United States. Congress. Senate. Committee on the.

The Industrial reorganization act. Hearings, Ninety-third Congress, first session [-Ninety-fourth Congress, first session], on S. 1167 (Volume pt. 7) online

. (page 83 of 140)
Online LibraryUnited States. Congress. Senate. Committee on theThe Industrial reorganization act. Hearings, Ninety-third Congress, first session [-Ninety-fourth Congress, first session], on S. 1167 (Volume pt. 7) → online text (page 83 of 140)
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'■ X





















2 X



7070 and 7090, computers respectively.

2X— no longer in production.

;'ote1 The^umber of electronic digital computers if talM or in production at any one time^has bee" increasing at^a
bewildering pace in the past several years, ^ew. vendors have come into the^a^^^^^^^^^
out of production. Some machines have been ^e«'^^^ with open arms ^V "^ers otners na b ^^ ^^.^ ^^^^^^^ ^^p^^^

To aid readers of the EDP l&MR in keeping with th s '^"^hrooming activity ^«^°^^' j which are installed or on

on the number of general purpose electronic '^°'^l\^!''^'^'^^^^^^ United States. We update

order as of the preceding rnonth. These f'g"/«^ included installation a"d ome s " ^j,^ ^^^ ,, j^e American

this computer census monthly, so that it will serve as box score or progress

';^:^t!i:^V^:Sf^U ^:TZ'S:^'^:^^'^^^'^^^ ^he Umted states. A similar pro-
^^l'S^^mrtsrt''hilr:sts^foSred"readers will be welcomed.




2 weeks



Low in lOO's High Low

2 weeks

Net Percent
Last change change

New York Stock Exchange;

Addressograph-Multigraph.. 613^ 41}^ 4174 6\Vg 52 56'/g 4-4J-8 +8.45

American R. & D..._ _ _.. 25}^ 175^ 202 20' Wi 19?^ +i^ +2.60

Burroughs _. H2H IWs 5654 42^ 375-^ 40^ +2% +7.31

Control Data .._ 64^ WA 4638 35?^ 31 Z\% —2% —9.61

Dura Corp 33}i 19^ 98 24^ 21H 213-i — 2Ji —11.68

Electronic Associates _ 27 16^ 635 23J^ 20^4 20^-^ —l}4 —6.70

General Dynamics 46J^ 35 5874 46^ 405^ 45}^ +4 +9.64

General Electric 120^^ 91 2705 I2014 1115^ 1161^ +iVi +4.35

Honeywell _ 793^' 58'-4 1666 7934 71^ 75 +2% +3.63

IBM _ _._ 5171^ 404 584 517;4 503i<i 507 —734 —1.51

International Telephone & Telegraph 63^^ 48M 1239 55J-^ 54 54^ — 134 —3 13

Litton 118J^ 74^ 1431 llST-g 108^ 1091-^ -7^' -6.13

National Cash Register 91J^ 74 784 8I34 7514 7514 —^H —1.47

RCA 473^ 31 17858 473^ 39^ 44i/g +43^ +11.01

Raytheon... 34^ 19 3714 34^8 30 5VA —2^ -7.43

SCM 51^ 16k^ 31274 515^ 32^ 41J^ +103^ +33.94

Singer 83J4 59 1025 66J^ 61^ 66 +\yg +1 73

Sperry Rand _._ 16 IIH 11284 16 133^ 15 +14 +1.69

NYSE computer stock average +0.40 +2.03

American Stock Exchange:

ANelex 39 19M 319 23 20J^ 2114 -1^ -7.10

Bunker-Ramo 1114 5% 379 73^ 7 1 -U -6 67

Cal Comp 24 13 91 I734 145^ 14'^ _2^ -13.77

Clary %% 3H 126 3M iVg . 3V -14 -U.n

Computer Application.... 32J4 153^ 593 2434 \iyg 23V +5'i +28.47

Computer Science _. 62.^ 195^ 1005 62'-^ 50?^ 59^ +534+10.65

MilgnElec _ 125^ m 36 914 S14 8'^ -H -8.11

Plannmg Research 33H liyi 434 30i/g 2634 284 +2Ji +8.65

Potter Instrument.. 10)^ SVg 110 9J^ 8J^ 9>4 -4 -2.63

Amex stock average _. _.. . +0.79 —0.48



Oct. 1


bid Bid Asked




CEIR 13H 7 UT^

Computer Usage 30H 134 194

Computer Control _ _.. 171^ 8 i^

Digitronics 71/^ 37,^ 55^

Management Assistance 59 294 47^1

Scientific Data.. 443^4 313^' 35



35 K





Appendix 6

Thursday, December 1, 1964

IBM Trims Rates For Overtime Use Of Rented 360's


IN 1965


(By Stanley Penn, Staff Reporter of the Wall Street Journal )

New York. — International Business Machines Corp. has reduced the overtime
rental rates for its new line of System 360 computers announced last April.

At least two other computer makers — Honeywell, Inc., and Control Data Corp. —
have reduced rental charges to customers who use their computers for extra-
work-tum operations, in moves apparently reflecting stiffening competition in the
electronic computer field.

And last night Radio Corp. of America disclosed it \Aill provide a .single charge
for unlimited use on its new computers that it will rent to customers. The new
RCA computers will be announced next week.

Currently. RCA extra-work-tum rates are about comparable to the new lower
IBM rates for overtime use. RCA said it was establishing the single charge be-
cause of the changing nature of the computer business. The company noted that
more customers are using computers for communications purposes, requiring that
the machines perform on different schedules around the clock.


TT^Af thP nation's biggest computer maker, said the basic monthly charge for
the System 360 for 176 Sur' is'^unchanged. But for each hour the computer is
usid after that the rental rate has been cut tp 10% of the basic hourly rate from

'"'AStlomputts are rented to customers and not sold outright. IBM didn't make
arv changes in the outright sale price of the System 360 computers.

TbaA f Miction on the overtime rates isn't neariy as significant as a cut in the
ba.fcmoSv rate would have been. However, the move is regarded as the most
Sadc example so far of IBM's determination to keep its traditional share of
the^om^e? market in the face of growing pressure from competitors.

The^Srfn the overtime rental rate could mean large savings to customers. It
will also mean less profit per machine to IBM.

IBM saTi^notm^ed Oct. 14 all customers-Government, business and others-
of the new overti^Qie rates. Customers who ordered the 360 computers before then

"XvVriL^7th?nfw'^^^^^^^^^ are scheduled to begin in the third

au?rtS next'year These'will be the small machines. The Jarge maejines in the
iiew system will start going to customers in the first q"f ^ei^of 1966. -

Honevwell said it reduced second-shift rental costs to 30% of the basic rate
from 40% a couple months ago. "We will match competitive schedules in the
future alniessaiT to insure tliat our users are obtaining the most computer per

*^°IJnivac division of Sperry Rand Corp. said it is "studying the situation," but

'^S;i\S? mt"?oX:mnYet'oiis, said it eliminated extra-shift charges for
some of its computers including the large-scale 1604 about last J"ly 1-

General Electric Co. last week said it hadn't reduced overtime rates for com-

^"ln?^ilaining the lower overtime rates, IBM said that at the time it announced
the new Systeli'360 last April it didn't have much informat on on he ''linage
patterns" for these machines. Now, however, the company has built up a back
?og of orders for the machines. IBM has learned how often each month the
uitomers for he 360 machines plan to operate them. This has made it possib e
to lower the overtime rate "to reflect the improved price performance of the
Sstem '' as compared with IBM's predecessor line of computers, the company

''' m the industry, other interpretatious were offered. One source ^Peculated that
IBM was trving to make it more attractive to users of existing IBM machines
to switch over to the new line. The old line of IBM computers currently m
cus on es'haMs retains the existing 30% overtime rates for the rentecl machines.

A Government source said the IBM move could be a response to the Gmern-
ment's decision to buy more computers outright and do less renting The Govern-
ment has done this in the belief it will save money in the loiig rum A Gm erm
ment source speculated that the lower overtime rate is IBM s %Aay "^ ^^^ging
Government purchasing people to reconsider their policy and to rent the machines
once again instead of buving them.

There are advantages to computer makers when customers rent the computers.
There is the assurance of steady income coming in monthly to the manufacturers.
Also a Government source said, there might be less tendency to obtain ne^
computers if appropriations have to be made to buy them outright. It s easier
renting a machine, or it seems that way." the source said. "All you do is send
the old machine back and get a new one."

The savings to the Federal Government alone on the lower o%ertime rates
could be substantial. As of last June 30. the Government was using 1,<67 busmess-
tvpe computers. Of that amount, only 17% were in service less than 1.6 hours a
month, or less than the equivalent of a normal 40-hour week. The Government,
the single biggest user of computers, accounts for 10% to 20% of all computers
in the hands of customers around the nation.

Appendix 7

[The Wall Street Journal. Monday, April 26, 1965]

IB:m Adds 3 System 360 Computers, Drops 5 From Line in
Another Pre-Delivery Change

(By a Wall Street Journal Staff Reporter)

New York.— Svstem 360. the powerful new family of computers announced
by International Business Machines Corp. a year ago this month, has undergone


another major modificati6n, even before a single model has been delivered to a

Over the weekend, the world's dominant computer maker introduced three
large-scale models that "supersede" five previously announced models for which
IBM had already taken orders. Two of the five computer systems that the
company has thus dropped from the line were presented publicly only last month.
The replacements, IBM says, are faster and more powerful, with more data
storage. Moreover, the monthly rentals and purchase prices of the central
computing units of the new systems are said to be slightly lower.

System 360 has experienced such radical technological additions and changes
in the last year that ifs impossible to name a model whose claimed abilities
haven't been increased substantially. Last April, when IBM held an all-day news
conference in Poughkeepsie, N.Y., to make what some people called the most
important commercial innovation in the brief history of the computer. Chairman
Thomas J. Watson, Jr., listed six members of the System 360 family, with 19
variations in the sizes of their data storage, or memories.

Today, after taking into account the latest revisions in the line. System 360
comprises eight models, with 29 choices of memory.


The original announcement included 44 devices for data input and output, such
as tabulating card punches and readers, magnetic recording tape equipment and
optical character readers. Now there are 65, representing variations not only
in function but also in .speed, capacity and price.

System 360, in all its models and "configurations." as the industry terms
the varying combinations of equipment that make up related systems, is more
than IBM's attempt to take a giant step forward in technology. It is also the
company's answer to the broad range of equipment brought out over the past
year by its competitors, who have been nibbling away at IBM's reputed 70%
share of the business.

General Electric Co., Radio Corp. of America and Honeywell, Inc., also
have unveiled computer families and Sperry Rand Corp., Control Data Corp..
National Cash Register Co. and Burroughs Corp, have made major product

Because of the intense competition, the substantial changes made in System
360 designs in the past year raise this question : Was its announcement on
April 7, 1964, premature and, made for competitive reasons before development
was completed? The answer, IBM replies emphatically, is 'No."

"We had gone through product tests, and we had built models of the com-
puters that were announced," John R. Opel, vice president, marketing, of the
data processing division, said in an interview. "We don't make commitments we
don't plan to fulfill."

Improvements come faster

"The "technology cycle" is getting shorter and shorter, Mr. Opel continued.
As a result, System 360 was planned as an "architecture" "within whose limits
technological improvements could be made without affecting the way the com-
puters were operated or the way that customers applied computers to their
own problems. IBM's latest announcement represents "three or four technological
improvements that give so much better a cost-performance ratio that they obsolete
what we originally announced," Mr. Opel said.

"We're glad to make these improvements," he declared. "There are going
to be more of them, and as soon as we can get it done we'll do it.' '

The changes, a spokesman added, won't affect the originally scheduled delivery
dates. Orders for new computers usually are taken for delivery 12 months later
or more.

The original System 360 computers, ranging upward in size, were the Models
30. 40. 50, 60, 62 and 70. Last August, IBM said it would offer a custom-designed
super computer, the Model 92, more than twice as fast as the Model 70 and
priced in the $5 raillion-and-up class. In November, the company announced the
smallest member of the family, the Model 20, for which monthly rentals range
up from $1,280 and purchase prices from $62,710. Improvements and added
features for all these machines were announced from time to time.

Then, on March 4, IBM added the Models 64 and 66. variations of the 60 and
62 and designed specifically for time-sharing applications, in which one com-


puter serves many users simultaneously. That brought the total number of

models to 10.

Models 65, 67 and 15 are new

The newest members of the family, however, are the Model 65, which replaces
the Models 60 and 62 ; the Model 67, which replaces the seven-iccek-nld 6Jf and 66,
and the Model 75, which replaces the 70.

The monthly rental range for the Model 65 is $40,000 to $65,000, and the pur-
chase price range is from $1.8 million to $3 million, depending on the input
and output equipment utilized. Customers who order Model 60s and 62s will get
them, beginning in the third quarter a, spokesman .said. These machines will
be converted to Model 65s when deliveries of that model begin early next year.

Customers who have ordered Model 70s will get Model 75s instead, beginning
in the last quarter of this year as scheduled. Monthly rentals will range from
$50,000 to $80,000 and purchase prices from $2.2 million to $3.5 million.

The Model 67's prices will be roughly comparable to those of 64 and 66, for
v.'hich monthly rentals ranged from $45,000 to $250,000, under special customer
bidding arrangements. The University of Michigan had announced an order for
a Model 66 only two days before it was supplanted by the Model 67.

The first deiiveries of System 360 computers will be of Models 30 and 40, and
they are scheduled during the current quarter. One Model 40 has been delivered
to IBM's own data-processing center in New York.

In addition to the three new computers, IBM announced a high-capacity disk
memory unit, the Model 2314, which can store up to 207 million characters oJ
information. It will be used in systems requiring rapid access to great quantities
of information on a random basis, such as airlines reservation and customer
accounting for public utilities. The new memory alone sells for $252,000 or rents
for $5,250 a month.

Appendix 8





Original models i

models i

introduced 2

withdraw/n 2

Replaced by

Date replaced


. April 1964

. November 1964.

. 360/30F

_ See below.



. August 1965....

. 360/44




360/60 and 360/62


. April 1965

. 366/6'5"





. 360/75



May 1964

. August 1965....

. 360/92 3
. 360/91J3
. 360/94 3
. 360/95 3
. 360/91 K
. 360/91L




3929 export

August 1964 .






. November 1964.



360/64 and

March 1965....

. April 1965

. 360/67




. April 1965







360/44 «

August 1965

360/95 3

. August 1965....





January 1966


. (See above)


360/91 K

. January 1966...




I References are to main frame designaticns only. Numerous optional combinations of main frame equipment and
peripheral equipments are possible.

- References indicate date cf 1st public announcement or withdrawal by IBM, or, indicate, tc the best of your knowledge,
date model was first propcsed by I BM to a customer.

3 As Indicated at pages 8 and 23, despite many proposals by IBM of models 360/90 360/91, 360;94, 360/95 and 360/91J
from May 1964 to a published rumor of Dec. 15, 1965 that all 360/90 group models had been withdrawn from further market-
ing, IBM on Jan. 18, 1966 at last publicly announced the 1st of the group as 360;91J, 360/91 K and 360/91L.

* Note: Specially introduced to compete in scientific market.

40-927 O - pt. 7-48



System/360 is the "brand name" for IBM's extensive third-generation family
of central processors, storage modules, peripheral devices, and supporting soft-
ware. Noteworthy characteristics of the System/360 include :

The "universality" concept — a single line of equipment designed to handle
widely varying types and sizes of computer workloads.

The high degree of program compatibility, both upward and downward, among
most of the processor models.

The wide range of input-output and storage devices.

The numerous arithmetic modes and data formats, and the resulting complex-
ity of machine-language coding.

The eaiphasis upon software support through integrated operating systems,
now offered at three different levels.

Solid-Logic Technology, IBM's name for the "hybrid" electronic circuitry used
in the System/360, which is a compromise between earlier solid-state techniques
and true monolithic integrated circuits.

The System/360 constitutes the "third generation" of equipment from the
leading computer manufacturer. As such, it is now the primary standard for
comparison in most computer selection studies, and it is important for every
computer user to develop a good understanding of its characteristics, perform-
ance, strengths, and weaknesses. This comprehensive report will help you to gain
that basic understanding and will serve as a continuing reference source.

The format of this report is designed to present and analyze all the facts
about the System/360 in a way that will make it easy for you to locate and study
the material you require, while placing proper emphasis upon the similarities and
differences among the various models. This coverage consists of a general Com-
puter System Report (behind Tab 420) which analyzes the concepts, hardware,
and software that are common to all System/360 models, and individual sub-
reports (behind Tabs 422 through 428) which report the characteristics, per-
formance, and pricing of computer systems using each of the System/360 proc-
essor models. (System/360 Models 20 and 67 make use of specialized software,
which is therefore described within the individual subreports for these models.)

For the same purposes of clarity and reader convenience, this Introduction
is divided into six independent sections, each of which describes and (where
pertinent) analyzes some particular facet of the System/360. Each section is
independent and can be read as your needs and interests warrant. The six
sections are :

1 Summary

2 System/360— the First Year

3 Data Structure

4 Hardware

5 Software

6 Compatibility.

2 system/3 60 — THE FIRST YEAR

As announced on April 7, 1964, the IBM System/360 consisted of 6 program-
compatible central processors spanning a 50-fold range of internal processing
speeds. 44 new and previously-announced peripheral devices, and a comprehen-
sive package of language processors, utility routines, and control programs called
the Operating iSystem/360. IBM announced that "the System/360 marks the
achievement of a truly all-purpose computer that can solve any type of data-
handling problem with greater speed and efficiency than ever before."

Unquestionably the System/360, as originally announced, did offer an un-
precedented range of processing si>eeds, storage capacities, and input-output
equipment, and it spanned a broader range of potential applications than any
previous computer system. Nevertheless, it soon became apparent that there
were some significant weaknesses in the originally-announced line of hardware
and software, as noted in last year's AVERBACH Standard EDP Reports,
analysis of the System/360. A brief chronology of the announcements that have
changed the complexion of the System/360 since April 1964 will show how IBM
has endeavored to correct these weaknesses and to fill out and strengthen its
overall product line.


August, 1964 : IBM announced the System/360 Model 92, an ultra-high-perform-
ance computer "more powerful than any computer now available." IBM said it
would enter into special contracts to build Model 92 computers based on cus-
tomers' particular needs. Although Model 92's instruction repertoire and data
format are similar to those of the smaller System/360 models, it will not be
program-compatible with them because Model 92 lacks facilities for decimal

October, 1964: The first public demonstration of a working System/360 (a
Model 40) was featured at the Business Equipment Exposition and Conference
in Los Angeles.

October, 1964: IBM announced a series of new Compatibility Features —
hardware-software combinations called "emulators" — to permit various models of
the System/360 to execute programs written for the following older 1MB com-
puters : 1410, 7010. 7070. 7074, 7080, 709, 7040, 7044, 7090, 7094. II. (More recently,
the 1620 was added to the list. ) The only previously-available Compatibility Fea-
tures enabled the smaller System/360 models to execute IBM 1401. 1440, or 1460
programs. The new emulators represented IBM's answer to widespread com-
plaints from users of its other second-generation computers about the diflSculties
involved in reprogramming for the System/360.

November, 1964 : IBM announced the System/360 Model 20. a small-scale,
bu.siness-oriented computer designed primarily for small companies that are con-
sidering a step upward from conventional punchefi-card accounting machines. An-
nounced along with Model 20 were the 2560 Multi-Function Card Machine, a 500-
card-per-minute punch, and several other new peripheral devices. Model 20
extends the System/360 range downward into new marketing areas, but its
degree of compatibility with the larger System/360 models is limited by its much
smaller instruction repertoire, its limited core storage capacity, and its different
method of handling input-output operations.

December, 1964 : IBM advanced the .scheduled date for initial customer de-
liveries of Model 30 and 40 systems from the third quarter to the second quarter
of 1985. Delivery dates for Models 50 through 70 were also moved up. The ad-
vanced delivery dates, "made possible by accelerated production at IBM manu-
facturing facilities," were IBM's response to vigorous complaints about the long
lead time between announcement and scheduled deliveries of the System/360.

December. 1964 : IBM reduced the extra-usage rental rate for most System/360
components from 30% to 10% of the hourly rate for prime-shift use. The reduced
extra -usage rate applies to all units with model numbers in the 2000 series (and
the 1302 Disk Storage Unit was concurrently redesignated the 2302). This very
significant reduction, which can have a major effect upon rent-versus-buy
decisions, was IBM's response to the elimination or great reduction of extra;
shift rental charges in several competitive computer lines.

January. 1965 : IBM announced a 33 per cent increase in internal proces.sing
speed of the System/360 Model 30 through reduction of its core storage cycle
time from 2.0 to 1.5 microseconds. Concurrently, the 2400 Series Magnetic Tape
Units were speeded up from 22,500 to 30.000 l)ytes per .second (Model 1) and from
45,000 to 60.000 bytes per second (Model 2) ; the 90,000 bytes-per-second speed of
the Model 3 units remained unchanged. These si^eed increases helped to keep
the performance of the System/360 in line with that of the program-compatible
RCA Spectra 70 computer family, announced in December, 1964.

February. 1965 : The IBM 1130 was announced as a desk-size computer designed
primarily for individual use by scientists and engineers. The introduction of the
1130, which bears little resemblance to the System/3(>0, was IBM's first clear

Online LibraryUnited States. Congress. Senate. Committee on theThe Industrial reorganization act. Hearings, Ninety-third Congress, first session [-Ninety-fourth Congress, first session], on S. 1167 (Volume pt. 7) → online text (page 83 of 140)