IBM: Shaping the Future Through Technological Evolution
Embark on a journey through IBM's rich history, from punch cards to cloud computing. Uncover the tech giant's evolution and future impact!
Summary:
Introduction
Early Years and Market Dominance
Technological Prowess in Mid-20th Century
The PC Revolution and Challenges
Transition to Services and Global Impact
Ongoing Innovation and Recent Developments
Looking Ahead
Introduction:
IBM, International Business Machines Corporation, has been a technological giant since its incorporation in 1911. Over its extensive history, IBM has navigated various eras, adapting to technological shifts and making significant contributions. Let's delve into the distinct phases of IBM's journey, exploring key innovations, market dominance, and the recent strategic moves.
Src: boweryboyshistory
Early Years and Market Dominance:
Incorporated in 1911 as the Computing-Tabulating-Recording Company (CTR), IBM emerged from the merger of three companies. Thomas Watson's leadership in the 1920s marked a turning point. IBM became a leader in punched card table systems, used widely by governments and private entities. Through disciplined sales strategies, IBM regained its status as a major player.
Since a single punch card can only store 80 bytes of information, many cards were required for data storage and programming. Sometimes they were punched by hand.(Google)
For a 200x400 image, the total number of pixels is 200 * 400 = 80,000 pixels. Since each pixel requires 3 bytes in RGB format, the total size of the image in bytes would be 80,000 * 3 = 240,000 bytes. (Quora)
Src: IBM
Technological Prowess in Mid-20th Century:
IBM's technical achievements in the 1940s were groundbreaking. The company created the first fully electronic calculating machine, paving the way for modern computers. The 1950s and 1960s witnessed IBM's invention of fundamental technologies, including the hard drive and Fortran programming language. IBM's dominance soared, producing a significant majority of commercial computers globally.
During WWII the US developed it's own large computer. The Harvard Mark 1 was a electro-mechanical computer built by IBM based on a design by Howard Aiken, and influenced by Babbage's earlier plans. The Mark 1 used electricity to turn wheels on rotors, powered with relays and controlled by switches. (nww2m)
Src: nww2m
The PC Revolution and Challenges:
IBM entered the consumer market in 1981 with the Personal Computer (PC), a landmark move. Collaborating with Microsoft for the MS-DOS operating system, IBM pioneered the PC era. However, the 1990s brought challenges as competitors emerged, diluting IBM's market share. The company struggled to adapt to the shift towards smaller servers.
The IBM Personal Computer or IBM PC , model 5150 , is a personal computer produced from 1981 several million copies by IBM . For a time it gave IBM 21% of the microcomputer market, although this only constituted a marginal fraction of the company's turnover . In 1985, IBM's PC division employed 10,000 people and generated an annual gross profit of $4.5 billion. (Wikipedia)
Src: Wikipedia
Transition to Services and Global Impact:
By the 2000s, IBM underwent a strategic shift, focusing on services over commodity products. Major divestitures, including the sale of the PC division to Lenovo in 2005, emphasized this transition. IBM's supercomputers, with applications from scientific research to gaming systems, showcased its technical prowess.
IBM isn´t interested in commodity business units, and thus, sold it off to Lenovo, who, as a Chinese company, could produce for lower costs, and was willing to compete in the commodity business. In the early 2000s, the PC unit was actually burning money for IBM, rather than making it. (Reddit)
IBM also acquired an 18.9% share of Lenovo in 2005 as part of Lenovo's purchase of IBM's personal computing division. In the years following the deal, IBM sold their stake in Lenovo, with a final sale in 2011 completing their divestment. (Wikipedia)
Ongoing Innovation and Recent Developments:
IBM's commitment to innovation remains evident. Leading in patents, IBM invested substantially in research and development. The acquisition of Red Hat in 2019 and the subsequent strategic split in 2020 illustrate IBM's focus on high-margin cloud computing and artificial intelligence.
IBM acquired all of the issued and outstanding common shares of Red Hat for $190.00 per share in cash, representing a total equity value of approximately $34 billion. (Red Hat)
Red Hat offers a variety of open source software that DevOps engineers and businesses use. These include operating system platforms, storage, middleware, management products, as well as training, support and consulting services. (techtarget)
Src: InformatiqueNews
Looking Ahead:
IBM's journey reflects an ever-evolving tech landscape. The split into two public companies in 2020 positions IBM for a future centered on cloud computing. As the company continues to shape technological landscapes, its legacy of innovation remains integral to its identity.
IBM, which currently has more than 352,000 workers, said it expects the separation to cost $5bn. IBM's legacy businesses will be spun off into a new company called NewCo. This will encompass its “Managed Infrastructure Services” division. Analysts said the move is an attempt to focus on more profitable business models. (BBC)
Src: Ars Technica
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Src: Silicon TV