A Brief Introduction of IBM
IBM (INTERNATIONAL BUSINESS MACHINE)
International Business Machines, the largest computer company in the world IBM also known as the BIG BBLUE. IBM started in 1911 as a producer of punch card tabulating machines. In 1953, it introduced its first computer, the 701. During the 60’s and 70’s, IBM came to dominate the new field of mainframe and minicomputers. In 1981, IBM launched its first personal computer, called the IBM PC, which quickly became the standard. However, IBM underestimated the market for PCs and lost market share to vendors of PC compatibles.
WHAT IS IBM?
International Business Machines is easily the most historical of all US IT computer behemoths.
Beginning life as a typewriter company, Thomas Watson, famously placed signs in its offices with one word: Think
The question of what is IBM is today more apposite than ever.
Any company that is 100 years old has faced challenges and met them but today’s challenges are very different. It was founded in 1911 and is headquartered in Armonk, New York.
IBM is being digitally disrupted. The company is transitioning from being an infrastructure player to being a data-driven company.
It identifies itself as living in a constant state of innovation. One of IBM’s big pushes is around cognitive computing and its Watson platform.
Gini Rometty, the IBM CEO, said: “Digital is the wires, but digital intelligence, or artificial intelligence as some people call it, is about much more than that. This next decade is about how you combine those and become a cognitive business. It’s the dawn of a new era.”
IBM will continue to top the list for a number of US patents granted – it tops the charts every year.
IBM has been focused on continuous innovation for more than a century. Patenting is an important barometer of that innovation, and IBM has topped the annual list of U.S. patent recipients for the 20th consecutive year. From 1993-2012, IBM inventors received nearly 67,000 U.S. patents, and in 2012 alone, received a record 6,478 patents, exceeding the combined totals of Accenture, Amazon, Apple, EMC, HP, Intel, Oracle/SUN and Symantec.
The company’s R&D arm is immense. It works in areas of AI, cognitive computing, quantum computing, and nanowire storage.
Visit IBM’s research lab.
In 2015 it had revenues of $ 81 billion.
The firm describes itself as a globally integrated enterprise operating in over 170 countries. Today IBM UK has around 20,000
IBM’s FIRST 100 YEARS: A HEAVILY ILLUSTRATED TIMELINE
1889: Harlow Bundy incorporates the Bundy Manufacturing Company as the first time recording company in the world. It produces a time clock invented by his brother Willard (a jeweler in Auburn, New York) to record a worker’s arrival and departure time on a paper tape. The Bundy Manufacturing Company will be consolidated into one of IBM’s forerunners in 1902.
Charles R. Flint was the founder of the Computing-Tabulating-Recording Company, the forerunner of IBM. A businessman and financier, Flint brought together in 1907 the principals of three companies — the International Time Recording Company of Endicott, N.Y.; the Computing Scale Company of America, of Dayton, Ohio; and the Tabulating Machine Company of Washington, D.C. — to propose a merger. Talks and detailed planning among the parties continued until June 6, 1911, when the Computing-Tabulating-Recording Company (C-T-R) was incorporated as a holding company controlling the three separate firms. Flint remained a member of C-T-R’s board of directors until his retirement in 1930.
1900: The first decade of the 20th century was marked by a number business launches and consolidations, all of which eventually led to the formation of the Computing- Tabulating- Recording Company (C-T-R) – IBM’s predecessor – in 1911.
For example, the International Time Recording Company (ITR) was formed in 1900 and the Computing Scale Company of America was incorporated in 1901 – and these two businesses were two of the three chief components of C-T-R a decade later. ITR itself acquired other companies, such as the Dey Time Register Company, during this period, broadening the time recording equipment product line.
In addition, ITR outgrew its original manufacturing facilities, and built a modern factory in Endicott, New York, on the site of what later became an IBM Plant No. 1
1911: In 1911, IBM began operation as the Computing-Tabulating-Recording Company C-T-R-Co. Since then, IBM’s institutional career has mirrored both the rise of computing and modern corporations, two hallmarks of our age. The following timeline traces Big Blue’s adventures from its start as a company with $950,000 in revenue to its current state. Today, the multinational rakes in almost $100 billion a year and employs 450,000.
IBM’s precursor, the Computing-Tabulating-Recording Company (CTR), created by the merger of The International Time Recording Company Computing Scale Company, and the Tabulating Machine Company. The companies combined revenue for the fiscal year 1910 was “excess of $950,000.” A bulletin ran in United States Investor in July of that year.
1914: Mr. Watson joined IBM, then known as the Computing-Tabulating-Recording Co., as general manager in 1914. The following year he became president. During the early days of his leadership, Mr.Watson placed heavy emphasis on education, research, and engineering to ensure the company’s growth. He believed these three factors essential for improving the then-existing models of business machines and the development of new ones.
1915: The famous “THINK” signs, based on the slogan coined by Thomas J. Watson, Sr., and long associated with IBM, are used in the company for the first time.
1916: IBM takes its first steps towards setting up an education program for its salesmen with the formation of an education department with its own manager; a study session for sales employees is held in Endicott, New York.
1920: In the years following World War I, C-T-R’s engineering and research staff developed new and improved mechanisms to meet the broadening needs of its customers. In 1920, the company introduced the lock autograph recorder, the first complete school time control system , and launched the Electric Accounting Machine
1924: CTR becomes International Business Machines aka IBM.The Computing- Tabulating- Recording Co. is renamed International Business Machines Corporation (IBM). The company had operated under the IBM name in Canada since 1917.
1927: The first automatic gang punch is developed .
1929: The first card counting printing sorter is shipped. The motor drive key punch is released.
1931: New products introduced during the year include the IBM 400series alphabetical accounting machines, the first IBM machines to print alphabetic data ; and the IBM 600 series calculating machines, the first IBM machines to perform multiplication and division. In addition, IBM releases the Public Utility Billing Machine, the Electroprint Time Stamp, the first automatic multiplying punch, and the first automatic reproducing punch.
1933: The IBM Type 285 Numeric Printing Tabulator — capable of tabulating 150 cards per minute — is introduced. Also released is the first Alphabetical Printing Punch.
1934: The IBM 405 Alphabetical Accounting Machine is introduced. A functionally versatile product that featured a removable plugboard, the 405 remains an IBM flagship product until after World War II. Also brought to market are the first alphabetical duplicating printing punch, card marking verifier and Into time stamp.
IBM factory employees are placed on salary, eliminating piece work and providing employees with an added degree of economic stability. A group life insurance plan is also initiated for employees, marking the beginning of IBM’s pioneering employee benefits programs.
1935: The U.S. adopts Social Security and IBM’s punched card machines to help with the massive record keeping required to keep tabs on tens of millions of Americans.
The first issue of Think — an IBM employee and customer magazine that features articles on such wide-ranging topics as education, science, art, and international relations — is published.
IBM holds its first training class for women systems service professionals in Endicott, New York. Ruth M. Leach, who becomes IBM’s first female corporate vice president in 1943, was a graduate of this class.
1937: IBM gross income reaches $31 million and net earnings are $8 million. A five percent stock dividend is declared. There are over 10,000 IBM employees (10,834) for the first time.
The IBM Type 805 International Test Scoring Machine is introduced, giving rise to the familiar “fill-in-the-bubble” test score sheets. The test-scorer, primarily designed by Reynold Johnson (who would later be a key figure in the development of magnetic disk storage), uses the conductivity of pencil marks to sense correct and incorrect answers.
1939: International Business Machines sponsors art at the 1939 World’s Fair.
1942: IBM becomes involved in the war effort, helping keep track of vital statistics. Below, we see an IBM tabulating machine below used in keeping track of freight traffic in the country.
1943: Ruth Leach Amonette. (First Female Vice President, IBM). At the age of 27, Ruth Leach Amonette was elected IBM Vice President in 1943, four years after joining the company. Ms. Amonette’s promotion was, according to the IBM board of directors, “in recognition of her ability and of the increasingly important part which women are playing in the operation of the company.” She was the first woman to hold a corporate position at IBM and one of the few women at that time to hold an executive position in any large company in the U.S. After becoming vice president, she devoted herself to the advancement of women in business and industry .
1944: IBM co-develops its first computer, the Automated Sequence Controlled Calculator aka Mark I, with Harvard University. It was used by the Navy to calculate gun trajectories .
1946:IBM announces the 603 Electronic Multiplier, the first commercial product to incorporate electronic arithmetic circuits. The 603 used vacuum tubes to perform multiplication far more rapidly than earlier electromechanical devices . 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.
1948: IBM’s first large-scale digital calculating machine, the Selective Sequence Electronic Calculator (SSEC), is announced. The SSEC is the first computer that can modify a stored program and featured 12,000 vacuum tubes and 21,000 electromechanical relays.
IBM introduces the IBM 604 Electronic Calculating Punch. The mass-produced 604 features the industry’s first assemblage of digital electronics replaceable as a unit. Service engineers can simply pull out a defective unit of the 604 and plug in a replacement, reducing downtime.
1949: This cash-register looking machine, known as the 803 proof machine, debuted in July of 1949 and helped businesses save time and money by consolidating tasks such as signing and endorsing checks. Although IBM retired the machine in 1981, the company continues to help businesses streamline operations with Watson Analytics.
1952: The IBM 701 was a general purpose electronic computer developed by IBM in 1952. The first production machine was available in December 1952, and officially announced at a public event on April 7, 1953. The 701 utilized two model 706 electrostatic storage units, a model 711 punched card reader, model 716 printer, model 721 punched-card recorder, model 726 magnetic tape reader/recorder, and a model 731 magnetic drum reader/recorder.
The 701 was also known as the “Defense Calculator.”
The IBM 704
Photo: Lawrence Livermore National Laboratory
1954:The First Successful High-Level Programming Language
FORTRAN or formula translation was the first high-level programming language (software) invented by John Backus for IBM in 1954, and released commercially in 1957. FORTRAN is still used today for programming scientific and mathematical applications. FORTRAN began as a digital code interpreter for the IBM 701 and was originally named Speed coding.
John W. Backus in the late 1990s. FORTRAN was released in 1957. Credit I.B.M.
1955: Developed and produced in record time—less than two years from “first pencil on paper” to installation—the IBM 701 was the first of the pioneering line of IBM 700 series computers that would revitalize the company and bring electronic computing to the world. IBM initially had ten confirmed orders for the IBM 701 in May 1952, and ended up manufacturing and installing a total of nineteen units from 1952 through 1955.
1956: Thomas J. Watson, Sr., dies at age 82, six weeks after handing the title of chief executive officer of IBM to his son, Thomas J. Watson, Jr . President Dwight D. Eisenhower declares, “In the passing of Thomas J. Watson, the nation has lost a truly fine American — an industrialist who was first of all a great citizen and a great humanitarian.”
(Thomas J. Watson, Jr )
During this period, IBM made a number of important electronic advancements. Below, you can see the first commercial hard disk drive, the 350 RAMAC Disk Storage Unit, which was a major component of the groundbreaking 305 RAMAC computer.
1958: Here’s another photo that highlights the 704’s floor space requirements, which were too great for the space available in Watson Lab and forced Columbia to return an NSF grant for the purchase of this machine, a factor which led to the creation of the Columbia Computer Center:
Photo: W.J. Eckert, “Calculating Machines,” Encyclopedia Americana (1958)
1960: IBM employs 100,000 people. During this period, IBM made and sold massive computers to large governments and corporations. Computers were not yet devices for regular people. In 1964, MIT’s Martin Greenberger took to the pages of this magazine to extol the widespread use of computers … and there were only 20,000!
1961: IBM introduces the “Selectric” Typewriter, an electric typewriter which uses a replaceable golf ball-shaped typing element rather than type bars or movable carriages. The Selectric becomes a popular piece of office equipment because of its ease in changing fonts and because it was available in a variety of colors.
1962: Drawing on established IBM policies, Thomas J. Watson, Jr., codifies three IBM basic beliefs: respect for the individual, customer service, and excellence.
IBM announces the IBM 1311 Disk Storage Drive, the first storage unit with interchangeable disks packs, each capable of holding 2 million characters. The concept of interchangeable disk packs lowered storage costs by making it possible to store information off-line.
The last IBM 650 Magnetic Drum Calculator is manufactured. Nearly 2,000 IBM 650s are sold in the 1953-1962 period, making the 650 the most popular computer of the 1950s.
1963: IBM announces the 7094 II, the most powerful computer in the product line to date; an electronic filing system composed of new IBM 1302 disk storage files; the 1460, which processes information nearly twice as fast as the 1401; and the 1240 banking system.
1966: IBM researcher Robert H. Dennard invents Dynamic Random Access Memory (DRAM) cells, one-transistor memory cells that store each single bit of information as an electrical charge in an electronic circuit. The technology permits major increases in memory density and is widely adopted throughout the industry where it remains in widespread use today.
1967: IBM scientists produce the first monolithic integrated germanium circuits, and discover and prove a series of formulas that give a minimum number of steps required for the addition, multiplication and comparison of numbers .
BM plays a key role in the successful Saturn V test flight, and builds a trillion-bit photo-digital storage system for the Atomic Energy Commission.
1969: IBM gross income grows to $7.19 billion and net earnings increase to $934 million. IBM has 258,662 employees and 549,463 stockholders.
IBM computers and personnel help NASA put the first men on the Moon. An onboard computer in the Orbiting Astronomical Observatory II operates for a full year.
1970: The 1970s saw the end of more than a half-century of Watson family leadership. Thomas J. Watson, Jr., stepped down as CEO in 1971. After an interim period of leadership by T. Vincent Learson, Frank T. Cary took over the company in 1973. Watson served as U.S. ambassador to the Soviet Union from 1979 to 1981 and remained a member of IBM’s board of directors until 1984. He died in 1993 at the age of 79.
1971: IBM’s first operational application of speech recognition enables customer engineers servicing equipment to “talk” to and receive “spoken” answers from a computer that can recognize about 5,000 words. IBM also develops an experimental terminal that prints computer responses in Braille for the blind.
1976: The IBM 3800 printer is installed, the first printer to combine laser technology and electrophotography. The technology speeded the printing of bank statements, premium notices, and other high-volume documents, and remains a workhorse for billing and accounts receivable departments.
1980: IBM and Microsoft formally sign a contract whereby Microsoft will create an operating system for the in-development IBM PC. During the summer of 1980, IBM was originally interested in licensing the popular CP/M operating system, but the inability to come to an agreement with Digital Research led IBM to ask Microsoft if they could develop an operating system similar to CP/M. Microsoft was already going to work with IBM to deliver their programming language for the IBM PC, but they did not have an operating system.
1981: The IBM Personal Computer 5150 debuts, a landmark in the transition of computing from the province of the military and big government to everyday people.
1984: The Advanced Peer-To-Peer Networking architecture (APPN), soon to be widely used by mid-range systems, is developed by IBM researchers. It allows individual computers to talk to one another without a central server.
1985: Of the more than 10,250 new employees hired in the United States in 1985, over 45 percent are women and over 22 percent are minorities. About 5,200 women and 3,600 minority employees hold management positions at year-end, and of those, almost 500 women and 500 minorities are in the top 20 percent of U.S. management jobs. The company also purchases more than $125 million in products and services from some 850 minority-owned firms, over $70 million from more than 700 firms owned primarily by women, and over $17 million from more than 70 companies employing handicapped workers.
1986: One of the first RISC-based workstations is introduced, the PC/RT. It features 1MB of RAM and a 40 MB hard drive.IBM releases the IBM PC Convertible in April, its first laptop and the forerunner to the ThinkPad. It replaced the suitcase-sized IBM Portable, which was launched in February 1984.
1991: The company’s board approves a new strategy for IBM. The corporation that was famous for business machines set out to become “a world-class services company.” At the time, IBM made $6 billion from business services. By 2000, the company made $33 billion a year in services revenue. In 2010, IBM made $56 billion from business and technology services.
1993: On a mission to repair the Hubble Space Telescope, the crew used a notebook computer in space for the first time. The IBM ThinkPad 750 was used to observe color schematics and sketches of the telescope.
1996: Microsoft’s market value passes IBM’s market value, as personal computing explodes, largely led by IBM’s competitors like Dell and Compaq running Microsoft Windows.
1997: In a six-game match, a chess-playing IBM computer known as Deep Blue defeats chess master Garry Kasparov – the first time a reigning world champion loses a match to a computer opponent in tournament play. Deep Blue is an IBM RS/6000 SP supercomputer capable of calculating 200 million chess positions per second.
1998 : U.S. Vice President Al Gore announces Blue Pacific – the world’s fastest computer – which is jointly developed by the U.S. Energy Department’s Lawrence Livermore National Laboratory and IBM, can perform 3.9 trillion calculations per second (15,000 times faster than the average desktop computer) and has over 2.6 trillion bytes of memory (80,000 times more than the average PC). It would take a person using a calculator 63,000 years to perform as many calculations as this computer can perform in a single second.
2000: The 2000’s are also marked by a transition in IBM’s leadership. Samuel J. Palmisano becomes president and chief operating officer in 2000 and then, two years later, he is named the chief executive officer of IBM. As CEO, Palmisano succeeds Louis V. Gerstner, Jr., who remains IBM chairman through 2002
2001: In October, IBM announces the eServer p690 (“Regatta”) as the world’s most powerful UNIX server, crowning a five-year effort to deliver a new class of UNIX system that incorporates microprocessor breakthroughs and mainframe technologies. When tackling the most complex problems, multiple p690 servers can be linked together to create supercomputers powered by more than 1,000 processors.
Later in the month, IBM reports that “Regatta” sets a world record for processing speed on the important Fluent engineering benchmark. The company begins shipping “Regatta” in volume in December.
2008: The IBM Roadrunner is capable of 1.71 petaflops and has been the world’s fastest computer since June 2008 and was the first computer able to keep a sustained 1 petaflops performance. It has 12,960 IBM PowerXCell 8i processors operating at 3.2 GHz and 6,480 dual-core AMD Opteron processors operating at 1.8 GHz, resulting in a total of 130,464 processor cores. It also has more than 100 terabytes of RAM. The Roadrunner supercomputer is housed in 296 racks and occupies 6,000 square feet (560 square meters) at the Los Alamos National Laboratory in New Mexico.
2011: IBM turns 100. The company celebrates by passing Microsoft’s market value for the first time in 15 years and watching the Watson computing platform destroy the human competition in Jeopardy. (Even Kasparov had to land IBM’s team for the win.)
2013: International Business Machines Corp., the world’s largest provider of computing services, hasn’t convinced investors that it can pull out of a sales slump, sending the stock to its first annual decline since the financial crisis in 2008.
Technology investors would prefer a company that’s growing, said Todd Lowenstein, a portfolio manager at HighMark Capital Management Inc.
“We don’t think investors are going to be paying up for financially engineered EPS,” said Lowenstein, who helps oversee $17 billion in assets. He no longer holds IBM shares. “In tech, most people want to see top-line growth, and IBM is just not part of that trend. IBM is part of the cluster of old tech companies considered dinosaurs of yesteryear .”
More than 3,300 workers were dismissed in the U.S. and Canada alone.
2014: IBM closed out 2014 with $93 billion in revenue, down by about six percent from nearly $100 billion in 2013.Much of that decline is because it has fewer pieces than before. During the year, it sold off three money-losing business units worth about $7 billion in revenue: Commodity servers, customer care, and chip manufacturing. Collectively they lost about $500 million a year.
2015: IBM CEO Ginni Rometty said that IBM added 70,000 IBMers to its payroll in 2015. IBM has spent more on acquisitions in the last 12 months than it has at any other 12-month period in its history. IBM bought 14 companies in 2015, and she’s already bought three more in
2016: IBM added 70,000 people, it also has lost about that many. Some of that was attrition, people who quit. And several thousand were dropped from the sale of businesses. For instance, IBM divested its microchip business and shed over 5,000 employees that way.
“We’ve been shifting resources aggressively,” Schroeter said at the investor meeting. “and we’d like to shift them more aggressively.”
IBM sets new renewable electricity use and 3rd generation greenhouse gas emissions reduction goals
20 Mar 2015 — IBM set two new goals to further reduce its greenhouse gas (GHG) emissions in February 2015: a new renewable electricity use goal; and a third-generation GHG emissions reduction goal. IBM has been a leader in addressing climate change for decades with an annual worldwide energy conservation goal since 1996 and a CO2 emissions reduction commitment since 2000. While IBM’s business continues to transform, the company’s new goals exemplify IBM’s consistent, driven focus on energy management and CO2 emissions reduction.
IBM installed a 1-megawatt fuel cell to provide electricity to IBM’s data center in Connecticut. The system became operational in December 2014 and will deliver more than 8,500,000 kilowatt-hours per year. The fuel cell will reduce IBM’s expenses for the electricity it purchases while lowering the associated CO2 emissions by over 600 metric tons per year. IBM recently announced a third-generation goal committing to reduce IBM’s operational CO2 emissions by 35 percent by 2020 against a 2005 baseline. This fuel cell installation will contribute toward meeting this goal.
For more than 40 years, IBM has been ahead of the curve on environmental issues and is a recognized environmental leader.
In 1974, IBM set out to eliminate the PCBs (poly-chlorinated biphenyls) from its products and achieved its goal worldwide by 1978. A year later, in 1979, the Environmental Protection Agency in the United States banned the use of PCBs. IBM began requiring that its underground storage tanks—used for production chemicals, for example—have secondary containment built around them in 1979. The EPA did not establish its underground storage regulatory program until six years later.
IBM set—and met—a target to eliminate its CFC (chlorofluorocarbons) use by 1993. This exceeded in scope and schedule the requirements of the Montreal Protocol at that time, which called for a 50 percent reduction from 1986 levels in the production of CFCs.
“Protecting the environment is in our DNA,” says Wayne Balta, IBM vice president of Corporate Environmental Affairs and Product Safety. “Even before the issuance of our corporate policy commitment to environmental responsibility in 1971, our commitment to being a good corporate citizen was part of the company’s Basic Beliefs and Principles in the mid-1960s. As stated in those Principles: we understood well that “we serve our own interests best when we serve the public interest” and “we want to be in the forefront of those companies which are working to make our world a better place.”
- The company first started as ITR ( International Time Recording Company ), later it was known as C-T-R (Computing-Tabulating-Recording Company ) and then after that, it was finally named as IBM ( International Business Machine ).
- It is quite interesting to know that how much effort IBM have put in the education and training of their employees, men, and women.
- Each year there was a new invention e.g first automatic gang punch, first card counting printer, the digital calculating machine etc.
- IBM invented programming languages and one of the most successful was Fortran.
- IBM employment rate and earning increases by each passing year.
- IBM computers played an important part in sending the first men on the moon.
- IBM operated speech recognition application.
- IBM was the first company which combined laser technology and electrophotography in a printer.
- IBM invented the advanced peer-to-peer networking.
- IBM company, later on, was also known as Deep Bue.
- IBM golden age started to come, to an end.As many technology companies came into the competition.
- It started to lose investors as they did not see anything different or unique to attract the customers.
- However, IBM is still one of the largest company to sell technology products, they have been working to create eco-friendly machines.
- IBM worked at the elimination of polychlorinated biphenyls (PCB) compounds from its products.
- IBM is very concerned about environmental issues, as it clearly sees the effect of global warming all around the world and only that, they are working to create environment-friendly technology products.
- IBM should keep up their new idea of developing green products, however, they should also keep up with today’s advanced technology.
- IBM should create creative and unique products to be well recognized once again.