History of IBM

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Logos of IBM
	1947–1956
	1956–1972
	Since 1972

International Business Machines (IBM) is a multinational corporation specializing in computer technology and information technology consulting. Headquartered in Armonk, New York, the company originated from the amalgamation of various enterprises dedicated to automating routine business transactions, notably pioneering punched card-based data tabulating machines and time clocks. In 1911, these entities were unified under the umbrella of the Computing-Tabulating-Recording Company (CTR).

Thomas J. Watson (1874–1956) assumed the role of general manager within the company in 1914 and ascended to the position of President in 1915. By 1924, the company rebranded as "International Business Machines". IBM diversified its offerings to include electric typewriters and other office equipment. Watson, a proficient salesman, aimed to cultivate a highly motivated, well-compensated sales force capable of devising solutions for clients unacquainted with the latest technological advancements.

In the 1940s and 1950s, IBM began its initial forays into computing, which constituted incremental improvements to the prevailing card-based system. A pivotal moment arrived in the 1960s with the introduction of the System/360 family of mainframe computers. IBM provided a comprehensive spectrum of hardware, software, and service agreements, fostering client loyalty and solidifying its moniker "Big Blue". The customized nature of end-user software, tailored by in-house programmers for a specific brand of computers, deterred brand switching due to its associated costs. Despite challenges posed by clone makers like Amdahl and legal confrontations, IBM leveraged its esteemed reputation, assuring clients with both hardware and system software solutions, earning acclaim as one of the esteemed American corporations during the 1970s and 1980s.

However, IBM encountered difficulties in the late 1980s and 1990s, marked by substantial losses surpassing $8 billion in 1993. The mainframe-centric corporation grappled with adapting swiftly to the burgeoning Unix open systems and personal computer revolutions.^[1] Desktop machines and Unix midrange computers emerged as cost-effective and easily manageable alternatives, overshadowing multi-million-dollar mainframes. IBM responded by introducing a Unix line and a range of personal computers. The competitive edge was gradually lost to clone manufacturers who offered cost-effective alternatives, while chip manufacturers like Intel and software corporations like Microsoft reaped significant profits.

Through a series of strategic reorganizations, IBM managed to sustain its status as one of the world's largest computer companies and systems integrators. As of 2014, the company boasted a workforce exceeding 400,000 employees globally^[2] and held the distinction of possessing the highest number of patents among U.S.-based technology firms.^[3][4] IBM maintained a robust presence with research laboratories dispersed across twelve locations worldwide. Its extensive network comprised scientists, engineers, consultants, and sales professionals spanning over 175 countries.^[5] IBM employees were recognized for their outstanding contributions with numerous accolades, including five Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science.^[6]