IBM manufactures and markets computer
hardware,
middleware and
software, and provides
hosting and
consulting services in areas ranging from
mainframe computers to
nanotechnology. IBM is also a major research organization, holding the record for most U.S.
patents generated by a business (as of 2018) for 25 consecutive years.
[5]Inventions by IBM include the
automated teller machine (ATM), the
PC, the
floppy disk, the
hard disk drive, the
magnetic stripe card, the
relational database, the
SQL programming language, the
UPC barcode, and
dynamic random-access memory (DRAM). The
IBM mainframe, exemplified by the
System/360, was the dominant computing platform during the 1960s and 1970s.
History[edit]
In the 1880s, technologies emerged that would ultimately form the core of International Business Machines (IBM). Julius E. Pitrap patented the computing scale in 1885;
[6]Alexander Dey invented the dial recorder (1888);
[7] Herman Hollerith (1860-1929) patented the
Electric Tabulating Machine;
[8] and
Willard Bundy invented a time clock to record a worker's arrival and departure time on a paper tape in 1889.
[9] On June 16, 1911, their four companies were
amalgamated in New York State by
Charles Ranlett Flintforming a fifth company, the
Computing-Tabulating-Recording Company (CTR) based in
Endicott, New York.
[1][10] The five companies had 1,300 employees and offices and plants in Endicott and
Binghamton, New York;
Dayton, Ohio;
Detroit, Michigan;
Washington, D.C.; and
Toronto. They manufactured machinery for sale and lease, ranging from commercial scales and industrial time recorders, meat and cheese slicers, to tabulators and punched cards.
Thomas J. Watson, Sr., fired from the
National Cash Register Company by
John Henry Patterson, called on Flint and, in 1914, was offered CTR.
[11] Watson joined CTR as
General Manager then, 11 months later, was made
President when court cases relating to his time at NCR were resolved.
[12] Having learned Patterson's
pioneering business practices, Watson proceeded to put the stamp of NCR onto CTR's companies.
[13] He implemented sales conventions, "generous sales incentives, a focus on customer service, an insistence on well-groomed, dark-suited salesmen and had an evangelical fervor for instilling company pride and loyalty in every worker".
[14][15] His favorite slogan, "
THINK", became a mantra for each company's employees.
[14] During Watson's first four years, revenues reached $9 million and the company's operations expanded to Europe, South America, Asia and Australia.
[14] Watson had never liked the clumsy hyphenated title of the CTR" and on February 14, 1924 chose to replace it with the more expansive title "International Business Machines".
[16] By 1933 most of the subsidiaries had been merged into one company, IBM.
[17]
NACA researchers using an
IBM type 704 electronic data processing machine in 1957
In 1937, IBM's tabulating equipment enabled organizations to process unprecedented amounts of data, its clients including the
U.S. Government, during its first effort to maintain the employment records for 26 million people pursuant to the
Social Security Act,
[18] and the tracking of persecuted groups by Hitler's
Third Reich,
[19][20] largely through the German subsidiary
Dehomag.
In 1949, Thomas Watson, Sr., created IBM World Trade Corporation, a subsidiary of IBM focused on foreign operations.
[21] In 1952, he stepped down after almost 40 years at the company helm, and his son
Thomas Watson, Jr. was named president. In 1956, the company demonstrated the first practical example of
artificial intelligence when Arthur L. Samuel of IBM's Poughkeepsie, New York, laboratory programmed an
IBM 704 not merely to play checkers but "learn" from its own experience. In 1957, the
FORTRAN scientific programming language was developed. In 1961, IBM developed the
SABRE reservation system for
American Airlines and introduced the highly successful
Selectric typewriter. In 1963, IBM employees and computers helped NASA track the orbital flight of the Mercury astronauts. A year later, it moved its corporate headquarters from New York City to
Armonk, New York. The latter half of the 1960s saw IBM continue its support of space exploration, participating in the 1965 Gemini flights, 1966 Saturn flights and 1969 lunar mission.
On April 7, 1964, IBM announced the first computer system family, the
IBM System/360. It spanned the complete range of commercial and scientific applications from large to small, allowing companies for the first time to upgrade to models with greater computing capability without having to rewrite their applications. It was followed by the
IBM System/370 in 1970. Together the 360 and 370 made the
IBM mainframe the dominant
mainframe computerand the dominant computing platform in the industry throughout this period and into the early 1980s. They, and the operating systems that ran on them such as
OS/VS1 and
MVS, and the middleware built on top of those such as the
CICS transaction processing monitor, had a near-monopoly-level hold on the computer industry and became almost synonymous with IBM products due to their marketshare.
[22]
In 1993, IBM posted a US$8 billion loss - at the time the biggest in American corporate history.
[25] Lou Gerstner was hired as CEO from
RJR Nabisco to turn the company around.
[26] In 2002, IBM acquired
PwC consulting, and in 2003 it initiated a project to redefine company values, hosting a three-day online discussion of key
business issues with 50,000 employees. The result was three values: "Dedication to every client's success", "Innovation that matters—for our company and for the world", and "Trust and personal responsibility in all relationships".
[27][28]
In 2005, the company sold its personal computer business to Chinese technology company
Lenovo[29] and, in 2009, it acquired software company
SPSS Inc. Later in 2009, IBM's
Blue Gene supercomputing program was awarded the
National Medal of Technology and Innovation by
U.S. President Barack Obama. In 2011, IBM gained worldwide attention for its
artificial intelligence program
Watson, which was exhibited on
Jeopardy! where it won against game-show champions
Ken Jennings and
Brad Rutter. The company also celebrated its 100th anniversary on the same year on June 16. In 2012, IBM announced it has agreed to buy
Kenexa, and a year later it also acquired
SoftLayer Technologies, a
web hosting service, in a deal worth around $2 billion.
[30]
In 2014, IBM announced it would sell its
x86 server division to Lenovo for $2.1 billion.
[31][better source needed] Also that year, IBM began announcing several major partnerships with other companies, including
Apple Inc.,
[32][33] Twitter,
[34] Facebook,
[35] Tencent,
[36] Cisco,
[37] UnderArmour,
[38] Box,
[39] Microsoft,
[40] VMware,
[41] CSC,
[42] Macy's,
[43] Sesame Workshop,
[44] the parent company of
Sesame Street, and
Salesforce.com.
[45]
In 2015, IBM announced two major acquisitions: Merge Healthcare for $1 billion
[46] and all digital assets from
The Weather Company, including
Weather.com and the Weather Channel
mobile app.
[47][48] Also that year, IBMers created the film
A Boy and His Atom, which was the first molecule movie to tell a story. In 2016, IBM acquired video conferencing service
Ustream and formed a new cloud video unit.
[49][50] In April 2016, it posted a 14-year low in quarterly sales.
[51] The following month,
Groupon sued IBM accusing it of patent infringement, two months after IBM accused Groupon of patent infringement in a separate lawsuit.
[52]
Headquarters and offices[edit]
IBM is headquartered in
Armonk, New York, a community 37 miles (60 km) north of Midtown Manhattan.
[53] Its principal building, referred to as CHQ, is a 283,000-square-foot (26,300 m
2) glass and stone edifice on a 25-acre (10 ha) parcel amid a 432-acre former apple orchard the company purchased in the mid-1950s.
[54] There are two other IBM buildings within walking distance of CHQ: the North Castle office, which previously served as IBM's headquarters; and the IBM Learning Center (ILC), a resort hotel and training center, which has 182 guest rooms, 31 meeting rooms, and various amenities.
[55]
IBM's real estate holdings are varied and globally diverse. Towers occupied by IBM include
1250 René-Lévesque (Montreal, Canada),
Tour Descartes (Paris, France), and
One Atlantic Center (Atlanta, Georgia, USA). In
Beijing, China, IBM occupies Pangu Plaza, which is the city's
seventh tallest building and overlooks
Beijing National Stadium ("Bird's Nest"), which was home to the
2008 Summer Olympics.
Other notable buildings include the
IBM Rome Software Lab (Rome, Italy), the
Hursley House (Winchester, UK),
330 North Wabash (Chicago, Illinois, United States), the
Cambridge Scientific Center (Cambridge, Massachusetts, United States), the
IBM Toronto Software Lab (Toronto, Canada), the
IBM Building, Johannesburg (Johannesburg, South Africa), the
IBM Building (Seattle) (Seattle, Washington, United States), the
IBM Hakozaki Facility (Tokyo, Japan), the
IBM Yamato Facility (Yamato, Japan), and the
IBM Canada Head Office Building (Ontario, Canada). Defunct IBM campuses include the
IBM Somers Office Complex (Somers, New York). The company's contributions to industrial architecture and design include works by
Eero Saarinen,
Ludwig Mies van der Rohe and
I.M. Pei. Van der Rohe's building in Chicago, the original center of the company's research division post-World War II, was recognized with the 1990
Honor Award from the
National Building Museum.
[56] IBM was recognized as one of the Top 20 Best Workplaces for Commuters by the
United States Environmental Protection Agency (EPA) in 2005, which recognized
Fortune 500 companies that provided employees with excellent
commuterbenefits to help reduce traffic and air pollution.
[57] In 2004, concerns were raised related to IBM's contribution in its early days to
pollution in its original location in
Endicott, New York.
[58][59]
Products and services[edit]
IBM also hosts the industry-wide cloud computing and mobile technologies conference InterConnect each year.
[64]
Hardware designed by IBM for these categories include IBM's
POWER microprocessors, which are employed inside many
console gaming systems, including
Xbox 360,
[65]PlayStation 3, and
Nintendo's
Wii U.
[66][67] IBM
Secure Blue is encryption hardware that can be built into microprocessors,
[68] and in 2014, the company revealed it was investing $3 billion over the following five years to design a neural chip that mimics the human brain, with 10 billion neurons and 100 trillion synapses, but that uses just 1 kilowatt of power.
[69] In 2016, the company launched
all-flash arrays designed for small and midsized companies, which includes software for data compression, provisioning, and snapshots across various systems.
[70]
Services provisions include
Redbooks, which are publicly available online books about best practices with IBM products, and
developerWorks, a website for
software developersand IT professionals with how-to articles and tutorials, as well as software downloads, code samples, discussion forums, podcasts, blogs, wikis, and other resources for developers and technical professionals.
[79]
A computer the size of a grain of rock salt is not only the world’s smallest computer, IBM claims, but could be cheap enough to spread AI smarts and the blockchain ubiquitously. Shown off for the first time at IBM Think 2018, the company’s annual research event, the tiny computer could have huge implications for making sure everything from medication to luxury goods are genuine rather than counterfeit
[83].
Research[edit]
Research has been a part of IBM since its founding, and its organized efforts trace their roots back to 1945, when the Watson Scientific Computing Laboratory was founded at
Columbia University in
New York City, converting a renovated fraternity house on Manhattan's West Side into IBM's first laboratory. Now,
IBM Research constitutes the largest
industrial research organization in the world, with 12 labs on 6 continents.
[84] IBM Research is headquartered at the
Thomas J. Watson Research Center in New York, and facilities include the
Almaden lab in California,
Austin lab in Texas,
Australia lab in
Melbourne,
Brazil lab in
São Paulo and
Rio de Janeiro,
China lab in
Beijing and
Shanghai,
Ireland lab in Dublin,
Haifa lab in
Israel,
India lab in
Delhi and
Bangalore,
Tokyo lab,
Zurich lab and
Africa lab in
Nairobi.
In terms of investment, IBM's
R&D spend totals several billion dollars each year. In 2012, that expenditure was approximately $6.9 billion USD.
[85] Recent allocations have included $1 billion to create a business unit for
Watson in 2014, and $3 billion to create a next-gen semiconductor along with $4 billion towards growing the company's "strategic imperatives" (cloud, analytics, mobile, security, social) in 2015.
[86]
Famous
inventions and developments by IBM include: the
Automated teller machine (ATM),
Dynamic random access memory (DRAM), the
electronic keypunch, the
financial swap, the
floppy disk, the
hard disk drive, the
magnetic stripe card, the
relational database,
RISC, the
SABRE airline reservation system,
SQL, the
Universal Product Code (UPC) bar code, and the
virtual machine. Additionally, in 1990 company scientists used a
scanning tunneling microscope to arrange 35
individual xenon atoms to spell out the company acronym, marking the first structure assembled one atom at a time.
[90] A major part of IBM research is the generation of
patents. Since its first patent for a traffic signaling device, IBM has been one of the world's most prolific patent sources. In 2018, the company holds the record for most
patents generated by a business, marking 25 consecutive years for the achievement.
[5]
Five IBMers have received the
Nobel Prize:
Leo Esaki, of the Thomas J. Watson Research Center in Yorktown Heights, N.Y., in 1973, for work in semiconductors;
Gerd Binnig and
Heinrich Rohrer, of the Zurich Research Center, in 1986, for the
scanning tunneling microscope;
[91] and
Georg Bednorz and
Alex Müller, also of Zurich, in 1987, for research in
superconductivity. Several IBMers have also won the
Turing Award, including the first female recipient
Frances E. Allen.
[92]
Current research includes a collaboration with the
University of Michigan to see computers act as an academic adviser for undergraduate computer science and engineering students at the university,
[93] and a partnership with
AT&T, combining their cloud and Internet of Things (IoT) platforms to make them interoperable and to provide developers with easier tools.
[94]
Brand and reputation[edit]
IBM is nicknamed
Big Blue in part due to its blue logo and color scheme,
[95][96] and also partially since IBM once had a de facto
dress code of white shirts with blue suits.
[95][97]The company logo has undergone several changes over the years, with its current "8-bar"
logo designed in 1972 by
graphic designer Paul Rand.
[98] It was a general replacement for a 13-bar logo, since period photocopiers did not render large areas well. Aside from the logo, IBM used
Helvetica as a corporate typeface for 50 years, until it was replaced in 2017 by the custom-designed
IBM Plex.
IBM has a valuable brand as a result of over 100 years of operations and marketing campaigns. Since 1996, IBM has been the exclusive technology partner for the
Masters Tournament, one of the four
major championships in
professional golf, with IBM creating the first Masters.org (1996), the first course cam (1998), the first iPhone app with live streaming (2009), and first-ever live 4K Ultra High Definition feed in the United States for a major sporting event (2016).
[99] As a result, IBM CEO
Ginni Rometty became the third female member of the Master's governing body, the
Augusta National Golf Club.
[100] IBM is also a major sponsor in professional
tennis, with engagements at the
U.S. Open,
Wimbledon, the
Australian Open, and the
French Open.
[101] The company also sponsored the
Olympic Games from 1960–2000,
[102] and the
National Football League from 2003–2012.
[103]
People and culture[edit]
Employees[edit]
New IBMers being welcomed to bootcamp at IBM Austin, 2015
IBM has one of the largest workforces in the world, and employees at Big Blue are referred to as "IBMers". The company was among the first corporations to provide
group life insurance (1934), survivor benefits (1935), training for women (1935), paid vacations (1937), and training for disabled people (1942). IBM hired its first black salesperson in 1946, and in 1952, CEO
Thomas J. Watson, Jr. published the company's first written equal opportunity policy letter, one year before the U.S. Supreme Court decision in
Brown vs. Board of Education and 11 years before the
Civil Rights Act of 1964. The
Human Rights Campaign has rated IBM 100% on its index of gay-friendliness every year since 2003,
[109] with IBM providing same-sex partners of its employees with
health benefits and an anti-discrimination clause. Additionally, in 2005, IBM became the first major company in the world to commit formally to not use
genetic information in employment decisions; and in 2017, IBM was named to
Working Mother's 100 Best Companies List for the 32nd consecutive year.
[110]
IBM has several leadership development and recognition programs to recognize employee potential and achievements. For early-career high potential employees, IBM sponsors leadership development programs by discipline (e.g.,
general management (GMLDP),
human resources (HRLDP),
finance (FLDP)). Each year, the company also selects 500 IBMers for the IBM Corporate Service Corps (CSC),
[111] which has been described as the corporate equivalent of the
Peace Corps and gives top employees a month to do
humanitarian work abroad.
[112] For certain
interns, IBM also has a program called
Extreme Blue that partners top business and technical students to develop high-value technology and compete to present their business case to the company's CEO at internship's end.
[113]
The company also has various designations for exceptional individual contributors such as Senior Technical Staff Member (STSM), Research Staff Member (RSM), Distinguished Engineer (DE), and Distinguished Designer (DD).
[114] Prolific inventors can also achieve patent plateaus and earn the designation of
Master Inventor. The company's most prestigious designation is that of
IBM Fellow. Since 1963, the company names a handful of Fellows each year based on technical achievement. Other programs recognize years of service such as the Quarter Century Club established in 1924, and sellers are eligible to join the Hundred Percent Club, composed of IBM salesmen who meet their quotas, convened in Atlantic City, New Jersey. Each year, the company also selects 1,000 IBMers annually to award the Best of IBM Award, which includes an all-expenses paid trip to the awards ceremony in an exotic location.
IBM's culture has evolved significantly over its century of operations. In its early days, a dark (or gray) suit, white shirt, and a "sincere" tie constituted the public uniform for IBM employees.
[115] During IBM's management transformation in the 1990s, CEO
Louis V. Gerstner, Jr. relaxed these codes, normalizing the dress and behavior of IBM employees.
[116] The company's culture has also given to different plays on the company acronym (IBM), with some saying is stands for "I've Been Moved" due to relocations and layoffs,
[117] others saying it stands for "I'm By Myself" pursuant to a prevalent work-from-anywhere norm,
[118] and others saying it stands for "I'm Being Mentored" due to the company's open door policy and encouragement for mentoring at all levels.
[119] In terms of labor relations, the company has traditionally resisted labor union organizing,
[120] although unions represent some IBM workers outside the United States.
[121] In Japan, IBM employees also have an
American football team complete with pro stadium, cheerleaders and televised games, competing in the Japanese
X-League as the "
Big Blue".
[122]
In 2015, IBM started giving employees the option of choosing either a
PC or a
Mac as their primary work device, resulting in IBM becoming the world's largest Mac shop.
[123] In 2016, IBM eliminated forced rankings and changed its annual performance review system to focus more on frequent feedback, coaching, and skills development.
[124]
IBM alumni[edit]
Many IBMers have also achieved notability outside of work and after leaving IBM. In business, former IBM employees include
Apple Inc. CEO
Tim Cook,
[125] former
EDS CEO and politician
Ross Perot,
Microsoftchairman
John W. Thompson,
SAP co-founder
Hasso Plattner,
Advanced Micro Devices (AMD) CEO
Lisa Su,
[126] former
Citizens Financial Group CEO
Ellen Alemany, former
Yahoo! chairman
Alfred Amoroso, former
AT&T CEO
C. Michael Armstrong, former
Xerox Corporation CEOs
David T. Kearns and
G. Richard Thoman,
[127] former
Fair Isaac Corporation CEO
Mark N. Greene,
[128] Citrix Systems co-founder
Ed Iacobucci,
ASOS.com chairman
Brian McBride, and former
Lenovo CEO
Steve Ward.
In government, alumna
Patricia Roberts Harris served as
United States Secretary of Housing and Urban Development, the first
African American woman to serve in the
United States Cabinet.
[129] Samuel K. Skinnerserved as
U.S. Secretary of Transportation and as the
White House Chief of Staff. Alumni also include
U.S. Senators Mack Mattingly and
Thom Tillis;
Wisconsin governor
Scott Walker;
[130] former
U.S. AmbassadorsVincent Obsitnik (
Slovakia),
Arthur K. Watson (
France), and
Thomas Watson Jr. (
Soviet Union); and former
U.S. Representatives Todd Akin,
[131] Glenn Andrews,
Robert Garcia,
Katherine Harris,
[132] Amo Houghton,
Jim Ross Lightfoot,
Thomas J. Manton,
Donald W. Riegle Jr., and
Ed Zschau.
Board and shareholders[edit]
In 2011, IBM became the first technology company
Warren Buffett's
holding company Berkshire Hathaway invested in.
[135] As of 2016, he owns 8.51 percent of IBM's shares.
[136] From 2011 until the end of December 2017, he invested over $10 billion into IBM, but reduced his IBM holdings by 94.5% to 2.05 million shares at the end of 2017.
[137]
See also[edit]
References[edit]
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Further reading[edit]
- Henry Bakis (1987). "Telecommunications and the Global Firm". In F. E. Ian Hamilton. Industrial change in advanced economies. London: Croom Helm. pp. 130–160. ISBN 9780709938286.
- Roy A Bauer; et al. (1992). The Silverlake Project: Transformation at IBM (AS/400). Oxford University Press.
- Edwin Black (2008). IBM and the Holocaust: The Strategic Alliance Between Nazi Germany and America's Most Powerful Corporation. ISBN 0-914153-10-2.
- Paul Carroll (1993). Big Blues: The Unmaking of IBM. Crown Publishers.
- Doug Garr (1999). IBM Redux: Lou Gerstner & The Business Turnaround of the Decade. Harper Business.
- Louis V. Gerstner, Jr. (2002). Who Says Elephants can't Dance?. HarperCollins. ISBN 0-00-715448-8.
- Greulich, Peter E. (2014) A View from Beneath the Dancing Elephant: Rediscovering IBM's Corporate Constitution MBI Concepts Corporation. ISBN 0-9833734-6-9.
- John Harwood (2011). The Interface: IBM and the Transformation of Corporate Design, 1945–1976. ISBN 978-0-8166-7039-0.
- Robert Heller (1994). The Fate of IBM. Little Brown.
- David Mercer (1987). IBM: How the World's Most Successful Corporation is Managed. Kogan Page.
- David Mercer (1988). The Global IBM: Leadership in Multinational Management. Dodd, Mead. p. 374.
- Mills, D. Quinn; Friesen, G. Bruce (1996). Broken Promises: An Unconventional View of What Went Wrong at IBM. Harvard Business School. ISBN 0-87584-654-8.
- Emerson W. Pugh (1996). Building IBM: Shaping an Industry. MIT Press.
- Robert Slater (1999). Saving Big Blue: IBM's Lou Gerstner. McGraw Hill.
- Ulrich Steinhilper (2006). Don't Talk – Do It! From Flying To Word Processing. ISBN 1-872836-75-5.
- Ernest von Simson (2009). The Limits of Strategy: Lessons in Leadership from the Computer Industry. iUniverse. ISBN 978-1-4401-9258-6.
- Thomas Watson, Jr. (1990). Father, Son & Co: My Life at IBM and Beyond. ISBN 0-553-29023-1.
External links
US$ 79.139 billion (2017)[3]
US$ 125.35 billion (2017)[3]
