General History of Mainframes

Several manufacturers produced mainframe computers from the late 1950s through the 1970s. The group of manufacturers was first known as "IBM and the Seven Dwarfs": IBM, Burroughs, UNIVAC, NCR, Control Data, Honeywell, General Electric and RCA. Later, shrinking, it was referred to as IBM and the BUNCH. IBM's dominance grew out of their 700/7000 series and, later, the development of the 360 series mainframes.

Notable manufacturers outside the USA were Siemens and Telefunken in Germany, ICL in the United Kingdom, and Fujitsu,Hitachi, Oki, and NEC in Japan. The Soviet Union and Warsaw Pact countries manufactured close copies of IBM mainframes during the Cold War; the Strela is an example of an independently designed Soviet computer.

Shrinking demand and tough competition caused a shakeout in the market in the early 1980s — RCA sold out to UNIVAC and GE also left; Honeywell was bought out by Bull; UNIVAC became a division of Sperry, which later merged with Burroughs to form Unisys Corporation in 1986. In 1991, AT&T briefly owned NCR. During the same period, companies found that servers based on microcomputer designs could be deployed at a fraction of the acquisition price and offer local users much greater control over their own systems given the IT policies and practices at that time. Terminals used for interacting with mainframe systems were gradually replaced by personal computers. Consequently, demand plummeted and new mainframe installations were restricted mainly to financial services and government. In the early 1990s, there was a rough consensus among industry analysts that the mainframe was a dying market as mainframe platforms were increasingly replaced by personal computer networks. Infoworld's Stuart Alsop famously predicted that the last mainframe would be unplugged in 1996.

That trend started to turn around in the late 1990s as corporations found new uses for their existing mainframes and as the price of data networking collapsed in most parts of the world, encouraging trends toward more centralized computing. The growth of e-business also dramatically increased the number of back-end transactions processed by mainframe software as well as the size and throughput of databases. Batch processing, such as billing, became even more important (and larger) with the growth of e-business, and mainframes are particularly adept at large scale batch computing. Another factor currently increasing mainframe use is the development of the Linux operating system, which arrived on IBM mainframe systems in 1999 and is typically run in scores or hundreds virtual machines on a single mainframe. Linux allows users to take advantage of open source software combined with mainframe hardware RAS. Rapid expansion and development in emerging markets, particularly China, is also spurring major mainframe investments to solve exceptionally difficult computing problems, e.g. providing unified, extremely high volume online transaction processing databases for 1 billion consumers across multiple industries (banking, insurance, credit reporting, government services, etc.) In late 2000 IBM introduced 64-bit z/Architecture, acquired numerous software companies such as Cognos and introduced those software products to the mainframe.