The History of IBM: How the "Blue Giant" Was Created / ITech content

Contents:

• The US Census — IBM's Midwife
• Watson's Reforms
• How IBM Designed the First Computer
• IBM Conquers the Moon
• 1960s–1970s: Commercial Heyday and a Series of Successful Products
• IBM PC: The First, the Most Copied, and the Most Mass-Produced
• Advertising Wars with Jobs
• How Lenovo Bought Part of IBM and What Condoleezza Rice Has to Do with It
• IBM Legacy

IBM (International Business Machines) is an American corporation founded by Herman Hollerith in 1896. Over the course of more than 130 years, the company has evolved from a tabulating machine manufacturer to one of the world's leading IT corporations. Today, IBM is actively developing software, cloud technologies, and artificial intelligence, providing innovative solutions for businesses and government agencies. The corporation is also known for its research and development in quantum computing, strengthening its position in the high-tech market.

IBM engineers played a key role in sending rockets to the moon, developed bank cards, and pioneered the principle of continuous improvement. The IBM PC became the primary precursor to modern computers, setting the standard for personal computing. In this article, we will look at the influence of IBM on the personal computer market and its current activities.

• The US Census — IBM's Midwife
• Watson's Reforms
• How IBM Designed the First Computer
• IBM Conquers the Moon
• The Floppy Disk — the Engine of Progress
• IBM PC: the First, the Most Copied, and the Most Massive
• Advertising Wars with Jobs
• How Lenovo Bought Part of IBM and What Does Condoleezza Rice Have to Do with It
• IBM's Legacy

The US Census — IBM's Midwife

IBM's history begins in the 19th century, when the United States saw a significant influx of immigrants. The Census Bureau faced a problem: processing huge volumes of statistical data could take years. This necessitated the automation of data processing processes. IBM became one of the first steps toward creating technologies that changed the approach to information processing and laid the foundation for the further development of computing. Recognizing the seriousness of the situation, the US government announced a nationwide competition. Numerous inventors and innovative minds competed for government funding. The winner was the talented engineer Herman Hollerith, who proposed an effective solution to the problem. At 19, he completed his studies at Columbia University's School of Mines. His first job, coincidentally, was with the Census Bureau. Hollerith noticed the slow pace of manual counting and began to think about how to simplify and speed up the process. His ideas became the basis for further innovations in the field of data processing.

The invention of the tabulator, based on the use of punched cards, significantly accelerated the processes addition and subtraction. Punched cards were punched with holes corresponding to various respondent data, such as gender, age, place and date of birth, education level, and other parameters. This information was then fed into a counting mechanism. The data processing method developed by Hollerith was a real innovation: tasks that previously took the Bureau eight years were now completed in just one.

In At 36, Herman Hollerith patented the tabulating machine, a significant event in the history of computing. He founded the Tabulating Machine Company and began successfully selling his innovative design to major customers. One of the most notable uses of the tabulator was the 1897 census of the Russian Empire, highlighting the importance of its invention for processing and analyzing large amounts of data.

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The History of Punched Cards: From the Homeoscope to the Centipede Disk

Punched cards, which have become an important part of the history of computing, have an interesting origin, starting with the homeoscope—a device for demonstrating optical effects. Over time, punched cards evolved and found wide application in process automation, as well as in early computers.

At the beginning of the 20th century, punched cards began to be used for storing and processing data. Their popularity increased with the development of computing technology, when they became the primary storage medium for the first computers. Punched cards allowed data to be entered, stored, and processed, which greatly simplified computing tasks.

Over time, technology changed, and punched cards gave way to more modern means of storing information. However, their contribution to the development of computer science and automation cannot be underestimated. Punched cards became a symbol of the transition to the digital age and laid the foundation for the creation of modern computer systems. Thus, the history of punched cards is an important stage in the development of technology, illustrating how simple mechanisms can lead to a revolution in data processing and computing. This attractive asset constantly attracted the interest of leading businessmen. It is not surprising that the early 20th century became a time of mergers and acquisitions in the United States. During this period, Charles Flint, known as the King of Trusts, entered the picture. The son of an American naval admiral with a telling surname, Flint was already engaged in the supply of ships to South America and served as the Chilean consul in New York at the age of 21. He later became the US consul general in Nicaragua and Costa Rica. Flint became a key figure in business, contributing to significant changes in the country's economic landscape.

Flint actively sought new avenues for expansion. Merging various companies into a single entity provided him with a significant advantage. As long as one product remained the market leader, it provided financial stability to less successful businesses. Such changes in the market situation could lead to new opportunities and prospects for business growth and development.

By the beginning of the 20th century, Flint's companies were engaged in the production of trade scales, time clocks, meat grinders, and bacon grinders. In 1911, Hollerith sold his company to Flint for $1.2 million, equivalent to more than $30 million today. This move was a significant event in business history, strengthening Flint's position in the market and opening up new opportunities for development and innovation in manufacturing.

Flint merged several companies into a single conglomerate, which included the Computing Scale Company of America, the International Time Recording Company, and the Tabulating Machine Company. After the merger, the new enterprise was named Computing Tabulating-Recording Company (CTR). It manufactured tabulators, punch cards, scales, timers, and meat grinders. Analysts consider this move to be the beginning of the formation of the IBM corporation. The merger of the companies allowed for an expansion of the product range and a strengthening of the company's market position.

Watson's Reforms

In 1914, Thomas Watson, who had previously worked for National Cash Register, a company specializing in cash registers, was invited to the post of general manager. This step was significant for the company's development, as Watson brought his knowledge and experience to management, which contributed to the improvement of business processes and increased competitiveness in the market.

Watson's story up to this point was far from the glamor of Hollywood plots. He worked as a traveling salesman and sold sewing machines. One day, after celebrating a successful deal, he overdid it with alcohol. The next morning, he discovered that he had been robbed: both the proceeds and the goods themselves were missing. After successfully paying off his boss for the "recommendations," Watson searched for a new job across the country.

Being a cash register salesman was truly a success for Watson. Within four years, he achieved the rank of National Cash Register's top sales agent, earning a record-breaking 35% commission. This career opened up new opportunities for him and allowed him to develop his sales and customer service skills, which are crucial in the retail industry. Watson became a role model for many who strive for sales success and achieve high results in their profession.

After joining CTR, Watson analyzed marketing reports and decided to focus his efforts on tabulating machines. The remaining areas seemed unprofitable to him, so he quickly sold them.

The transformations introduced by Watson became a real A revolution in business. He was the first to recognize the importance of working with human capital. IBM was the first company to switch from piecework to hourly wages, which was an important step in the development of corporate culture. The company slogan "Think!" reflected a philosophy of production process management that predated the popularization of Japanese kaizen by decades. Watson trained his employees to strive for small but constant improvements, which ultimately led to significant achievements and the company's global success. Effective human resource management and a constant desire for improvement allowed IBM to take a leading position in the industry.

After appointing Thomas Watson to the head of CTR, he implemented a strict dress code and banned alcohol consumption in the workplace, which was common practice at the time. He also founded the "100 Percent Club," which included only successful employees of the sales department. These measures contributed to the creation of a professional atmosphere and increased the company's efficiency.

By the 1920s, a sales school was established in Endicott, where CTR began hiring only the best college graduates. A six-week intensive training course was developed for them, significantly improving their professionalism. CTR's sales staff gained worldwide recognition for implementing a new standard of service and building trusting relationships with customers. These innovations not only improved the quality of service but also contributed to the formation of long-term partnerships, which became an important factor in the company's success on the international stage.

In less than four years, the company's revenue doubled, a significant achievement. The corporation became a transnational giant, and its products, marketed under the Computing Tabulating-Recording Company brand, gained popularity in Europe, Asia, South America, and Australia. This confirms the successful strategy of entering international markets and the growing interest in the company's innovative technologies.

In 1924, after a decade of leadership by Thomas Watson, the company changed its name to International Business Machines Corporation. This new name more accurately reflected the company's ambitions and strategy to create machines for businesses around the world. This is how the famous IBM brand was founded, which became synonymous with innovation and technology in the field of information systems.

How IBM designed the first

One of the company's significant inventions, which remains relevant today, is wireless data transmission technology. In 1935, Antarctic explorer Admiral Richard Byrd first used an IBM Radiotype machine to transmit the word "WATSON" from the South Pole to a laboratory in New Jersey using microwaves. This event was an important step in the development of communication technologies and laid the foundation for modern methods of transmitting data without wires.

The potential of the Radiotype invention was not immediately recognized. With the outbreak of World War II, IBM provided the technology to the Signal Corps, which used six stations to transmit data. They sent approximately 50 million words daily. Although IBM was slow to bring Radiotype to market after the war, it demonstrated the significant capabilities of new data transmission systems, which was an important step in the development of communications technology.

In 1935, the company successfully completed a government contract for employment registration, which became a landmark event in the history of accounting. The media described this operation as "the largest accounting operation of all time." Specialists needed to analyze data on 26 million people, which required a high level of skill and accuracy in their work. This project not only demonstrated the company's capabilities but also had a significant impact on improving accounting methods and data analysis in the future.

Following this success, other government organizations began to contact Watson. Thanks to increased revenue, IBM not only maintained its staff during the Great Depression in the United States but also allocated funds for scientific research. In 1933, a highly equipped scientific and technological laboratory was opened in New York City, which became one of the best in the world. This initiative contributed to the further development of technologies and strengthened the company's market position. With the outbreak of World War II, IBM repurposed its production for the needs of the military. The company's factories began producing rifles, engine parts, bombs, and revolvers. In 1941, the US military also participated in the creation of the first computer, the Mark I, whose chief developer was US Navy Captain Howard Aiken. This project was an important step in the development of computing technology and had a significant impact on subsequent technologies.

The idea of ​​​​creating a powerful computing machine arose Aiken had already been working on his doctoral dissertation in the 1930s. He had experience assembling simpler devices and recognized that the future belonged to machines capable of replacing humans in solving complex mathematical problems. The device Howard developed could be described as a high-performance calculator. IBM believed in the project's success, which allowed it to quickly secure funding and attract qualified specialists for its implementation. The Mark I is considered the first computer in history. It consisted of 765,000 parts, was 17 meters long and 2.5 meters high, and contained 800 kilometers of wiring. These impressive dimensions underscore its complexity and scale. Initially, the Mark I was capable of performing basic mathematical operations: it quickly added and subtracted, completing about three operations per second, multiplied in 6 seconds, and divided in 15 seconds. This computer marked the beginning of the computing era and was an important step in the development of technology.

IBM played a key role not only in creating the first computer, but also in increasing interest in Computer science. At the end of World War II, Thomas Watson founded the Laboratory for Scientific Computing at Columbia University. This laboratory employed leading scientists and engineers who shaped new approaches in the field of computer science. Specialists who graduated from the laboratory laid the foundations of electronic data processing and over the years actively developed this area, which contributed to the development of modern technologies and software.

IBM Conquers the Moon

In 1956, after 81 years of management, Thomas Watson stepped down as CEO of IBM. His son, Thomas Watson Jr., took his place. Under his leadership, the company took a significant step in development, beginning the production of computers for business. IBM offered customers ready-made solutions with pre-installed software, which contributed to a multiple increase in sales. This approach not only strengthened the company's position in the market, but also laid the foundation for further innovation in computer technology.

One of IBM's significant achievements during this period was its assistance to the US government in organizing the lunar mission. The company's engineers made a key contribution to the development and improvement of the Saturn V rocket, which made it possible to successfully send a crew to the Moon. Without their efforts and innovative solutions, the implementation of this historic mission would not have been possible.

The Instrumentation Unit, designed at NASA and built using IBM technology at the Space Systems Center in Huntsville, became a key element of the Saturn launch vehicle. This computer center provided guidance to the rocket throughout the flight, ensuring the successful direction of the Apollo mission to the Moon. Innovative technologies and software developed for this unit played a decisive role in achieving mankind's historic goal - landing on the Moon.

It was responsible for determining the launch time of the Saturn rocket, as well as controlling the ejection of its stages and their direction. The complex included devices for measuring altitude, acceleration, and velocity, as well as determining the rocket's position. A key component of the system was a computer that plotted the required course and transmitted control signals to the Saturn's engines. This made it possible to precisely control each stage of the flight and ensure the successful completion of missions.

IBM constantly continued its research and development, not without stopping for a year. The company actively sought talent across the country. In the 1930s, a schoolteacher named Ray Johnson developed a prototype hard drive, which attracted the attention of IBM. The company acquired this promising invention and invited Johnson to the position of engineer. Under his leadership, the first working prototype of the "Winchester" was created in the San Jose laboratory in 1955, providing information storage on magnetic disks. This breakthrough was an important step in the development of data storage technologies and had a significant impact on further innovations in the field of computing.

1960s–1970s: Commercial Heyday and a String of Successful Products

IBM has held the lead in the number of invention patents in the United States for decades, and its list of achievements continues to grow. In the 1960s and 1970s, the company developed many innovative technologies that had a significant impact on various industries. Some of these inventions are rightfully considered fundamental to the development of the modern world.

In 1971, the eight-inch floppy disk, enclosed in a plastic case, was introduced. This innovation caused a real sensation in the data storage market. Users quickly appreciated the advantages of the floppy disk: compared to bulky stacks of punched cards and expensive hard drives, this method of storing information proved more convenient and efficient. Floppy disks became a popular solution for storing and transferring data, changing the approach to working with information.

The IBM engineers who created the floppy disk could not have imagined its rapid popularity among users. Initially, the floppy disk was developed to optimize data loading on the IBM System/370 mainframe. However, its compact size and increasing capacity soon made floppy disks popular for personal computers as well. This invention had a significant impact on data exchange and storage, which contributed to the development of the computer industry.

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Storage media: types, history and future

Storage media play a key role in storing and transmitting data. Since the advent of the first means of recording information, such as cave paintings and clay tablets, humanity has constantly sought new ways to store knowledge. In our digital age, storage media have evolved from analog forms such as magnetic tape to modern digital solutions.

The main types of storage media include magnetic, optical, and flash drives. Magnetic media, such as hard drives, provide high capacity and fast data access. Optical media, including CDs and DVDs, remain popular for storing music and video, although their use is declining in favor of digital formats. Flash drives, due to their compactness and reliability, are becoming increasingly common.

The history of storage media demonstrates a constant desire for technological improvement. With the development of computers and the internet, new storage formats have emerged, such as cloud technologies, which allow users to store data remotely, providing access to it from anywhere in the world. This opens up new horizons for working with information and significantly simplifies data exchange.

The future of storage media lies in the continued development of technology. New materials and storage methods, such as quantum technologies and biological media, are expected to provide even greater capacity and speed. These innovations have the potential to revolutionize the way we store and process data, opening up new possibilities for science, business, and everyday life. Thus, storage media continue to evolve, reflecting technological advances and societal needs. Understanding their history and current trends allows us to better assess the future of data storage and its impact on each of our lives. IBM's inventions impact our daily lives. One such significant advance is magnetic stripe technology. In 1969, IBM engineer Forrest Parry was faced with the task of developing identification cards for CIA officers. He was attempting to combine a magnetized strip with a plastic carrier but was unable to find a suitable solution. Discussing his problem with his wife, who was ironing at the time, she suggested using an iron to melt the strip. This simple yet effective tip became the key to success, and the solution to the problem marked the beginning of a new era in identification technology. Magnetic stripe technology is still used in a variety of applications, including bank cards and identification cards, demonstrating how a simple solution can lead to significant innovation.

The banking industry has changed significantly thanks to the contributions of large corporations, and one of the most significant advances was the advent of the automated teller machine (ATM). In the 1960s, a collaboration between IBM and Citibank led to the creation of the first ATM. Design engineer Donald Wetzel sought to develop a device that would allow customers to withdraw cash without interacting with a teller. At the time, access to funds was limited, and 24-hour cash withdrawals were not available. This innovation changed the approach to banking services and became the basis for further development of financial technology.

In 1969, IBM and Citibank introduced the first ATM in Philadelphia after a series of successful prototypes. This device allowed users to withdraw cash from a card equipped with a magnetic stripe. However, the ATM's functionality at the time was limited: it didn't support cash deposits or other banking transactions. The ATM was integrated with the bank's central computer, enabling real-time transaction processing. This marked a significant advance in banking automation and marked the beginning of the ATM's evolution.

In April 1964, IBM introduced a series of business mainframes called the IBM System/360. $5 billion was spent on developing this innovative technology. Although competitors also offered their own mainframes, IBM succeeded not only in creating high-quality computers and reliable servers but also in providing them with a unified architecture. Users could specify a set of commands, and the system executed them flawlessly. This became the basis for the further development of computer technology and marked the beginning of a new era in business.

The costs of developing mainframes quickly paid for themselves. Almost all large companies and most governments either purchased or leased mainframes from IBM. This product significantly increased the company's profits, which became a monopoly in the computing market and maintained its leadership until the advent of personal computers.

IBM did develop innovations that changed the approach to data processing. Until the 1970s, information was processed using rigid, one-time database programs. Edgar Codd, a company scientist, sought to improve methods for sorting and managing data. In 1970, he presented the concept that later became the basis for the relational database model. This solution significantly simplified access to information and improved its processing, which had a huge impact on the development of data storage and management technologies.

A relational database organizes information in tables, which consist of columns representing data attributes and rows containing tuples with specific values ​​​​of these attributes. The key advantage of relational databases is the ability to link attributes, which simplifies data management. Users have highly appreciated this functionality because the SQL language allows for efficient data retrieval in groups, providing flexibility and ease of use when working with large volumes of information. Relational databases remain a popular choice for many applications due to their structured nature and ability to support complex queries.

Reading is an important part of our lives, contributing to the development of thinking and broadening our horizons. Regularly reading books, articles, and other materials helps improve vocabulary, increase literacy, and deepen knowledge in various fields. Research shows that reading not only strengthens mental abilities but also promotes emotional development, developing empathy and understanding of others.

To optimize the reading process, it is worth choosing materials that match your interests and level of knowledge. This will allow you not only to enjoy the process but also to effectively absorb new information. It is also important to set aside time for reading, creating a comfortable environment that will promote concentration.

Don't forget about the possibilities of digital reading, which provides access to a variety of resources and literature in a convenient format. Subscriptions to e-libraries and specialized platforms can significantly enrich your reading experience.

Thus, reading becomes not just a hobby, but an important part of personal growth and development.

A database is an organized system for storing, managing, and processing information. It is used to store large amounts of data that can be efficiently sorted, retrieved, and updated. Databases are essential for providing fast and reliable access to information, which is especially important for business, scientific research, and other data-critical areas.

The main functions of a database include storing and managing data, and running queries to retrieve the information needed. This allows companies to optimize processes, improve customer service, and make more informed decisions. Databases can be relational, document, graph, and others, allowing you to choose the most appropriate type depending on specific tasks and requirements.

In today's environment, effective data management is becoming critical to achieving competitive advantage. Databases integrate information from various sources and enable data analysis, which helps identify trends and improve business efficiency.

IBM PC: the first, the most copied, and the most widespread

In 1981, the IBM PC was introduced, which became a landmark event in the history of technology. Although personal computers had existed for some time, it was IBM that made them popular, mass-produced, and accessible not only to large companies but also to a wide range of users. This move opened up new horizons for the use of PCs in everyday life and business, laying the foundation for the further development of the computer industry.

The IBM PC was developed in a record 12 months thanks to the efforts of a dedicated engineering team led by Don Estridge. This project was exceptional for IBM, as the team was given a dedicated building, strict dress code requirements were abolished, and lengthy meetings and complex approvals at every stage of development were eliminated. The team maintained a "garage culture" within the team, inspired by the approaches of Steve Jobs and Steve Wozniak, although the company's headquarters did not share these methods. This innovative approach contributed to the rapid creation of one of the most significant products in the history of computing.

The spirit of rivalry between companies has deep ideological roots. Steve Jobs and Steve Wozniak championed freedom, enthusiasm, and experimentation, which fueled innovation in technology. Meanwhile, large corporations like IBM adhered to strict military-style systems, including discipline, multi-level management, and detailed reporting at every stage. This cultural contrast created the foundation for a competitive environment, where each company strives to transcend traditional approaches and offer something new and unique. Business rivalry not only drives technological advancement but also shapes management approaches, which can differ significantly depending on corporate philosophy. Steve Jobs became known as a strong advocate of innovation and creativity, focusing on creating elegant and easy-to-use products. His approach was based on intuitive design, which made Apple products popular with a wide audience. In contrast, IBM focused on serving the corporate and government sectors, offering larger, more complex computing solutions and technologies. This difference in the companies' strategies illustrates their different approaches to technology development: Jobs sought to create accessible and attractive products for consumers, while IBM focused on powerful solutions for businesses and government organizations.

Advertising Wars with Jobs

Steve Jobs believed that IBM systems were overly complex, making them difficult for ordinary users to understand and use. He believed that technology should be intuitive and accessible so that everyone could interact with it effectively. This view became the basis for Apple's product development philosophy, which aims to create simple and easy-to-use interfaces.

Some experts believe that putting an IBM PC on every desktop in America will help increase productivity. However, this idea may not work. The problem is not only the availability of technology, but also its effective use. Simply having a computer does not guarantee increased productivity. Thoughtful processes, employee training, and the integration of technology into the workflow are necessary. Without this, even the most modern devices won't be able to significantly impact work efficiency.

Steve Jobs: Interview for Playboy

In this interview, published in Playboy, Steve Jobs shares his views on life, technology, and business. He discusses the principles that formed the foundation of Apple's success and how his personal beliefs influence his professional work. Jobs discusses the importance of innovation and creativity in the modern world, emphasizing that they drive progress. He also touches on leadership and management, sharing his methods for motivating his team. This interview provides unique insight into one of the most influential entrepreneurs of our time, as well as his philosophy, which continues to inspire millions of people around the world.

He was right: users began to quickly migrate from the command line to systems with a user-friendly graphical interface. This change made technology more accessible and understandable, which contributed to its mass adoption and increased user base. Intuitive interfaces have made it much easier to interact with software, which has had a positive impact on the popularity of computers and mobile devices.

Steve Jobs always emphasized the importance of high-quality ideas over financial resources. In January 1984, Apple's advertising agency, headed by Jobs, presented the iconic "1984" commercial, which clearly demonstrated competition with IBM. This commercial became a symbol of the company's innovation and creativity, emphasizing its desire to change the technology market and create unique products.

The film, based on the cult dystopian novel by George Orwell, clearly demonstrates the confrontation between the two technology giants. In this context, IBM personifies an authoritarian regime, while Apple acts as a symbol of challenging the system and protecting individuality. The advertising campaign increased the tension between the two companies, emphasizing their opposing philosophies and values.

While geniuses competed in ambitions, the market was waiting for their innovative solutions. As a result, IBM won the battle to create the first personal computer. Success was achieved thanks to a unique approach borrowed from Steve Jobs, as well as the corporation's strong intellectual and financial foundation. The programmers didn't just work; they were driven by a single idea: to develop a personal computer affordable to middle-income American families. When the engineers realized they were behind schedule, they began working seven days a week, even spending Christmas in the office. This hard work became the foundation for a revolution in technology and changed the way we think about computers in everyday life. The IBM PC became a kind of "assembled Frankenstein," as its parts and components weren't manufactured exclusively by IBM. By law, any company could reproduce, modify, or even clone parts of this computer, offering them under their own brands. The widespread copying of the IBM PC architecture contributed to the significant growth of the personal computer market, which in turn contributed to the popularization of computer technology among the general population.

In In 1987, IBM, eager to keep up with competitors who were mass-producing inexpensive copies of the IBM PC, introduced the PS/2, a closed-architecture computer. This innovation limited the ability to modify the computer, as users could only add components from suppliers who had signed licensing agreements with IBM. This decision allowed the company to control the quality and compatibility of components, but it also drew criticism from proponents of open standards. Thus, the IBM PS/2 was an important step in the development of the computer industry, demonstrating how a closed-architecture strategy could influence the market. Companies that had previously followed IBM's architecture disagreed with this situation. In 1988, the executives of Compaq, Microsoft, Intel, and six other major manufacturers united against IBM, forming the so-called "Gang of Nine." This merger was an important step in the struggle for the computer technology market, which significantly changed the landscape of the industry.

The claims were openly hooligan: "If the IBM PS/2 is really so good, then the right decision would be to recognize their developments as the property of mankind and make the architecture open." However, IBM did not show altruism, and years later the market was captured by manufacturers who began copying the IBM PS architecture. This model became a model and driver of the industry. Initially, manufacturers attracted consumers with low prices, but over time, they significantly improved the quality of their products.

How Lenovo bought part of IBM and what does Condoleezza Rice have to do with it

By the early 1980s, the personal computer market was under the control of low-cost IBM analogs. The company's financial reports caused alarm in the American public, as they reported significant losses and the lack of a clear strategy for exiting financial instability. This threatened hundreds of thousands of jobs and fueled public anxiety. The technology market required swift decisions and a rethinking of business models to restore consumer and investor confidence.

In January 1993, John Akers resigned as the corporation's president. In search of a new director, the company turned to other IT giants, but many specialists were reluctant to accept the responsibility of saving this legendary but troubled competitor from collapse. The situation was further complicated by the fact that the corporation was on the brink of bankruptcy and needed a strong leader capable of restoring its lost market position.

For the first time since Thomas Watson, IBM decided to hire an external crisis manager. This role was filled by Louis Gerstner, who was later dubbed "the man who saved IBM." At his first meeting, the new CEO outlined the key measures necessary to bring the company out of the crisis. His approaches and strategies played a decisive role in transforming IBM and returning it to sustainable development.

• act based on market conditions;
• focus on principles, not procedures;
• work on tasks faster than was customary in the company;
• act quickly and do not hesitate to make mistakes.

Gerstner proposed abandoning the personal computer market and focusing on scientific research and business solutions. As a result, the division responsible for the production of ThinkPad laptops was sold to the Chinese company Lenovo. This decision allowed for the optimization of resources and the focus on more promising areas in the field of technology and innovation.

The deal was accompanied by a scandal due to the high reputation of IBM computers, which were used on the International Space Station by NASA scientists. US Secretary of State Condoleezza Rice emphasized in her interviews that IBM is a national treasure. In this regard, the sale of even part of the company was considered a potential threat to national security.

Her concerns were well-founded. Over the years of collaboration with the US government, IBM played a key role in organizing the first manned flight to the moon, participated in numerous space programs, and likely carried out classified defense projects. Nevertheless, after lengthy negotiations, a deal was struck, and the companies soon formed a joint venture.

IBM's Legacy

The IBM name no longer resonates as loudly as it did in past decades. For many years, the company dominated the computer market, and its technologies are used in a variety of devices. The lack of active presence in the news and the absence of flashy presentations of new products does not indicate problems. On the contrary, IBM continues to be a leader in its industries, and its net profit in the first quarter of 2023 increased by 26.5%. The company's revenue has exceeded $14 billion, confirming the success of its software and consulting services.

IBM's influence on The personal computer market cannot be overstated. This company not only sets the tone for the industry but also shapes the competitive landscape, where some companies act as rivals and others become partners. Ignoring IBM's global significance would be foolish. The future of technology, and in particular the development of personal computers, is directly linked to the achievements and innovations represented by this corporation. Today, IBM is actively involved in consulting, develops supercomputers, and conducts significant scientific research in the fields of blockchain and artificial intelligence. The company employs more than 3,000 doctors of science and has 12 research centers, confirming its leadership in innovation. IBM holds the record for the most registered patents, which testifies to its ability to generate new ideas. Perhaps tomorrow, IBM's achievements will have a significant impact on the world of technology, forcing competitors to step up their efforts to keep up with this transnational corporation.

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