ABSTRACT
In October 1959 IBM announced its second-generation computer, the model 1401, which superseded its model 650. Because the 1401 used transistors instead of vacuum tubes, it was faster and more reliable than its predecessors. Moreover, the 1401 was a complete integrated system with a processor, peripherals, and software. It was a runaway success, and eventually more than twelve thousand were sold. IBM’s success caused problems for its rivals, several of which gave up the unequal struggle, and IBM was left with just seven significant competitors – collectively known as IBM and the Seven Dwarfs. For all computer manufacturers, including IBM, supplying software for all their different computer models was becoming a problem. IBM’s solution was to replace all of its different models by a single software-compatible range of computers, available in sizes from small to large. On 7 April 1964 the new family of computers was announced as the “third generation” System/360. It was an enormously costly development that established a new standard for the industry. IBM’s competitors were soon reduced to just five – IBM and the BUNCH.
