International Business Machines Corporation

International Business Machines Corporation, known worldwide as IBM or “Big Blue,” is an American technology company headquartered in Armonk, New York. Its modern business spans enterprise software, hybrid cloud, artificial intelligence, mainframes, servers, storage, cybersecurity, consulting, quantum computing and technology research. IBM sells primarily to large corporations, financial institutions, governments and other organizations whose systems require long operating lives, security, regulatory controls and high availability. IBM was formed in 1911 as the Computing-Tabulating-Recording Company, a holding company created by Charles Ranlett Flint through the combination of manufacturers of tabulation systems, time-recording equipment, commercial scales and related machinery. Thomas J. Watson Sr. joined in 1914 and reshaped the company around disciplined sales, customer service and international expansion. In 1924, CTR adopted the name International Business Machines, reflecting its broader ambitions and overseas operations. For much of the first half of the twentieth century, IBM was the leading supplier of punched-card tabulating systems used by businesses and public agencies. After the Second World War, IBM committed heavily to electronic computing. Its 701, 1400 and 7000 series helped move customers from electromechanical tabulation to stored-program computers. The 1964 System/360 was especially consequential: it offered a compatible family of computers spanning commercial and scientific workloads, allowing customers to expand computing capacity without completely rewriting applications. System/360 and its successors made IBM the central supplier of enterprise mainframe computing for decades. IBM also contributed to technologies including the hard disk drive, magnetic-stripe card, relational database, SQL, the UPC barcode, FORTRAN and automated transaction systems. IBM entered personal computing with the IBM Personal Computer in 1981. The PC became an influential industry standard, but its relatively open architecture also enabled compatible manufacturers and helped strengthen software suppliers such as Microsoft. IBM later achieved substantial success with the ThinkPad notebook line, but sold its personal-computer business to Lenovo in 2005. During the 1990s, IBM faced severe pressure from declining hardware margins, personal-computer competition and changing customer purchasing patterns. Chief executive Louis V. Gerstner Jr. redirected the company toward services, software, outsourcing and integrated business solutions rather than breaking it into independent hardware companies. In the 2000s, IBM expanded through consulting, enterprise software, analytics, infrastructure and research. Its “Smarter Planet” campaign positioned networked sensors, data and software as tools for improving cities, transport, energy and public services. Under Samuel J. Palmisano and later Virginia M. Rometty, IBM invested in business analytics, cloud computing, cybersecurity, artificial intelligence and industry-specific solutions. The 2019 acquisition of Red Hat, completed for approximately $34 billion, made open-source hybrid-cloud software a central component of IBM’s strategy. In 2021, IBM separated its managed infrastructure-services business into Kyndryl, narrowing its portfolio around software, consulting and infrastructure technology. Arvind Krishna became chief executive in 2020 and has emphasized hybrid cloud, enterprise AI, automation, cybersecurity, data, mainframes and consulting. IBM introduced the watsonx platform in 2023 to support enterprise AI development, data management and governance. Its current portfolio includes IBM Z mainframes, IBM Power servers, Red Hat OpenShift, IBM Cloud, watsonx, Db2, IBM Storage, IBM Security and IBM Consulting. IBM remains a major research organization and continues work in semiconductors, quantum computing, AI, supercomputing and enterprise infrastructure.

IBM began as the Computing-Tabulating-Recording Company, created in 1911 by Charles Ranlett Flint from several businesses producing commercial scales, time recorders and punched-card equipment. The company had facilities in several American cities and Canada and sold or leased machinery to commercial and public-sector customers. Thomas J. Watson Sr. joined in 1914, bringing a sales-driven management system, strong corporate identity and the slogan “THINK.” Under his leadership, CTR expanded internationally and adopted the International Business Machines name in 1924. The company’s early growth was tied to punched-card tabulation. IBM machines helped organizations organize large volumes of information, including census, payroll, inventory and accounting records. The wartime history of IBM and its German subsidiary, Deutsche Hollerith Maschinen GmbH, remains controversial. Historians and investigators have examined how punched-card systems were supplied and used by Nazi authorities to classify and manage populations. IBM also manufactured military equipment for the United States during the war. Following the war, IBM invested in electronic computers. The IBM 701, introduced in 1952, was its first commercial stored-program computer. The RAMAC system, introduced in 1956, incorporated the first commercial hard disk drive. Transistorized 1400 and 7000 series systems broadened the market, while FORTRAN and other IBM research projects influenced scientific and commercial programming. IBM researchers also worked on early machine learning, magnetic storage, transaction processing and communications. In the 1960s, IBM developed systems with lasting commercial impact, including the SABRE airline-reservation system and the Selectric typewriter. It supported NASA’s Mercury, Gemini and Apollo programs. The 1964 System/360 unified commercial and scientific computing across a compatible product family. This approach, followed by System/370 and later mainframe generations, created a durable ecosystem of hardware, operating systems, databases, middleware and services. IBM faced regulatory scrutiny in the United States during the late 1960s and 1970s over alleged monopolization of general-purpose computers and conduct involving leasing companies and peripheral manufacturers. The Justice Department ended the case in 1982. IBM also entered personal computing with the IBM PC in 1981. Its architecture became highly influential, but compatible hardware makers and software companies captured much of the resulting market. IBM’s OS/2 partnership with Microsoft did not displace Windows, and the company eventually withdrew from PC manufacturing by selling the business to Lenovo in 2005. The early 1990s brought a severe financial and strategic crisis. IBM reported a record loss in 1993, and Louis Gerstner Jr. rejected proposals to split the company into separate businesses. He concentrated IBM on services, software, customer integration and e-business. The acquisition of Lotus Development in 1995 strengthened enterprise software, while the Deep Blue chess computer’s victory over Garry Kasparov in 1997 demonstrated IBM’s research and computing capabilities. During the 2000s and 2010s, IBM expanded consulting, outsourcing, analytics, security, cloud and industry solutions. The Smarter Planet initiative presented IBM technology as a means of improving connected infrastructure and public services. The company also developed Watson cognitive-computing products, invested in quantum research and acquired numerous software and services businesses. Rometty’s tenure included greater emphasis on cloud, AI and strategic software, culminating in the Red Hat acquisition in 2019. Krishna became CEO in 2020. IBM subsequently separated Kyndryl, sharpened its hybrid-cloud strategy around Red Hat OpenShift and increased emphasis on enterprise AI. watsonx, announced in 2023, combined AI tooling, data services and governance. IBM continues to maintain mainframe and Power-system franchises while offering consulting, cybersecurity, automation, storage, databases, quantum computing and research. Its current identity is that of a business-to-business technology company linking mission-critical infrastructure with software and advisory services.

1. 2025z17 introduced

   IBM announced a new mainframe generation with capabilities intended for AI-enabled mission-critical computing.

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2. 2023watsonx introduced

   IBM launched an enterprise AI and data platform focused on model development, data and governance.

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3. 2021Kyndryl separation completed

   IBM separated its managed infrastructure-services business into Kyndryl.

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4. 2019Red Hat acquisition completed

   IBM completed the approximately $34 billion acquisition, strengthening its hybrid-cloud software portfolio.

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5. 2005PC business sold to Lenovo

   Lenovo acquired IBM’s personal-computer business, including the ThinkPad brand.

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6. 1997Deep Blue defeated Garry Kasparov

   IBM’s Deep Blue computer defeated the reigning world chess champion in a standard match.

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7. 1993Louis Gerstner became CEO

   Gerstner began a turnaround centered on services, software and integrated customer solutions.

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8. 1981IBM Personal Computer launched

   The IBM 5150 helped establish an influential personal-computer architecture.

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9. 1964System/360 launched

   IBM introduced a compatible computer family spanning a broad range of commercial and scientific workloads.

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10. 1956RAMAC introduced commercial hard-disk storage

    IBM’s RAMAC system introduced a commercially available hard disk drive.

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11. 1952IBM 701 introduced

    IBM entered commercial stored-program computing with the vacuum-tube IBM 701.

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12. 1924Name changed to International Business Machines

    CTR adopted the International Business Machines name as its business and international activities expanded.

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13. 1911Computing-Tabulating-Recording Company formed

    Charles Ranlett Flint combined several manufacturers of tabulation, time-recording and commercial equipment to form CTR, IBM’s direct predecessor.

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A trusted enterprise-technology provider emphasizing security, reliability, scalability, regulatory alignment and integration across hybrid-cloud, AI, infrastructure and consulting environments.

• IBM ZMainframes

  IBM Z is the company’s mainframe platform for high-volume, mission-critical processing. It is used in banking, government, insurance, retail and other sectors that require resilience, strong security, transaction capacity and long-term compatibility. The platform supports z/OS, Linux and hybrid-cloud integration and is increasingly positioned as an environment for running AI close to enterprise data.

• IBM PowerEnterprise servers

  IBM Power systems use IBM’s Power architecture to support demanding enterprise workloads running AIX, IBM i and Linux. They are used for databases, ERP, analytics, high-availability applications and private or hybrid-cloud infrastructure. The line is marketed around virtualization, reliability and the ability to consolidate workloads while retaining control over enterprise data.

• Red Hat OpenShiftHybrid-cloud platform

  Red Hat OpenShift is an enterprise Kubernetes and container platform used to build, deploy and manage applications across data centers, private clouds and public clouds. Within IBM’s portfolio it provides a common application layer for hybrid-cloud modernization and supports cloud-native development, automation, security controls and portability across infrastructure environments.

• IBM watsonxArtificial intelligence and data platform2023

  watsonx is IBM’s enterprise AI platform. Its components support foundation-model and generative-AI development, data management and AI governance. IBM presents the platform as a way for organizations to use AI with greater control over model selection, proprietary data, risk management, transparency and regulatory requirements.

• IBM Db2Database software

  Db2 is IBM’s family of relational and enterprise database products. It supports transactional systems, analytics and data-management workloads across IBM Z, Power, cloud and hybrid environments. The product line is associated with high-volume business processing, SQL applications, data security and integration with IBM’s broader software and infrastructure portfolio.

• IBM ConsultingProfessional services

  IBM Consulting provides strategy, technology implementation and managed advisory services. Its work includes application modernization, hybrid cloud, AI, data, cybersecurity, automation and industry transformation. The unit connects IBM software and infrastructure with implementation, systems integration and organizational change services for large customers.

• IBM z17Mainframe generation2025

  z17 is a newer IBM Z generation designed to combine traditional mainframe transaction processing with AI-enabled workloads. IBM highlights its Telum II processor, AI inference capabilities and security features. The system is intended for organizations that need to process transactions and analyze or augment them with AI close to core operational data.

• 2023Watsonx Your Business

  Global

  This campaign presented watsonx through practical enterprise AI use cases and emphasized model choice, data control, deployment and governance. It supported IBM’s effort to distinguish enterprise-focused AI from consumer-oriented experimentation.

  Outcome. Reinforced watsonx as a governed, business-oriented AI offering.

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• 2008Smarter Planet

  Global

  Smarter Planet was IBM’s broad brand and thought-leadership initiative around applying sensors, connectivity, software and analytics to cities, energy, transport, healthcare, commerce and public administration. It helped communicate IBM’s shift from selling hardware toward integrated technology, consulting and data-driven solutions.

  Outcome. Established a major strategic narrative for IBM’s services and solutions business during the late 2000s.

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• 2025Introduce the z17 mainframe generationGeneration change

  Large organizations wanted to retain mainframe reliability while adding real-time AI inference and modern hybrid-cloud workloads to core transaction systems.

  What changed. IBM announced z17 with the Telum II processor, AI inference capabilities and security features, with general availability announced for June 18, 2025.

  Aftermath. IBM continued to position the mainframe as an active platform for AI-enabled enterprise transactions rather than merely a legacy batch-processing system.

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• 2023Launch watsonx enterprise AI platformProduct launch

  Generative AI was rapidly entering the enterprise market, while customers were seeking data control, model transparency, security and governance.

  What changed. IBM introduced watsonx.ai, watsonx.data and watsonx.governance as a platform for developing, managing and governing enterprise AI.

  Aftermath. AI became more tightly connected to IBM’s software, consulting, cloud and infrastructure portfolio, with governance as a central positioning element.

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• 2021Separate managed infrastructure services into KyndrylStrategy

  IBM sought to focus its remaining portfolio on software, hybrid cloud, consulting and selected infrastructure technologies while placing managed infrastructure services in a separate company.

  What changed. IBM completed the separation of its managed infrastructure-services operations into Kyndryl, which became an independent public company.

  Aftermath. IBM became more concentrated on software and consulting, while IBM and Kyndryl retained commercial relationships for customer infrastructure work.

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• 2019Acquire Red Hat to strengthen hybrid cloudM&A

  Enterprise customers increasingly operated across on-premises systems, private clouds and multiple public clouds. IBM needed a stronger modern software layer and a larger open-source ecosystem to compete in that environment.

  What changed. IBM acquired Red Hat for $190 per share in cash, with an announced equity value of approximately $34 billion, while maintaining Red Hat as a distinct operating unit.

  Aftermath. Red Hat OpenShift became a foundation of IBM’s hybrid-cloud strategy and was integrated with IBM consulting, infrastructure and AI offerings.

  Transaction equity value. Approximately $34 billion (Transaction completion in 2019)

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• 2001IBM and Nazi-era data processingControversy

  Historical investigations and public debate examined IBM’s relationship with its German subsidiary and the use of Hollerith punched-card systems by Nazi authorities for census, classification and concentration-camp administration. The subject remains controversial, particularly concerning the degree of knowledge and control exercised by IBM’s headquarters during the war.

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• 2025IBM introduces z17 mainframe

  IBM announced z17, a mainframe generation designed to support AI inference alongside mission-critical transaction workloads.

  Product launchProduct generation
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• 2023IBM unveils watsonx platform

  IBM launched watsonx as an enterprise AI and data platform with model-development, data and governance components.

  Product launchCampaign
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• 2021IBM completes separation of Kyndryl

  IBM separated its managed infrastructure-services operations into Kyndryl, an independently traded company.

  M&A
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• 2021IBM separates Kyndryl

  IBM completed the separation of its managed-infrastructure-services business into Kyndryl as part of its portfolio shift toward hybrid cloud and AI.

  M&A
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• 2019IBM completes acquisition of Red Hat

  IBM completed its acquisition of Red Hat and retained the company as a distinct unit within IBM.

  M&A
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• 2019IBM completes Red Hat acquisition

  IBM completed its acquisition of Red Hat, strengthening its hybrid-cloud and open-source enterprise-software strategy.

  M&A
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• 2011IBM Watson wins Jeopardy! exhibition

  Watson defeated two prominent Jeopardy! champions in a televised demonstration of natural-language processing and large-scale information retrieval.

  CampaignProduct launch
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• 1999IBM promotes software through a major campaign

  IBM launched a substantial advertising and marketing effort to raise awareness of its software business and present software, services, and technology as central growth engines.

  Campaign
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• 1982U.S. government antitrust case against IBM ends

  The U.S. Department of Justice ended its long-running antitrust case against IBM, describing the action as lacking merit.

  LawsuitRegulation
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• 1981IBM launches the IBM Personal Computer

  The IBM PC brought IBM into the mainstream personal-computer market and helped establish hardware and software standards that shaped the industry.

  Product launch
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• 1964IBM introduces the System/360 family

  IBM announced a compatible family of computers that unified systems across different performance levels and became a landmark in enterprise computing.

  Product launchProduct generation
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1. IBM
2. CTR and IBM history
3. Thomas J. Watson Jr. and IBM history
4. IBM personal computer history
5. IBM completes acquisition of Red Hat
6. IBM completes separation of Kyndryl
7. IBM unveils watsonx
8. IBM z17
9. IBM and the Holocaust
10. IBM 701 introduced
11. RAMAC introduced commercial hard-disk storage
12. Louis Gerstner became CEO
13. Deep Blue defeated Garry Kasparov
14. PC business sold to Lenovo
15. Smarter Planet
16. Watsonx Your Business
17. United States antitrust lawsuit
18. IBM separates Kyndryl
19. IBM completes Red Hat acquisition
20. IBM Watson wins Jeopardy! exhibition
21. IBM promotes software through a major campaign
22. IBM launches the IBM Personal Computer
23. IBM introduces the System/360 family