Success Story of IBM
Every successful business always has to face certain ups and downs in their business life. Today we are going to talk about One of the oldest and well-known companies, IBM (International Business Machine). We are going to see the rise, fall and the future comeback of the IBM. In Short, we are going to see the Success Story of IBM or its history timeline.
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“If you’re not first, you’re last.” – Ricky Bobby
The IBM was founded by Charles Randlett Flint on June 16, 1911. Now it is been run by Ginni Rometty (President and CEO of IBM). It has its headquarters at Armonk, New York, the U.S. It is currently serving 177 countries in the world. Till now IBM has provided employment to more than 366,600 peoples all over the world.
IBM manufactures and markets computer hardware, software’s and middleware, and also provides hosting and consulting services in areas from mainframe computers to nanotechnology.
The company was established in 1911 in a small village in Endicott, United States. During the Initial stages it was known as CTR – Computing Tabulating Recording Company due to the merger of three different companies – Tabulating Machine Company, Computing Scale company, and International Time Recording company.
On February 14, 1924, the Computing-Tabulating-Recording Company (CTR) changed its ordinary title to International Business Machines Corporation (IBM), which was considered as the more expensive title.
IBM Legacy Period
In 1937, The IBM’s tabulating equipment enabled different organizations to process unknown and very large amounts of data, its clients such as the U.S. Government, during its first effort to maintain the employment records for millions of people pursuant to the Social Security Act.
1944, was an important year in IBM history timeline as in this year IBM and Harvard University working together designed and developed the ASCC (Automatic Sequence Controlled Calculator), later use to be known as the Mark I. It was the first attempt of the IBM to build the computer.
In 1949, The IBM World Trade Corporation was created by Thomas Watson, as a subsidiary of IBM focused on all foreign-related operations.
In 1952, Thomas Watson stepped down after almost 40 years’ service to the company, and after that, his son Thomas Watson Junior was appointed as the president of IBM. The IBM 701 was invented, which was IBM’s first individual computer project. The 701 was functioning with the IBM’s magnetic tape drive vacuum technology, which was a precursor to the magnetic storage medium.
In 1956, Another big move in IBM’s History Timeline towards Artificial Intelligence. The company modeled the first practically implemented example of artificial intelligence when Arthur Samuel programmed an IBM 704 not only to play checkers but “learn” from its own experience. In 1956, the RAMAC (Random Access Method of Accounting and Control machines) 305 and RAMAC 650 machines were invented.
1957: The FORTRAN scientific programming language was developed by IBM under the guidance of John Backus.
1961: IBM developed a reservation system for American Airlines named the SABRE and introduced the highly successful Electric typewriter.
1963: IBM employees and computers helped NASA to track the orbital flight of the Mercury astronauts. Also, in the latter half of the 1960s IBM continue its support of space exploration by participating in the 1965 Gemini flights, 1966 Saturn flights, and 1969 lunar mission.
On April 7, 1964, IBM announced the IBM System/360 family which was the first computer family by the IBM. It covered the complete range of scientific and commercial applications from small to large, allowing different companies to upgrade to models with greater computing capability without having to the problem to rewrite their applications.
1970: The IBM System/370 was developed as a successor of IBM System/360
1974: IBM and World Bank, first introduced financial swaps to the public in 1981 when they entered into a swap agreement. In 1974, IBM invented the networking protocol called Systems Network Architecture (SNA). IBM also developed the Universal Product Code under the Supervision of engineer George J. Laurer.
1981: IBM built one of the first computers for home and consumer use. The IBM PC costs $1,565 and was the smallest and cheapest computer built to-date. IBM gave the contract to Microsoft to write an operating system for its PCs, which was called MS-DOS.
1987 Nobel Prize
IBM’s Zurich Research Laboratory fellows J. Georg Bednorz and K. Alex Mueller receive the 1987 Nobel Prize for physics for their breakthrough discovery of high-temperature superconductivity in a new class of materials.
The fall of IBM started
“IBM has not “fallen”, it has merely moved away from consumer markets (because they offer low margins) in search of higher-margin ones.” — Daniele Paolo Scarpazza, an employee of IBM
1996: Microsoft’s takes to lead and crosses IBM’s market value, as personal computing flooded the market, largely led by IBM’s competitors like Dell and Compaq running on Microsoft Windows.
1993: IBM suffered from 8 billion US Dollar loss which was the biggest loss in American corporate history at that time.
In 2002, IBM acquired PwC consulting firm, and in 2003 they started a project to redefine the company values, by hosting a three-day online discussion of key business issues with 50,000 employees
Personal Computer Business sold to Lenovo
In 2005, Due to the heavy losses the company sold its personal computer business to Chinese company Lenovo and Lenovo purchases IBM’s personal computing division, completing IBM’s transition into a services company instead of directly selling to the customer. The company makes tens of billions of dollars selling services to businesses.
In 2009, IBM acquired software company SPSS Inc.
2012: IBM acquired SoftLayer Technologies, a web hosting service, in a deal worth around 2 billion US Dollar.
In 2014, IBM announced it would sell its x86 server division to Lenovo for 2.1 billion US Dollar. Also, that year, IBM began announcing several major partnerships with other companies, including:
- Apple Inc
- Under Armour
- Sesame Workshop
- The parent company of Sesame Street.
The Future of IBM
I am very much sure that IBM will come again in the market. — A. Jadhav
Read: IBM Is Ready To rising Again (Forbes)
As computing becomes increasingly powerful and oceans of data deepen further, the breadth of AI’s capabilities will grow. IBM Research’s Vice President of AI Science, Alexander Gray, unwounded the capabilities of AI on which the IBM is working now. That capability includes teaching machines how to perform data science work automatically, creating the next wave of fundamental Artificial Intelligence methodology, and new ways to perform the computations.
I hope you would have liked this post. Stay tuned within the program for further updates we’re making a comeback 😉