#518 How IBM Became a Global Tech Giant
Tiago Vasconcelos
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The Origins: From Tabulating Machines to Computing Powerhouse
IBM (International Business Machines) has a history that dates back over a century. It was officially founded in 1911 as the Computing-Tabulating-Recording Company (CTR) through the merger of three companies:
In 1924, CTR rebranded as International Business Machines (IBM) under the leadership of Thomas J. Watson Sr. His vision was to make IBM synonymous with innovation, discipline, and customer service.
Dominating the Early 20th Century
During the 1930s and 1940s, IBM expanded its reach by providing punch-card technology to businesses and governments. One of its biggest early successes was supplying data-processing machines to the U.S. government, including the 1940 census.
Curiosity: IBM’s Role in World War II
IBM played a crucial role in World War II by supplying the U.S. military with computing machines for logistics, code-breaking, and weapons development. However, it has also faced controversy over its alleged business ties with Nazi Germany, though IBM has claimed limited control over its German subsidiary at the time.
The Computer Revolution: IBM's Golden Age
In the 1950s and 1960s, IBM took a massive leap by shifting from mechanical tabulators to electronic computers. Some key milestones:
By the 1970s, IBM was dominating the business and government computing markets. The company’s mainframes were used worldwide, earning it the nickname "Big Blue."
Curiosity: The IBM Dress Code
IBM had a strict corporate culture in the 20th century, requiring employees to wear dark suits, white shirts, and ties—a sharp contrast to today’s casual tech industry.
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The Personal Computer Era: A Mixed Success
In 1981, IBM entered the personal computer (PC) market with the IBM PC 5150. It was wildly successful, but IBM made a critical mistake: it used an open architecture that allowed other companies (like Compaq and Dell) to clone its computers. This led to IBM losing dominance in the PC market as competitors flooded in with cheaper models.
The Near Collapse and Reinvention (1990s–2000s)
By the 1990s, IBM was in trouble. The company was losing billions, and competitors like Microsoft and Intel dominated the market. However, under CEO Lou Gerstner, IBM made a legendary turnaround by shifting from hardware to software, services, and consulting.
Some key moves:
Curiosity: IBM and the Moon Landing
IBM played a key role in the Apollo 11 mission (1969) by supplying the computers that helped guide the lunar module to the Moon.
IBM Today: A Tech Leader in AI and Quantum Computing
Today, IBM focuses on AI, cloud computing, cybersecurity, and quantum computing. It’s no longer the dominant force in consumer computing but remains a major player in enterprise technology.
IBM’s latest innovations include:
Conclusion
IBM’s history is filled with innovation, reinvention, and resilience. From tabulating machines to AI-powered supercomputers, IBM has proven its ability to adapt and thrive over more than a century. While it may not dominate the consumer market, its legacy and contributions to technology remain unmatched.
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