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LECTURE L13
RISE OF THE MACHINE
“I can assure you on the highest authority that the data
processing is a fad and won’t last out the year.”
Editor-in-charge of business books, Prentice-Hall 1957
Q1
Define the term computer
dictionary.com
71 years ago
“I	think	there	is	a	world	market	for	maybe	five	
computers.”	
-	Thomas	Watson,	chairman	of	IBM,	1943
40 years ago
“There	is	no	reason	for	any	individual	to	have	a	
computer	in	their	home.”	
-	Kenneth	Olsen,	president	and	founder	of	Digital	
Equipment	Corp.,	1977
Think about this
How many computers do you
have in your household?
Q2
What were the two main reasons
to build calculating machines?
History
Computing is time consuming and error prone
Demands for computation were increasing with more organised societies
Industrial revolution and the Napoleonic reforms
Impetus came from Government: Taxing and Defense
Efforts to speed calculations started early
Use of logarithmic tables and trigonometry to speed calculations
The Counting Business
The Slide Rule by William Oughtred in 1625
Built using logarithms, multiplication of two numbers could be done easier
a*b = 10^(log(a)+log(b))
Much quicker than manual calculation
The Counting Business
Early Machines
Wilhelm Schickard (1592 -1635)
German professor of Hebrew and Astronomy
University of Tüblingen, Germany
Built a calculating machine in 1620s
Documented in letters to Johannes Kepler
1623 and 24
Blaise Pascal (1623-1662)
French mathematician, physicist, and 

religious philosopher
Built an adding machine in1642-44
Tried to commercialize the machine but
labor was too cheap
Early Machines
Wilhelm von Leibniz (1646-1716)
German mathematician and philosopher
Built a machine, the Leibniz Wheel that
could multiply and divide
Early Machines
Q3
Why did early machines not get
widespread?
History
Workmanship for building complex machines lacked
In late eighteenth century demand for calculation was growing
Calculations were done by hand
Tedious, slow and error-prone and tables of logarithms were riddled
with errors
Think about this
How long does it take to compute
707 decimal places of PI?
3.14159265358979323846264338327950288419716939937510582097494459230781640628620899862803
4825342117067982148086513282306647093844609550582231725359408128481117450284102701938521
1055596446229489549303819644288109756659334461284756482337867831652712019091456485669234
6034861045432664821339360726024914127372458700660631558817488152092096282925409171536436
7892590360011330530548820466521384146951941511609433057270365759591953092186117381932611
7931051185480744623799627495673518857527248912279381830119491298336733624406566430860213
9494639522473719070217986094370277053921717629317675238467481846766940513200056812714526
3560827785771342757789609173637178721468440901224953430146549585371050792279689258923
Think about this
The idea of calculating with steam was to many
impossible - machines could never take over this
human activity
Yet it did. Can you think of a task done today that
will be taken over by machine in the future?
Charles Babbage

(1791 – 1871)
Sometimes called Inventor of 

the Computer

Wanted to remove the inevitable

human errors from computing

Believed that machines could 

replace laborious and 

error-prone calculations
Charles Babbage (1791 – 1871)
Designed the Difference Engine

Machine to compute polynomials

Got grants but efforts were slow

Lack of workmanship of the time 

delayed the project

Worked stopped 1833
Babbage started on a new machine in 1834

Beginning of the 2nd Kondratiev – Steam

Analytical engine

Programmable machine – with 

primitive programming language

Input was in punched cards

Run by steam
Charles Babbage (1791 – 1871)
Augusta Ada King (1815-1852)
Countess of Lovelace
A Programmable Machine - 

General purpose computer
Contained 

mill to calculate, 

store to keep data, 

and formulas
The first programmer
Q4
What was the first killer
application for calculating
machines?
The Cash Register
The Cash Register
One of the first calculating machines
Developed by James Ritty in 1879 in response to thefts by staff
“The Incorruptible Cashier”
National Cash Register Company – NCR
One of the salesman was Tomas Watson, Sr.
Watson would later leave for 

CRT – Computing-Tabulating-Recording 

Company
Tabulating Machines
Tabulating Machines
In the US need for data processing was growing

One application was census taking

US population grew from 

17 million in 1840 to 

50 million in 1880

It took 1.495 clerks 7 years to 

produce the 1880 census
Tabulating Machines
Source:	Tabulating	machine

Herman	Hollerith	
Tabulating Machine Company – TMC

US Census Bureau awarded Herman Hollerith a contract to produce the
1890 census

Tabulating Machines with punched cards

Successfully finished in 2,5 years

with one-third less cost (claimed)
Tabulating Machines
Source:	Tabulating	machine

Herman	Hollerith	
Used punched cards

Hollerith cards were in use until 1960s
Tabulating Machines
The Business of Data Processing

Even with the growing need for data processing around 1900, the
market for tabulating machines was limited

CRT and TMC merged and would later change the name to
International Business Machines – IBM
Lessons: Early Computing Machines
▪ Early machines could not compete with manual labor	 

– The cost was not low enough to disrupt

▪ Workmanship was lacking

▪ Energy to power machines was not available

▪ Computing requirement were modest until 18th century

▪ Babbage failed to build machines despite the
resources

▪ Babbage (or rather Ada, had all the ideas for modern
computer
Lessons: Early Computing Machines
▪ First practical calculating device was a Cash
Register

– Designed due to another problem: theft

– Specialised problem instead of a generic one

▪ Tabulating machines appear with the electricity

▪ First buyers of tabulating machines were
governments

– Centralised
“I think there is a market for about five computers”
- Tomas Watson, Sr.
Electronic Brains
Electric Computing
Foundation of electric computing was laid early 

Mechanical computers were not considered practical

Electricity is widespread

Threat of war is looming in the 1930s

Governments turn to computing for ballistic computations and code-breaking
Although electricity had
entered the equation, it had
done so only as an alternative
method of powering
mechanical equipment
Source:	Engines	that	Move	Markets
The Prevailing Technology Trap
Konrad Zuse (1910-1995)
German Engineer
Built primitive machines, Z1-Z4 based 

on relay switches in 1936 – 1944
Used binary system
Designed his own language, Plankalkül
Never received any official support from

war-time Germany unlike the Allies
Early Work
P2 max (V0[:8.0],V1[:8.0]) => R0[:8.0]
V0[:8.0] => Z1[:8.0]
(Z1[:8.0] < V1[:8.0]) -> V1[:8.0] => Z1[:8.0]
Z1[:8.0] => R0[:8.0]
END
Source:	Konrad	Zuse
Bletchley Park
Location of top-secret code-breaking team
Code-breaking the German coding machine ENIGMA
Alan Turing
Source:	Alan	Turing,	COLOSSUS,	Enigma
English mathematician, logician, and cryptographer
Headed the team at Bletchley Park
Worked on the algorithms to break

the ENIGMA code
Bombe Computer based on heuristics
Lead to COLOSSUS – one of the first

electronic computer
Publishes paper in 1936: On Computable Numbers
War Machines
Source:	COLOSSUS
COLOSSUS
Built in England’s Bletchley Park and used by British code breakers to read
encrypted German ENIGMA messages during World War II
Designed by Alan Turing
Winston Churchill specifically ordered the destruction of 

most of the Colossus machines into 'pieces 

no bigger than a man's hand‘
Q5
Why were machines built
during World war II?
War Machines
Source:	EINIAC
ENIAC
Electronic Numerical Integrator and Computer
Built by the U.S. Army for the purpose of calculating ballistic firing tables
Used 18.000 vacuum tubes
Designed by John Mauchly and 

J. Presper Eckert
The machine was unveiled in 1946 and
was in operation until 1955
John von Neumann
John	von	Neumann,	Von	Neumann	architecture
Hungarian mathematician
Worked on the Manhattan project and became
involved in Moore’s School ENIAC and EDVAC
projects
Publishes paper - or a memo, 

On computer design, 1945
Came to be know as 

Von Neumann architecture
Copyright	©	2011	Ólafur	Andri	Ragnarsson
Post-war computers
Based on vacuum tubes
UNIVAC I
Source:	Model	of	UNIVAC	I,	c.	1954.

Picture	from	Smithsonian	Institution	
Source:	UNIVAC	I	
Commercial Computer

5,200 vacuum tubes, weighed 13 tons, consumed 125 kW, and could
perform about 1,905 operations per second running on a 2.25 MHz clock

Occupied more than 35.5 m²

of floor space

The addition time was 525 

microseconds
United States presidential election of 1952
Eisenhower vs. Stevenson
Transistor Era
Transistor was invented by William Shockley, 

John Bardeen and Walter Brattain in 1948
Transistor
Device use to amplify or switch electronic signals
Huge performance improvement
Smaller
Less energy
More robust
Faster
Copyright	©	2011	Ólafur	Andri	Ragnarsson
Computers became

faster, larger and more
powerful
Tyranny of Numbers
Source:	Tyranny	of	Numbers,	Transistor	Computer	
Computer Engineers have much more flexibility with transistors
Problem was that as the number of components 

increased, wiring them together became a problem
Q6
What solved the Tyranny of
Numbers problem?
The Integrated circuit
Copyright	©	2011	Ólafur	Andri	Ragnarsson
The Invention of the Integrated Circuit
Source:	Integrated	circuit	
Introduced in 1958 by two inventors
Robert Noyce at Fairchild Semiconductor and Jack Kilby at Texas Instruments
Transistors could be wired 

together in practical way
Mass manufacturing of ICs
Adjacent possible
Two inventors at the same time
invented the IC
Competition Emerges
The Computer Market is born

The main application is data processing

• Business applications like Payroll, inventory and so on

IBM enters the computer business

Tomas Watson, Jr. launched

IBM System/360 in 1964

Systematically replaced 

data processing machines

with mainframe computers
In the 1950s Automation Starts
Automation
Automation – Computers begin to disrupt
Start to replace jobs
Banks and insurance companies were early adopters
Handling paycheques, payroll that used to require many clerks to compute
Automation
Source:	Desk	Set	(from	IMDB)
Hollywood took notice
Desk Set from 1957 with 

Spencer Tracey and

Katherine Hepburn
Lessons: Early Computing Machines
▪ Electricity was key to computers

– Switching technologies

▪ First electric computers were primitive and fragile

– Low performance

▪ Centralisation

– First computers were in centers

– Expensive, large, run by experts – Priests
Lessons: Early Computing Machines
▪ Giant “Brains”

– Association with human thought

▪ Automation – Disruption

– Companies need fewer clerks to compute 

– Tedious jobs eliminated

– Big debate – computer executive had to defend the
existence of their machines

▪ Abstractions few

– Programs were wired in
Computers in the 1970s
Think About This!
Resources, Processes and Values Theory
The Disruptive Innovation Theory
Mainframes
IBM	704
IBM	System/360
Large computers in data centres

Batch operations

Critical applications

Financial transaction processing
Q7
Mainframes were expensive.
Not many people could use
them. How was this solved?
Time-sharing
Computers were expensive to purchase and maintain

To make it efficient required multiple users

Large data centres

Utility Computing

Time-sharing of expensive equipment
Moore’s Law
Cost of computers went down
Minicomputers
Cost for new entrants in the computer business was prohibitive in the 60s
Market for those that did not need complete solution but could benefit
from using computes
Birth of the Minicomputers
Two major client groups: 

academic community and the military
Minicomputers
Digital Equipment Corporation
Founded in 1957 by Ken Olsen
Launched PDP-1 in 1960
The PDP-8 was the first successful 

commercial minicomputer – 1965
Used integrated circuits
Time-sharing allowed multiple 

users to use the machines at the 

same time
The Disruptive Innovation Theory
Digital used relatively simple,
convenient, low-cost innovation
to create growth and disrupt IBM
Q8
Why did IBM not go into the
mini computer market?
RPV
IBM Was a mainframe
company, their customers
wanted mainframes, not low-
performance mini computers
Lessons: Mainframes to Mini computers
▪ IBM, industry’s first leader, sold mainframe
computers to the central accounting and data
processing departments of large organizations

▪ The emergence of the minicomputer represented
disruptive technology to IBM and competitors

▪ Their customers had no use for it: it promised
lower, not higher margins

▪ As a result the mainframe makers ignored it for
years
Clayton	M.	Christensen:	The	Innovator’s	Dilemma
Lessons: Mainframes to Mini computers
▪ This allowed new entrants: DEC, Data General,
Prime, Wang and Nixdorf – to create and
dominate the minicomputer market

▪ IBM entered the minicomputer market when it
was performance competitive to the needs of
their customers

▪ The history repeated itself
Clayton	M.	Christensen:	The	Innovator’s	Dilemma
May 25, 1961
Status:
Mainframe era, mini computer early days
Transistor era, integrated circuits just invented
Programming languages new
Q9
What role did the US space program
have on computer innovation?
“The space program badly needed the things the
integrated circuit could provide.”
- Jack St. Clair Kilby
Robert Noyce and Gordon Moore founded Intel
Semiconductor company
Initial focus was on memory chips
There was still enormous potential market for calculations
The vision of Charles Babbage was still not realized but the mainframe
market met the needs of governments and large organizations
Semiconductor Industry is Born
Intel introduced the first microprocessor 4004 in 1971
8008 in 1972, 8080 in 1974 and 8088 in 1979
The beginning of the PC
The Microprocessor
The Microprocessor
Intel was really reluctant to go into the microchip business
No market existed
No demand at the time
Intel created 4004 for another company
They would not market chips, but built them when ordered
The company cancelled the order and Intel was forced to offer them for sale
Q10
What was the first product in the
market after the introduction of
computer chips?
HINT: It disrupted a device that
was invented in 1625
The Calculator
The Calculator
Advances in technology introduced the 

desktop calculator
The market grew fast
With advances, the calculators became more powerful and smaller
Pocket calculators
Became widespread in the 70s
Replaced the slide rule after 374 years
Calculator Wars
Many companies start to make Calculators
Casio, Sharp, Canon, HP, MITS and more
In Europe, Aristo, Denner & Pape, a slide rule manufacturer
since 1872, also entered the market in 1972
Price dropped fast: $400 in 1972, $200, $100 and $50 in 1974
Companies like MITS need to find new ways of revenues
Think about this!
All mini-computer companies had

what it would take to go into small

scale products – they even had

people proposing the idea, but they

did not!
The Personal Computer
The Personal Computer
MITS marketed Altair in 1975
Came with Intel 8080
Users needed to assemble the machine themselves
No keyboard, no screen, no printer
256 byte of RAM, programmed with switches
Included BASIC interpreter from Microsoft
Written by Bill Gates and Paul Allen
Cost of $397 appealed to computer enthusiasts
Microsoft is Born
Bill Gates and Paul Allen
Wrote a BASIC interpreter

for the Altair
Founded a company they called

Micro-Soft
Enter Apple
Steve Jobs and Steve Wozniak
Show the Apple I in the Palo Alto 

Homebrew Computer Club in 1976
Apple II was marketed 1977 and became a huge
success - “Apple growth”
Hewlett-Packard had turn Wozniak down – no market
“The	Personal	Computer	will	fall	flat	on	its	face	in	
business.”	
-	Ken	Olsen
Computer Companies
Existing computer companies were not interested in PCs
DEC, HP, IBM, and Control Data did not see a business model
HP rejected a proposal from Steve Wozniak
DEC rejected a proposal from David Ahl
Support for machines like this was considered impossible
Consequence:
The development of the PC had to begin with hobbyists
Think About This!
The Liquid Network
The early computers were all
about building the right
hardware – this ignored what
important element?
SOFTWARE

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L13 The Rise of the Machine

  • 1. LECTURE L13 RISE OF THE MACHINE
  • 2. “I can assure you on the highest authority that the data processing is a fad and won’t last out the year.” Editor-in-charge of business books, Prentice-Hall 1957
  • 4.
  • 8. Think about this How many computers do you have in your household?
  • 9. Q2 What were the two main reasons to build calculating machines?
  • 10. History Computing is time consuming and error prone Demands for computation were increasing with more organised societies Industrial revolution and the Napoleonic reforms Impetus came from Government: Taxing and Defense
  • 11. Efforts to speed calculations started early Use of logarithmic tables and trigonometry to speed calculations The Counting Business
  • 12. The Slide Rule by William Oughtred in 1625 Built using logarithms, multiplication of two numbers could be done easier a*b = 10^(log(a)+log(b)) Much quicker than manual calculation The Counting Business
  • 13. Early Machines Wilhelm Schickard (1592 -1635) German professor of Hebrew and Astronomy University of Tüblingen, Germany Built a calculating machine in 1620s Documented in letters to Johannes Kepler 1623 and 24
  • 14. Blaise Pascal (1623-1662) French mathematician, physicist, and 
 religious philosopher Built an adding machine in1642-44 Tried to commercialize the machine but labor was too cheap Early Machines
  • 15. Wilhelm von Leibniz (1646-1716) German mathematician and philosopher Built a machine, the Leibniz Wheel that could multiply and divide Early Machines
  • 16. Q3 Why did early machines not get widespread?
  • 17. History Workmanship for building complex machines lacked In late eighteenth century demand for calculation was growing Calculations were done by hand Tedious, slow and error-prone and tables of logarithms were riddled with errors
  • 18. Think about this How long does it take to compute 707 decimal places of PI? 3.14159265358979323846264338327950288419716939937510582097494459230781640628620899862803 4825342117067982148086513282306647093844609550582231725359408128481117450284102701938521 1055596446229489549303819644288109756659334461284756482337867831652712019091456485669234 6034861045432664821339360726024914127372458700660631558817488152092096282925409171536436 7892590360011330530548820466521384146951941511609433057270365759591953092186117381932611 7931051185480744623799627495673518857527248912279381830119491298336733624406566430860213 9494639522473719070217986094370277053921717629317675238467481846766940513200056812714526 3560827785771342757789609173637178721468440901224953430146549585371050792279689258923
  • 19.
  • 20. Think about this The idea of calculating with steam was to many impossible - machines could never take over this human activity Yet it did. Can you think of a task done today that will be taken over by machine in the future?
  • 21. Charles Babbage (1791 – 1871) Sometimes called Inventor of 
 the Computer Wanted to remove the inevitable
 human errors from computing Believed that machines could 
 replace laborious and 
 error-prone calculations
  • 22. Charles Babbage (1791 – 1871) Designed the Difference Engine Machine to compute polynomials Got grants but efforts were slow Lack of workmanship of the time 
 delayed the project Worked stopped 1833
  • 23. Babbage started on a new machine in 1834 Beginning of the 2nd Kondratiev – Steam Analytical engine Programmable machine – with 
 primitive programming language Input was in punched cards Run by steam Charles Babbage (1791 – 1871)
  • 24. Augusta Ada King (1815-1852) Countess of Lovelace A Programmable Machine - 
 General purpose computer Contained 
 mill to calculate, 
 store to keep data, 
 and formulas The first programmer
  • 25. Q4 What was the first killer application for calculating machines?
  • 27. The Cash Register One of the first calculating machines Developed by James Ritty in 1879 in response to thefts by staff “The Incorruptible Cashier” National Cash Register Company – NCR One of the salesman was Tomas Watson, Sr. Watson would later leave for 
 CRT – Computing-Tabulating-Recording 
 Company
  • 29. Tabulating Machines In the US need for data processing was growing One application was census taking US population grew from 
 17 million in 1840 to 
 50 million in 1880 It took 1.495 clerks 7 years to 
 produce the 1880 census
  • 30. Tabulating Machines Source: Tabulating machine
 Herman Hollerith Tabulating Machine Company – TMC US Census Bureau awarded Herman Hollerith a contract to produce the 1890 census Tabulating Machines with punched cards Successfully finished in 2,5 years
 with one-third less cost (claimed)
  • 32. Tabulating Machines The Business of Data Processing Even with the growing need for data processing around 1900, the market for tabulating machines was limited CRT and TMC merged and would later change the name to International Business Machines – IBM
  • 33. Lessons: Early Computing Machines ▪ Early machines could not compete with manual labor – The cost was not low enough to disrupt ▪ Workmanship was lacking ▪ Energy to power machines was not available ▪ Computing requirement were modest until 18th century ▪ Babbage failed to build machines despite the resources ▪ Babbage (or rather Ada, had all the ideas for modern computer
  • 34. Lessons: Early Computing Machines ▪ First practical calculating device was a Cash Register – Designed due to another problem: theft – Specialised problem instead of a generic one ▪ Tabulating machines appear with the electricity ▪ First buyers of tabulating machines were governments – Centralised
  • 35. “I think there is a market for about five computers” - Tomas Watson, Sr. Electronic Brains
  • 36. Electric Computing Foundation of electric computing was laid early Mechanical computers were not considered practical Electricity is widespread Threat of war is looming in the 1930s Governments turn to computing for ballistic computations and code-breaking
  • 37. Although electricity had entered the equation, it had done so only as an alternative method of powering mechanical equipment Source: Engines that Move Markets The Prevailing Technology Trap
  • 38.
  • 39. Konrad Zuse (1910-1995) German Engineer Built primitive machines, Z1-Z4 based 
 on relay switches in 1936 – 1944 Used binary system Designed his own language, Plankalkül Never received any official support from
 war-time Germany unlike the Allies Early Work P2 max (V0[:8.0],V1[:8.0]) => R0[:8.0] V0[:8.0] => Z1[:8.0] (Z1[:8.0] < V1[:8.0]) -> V1[:8.0] => Z1[:8.0] Z1[:8.0] => R0[:8.0] END Source: Konrad Zuse
  • 40.
  • 41.
  • 42. Bletchley Park Location of top-secret code-breaking team Code-breaking the German coding machine ENIGMA
  • 43. Alan Turing Source: Alan Turing, COLOSSUS, Enigma English mathematician, logician, and cryptographer Headed the team at Bletchley Park Worked on the algorithms to break
 the ENIGMA code Bombe Computer based on heuristics Lead to COLOSSUS – one of the first
 electronic computer Publishes paper in 1936: On Computable Numbers
  • 44.
  • 45. War Machines Source: COLOSSUS COLOSSUS Built in England’s Bletchley Park and used by British code breakers to read encrypted German ENIGMA messages during World War II Designed by Alan Turing Winston Churchill specifically ordered the destruction of 
 most of the Colossus machines into 'pieces 
 no bigger than a man's hand‘
  • 46. Q5 Why were machines built during World war II?
  • 47. War Machines Source: EINIAC ENIAC Electronic Numerical Integrator and Computer Built by the U.S. Army for the purpose of calculating ballistic firing tables Used 18.000 vacuum tubes Designed by John Mauchly and 
 J. Presper Eckert The machine was unveiled in 1946 and was in operation until 1955
  • 48.
  • 49. John von Neumann John von Neumann, Von Neumann architecture Hungarian mathematician Worked on the Manhattan project and became involved in Moore’s School ENIAC and EDVAC projects Publishes paper - or a memo, 
 On computer design, 1945 Came to be know as 
 Von Neumann architecture
  • 51. UNIVAC I Source: Model of UNIVAC I, c. 1954.
 Picture from Smithsonian Institution Source: UNIVAC I Commercial Computer 5,200 vacuum tubes, weighed 13 tons, consumed 125 kW, and could perform about 1,905 operations per second running on a 2.25 MHz clock Occupied more than 35.5 m²
 of floor space The addition time was 525 
 microseconds
  • 52. United States presidential election of 1952 Eisenhower vs. Stevenson
  • 53.
  • 55. Transistor was invented by William Shockley, 
 John Bardeen and Walter Brattain in 1948
  • 56. Transistor Device use to amplify or switch electronic signals Huge performance improvement Smaller Less energy More robust Faster
  • 58.
  • 59. Tyranny of Numbers Source: Tyranny of Numbers, Transistor Computer Computer Engineers have much more flexibility with transistors Problem was that as the number of components 
 increased, wiring them together became a problem
  • 60. Q6 What solved the Tyranny of Numbers problem?
  • 62. Copyright © 2011 Ólafur Andri Ragnarsson The Invention of the Integrated Circuit Source: Integrated circuit Introduced in 1958 by two inventors Robert Noyce at Fairchild Semiconductor and Jack Kilby at Texas Instruments Transistors could be wired 
 together in practical way Mass manufacturing of ICs
  • 63. Adjacent possible Two inventors at the same time invented the IC
  • 64. Competition Emerges The Computer Market is born The main application is data processing • Business applications like Payroll, inventory and so on IBM enters the computer business Tomas Watson, Jr. launched
 IBM System/360 in 1964 Systematically replaced 
 data processing machines
 with mainframe computers
  • 65. In the 1950s Automation Starts
  • 66. Automation Automation – Computers begin to disrupt Start to replace jobs Banks and insurance companies were early adopters Handling paycheques, payroll that used to require many clerks to compute
  • 67. Automation Source: Desk Set (from IMDB) Hollywood took notice Desk Set from 1957 with 
 Spencer Tracey and
 Katherine Hepburn
  • 68.
  • 69. Lessons: Early Computing Machines ▪ Electricity was key to computers – Switching technologies ▪ First electric computers were primitive and fragile – Low performance ▪ Centralisation – First computers were in centers – Expensive, large, run by experts – Priests
  • 70. Lessons: Early Computing Machines ▪ Giant “Brains” – Association with human thought ▪ Automation – Disruption – Companies need fewer clerks to compute – Tedious jobs eliminated – Big debate – computer executive had to defend the existence of their machines ▪ Abstractions few – Programs were wired in
  • 72. Think About This! Resources, Processes and Values Theory The Disruptive Innovation Theory
  • 73. Mainframes IBM 704 IBM System/360 Large computers in data centres Batch operations Critical applications Financial transaction processing
  • 74. Q7 Mainframes were expensive. Not many people could use them. How was this solved?
  • 75. Time-sharing Computers were expensive to purchase and maintain To make it efficient required multiple users Large data centres Utility Computing Time-sharing of expensive equipment
  • 76. Moore’s Law Cost of computers went down
  • 77. Minicomputers Cost for new entrants in the computer business was prohibitive in the 60s Market for those that did not need complete solution but could benefit from using computes Birth of the Minicomputers Two major client groups: 
 academic community and the military
  • 78. Minicomputers Digital Equipment Corporation Founded in 1957 by Ken Olsen Launched PDP-1 in 1960 The PDP-8 was the first successful 
 commercial minicomputer – 1965 Used integrated circuits Time-sharing allowed multiple 
 users to use the machines at the 
 same time
  • 79. The Disruptive Innovation Theory Digital used relatively simple, convenient, low-cost innovation to create growth and disrupt IBM
  • 80. Q8 Why did IBM not go into the mini computer market?
  • 81. RPV IBM Was a mainframe company, their customers wanted mainframes, not low- performance mini computers
  • 82. Lessons: Mainframes to Mini computers ▪ IBM, industry’s first leader, sold mainframe computers to the central accounting and data processing departments of large organizations ▪ The emergence of the minicomputer represented disruptive technology to IBM and competitors ▪ Their customers had no use for it: it promised lower, not higher margins ▪ As a result the mainframe makers ignored it for years Clayton M. Christensen: The Innovator’s Dilemma
  • 83. Lessons: Mainframes to Mini computers ▪ This allowed new entrants: DEC, Data General, Prime, Wang and Nixdorf – to create and dominate the minicomputer market ▪ IBM entered the minicomputer market when it was performance competitive to the needs of their customers ▪ The history repeated itself Clayton M. Christensen: The Innovator’s Dilemma
  • 84.
  • 85.
  • 86. May 25, 1961 Status: Mainframe era, mini computer early days Transistor era, integrated circuits just invented Programming languages new
  • 87. Q9 What role did the US space program have on computer innovation?
  • 88. “The space program badly needed the things the integrated circuit could provide.” - Jack St. Clair Kilby
  • 89. Robert Noyce and Gordon Moore founded Intel Semiconductor company Initial focus was on memory chips There was still enormous potential market for calculations The vision of Charles Babbage was still not realized but the mainframe market met the needs of governments and large organizations Semiconductor Industry is Born
  • 90. Intel introduced the first microprocessor 4004 in 1971 8008 in 1972, 8080 in 1974 and 8088 in 1979 The beginning of the PC The Microprocessor
  • 91. The Microprocessor Intel was really reluctant to go into the microchip business No market existed No demand at the time Intel created 4004 for another company They would not market chips, but built them when ordered The company cancelled the order and Intel was forced to offer them for sale
  • 92. Q10 What was the first product in the market after the introduction of computer chips? HINT: It disrupted a device that was invented in 1625
  • 94. The Calculator Advances in technology introduced the 
 desktop calculator The market grew fast With advances, the calculators became more powerful and smaller Pocket calculators Became widespread in the 70s Replaced the slide rule after 374 years
  • 95. Calculator Wars Many companies start to make Calculators Casio, Sharp, Canon, HP, MITS and more In Europe, Aristo, Denner & Pape, a slide rule manufacturer since 1872, also entered the market in 1972 Price dropped fast: $400 in 1972, $200, $100 and $50 in 1974 Companies like MITS need to find new ways of revenues
  • 96. Think about this! All mini-computer companies had
 what it would take to go into small
 scale products – they even had
 people proposing the idea, but they
 did not!
  • 98. The Personal Computer MITS marketed Altair in 1975 Came with Intel 8080 Users needed to assemble the machine themselves No keyboard, no screen, no printer 256 byte of RAM, programmed with switches Included BASIC interpreter from Microsoft Written by Bill Gates and Paul Allen Cost of $397 appealed to computer enthusiasts
  • 99. Microsoft is Born Bill Gates and Paul Allen Wrote a BASIC interpreter
 for the Altair Founded a company they called
 Micro-Soft
  • 100. Enter Apple Steve Jobs and Steve Wozniak Show the Apple I in the Palo Alto 
 Homebrew Computer Club in 1976 Apple II was marketed 1977 and became a huge success - “Apple growth” Hewlett-Packard had turn Wozniak down – no market
  • 102. Computer Companies Existing computer companies were not interested in PCs DEC, HP, IBM, and Control Data did not see a business model HP rejected a proposal from Steve Wozniak DEC rejected a proposal from David Ahl Support for machines like this was considered impossible Consequence: The development of the PC had to begin with hobbyists
  • 103.
  • 104. Think About This! The Liquid Network
  • 105. The early computers were all about building the right hardware – this ignored what important element?