History of the Computer Industry in America

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Only once in a lifetime will a new invention arise that profoundly impacts every aspect of our lives. Such a remarkable device, which revolutionizes how we work, live, and play, is truly extraordinary. It is astonishing that a machine capable of accomplishing all this and more now permeates almost every business in the U.S., as well as half of all households (Hall, 156). This incredible creation is none other than the computer. While the electronic computer has been in existence for over 50 years, its predecessors have been around for two millennia.

Over the past four decades, the computer has revolutionized American society, progressing from the wooden abacus to the latest high-speed microprocessor. It has had a significant impact on and enhanced nearly every aspect of people’s lives.

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The abacus, dating back 2000 years ago, is considered the earliest form of modern-day computer. It comprised a wooden rack with parallel wires where beads were threaded. By following memorized programming rules, users could carry out basic arithmetic operations by manipulating the beads along the wires. In 1694, Blaise Pascal introduced the first digital calculating machine capable of adding numbers. This machine involved users inputting numbers by turning dials and was initially developed to aid Pascal’s father in tax collection duties. (Soma, 14) (Soma, 32)

In the early 1800s, mathematician Charles Babbage created a steam-powered machine capable of automatic calculations. This machine had the ability to store up to 1000 50-digit numbers and included a range of operations necessary for a modern computer. Data was programmed and stored on “punch cards” with holes punched in them. However, due to the limited precision machining techniques available at the time and a lack of demand, Babbage’s inventions were mostly unsuccessful (Soma, 46).

After Babbage, there was a decline in the fascination with computers. However, from 1850 to 1900, advancements in mathematics and physics sparked renewed interest (Osborne, 45). Many of these advancements involved intricate calculations and formulas that were incredibly time-consuming for humans. The first significant utilization of a computer in the United States occurred during the 1890 census. Two individuals, Herman Hollerith and James Powers, devised a novel punched-card system that could automatically process information from cards without human involvement (Gulliver, 82). Given the rapid population growth in the U.S., computers became indispensable for tallying the totals.

Commercial industries quickly recognized the benefits of punched-card systems, leading to the development of improved business machines by companies like International Business Machines (IBM), Remington-Rand, Burroughs, and others. Although these punched-card machines may seem slow by today’s standards, typically processing 50 to 250 cards per minute, each card could hold up to 80 digits. Despite their limitations, punched cards represented a significant advancement, providing a way for massive input, output, and memory storage. For over five decades, these machines dominated the world’s business computing and played a significant role in scientific computations as well (Chposky, 73).

By the late 1930s, Howard Hathaway Aiken collaborated with engineers at IBM to construct a large automatic digital computer named the Harvard Mark I. This machine was based on standard IBM electromechanical parts and utilized punched-card machine techniques, which had proven to be reliable. The Harvard Mark I had the capability to handle 23-digit numbers and perform all four arithmetic operations. It also had specialized programs to handle logarithms and trigonometric functions. Control over the Mark I was achieved through the use of pre-punched paper tape.

The output was obtained through the use of card punch machines and electric typewriters. Although it was a slow process, taking 3 to 5 seconds for multiplication, it was entirely automatic and capable of carrying out lengthy computations without the need for human involvement (Chposky, 103). The onset of World War II created a critical demand for computing power, particularly within the military sector. This was due to the development of new weapons systems that required trajectory tables and other crucial data.

In 1942, a team at the University of Pennsylvania led by John P. Eckert and John W. Mauchley embarked on building a high-speed electronic computer called ENIAC, which stood for “Electrical Numerical Integrator And Calculator”. ENIAC could perform multiplication calculations at a rate of 300 products per second, utilizing a stored multiplication table in its memory to determine the value of each product. Thus, ENIAC was approximately 1,000 times faster than its predecessors (Dolotta, 47).

ENIAC, the first successful high-speed electronic digital computer, was an immense machine that utilized 18,000 standard vacuum tubes, occupied 1,800 square feet of floor space, and consumed about 180,000 watts of electricity. Its input and output were managed through punched-card system. Despite its efficiency in handling specific programs it was designed for, programming the ENIAC proved to be a challenging task as it required rewiring to execute desired computations. Renowned mathematician John von Neumann held a great fascination for the ENIAC (Dolotta, 50).

In 1945, Von Neumann conducted a theoretical analysis of computation which proved that a computer, through properly programmed control, could effectively carry out any type of computation without hardware alterations. He devised innovative approaches for constructing and organizing efficient computers, known as the stored-program technique, which became essential for future generations of high-speed digital computers and were universally embraced (Hall, 73).

In 1947, the first wave of modern programmed electronic computers emerged. These computers utilized random access memory (RAM), a memory that provides constant access to specific information (Hall, 75). They featured punched-card or punched-tape input and output devices, along with 1000-word capacity RAMs. Compared to ENIAC, they were physically smaller, about the size of a grand piano, and required 2500 small electron tubes. These improvements marked significant progress from earlier machines. The first-generation stored-program computers needed regular maintenance and achieved a reliability of 70% to 80%. They were used for approximately 8 to 12 years and primarily programmed in machine language. However, by the mid-1950s, advancements had been made in advanced programming. Notably, this group included the commercially available EDVAC and UNIVAC computers (Hazewindus, 102).

The UNIVAC computer, created by John W. Mauchley and John Eckert, Jr., was developed in the 1950s by the Mauchley-Eckert Computer Corporation, America’s first computer company in the 1940s. However, they encountered financial difficulties during the UNIVAC’s development and ultimately sold their company to Remington-Rand Corporation. Nevertheless, they managed to successfully construct a working UNIVAC computer and delivered it to the U.S. Census Bureau in 1951. At the bureau, it was used to aid in tabulating the U.S. population (Hazewindus, 124).

Early in the 1950s, two significant engineering discoveries revolutionized the electronic computer industry. Initially, computers were constructed using vacuum tubes. However, in the late 1950s, the implementation of transistors replaced vacuum tubes. Transistors offered numerous advantages such as reduced size, lower cost, enhanced reliability, and improved efficiency (Shallis, 40). Subsequently, in 1959, Robert Noyce, a physicist working at the Fairchild Semiconductor Corporation, introduced the integrated circuit. The integrated circuit was a minuscule silicon chip that encompassed an entire electronic circuit. This groundbreaking development eliminated the need for large and unreliable machines. Consequently, computers became more compact, reliable, and capable of accommodating higher capacities (Shallis, 49).

The rapid advancements in technology quickly influenced the development of new digital computer models. By the early 1960s, commercially available machines saw an 800% increase in memory storage capacities, accompanied by a significant boost in speeds. However, these machines came at a high cost for both purchase or rental, as well as operation expenses. The complex operations performed by these computers required the hiring of expensive programmers. Consequently, these computers were primarily housed in sizable computer centers operated by industry, government, and private laboratories. These centers were staffed with numerous programmers and support personnel (Rogers, 77). IBM had 76 of its large computer mainframes in use by 1956, while UNIVACs had only 46 (Chposky, 125).

In the 1960s, Sperry-Rand Corporation and IBM made significant advancements in designing and developing highly efficient computers. The completion of the LARC machine for Livermore Radiation Laboratories by Sperry-Rand Corporation and the Stretch computer by IBM marked a turning point. The LARC boasted a core memory of 98,000 words and had the impressive capability to multiply in just 10 microseconds.

The Stretch computer had different levels of memory, with slower access for the larger capacity levels. The fastest access time was less than 1 microsecond, and the total capacity was around 100 million words (Chposky, 147).

The major computer manufacturers started providing a variety of computer capabilities and computer-related equipment during this period. This equipment included consoles, card feeders, page printers, cathode-ray-tube displays, graphing devices, and optional magnetic tape and magnetic disk file storage. These tools were widely used in businesses for tasks like accounting, payroll, inventory control, supply ordering, and billing.

Initially, fast arithmetic capabilities were not required for central processing units (CPUs) used in accessing extensive file records. The majority of computer systems were deployed for larger applications like managing patient records, medications, and treatments in hospitals. Additionally, CPUs were utilized in automated library systems and database systems, like the Chemical Abstracts system which now contains records of almost all known chemical compounds (Rogers, 98).

During the 1970s, there was a shift towards using less costly computer systems for a broader range of applications instead of relying on extremely powerful centralized computational centers. Industries like petroleum refining and electrical power distribution systems started using computers with modest capability to control and regulate their activities. In the 1960s, programming application problems posed challenges for moderate-sized computer installations, but advancements in application programming languages overcame these obstacles. These languages were now used to control various manufacturing processes, operate machine tools, and perform other tasks (Osborne, 146). Furthermore, in 1971, Marcian E. Hoff Jr., an engineer at Intel Corporation, introduced the microprocessor, marking another significant phase in computer development (Shallis, 121).

The miniaturization of computer logic circuitry and component manufacture by large-scale integration techniques has brought about a revolution in computer hardware. It was discovered in the 1950s that reducing the size of electronic digital computer circuits and parts would enhance speed, efficiency, and performance. However, at the time, the manufacturing methods were insufficient to achieve this. Around 1960, the advancement of photo printing conductive circuit boards eliminated the need for wiring. This breakthrough enabled the incorporation of resistors and capacitors into circuitry using photographic methods (Rogers, 142). By the 1970s, tiny silicon chips were available that contained entire assemblies like adders, shifting registers, and counters. As the 1980s arrived, very large-scale integration (VLSI), where a single chip houses hundreds of thousands of transistors, became increasingly prevalent.

Several companies, including some new to the computer industry, brought programmable minicomputers with software packages in the 1970s. This trend of reducing the size continued with the launch of personal computers; machines that are small and affordable enough for individuals to buy and use (Rogers, 153).

Introduced in January 1975, one of the first machines of its kind was the Altair 8800. Popular Electronics magazine provided plans for building this small programmable computer for around $380 (Rose, 32). The Altair did not come with a monitor or keyboard and had limited applications, with programming done by pushing buttons and flipping switches on the front of the box (Jacobs, 53). Nevertheless, it received numerous orders and served as a starting point for well-known figures in the computer and software manufacturing industry. For instance, Steve Jobs and Steve Wozniak, founders of Apple Computer, created a more affordable and productive version of the Altair, transforming their hobby into a business venture (Fluegelman, 16).

Following the release of the Altair 8800, the personal computer industry became intensely competitive. In 1975, IBM, a longstanding leader in the computer industry, entered the market with their own personal computer known as the IBM Model 60. Simultaneously, Apple Computer introduced their own personal computer named the Apple II. It is important to mention that Apple’s initial computer, the Apple I, was developed by Jobs and Wozniak in Wozniak’s garage but had limited production.

Microsoft created a Disk Operating System (MS-DOS) for IBM computers, and Apple developed their own software system. Since Microsoft set the software standard for IBM, all software manufacturers had to ensure compatibility with Microsoft’s system. This ultimately resulted in substantial profits for Microsoft.

Computer manufacturers strived to create affordable computers that were faster, more reliable, and had greater storage capacity. Almost every computer manufacturer succeeded in this endeavor, resulting in the widespread use of computers in various sectors. They were used in businesses to manage inventory, in colleges to assist students with research, and in laboratories to facilitate high-speed complex calculations for scientists and physicists. Thus, computers made a significant impact on society and contributed to the growth of a substantial industry (Cringley, 174).

The computer industry and its technology have a promising future with the expectation of doubling the speed of processors every year and a half in the coming years. Furthermore, as manufacturing techniques become more refined, there is an anticipation of steady price decreases for computer systems.

The increase in microprocessor technology will compensate for the drop in price of older processors, resulting in the price of new computers remaining stable over time. However, the technology itself will progressively improve. Since the end of World War II, the computer industry has rapidly grown to become one of the largest and most profitable industries in the United States. It consists of numerous companies producing various products, ranging from high-speed supercomputers to printout paper and floppy disks, generating billions of dollars in sales annually and employing millions of people. Undoubtedly, computers have had a significant impact on various aspects of people’s lives, revolutionizing both work and leisure activities. By performing complex tasks on behalf of individuals, computers have greatly simplified life for everyone, making them one of the most remarkable inventions in history.

Works Cited:

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