THE WHATIS.COM WORD-OF-THE-DAY   
February 14, 2002

IBM 
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TODAY'S WORD: IBM 

See our definition with hyperlinks at
http://searchebusiness.techtarget.com/sDefinition/0,,sid19_gci801387,00.html

IBM is by far the world's largest information technology company in
terms of revenue ($88 billion in 2000) and by most other measures, a
position it has held for about the past 50 years. IBM products
include hardware and software for a line of business servers, storage
products, custom-designed microchips, and application software.
Increasingly, IBM derives revenue from a range of consulting and
outsourcing services. With the advent of the low-cost microchip, the
personal computer, distributed computing, open rather than
proprietary standards, and the Internet, IBM has seen its position of
dominance challenged as the world of information technology no longer
revolves around a single company. Yet investors and competitors
continue to be impressed by IBM's long-established base of customers
among middle-sized and Fortune 100 businesses and its ability to
adapt its products and services to a changing marketplace. 

In its early years, IBM was widely associated with the punched card,
the invention of Herman Hollerith. Hollerith was part of the
Computing-Tabulating-Recording Company, when, in 1914, Thomas J.
Watson joined the company as general manager. The CTR Company itself
had been formed from three companies that sold grocery store scales,
time recording devices, and tabulators. Over the next decades, Watson
built the business machine company of the future, now known as
International Business Machines. By the middle of the century, IBM
led such companies as National Cash Register and later Digital
Equipment into the computer era. Famous for its vaunted force of
salesmen with white shirts and ties, IBM, led by Watson (and later
his son, Thomas Jr.), also invested heavily in research. 

In the early 1960s, IBM introduced what was to become the de facto
standard for large company business computers with its System/360.
Designed to be continually upwards compatible, a program written for
the System/360's operating system, OS/360, is said to be able to run
today, 40 years later, in z/OS, the main operating system for IBM's
larger eSeries servers (the latest incarnations of IBM mainframes).
By the early 1970s, the punched card was gradually being replaced by
the interactive display terminal and especially by the IBM 3270. The
company also began to compete with DEC and HP in computers for small
business with its System/3 (the forerunner of today's AS/400). In the
early 1980s, IBM's realized that the newly-arrived Apple personal
computer would revolutionize the industry. It quickly overtook the
competition with a series of PCs that became the standard for
business use. In doing so, it inadvertently created a future
competitor by the name of Microsoft that would come to dominate the
market for PC software. 

With the arrival of the Internet, IBM has recast its computers as
servers, largely endorsed open standard technologies, and developed
new revenue lines offering hosting, Web site management software and
servers, and its own version of Web services. At the end of 2000, IBM
had over 316,000 employees. Its stock (IBM) is listed on the New York
Stock Exchange. 

RELATED TERMS:

Herman Hollerith
http://whatis.techtarget.com/definition/0,,sid9_gci214627,00.html

z/OS
http://search390.techtarget.com/sDefinition/0,,sid10_gci540721,00.html

3270 
http://search390.techtarget.com/sDefinition/0,,sid10_gci211498,00.html

AS/400
http://search400.techtarget.com/sDefinition/0,,sid3_gci211599,00.html
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SELECTED LINKS:

IBM's Web site offers more information. 
http://www.ibm.com/

The history archives on IBM's Web site includes an exhibit of IBM
attire over the years. 
http://www-1.ibm.com/ibm/history/

Search390.com offers an independent portal for news and links to
information about IBM's S/390 and eSeries 900 products. 
http://www.search390.com/

Search400.com offers similar information about IBM's AS/400 products.
http://www.search400.com/

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__________________________________________________________________
:::::::::::::::::::  WHATIS.COM CONTACTS   :::::::::::::::::::

LOWELL THING, Site Editor ([EMAIL PROTECTED])
__________________________________________________________________

MARGARET ROUSE, Assistant Editor ([EMAIL PROTECTED])

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