History of Information Technology

The history of information technology can be divided into four broad eras: the experimental era, the hardware era, the software era, and the communications era.

Experimental Era: 1945-1960

The first computer, built in 1945, was the EDVAC (Electronic Discrete Variable Automatic Computer). A number of experimental machines and new technological developments led to the release of the IBM 1401 for the business user and the IBM 1620 for the scientist in 1959. The 1401 became a popular data processing machine for business, and the 1620 provided the first computer experience for many students in universities and colleges.

Hardware Era: 1960-1985

During this era, the driving force was the need to develop more powerful mainframe computers that could be applied to larger and more difficult problems. The major computer companies were IBM and the BUNCH (Burroughs, Univac, NCR, Control Data, and Honeywell). Operating systems were usually provided with the computer and were unique to each brand. Application programs were frequently custom-built by each customer. There were some software companies that sold software packages for common applications, such as accounting. This era came to a close after the introduction of the IBM Personal Computer in 1981.

Software Era: 1985-1995

The personal computer changed the competitive environment in the industry. The owners of personal computers could not build their own software and had to rely on purchased applications. This opened up a large new market for software. Hardware improvements continued, but the new players were Intel and Motorola, the makers of microcomputer chips. The BUNCH were absorbed by various mergers and by 1990, even IBM was having difficulty. The important companies that everyone followed were usually software companies like Microsoft, WordPerfect, Lotus, and Borland. By the mid 1980's there were dozens of different word processors for sale.
Toward the end of this era most of the competitors were eliminated, sometimes very rapidly. Novell purchased WordPerfect for $2.5 billion and resold it to Corel two years later for $250 million. In another two years, Corel wrote off the whole investment. Customers showed a preference for common standards and were unwilling to buy software from anyone that was not an industry leader.

Communications Era: 1995-Present

The development of the World Wide Web in 1994 ushered in a new era of communications. In just a few years it has created a new paradigm for information exchange. We now see a new scramble of startup companies, mergers, and expansions as telephone companies, cable companies, entertainment companies, and new Internet service providers jockey for position. We can expect this to continue for several years before the dust settles on some new arrangement of service providers. We will still see new innovations in hardware and software, but the most exciting developments will likely revolve around the communications area.

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