IBM has been known through most of its recent history as the world's largest computer company; with over 388,000 employees worldwide, IBM is the largest information technology employer in the world. Despite falling behind Hewlett-Packard in total revenue since 2006, it remains the most profitable. IBM holds more patents than any other U.S. based technology company. It has engineers and consultants in over 170 countries and IBM Research has eight laboratories worldwide. IBM employees have earned three Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science. As a chip maker, IBM has been among the Worldwide Top 20 Semiconductor Sales Leaders in past years, and in 2007 IBM ranked second in the list of largest software companies in the world.

History

main: History of IBM

The company which became IBM was founded in 1896 as the Tabulating Machine Company by Herman Hollerith, in Broome County, New York (Endicott, New York, where it still maintains very limited operations). It was incorporated as Computing Tabulating Recording Corporation (CTR) on June 16, 1911, and was listed on the New York Stock Exchange in 1916. IBM adopted its current name in 1924, when it became an international manufacturing company.

In the 1950s, IBM became the dominant vendor in the emerging computer industry with the release of the IBM 701 and other models in the IBM 700/7000 series of mainframes. The company's dominance became even more pronounced in the 1960s and 1970s with the IBM System/360 and IBM System/370 mainframes, however antitrust actions by the United States Department of Justice, the rise of minicomputer companies like Digital Equipment Corporation and Data General, and the introduction of the microprocessor all contributed to dilution of IBM's position in the industry, eventually leading the company to diversify into other areas including personal computers, software, and services.

In 1981 IBM introduced the IBM Personal Computer which is the original version and progenitor of the IBM PC compatible hardware platform. Descendants of the IBM PC compatibles make up the majority of microcomputers on the market today. IBM sold its PC division to the Chinese company Lenovo on May 1, 2005 for $655 million in cash and $600 million in Lenovo stock.

On January 25, 2007, Ricoh announced purchase of IBM Printing Systems Division for $725 million and investment in 3-year joint venture to form a new Ricoh subsidiary, InfoPrint Solutions Company; Ricoh will own a 51% share, and IBM will own a 49% share in InfoPrint.

Controversies

main: IBM and the Holocaust The author Edwin Black has alleged that, during World War II, IBM CEO Thomas J. Watson used overseas subsidiaries to provide the Third Reich with unit record data processing machines, supplies and services that helped the Nazis to efficiently track down European Jews, with sizable profits for the company. IBM denies that they had control over these subsidiaries after the Nazis took power. A lawsuit against IBM based on these allegations was dismissed. In support of the Allied war effort in World War II, from 1943 to 1945 IBM produced approximately 346,500 M1 Carbine (Caliber 0.30 carbine) light rifles for the U.S. Military.