IBM

 

Founding and Early Years

IBM (International Business Machines) was founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924. While initially focused on business machines like punch card systems, IBM became a leader in computing technology by the mid-20th century. By the late 1970s, IBM recognized the growing demand for personal computers and decided to enter the market.

In 1981, IBM launched the IBM Personal Computer (IBM PC), model 5150. Developed in just a year by a team led by Don Estridge in Boca Raton, Florida, the IBM PC was designed to be affordable, accessible, and built using off-the-shelf components. This marked IBM's entry into the personal computing market and set the stage for a new era in technology.

Notable Products

IBM's contributions to the PC market include several groundbreaking products:

• IBM PC 5150 (1981): The original IBM PC featured an Intel 8088 processor, 16 KB of RAM (expandable to 256 KB), and a choice of operating systems, including PC DOS. Its open architecture allowed third-party developers to create compatible hardware and software, which contributed to its success.

• IBM PC XT (1983): The XT introduced a built-in hard drive, expanding storage capacity and making it more suitable for business applications. It also featured an improved motherboard and additional expansion slots.

• IBM PC AT (1984): The AT (Advanced Technology) was powered by the Intel 80286 processor, offering significantly improved performance. It introduced the 16-bit ISA bus, which became a standard for PC expansion cards.

• IBM PS/2 (1987): The PS/2 series introduced innovations like the Micro Channel Architecture (MCA) and the 3.5-inch floppy disk drive. However, its proprietary design limited compatibility and alienated some users.

Key Developments

IBM's decision to use an open architecture for the original PC was a pivotal moment in computing history. By allowing third-party manufacturers to produce compatible components and software, IBM created a thriving ecosystem around its PCs. This approach helped establish the IBM PC as a standard in the industry.

The introduction of the PC AT further solidified IBM's position as a leader in personal computing. Its advanced technology and performance made it a favorite among businesses and professionals.

The Rise of PC Clones and Their Impact

The open architecture of the IBM PC, while initially a strength, eventually led to the rise of PC clones. Companies like Compaq, Dell, and HP reverse-engineered IBM's BIOS (Basic Input/Output System) and began producing IBM-compatible computers at lower prices. These clones offered similar performance and compatibility with IBM PCs, but at a fraction of the cost.

The introduction of PC clones transformed the computing landscape. It democratized access to personal computers, making them more affordable and accessible to a broader audience. However, it also eroded IBM's dominance in the PC market. By the late 1980s, IBM's market share had declined significantly as clones became the preferred choice for many consumers and businesses.

Decline and Dissolution

IBM's struggles in the PC market were compounded by the rise of competitors and the commoditization of PC hardware. The company's proprietary innovations, such as the MCA in the PS/2 series, failed to gain widespread adoption. In 2005, IBM sold its PC division to Lenovo, marking the end of its direct involvement in the personal computer market.

What Are They Doing Today?

Today, IBM focuses on enterprise solutions, cloud computing, artificial intelligence, and quantum computing. The company has shifted away from hardware manufacturing to become a leader in software and services. While IBM no longer produces PCs, its legacy in personal computing remains a significant chapter in technology history.