Early attempts at a high-powered machine with broad appeal were marked by internal rivalries and commercial failures. Thomas Watson Jr., who succeeded his father as chairman of IBM in 1956, gave T. Vincent Learson responsibility for IBM's computer-development and -manufacturing operations, which were divided into two divisions. The General Products Division made lower-end computing products that rented for about $10,000 a month or less, and the Data Systems Division produced higher-end systems that rented for more than $10,000 a month. The General Products Division, in Endicott, N.Y., had recently scored big with the 1401, the first computer with more than 10,000 installations. The Data Systems Division, in Poughkeepsie, N.Y., made the more-powerful, but low-volume, 7000 series. A natural rivalry between the two groups came to a head over the development of the 360 series.
The Data Systems Division designed the ambitious "Stretch" computer as its platform for the 1960s, spending about $30 million in development. At a price tag of more than $13 million each, Stretch attracted few buyers and was killed off with little to show for IBM's investment. Pressure was intense to ensure that the next effort targeting the high-end market was a success.
Although integrated circuits were seeing limited use in defense programs, IBM determined that within the time frame it was targeting for the 360 series, integrated circuits wouldn't be available in the volume and price range it needed. IBM decided to move forward with Solid Logic Technology, which placed individual transistors, capacitors, and multiple diodes on a chip that was encapsulated in glass, attached to silk-screened wiring, and housed in a ceramic package placed on a board.
Going with Solid Logic Technology required the development of new manufacturing processes, as well as testing and assembly procedures, Bloch says. IBM also had to build new manufacturing floors.
As development went forward on the 360, those involved met on a regular basis to review progress and address requests for changes in the development manual created for the project. With a deadline of early 1964, representatives of the various groups would meet regularly in 1962 and 1963 to resolve as many as 100 outstanding issues at a time, Brooks says. "My experience with IBM is there is always panic going on," he says. "With each particular problem that came along, there was a high degree of action required."
The worries continued after the System/360 was launched in April 1964. Sales started off slow and didn't pick up until the machines had been on the market for a few months.
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