Company Profile: IBM

International Business Machines, or IBM, is the largest information technology company in the world; it made over $88 billion in 2000. It has held the top spot for the last five decades. The company's products include not only hardware, but software for its line of storage products, servers, microchips and it also makes application software. These days, IBM earns its money via its outsourcing and consulting services.

As microchips got cheaper to produce and the PC, open-source technology and the Internet came into play, IBM has faced challenges to its dominant position. IT does not revolve around just one company anymore, but IBM continues to impress competitors and investors alike with its base of loyal customers- many of those are Fortune 100 businesses. IBM has been able to stay on top of the market due to its adaptability.

In its earliest years, IBM was known for the punched card. This was invented by Herman Hollerith, who was part of the Computing Tabulating Recording Company. In 1914, Thomas Watson joined CTRC as its general manager. The CTRC itself had its origins with three companies that sold scales, tabulators and time clocks to grocery stores. Over the next few years, Watson built the company into what it is today. By the middle of the 20th century, IBM was a leader; it brought companies such as Digital Equipment and NCR into the computer age. At that point, led by Watson, the company began to focus on research and development.

In the beginning of the 1960s, IBM introduced the System/360, then the gold standard for large business computing. It was meant to be upward compatible; programs written for the System/360 could run in today's Z/OS servers. By the 1970s, the punch card was replaced by the display terminal. IBM began to compete with HP and DEC in the small business computing market, with the System/3. The 80s saw stiff competition from Apple; IBM quickly took over with a series of PCs that again set the standard for business.

As the Internet has taken over, IBM has again reinvented itself. Its computer offerings are more server-based now, and it also offers more open-standard technology. It continues to develop new revenue streams such as site management, hosting, and web services. As of the end of 2000, the company had over 315,000 workers, and the company continues to be listed on the New York Stock Exchange.