producing new machines even while demand is slack.[59] 1935: Social Security Administration During the Great Depression.[57] 1934: Scientific computing IBM partners with Columbia University to create the world's first tabulating machine data center dedicated to scientific research. which is called "the biggest accounting operation of all time. The name was first used by the company's Canadian subsidiary in 1917. A new type of proof machine. endorses them. places IBM's factory employees on salary. to more accurately reflect the company's aspirations and mission. 1934 Group life insurance IBM creates a group life insurance plan for all employees with at least one year of service. It dramatically improves the efficiency of the check clearing process.[52] 1927: IBM Italy IBM opens its first office in Italy in Milan.[60] 1937: IBM 805 test scoring machine . 1933: 40-hour week IBM introduces the 40-hour week for both manufacturing and office locations.[58] 1934: IBM 801 The IBM 801 Bank Proof machine to clear bank checks is introduced. When Congress passes the Social Security Act in 1935.[56] 1924: International Business Machines Corporation On February 14. the 801 lists and separates checks.IBM acquires majority ownership of the German tabulating firm Deutsche Hollerith Maschinen Groupe (Dehomag). Watson Astronomical Computing Bureau.. Sr. The lab would be later named the Thomas J. eliminating piece-work and providing employees and their families with an added degree of economic stability. and starts selling and operating with National Insurance and Banks.

In 1961. Watson Sr. New York. The 805's innovative pencil-mark sensing technology gives rise to the ubiquitous phrase.IBM's Rey Johnson designs the IBM 805 to greatly speed the process of test scoring. [61] 1937: Berlin conference As president of the International Chamber of Commerce. New York. the Automatic Sequence Control Calculator (ASCC). Watson. While there he accepts a Merit Cross of the German Eagle with Star medal from the Nazi government honoring his activities on behalf of world peace and international trade. (he later returned it)[62][63] [edit] 1938±1951 1938: New headquarters When IBM dedicates its new World Headquarters on 590 Madison Avenue. the company has operations in 79 countries. and IBM contributes to the UNCF's fund-raising efforts. multiplication in six seconds. in January 1938.[66] 1944: ASCC IBM introduces the world's first large-scale calculating computer. the Watson Scientific Computing Laboratory.[67] 1944: United Negro College Fund IBM President Thomas J.J. New York. and division in 12 seconds. Designed in collaboration with Harvard University. also known as the Mark I.[68] 1945: IBM's first research lab IBM's first research facility.. Kansas.[69] 1946: IBM 603 . joins the Advisory Committee of the United Negro College Fund (UNCF). Watson Research Center in Yorktown Heights. uses electromechanical relays to solve addition problems in less than a second. and soon the company is asked to join the President's Committee for Employment of the Handicapped.. Sr. opens in a renovated fraternity house near Columbia University in Manhattan. the ASCC. Please completely fill in the oval. The next year classes begin in New York City.[64] 1942: Training for the disabled IBM launches a program to train and employ disabled people in Topeka. presides over the ICC's 9th Congress in Berlin.[65] 1943: Equal opportunity IBM appoints its first female vice president. IBM moves its research headquarters to the T.

[76] 1952: First California research lab . IBM President Thomas J.400 ideographic type faces are engraved.[70] 1946: Chinese character typewriter IBM introduces an electric Chinese ideographic character typewriter.[72] 1948: IBM SSEC IBM's first large-scale digital calculating machine. The 701. the Selective Sequence Electronic Calculator (SSEC). making it possible for fragile magnetic tape to become a viable data storage medium."[75] 1952: Magnetic tape vacuum column IBM introduces the magnetic tape drive vacuum column. IBM has been a partner to NASA and the aerospace industry. its first large-scale electronic computer to be manufactured in quantity.000 vacuum tubes and 21. as the technology becomes widely adopted throughout the industry.[71] 1946: First black salesman IBM hires its first Black salesman.[74] 1952: IBM 701 IBM throws its hat into the computer business ring by introducing the 701. Watson. The use of the vacuum column in the IBM 701 system signals the beginning of the era of magnetic storage. 18 years before the Civil Rights Act of 1964. It had begun its development as part of a program to make a "super calculator" that would perform faster than 1944's ASCC by using electronics. the first commercial product to incorporate electronic arithmetic circuits. Jr. The SSEC is the first computer that can modify a stored program.000 electromechanical relays. is announced. later recalled. is "the machine that carried us into the electronics business. The 603 used vacuum tubes to perform multiplication far more rapidly than earlier electromechanical devices. The machine utilizes a cylinder on which 5.IBM announces the IBM 603 Electronic Multiplier. and featured 12.[73] [edit] 1952±1963 1950s: Space exploration From developing ballistics tables during World War II to the design and development of intercontinental missiles to the launching and tracking of satellites to manned lunar and shuttle space flights.. which allowed an experienced user to type at a rate of 40 to 45 Chinese words a minute.

[83] . Jr.. most powerful electronic computer of its time: the Naval Ordnance Research Computer (NORC): for the U. the lab begins to make its mark by inventing magnetic storage systems. publishes the company's first written equal opportunity policy letter: one year before the U. nearly 2.000 per megabyte." Within four years.[79] 1954: NORC IBM develops and builds the fastest. Produced in California.[81] 1956: Consent decree The United States Justice Department enters a consent decree against IBM in 1956 to prevent the company from becoming a monopoly in the market for punched-card tabulating and. Supreme Court decision in Brown vs.IBM opens its first West Coast lab in San Jose. Navy Bureau of Ordnance.S. California: the area that decades later will come to be known as "Silicon Valley. IBM's first hard disk stored about 2. electronic data-processing machines.000 of the 650 are sold by 1962.[77] 1953: The first heart lung machine Dr. later.[82] 1956: Corporate design IBM hires noted designer Eliot Noyes and launches a formal corporate design program.[75] 1953: Equal opportunity policy letter Thomas J. A hit with both universities and businesses. an intermediate size electronic computer. The decree requires IBM to sell its computers as well as lease them and to service and sell parts for computers that IBM no longer owned. Watson.000 bits of data per square inch and cost about $10. John Gibbon and his associates. making it the most popular computer of the 1950s: the Model T of computing. performs the first successful open-heart operation in which all the functions of the patient's heart and lungs are temporarily carried on by the machine.[80] 1956: First magnetic hard disk IBM introduces the world's first magnetic hard disk for data storage. to handle widely diversified accounting and scientific computations. using an IBM-built heart-lung bypass machine.S. RAMAC (or Random Access Method of Accounting and Control) offers unprecedented performance by permitting random access to any of the million characters distributed over both sides of 50 two-foot-diameter disks. By 1997. the cost of storing a megabyte had dropped to around ten cents.[78] 1953: IBM 650 IBM announces the IBM 650 Magnetic Drum Calculator. Board of Education and 11 years before the Civil Rights Act of 1964.

. Watson Sr. Samuel of IBM's Poughkeepsie. The meeting resulted in a new organizational structure that featured a six-member corporate management committee and delegated more authority to business unit leadership. Watson Jr.. the Speak Up! Program was first created in San Jose. laboratory programs an IBM 704 to play checkers using a method in which the machine can learn from its own experience. Sr.[89] 1958: Open Door program First implemented by Watson.[86] 1956: Artificial intelligence Arthur L. It was the first major meeting IBM had ever held without Thomas J. [84] 1956: Changing hands Watson Sr.. which soon becomes the most widely used computer programming language for technical work. Sr. FORTRAN is still the basis for many important numerical analysis programs.. and it marked the emergence of a second generation of IBM leadership.. himself.[88] 1958: SAGE The SAGE (Semi-Automatic Ground Environment) computer is built under contract to MIT's Lincoln Laboratories for the North American Air Defense System. Virginia. gathered some 100 senior IBM executives together for a special three-day meeting in Williamsburg.[87] 1957: FORTRAN IBM revolutionizes programming with the introduction of FORTRAN (Formula Translator). in the 1910s. retires and hands IBM to his son.. New York. IBM formalized this practice into policy in 1958 with the creation of the Open Door Program. Senior passes away soon after. It is believed to be the first self-learning program.[90] 1959: Speak up A further example of IBM's willingness to solicit and act upon employee feedback. up to and including Watson.[91] 1959: IBM 1401 .[85] 1956: Williamsburg conference Watson Jr. a demonstration of the concept of artificial intelligence.1956: First European research lab IBM opens its first research lab outside the United States. in the Swiss city of Zurich. the Open Door was a traditional company practice that granted employees with complaints hearings with senior executives.

Its versatility in running enterprise applications of all kinds helps it become the most popular computer model in the world in the early 1960s. Stretch fall short of its original design objectives. and excellence.[97] 1962: Basic beliefs Drawing on established IBM policies. and is not a commercial success.[94] 1961: T. an application that allows IBM 1401 users to produce reports. But it is a visionary product that pioneers numerous revolutionary computing technologies which are soon widely adopted by the computer industry. which launches the era of high-speed. SABRE linked high speed computers and data communications to handle seat inventory and passenger records. core-memory. opening the Thomas J.IBM introduces the 1401.[92] 1959: IBM 1403 IBM introduces the 1403 chain printer. Watson Research Center which remains IBM's largest research facility.[96] 1961: Report program generator IBM offers its Report Program Generator.[93] 1961: Stretch IBM delivers its first 7030 Stretch supercomputer. Jr.J.. customer service. The machine won numerous awards for its design and functionality. becoming a feature offered in subsequent generations of computers. Watson. high-volume impact printing.[95] 1961: THE IBM Selectric typewriter IBM introduces the Selectric typewriter product line. The 1403 will not be surpassed for print quality until the advent of laser printing in the 1970s. physical science and mathematics. NY. Thomas J. giving rise to the concepts of word processing and desktop publishing. This capability was widely adopted throughout the industry. the first high-volume.[99] . As the first airline reservation system to work live over phone lines. stored-program.[98] 1962: SABRE Two IBM 7090 mainframes formed the backbone of the SABRE reservation system for American Airlines. It played an important role in the successful introduction of computers into small businesses. transistorized computer. centering on semiconductors. codifies three IBM basic beliefs: respect for the individual. Later Selectric models feature memory. Watson Research Center IBM moves its research headquarters from Manhattan to Westchester County. computer science.

and gave rise to desktop word processing. Department of Defense and NASA requirements. IBM scientists complete the most precise computation of the Moon's orbit and develop a fabrication technique to connect hundreds of circuits on a silicon wafer. a product which pioneered the application of magnetic recording devices to typewriting. having hosted more than 10 million visitors during its two-year existence. DRAM chips become the mainstay of modern computer memory systems: the crude oil of the information age is born. Referred to then as "power typing. and space.S.[106] 1967: Fractals .[104] 1966: Memory chips IBM invents one-transistor Dynamic Random Access Memory (DRAM) cells which permit major increases in memory capacity.[edit] 1964±1971 1964: System/360 In the most important product announcement in company history to date. sea. The concept of a compatible "family" of computers transforms the industry." the feature of revising stored text improved office efficiency by allowing typists to type at "rough draft" speed without the pressure of worrying about mistakes. New York. IBM introduces the IBM System/360: a new concept in computers which creates a "family" of small to large computers incorporating IBM-designed Solid Logic Technology (SLT) microelectronics and uses the same programming instructions.[100] 1964: Word processing IBM introduces the IBM Magnetic Tape Selectric Typewriter.[105] 1966: System/4Pi IBM ships its first System/4Pi computer.[102] 1965: Gemini space flights A 59-pound onboard IBM guidance computer is used on all Gemini space flights. designed to meet U.[103] 1965: World Fair The IBM Pavilion at the New York World's Fair closes. including the first spaceship rendezvous. More than 9000 units of the 4Pi systems are delivered by the 1980s for use in the air.[101] 1964: New corporate headquarters IBM moves its corporate headquarters from New York City to Armonk.

nearly all database structures are based on the IBM concept of relational databases.[111] 1969: First moon landing IBM personnel and computers help NASA land the first men on the Moon. CICS remains to this day the industry's most popular transactions monitor. The suit becomes a draining war of attrition. This new geometry makes it possible to mathematically describe the kinds of irregularities existing in nature. Two years later.IBM researcher Benoit Mandelbrot conceives fractal geometry the concept that seemingly irregular shapes can have identical structure at all scales. art. Today. These machines mark the first commercial use of organic photoconductors which since grew to become the dominant technology.[107] 1968: Customer Information Control System IBM introduces the Customer Information Control System (CICS) transaction monitor.[108] 1969: Antitrust The United States government launches what would become a 13-year-long antitrust suit against IBM. 1971: Speech recognition . jump starting the credit card industry. 1970: Relational databases IBM introduces relational databases which call for information stored within a computer to be arranged in easy-to-interpret tables to access and manage large amounts of data. and customer education courses.[110] 1969: Magnetic stripe cards The American National Standards Institute makes the IBM-developed magnetic stripe technology a national standard. economics. 1970: Office copiers IBM introduces its first of three models of xerographic copiers.[109] 1969: Unbundling IBM adopts a new marketing policy that charges separately for most systems engineering activities. future computer programs. making it a world standard. metallurgy. health sciences. and is eventually dropped in 1982. The concept greatly impacts the fields of engineering. This "unbundling" gives rise to a multibillion-dollar software and services industry. the International Organization for Standardization adopts the IBM design. and computer graphics and animation.

[112] 1971: Floppy disk IBM introduces the floppy disk. SNA becomes the most widely used system for data processing until more open architecture standards were approved in the 1990s.[115] 1974: SNA IBM announces Systems Network Architecture (SNA). lighter read/write head that was designed to ride on an air film only 18 millionths of an inch thick.000 words and a 260. This new geometry makes it possible to describe mathematically the kinds of irregularities existing in nature.000 words. an advanced technology which more than doubled the information density on disk surfaces. his work in the field of semiconductors lays a foundation for further exploration in the electronic transport of solids. Fractals later make a great impact on engineering.[114] 1973: Nobel Prize Dr.000-word back-up dictionary. an IBM Fellow who joined the company in 1960. and are also applied in the field of computer graphics and animation. national. which enables engineers servicing equipment to talk to and receive spoken answers from a computer that can recognize about 5. More importantly.IBM achieves its first operational application of speech recognition. SNA is a uniform set of rules and procedures for computer communications to free computer users from the technical complexities of communicating through local.[113] [edit] 1972±1992 1973: Winchester storage technology The IBM 3340 disk unit known as Winchester after IBM's internal project name is introduced. Winchester technology was adopted by the industry and used for the next two decades. metallurgy. His discovery of the semiconductor junction called the Esaki diode finds wide use in electronics applications. art and health sciences.[116] 1975: Fractals IBM researcher Benoit Mandelbrot conceives fractal geometry the concept that seemingly irregular shapes can have identical structure at all scales. a networking protocol for computing systems. the floppy becomes a personal computer industry standard for storing data. economics. It featured a smaller. IBM's ViaVoice recognition technology has a vocabulary of 64.[117] 1975: IBM 5100 Portable computer . shares the 1973 Nobel Prize in physics for his 1958 discovery of the phenomenon of electron tunneling. and international computer networks. Leo Esaki. Today. Convenient and highly portable.

and establishes IBM's leadership in "areal density": storing the most data in the least space.[118] 1976: Space shuttle The Enterprise. carrying flight computers and special hardware built by IBM. IBM's support of the UPC concept helps lead to its widespread acceptance by retail and other industries around the world. IBM introduces the 3270 Kanji Display Terminal. the 5100 can serve as a terminal for the System/370 and costs from $9000 to $20.000 Japanese and Chinese characters.000. IBM has worked to overcome cultural and physical barriers to the use of technology. and remains a workhorse for billing and accounts receivable departments. premium notices.S. a 50 lb. 1976: Laser printer The first IBM 3800 printer is installed. California. makes its debut at Palmdale. The technology speeds the printing of bank statements. As part of these ongoing efforts.[120] 1979: Retail checkout IBM develops the Universal Product Code (UPC) in the 1970s as a method for embedding pricing and identification information on individual retail items. is adopted by the U. National Bureau of Standards as a national standard. The result is higher-capacity and higher-performance disk drives.[122] 1979: Overcoming barriers to technology use Since 1946. one of the first major commercial uses of holography. IBM researchers substitute thin film "wires" patterned by optical lithography.IBM introduces the 5100 Portable Computer. Space Shuttle program. with its announcement of Chinese and Arabic ideographic character typewriters. the System/34 with an ideographic feature.[121] 1979: Thin film recording heads Instead of using hand-wound wire structures as coils for inductive elements. and other problem-solvers. and other high-volume documents. This leads to higher performance recording heads at reduced cost. The 3800 is the first commercial printer to combine laser technology and electrophotography. More luggable than portable. statisticians. a cryptographic algorithm.[123] . analysts. In 1979. and the Audio Typing Unit for sight-impaired typists.S.[119] 1977: Data encryption standard IBM-developed Data Encryption Standard (DES). the first vehicle in the U. which processes more than 11. desktop machine that put computer capabilities at the fingertips of engineers. IBM applies holographic scanner technology in IBM's supermarket checkout station to read the UPC stripes on merchandise.

filed in 1969.[129] 1983: PCjr IBM announces the widely anticipated PCjr.1980: Thermal conduction modules IBM introduces the 3081 processor..[126] 1981: Lasik surgery Three IBM scientists invent the Excimer laser surgical procedure that later forms the basis of LASIK and PRK corrective eye surgeries. IBM's attempt to enter the home computing marketplace. Inc. the company's most powerful to date. The product. is dismissed as being "without merit. RISC simplified the instructions given to computers. A year later. Today. Today. making them faster and more powerful."[128] 1982: Trellis-coded modulation Trellis-coded modulation (TCM) is first used in voice-band modems to send data at higher rates over telephone channels. In 1990.[124] 1980: RISC architecture IBM successfully builds the first prototype computer employing IBM Fellow John Cocke's RISC (Reduced Instruction Set Computer) architecture. TCM is applied in a large variety of terrestrial and satellitebased transmission systems as a key technique for achieving faster and more reliable digital transmission. and its unfortunate chiclet keyboard design. which features Thermal Conduction Modules. the Institute of Electrical and Electronics Engineers. RISC architecture is the basis of most workstations and widely viewed as the dominant computing architecture. however. fails to capture the fancy of consumers due to its lack of compatibility with IBM PC software.[125] 1981: IBM PC The IBM Personal Computer goes mass market and helps revolutionize the way the world does business. Time Magazine gives its Person of the Year award to the Personal Computer.[127] 1982: Antitrust suit The United States antitrust suit against IBM.. awards its 1990 Corporate Innovation Recognition to IBM for the development of the Multilayer Ceramic Thermal Conduction Module for high performance computers.[130] 1984: IBM 3480 magnetic tape system . IBM terminates the product after 18 months of disappointing sales. its higher price point.

introduces a new generation of tape drives that replace the familiar reel of tape with an easy-to-handle cartridge. linked in parallel and connected to as many as two billion characters of main memory. Binnig and Rohrer are recognized for developing a powerful microscopy technique which permits scientists to make images of surfaces so detailed that individual atoms may be seen. The 3480 was the industry's first tape system to use thin-film recording head technology. an experimental computer consisting of up to 512 processors. technology and computer science.[131] 1985: RP3 Sparked in part by national concerns over losing its technology leadership crown in the early 1980s. Binnig and Heinrich Rohrer of the IBM Zurich Research Laboratory win the 1986 Nobel Prize in physics for their work in scanning tunneling microscopy. Georg Bednorz and IBM Fellow K.[134] 1986: Nobel Prize: STM IBM Fellows Gerd K. IBM researchers worked with scientists from the New York University's Courant Institute of Mathematical Science to design RP3.[136] 1987: Antivirus tools .[132] 1985: Token Ring Network IBM's Token Ring technology brings a new level of control to local area networks and quickly becomes an industry standard for networks that connect printers. the IBM 3480. Almaden is IBM's second-largest laboratory focused on storage systems. IBM provides more than $30 million in products and support to a supercomputer facility established at Cornell University in Ithaca. Alex Mueller of IBM's Zurich Research Laboratory receive the 1987 Nobel Prize for physics for their breakthrough discovery of high-temperature superconductivity in a new class of materials.[133] 1986: Almaden Research Center IBM Research dedicates the Almaden Research Center in California. IBM re-enters the supercomputing field with the RP3. 1984: Sexual discrimination IBM adds sexual orientation to the company's non-discrimination policy. New York. Drs. Over the next five years.[135] 1987: Nobel Prize: High Temperature Superconductivity J. Today.The industry's most advanced magnetic tape system. IBM becomes one of the first major companies to make this change. They discover superconductivity in ceramic oxides that carry electricity without loss of energy at much higher temperatures than any other superconductor. workstations and servers.

to travel across the Internet. noise and power capabilities. This is the first in the IBM Independence Series of products for computer users with special needs.[138] 1988: AS/400 IBM introduces the IBM Application System/400 (AS/400).5M bps (T1) and later 45M bps (T3). IBM incorporates complementary metal oxide silicon (CMOS) based processors into System/390 Parallel Enterprise Server in 1995. Introducing germanium into the base layer of an otherwise all-silicon bipolar transistor allows for significant improvements in operating frequency.[140] 1989: Silicon germanium transistors By replacing more expensive and exotic materials like gallium arsenide with silicon germanium (known as SiGe). a new family of easy-to-use computers designed for small and intermediate-sized companies. HICL goes on to pioneer the science of theoretical and observational computer virus epidemiology. a small research group at IBM develops. a suite of antivirus tools.[139] 1988: NSFNET IBM collaborates with the Merit Network. And in 1988 the IBM Personal System/2 Screen Reader is announced. permitting blind or visually impaired people to hear the text as it is displayed on the screen in the same way a sighted person would see it. current.[141] 1990: System/390 IBM makes its most comprehensive product announcement in 25 years by introducing the System/390 family. practically overnight. This partnership provides the network infrastructure and lays the groundwork for the explosive growth of the Internet in the 1990s.As personal computers become vulnerable to attack from viruses. and in 1998 the System/390 G5 .[137] 1987: Special needs access IBM Researchers demonstrate the feasibility for blind computer users to read information directly from computer screens with the aid of an experimental mouse. MCI Communications. not only making it faster. and the National Science Foundation to upgrade and expand the 56K bit per second National Science Foundation Network (NSFNET) to 1. but also allowing more intensive forms of data.000 software packages in the biggest simultaneous applications announcement in computer history. The NSFNET upgrade boosts network capacity. such as the graphics now common on the World Wide Web. As part of the introduction. the State of Michigan. IBM creates faster chips at lower costs. The AS/400 quickly becomes one of the world's most popular business computing systems. The effort leads to the establishment of the High Integrity Computing Laboratory (HICL) at IBM. IBM and IBM Business Partners worldwide announce more than 1.

where scientists created the world's first structure: the letters IB-M assembled one xenon atom at a time. making it the world's most powerful mainframe. The technique is demonstrated at IBM's Almaden Research Center in San Jose.Parallel Enterprise Server 10-way Turbo model smashed the 1. and many feel IBM is no longer a viable player in the industry. Housed in a distinctive black case and featuring the innovative TrackPoint device nestled in the middle of the keyboard. a family of nine workstations that are among the fastest and most powerful in the industry. health and safety goals by continuously improving environmental management practices and performance.[144] 1990: Environmental programs IBM joins 14 other leading U. The misreads hit the bottom line hard: IBM loses more than $8 billion in 1993.[142] 1990: RISC System/6000 IBM announces the RISC System/6000. Since 1991. The new business becomes one of IBM's primary revenue streams.[147] [edit] 1993±present 1993: Billion dollar losses IBM misreads two significant trends in the computer industry: personal computers and clientserver computing: and as a result is poorly positioned in the marketplace.[146] 1992: Thinkpad IBM introduces a new line of notebook computers.[145] 1991: Services business IBM reenters the computer services business through the formation of the Integrated Systems Solution Corporation. The RISC System/6000 uses Reduced Instruction Set Computer technology. California. the ThinkPad is an immediate hit and goes on to collect more than 300 awards for design and quality. corporations in April to establish a worldwide program designed to achieve environmental. in just four ISSC becomes the second largest provider of computer services. its third straight year of billion dollar losses. the company has lost $16 billion. using a scanning tunneling microscope. Still in compliance with the provisions of the 1956 Consent Decree.[148] .000 MIPS barrier. an innovative computer design pioneered by IBM that simplifies processing steps to speed the execution of commands.S. IBM has invested more than $1 billion since 1973 to provide environmental protection for the communities in which IBM facilities are located.[143] 1990: Moving individual atoms IBM scientists discover how to move and position individual atoms on a metal surface.

the products become one of IBM's most successful storage product launches ever.000 systems shipped to customers in its first three months of availability. software. mass-produced computer processors rather than relying on one larger. With features like highly parallel processing. software that gives people a hands-free way to dictate text and navigate the desktop with the power of natural.[152] 1994: Speech recognition IBM releases the IBM Personal Dictation System (IPDS). IBM has a leader pulled from outside its ranks. Consisting of the RAMAC Array Direct Access Storage Device (DASD) and the RAMAC Array Subsystem.[153] 1994: Reinventing education As part of IBM's reinvention of its corporate philanthropy function. the first of 10 grants is selected from 200 proposals for IBM's Reinventing Education Program. Watson. Over the next few years the company successfully charts a new business course. without touching a keyboard. RAMAC represents a major advance in information storage technology. consultants and . RAID 5 and redundant components. with almost 2.[150] 1994: Turnaround IBM reports a profit for the year. It is later renamed VoiceType. in 1914. and more on services. the first wave of speech recognition products for the personal computer. multilevel cache. Sr.1993: Gerstner Louis V. Jr. and had previously spent 11 years as a top executive at American Express. In 1997 IBM announces ViaVoice Gold.[149] 1993: Scalable Parallel Systems Technology IBM introduces the Scalable POWERparallel System. a project focusing on public school reform. IBM pioneers the breakthrough scalable parallel system technology of joining smaller. Gerstner.. For the first time since the arrival of Thomas J. Gerstner had been chairman and CEO of RJR Nabisco for four years. arrives as IBM's chairman and CEO on April 1. and its ability to craft technology solutions. Grant-winners receive the services of a project manager.[151] 1994: IBM RAMAC Array Storage Family The IBM RAMAC Array Family is announced. Complex queries could then be broken down into a series of smaller jobs than are run concurrently ( in parallel ) to speed their completion. its first since 1990. 1993. custom-designed processor. the first in a family of microprocessor-based supercomputers using RISC System/6000 technology. one that focuses less on its traditional strengths in hardware. and its capabilities are expanded to include control of computer applications and desktops simply by talking to them. continuous speech.

[155] 1995: Glueball calculation IBM scientists complete a two-year calculation the largest single numerical calculation in the history of computing to pin down the properties of an elusive elementary particle called a glueball.[158] 1996: Domestic partner benefits IBM announces Domestic Partner Benefits for gay and lesbian employees. whose pioneering Notes software enables greater collaboration across an enterprise and whose acquisition makes IBM the world's largest software company. a massively parallel computer at the Thomas J. The calculation was carried out on GF11. Deep Blue. defeats World Chess Champion Garry Kasparov in the first known instance of a computer vanquishing a reigning world champion chess player in tournament-style competition.[157] 1996: Atlanta Olympics IBM suffers a highly public embarrassment when its IT support of the Olympic Games in Atlanta experiences technical difficulties.[156] 1996: Austin research lab opens Based in Austin. Texas.[159] 1997: eBusiness IBM coins the term and defined an enornous new industry by using the Internet as a medium for real business and institutional transformation.[154] 1995: Lotus acquisition IBM acquires all of the outstanding shares of the Lotus Development Corporation.[161] . e-business becomes synonymous with doing business in the Internet age. the lab is focused on advanced circuit design as well as new design techniques and tools for very high performance microprocessors.[43] 1997: Deep Blue The 32-node IBM RS/6000 SP supercomputer. Watson Research Center.researchers to create customized solutions designed to break down barriers to academic achievement. IBM scientists develop new silicon-on-insulator chips to be used in the construction of a mainstream processor. The breakthrough ushers in new circuit designs and product groups.[160] 1998: CMOS Gigaprocessor IBM unveils the first microprocessor that runs at 1 billion cycles per second.

000 times more powerful than Deep Blue. powerful enough to process an Internet transaction for every person on Earth in less than a minute. combining organic and inorganic materials as a medium for semiconductors. enables data transfer within future nanoscale electronic circuits too small to use wires. This technology enables things like an "electronic newspaper". IBM built the supercomputer to accurately test the safety and effectiveness of the nation's aging nuclear weapons stockpile. This new phenomenon.[164] 2000: Flexible transistors IBM created flexible transistors.[167] 2001: Carbon nanotube transistors . IBM and the Holocaust: The Strategic Alliance Between Nazi Germany and America's Most Powerful Corporation by Edwin Black. the supercomputer that beat Garry Kasparov in chess in 1997. called the "quantum mirage" effect.[165] 2000: Sydney Olympics After a successful egagement at the 2000 Olympic games in Sydney.[163] 2000: Fastest supercomputer IBM delivers the world's most powerful computer to the US Department of Energy. Nicknamed "Blue Gene. Several lawsuits are filed against IBM by Holocaust victims seeking restitution for their suffering and losses.[166] 2001: Holocaust controversy A controversial book.1999: Blue Gene IBM Research starts a $100 million project to build a new supercomputer capable of more than one quadrillion operations per second (one petaflop). The quantum mirage technique is a unique way of sending information through solid forms and could do away with wiring that connects nanocircuit components." the new supercomputer perform 500 times faster than other powerful supercomputers and can simulate folding complex proteins. This computer is 1. accuses IBM of having knowingly assisted Nazi authorities in the perpetuation of the Holocaust through the provision of tabulating products and services. so lightweight and inexpensive that leaving one behind on the airplane or in a hotel lobby is no big deal. IBM ends its 40-year technology partnership with the International Olympic Committee. flexible transistors make it possible to create a new generation of inexpensive computer displays that can be embedded into curved plastic or other materials.[162] 2000: Nanotechnology IBM scientists discover a way to transport information on the atomic scale that uses electrons instead of conventional wiring. By eliminating the limitations of etching computer circuits in silicon.

storage systems.[168] 2001: Molecular computer circuit IBM researchers create the world's first logic-performing computer circuit within a single molecule. IBM also unveils strained silicon." a breakthrough that alters silicon to boost chip speeds by up to 35 percent.IBM researchers build the world's first transistors out of carbon nanotubes tiny cylinders of carbon atoms that are 500 times smaller than silicon-based transistors and 1.S. the Molecular Profiling Institute and the CHU Sainte-Justine Research Center to collaborate on cancer research by building state-of-the-art integrated information management systems. The breakthrough is an important step in finding materials that can be used to build computer chips when silicon-based chips can t be made any smaller.[170] 2001: Greater density & chip speeds IBM is first to mass-produce computer hard disk drives using a revolutionary new type of magnetic coating "pixie dust" that eventually quadruples data density of current hard disk drive products.[171] 2003: Blue Gene/L The BLUE GENE team unveils a proto-type of its Blue Gene/L computer roughly the size of a standard dishwasher that ranks as the 73rd most powerful supercomputer in the world.[172] 2005: War on cancer IBM joins forces with Memorial Sloan-Kettering Cancer Center (MSKCC). Lenovo. personal computers and ThinkPad notebook computers.000 times stronger than steel. forces in Iraq using bidirectional English to Arabic translation software that improves communication between .[173] 2005: The PC division is sold The PC division (including Thinkpads) is sold to Chinese manufacturer. which may lead to a new class of smaller and faster computers that consume less power than today's machines.[174] 2006: Translation software IBM delivers an advanced speech-to-speech translation system to U.[169] 2001: Low power initiative IBM launches its low-power initiative to improve the energy efficiency of IT and accelerates the development of ultra-low power components and power-efficient servers. This one cubic meter machine is small scale model of the full Blue Gene/L built for the Lawrence Livermore National Laboratory in California. which will be 128 times larger when it's unveiled two years later.

[180] 2011: Watson . IBM takes the No. IBM ranked 12th on the EPA's list of Green Power Partners for 2007. IBM purchased enough renewable energy in 2007 to meet 4% of its US electricity use and 9% of its global electricity purchases. Green Power centers allow IBM and its customers to cut their carbon footprint.000 patents in the US and over 40. From 1993 to 2007.[176] 2007: River watch In a unique collaboration. The IBM computer built for the "roadrunner project" at Los Alamos National Laboratory: the first in the world to operate at speeds faster than one quadrillion calculations per second: remains the world speed champion. The energy efficient facility is part of a $350 million investment by IBM in Boulder to help meet customer demand for reducing energy costs. 2 computer." a fundamentally new computer architecture that can examine thousands of information sources to help scientists better understand what is happening as it happens. The breakthrough software offsets the current shortage of military linguists.[175] 2007: Renewable energy IBM is recognized by the US EPA for its leading green power purchases in the US and for its support and participation in EPA's Fortune 500 Green Power Challenge. The Los Alamos system is twice as energy efficient as the No. The new data center features leading-edge technologies and services. The Beacon Institute and IBM created the first technology-based river monitoring network.[178] 2008: Super computer leadership For a record-setting ninth consecutive time. The River and Estuary Observatory Network (REON) allows for minute-tominute monitoring of New York's Hudson River via an integrated network of sensors. IBM was awarded over 38.000 US patents and has invested about $5 billion a year in research. development and engineering since 1996. IBM's commitment to green power helps cut greenhouse gas emissions. including high density computing systems with virtualization technology.000 patents worldwide is a direct result of that investment. This first-of-its-kind project is made possible by IBM's "Stream Computing. Colorado. robotics and computational technology. using about half the electricity to maintain the same level of computing power. IBM's current active portfolio is about 26.military personnel and Iraqi forces and citizens.[177] 2007: Patent power IBM has been granted more US patents than any other company.[179] 2008: Green power IBM opens its "greenest" data center in Boulder.1 spot in the ranking of the world's most powerful supercomputers.

IBM's supercomputer Watson will compete on the TV show Jeopardy against Ken Jennings and Brad Rutter. Jr.[181] [edit] See also IBM products and technologies y y y y y List of IBM products IBM magnetic disk drives IBM Personal Computer IBM Selectric typewriter IBM System/360 IBM organization y y y List of mergers and acquisitions by IBM IBM Global Services IBM Research IBM people y y y y Thomas J. The competition will be presented by PBS. Watson Thomas Watson. Louis V. IBM Fellow . Gerstner. Jr.