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The IBM Personal Computer was introduced in 1981. It came with an Intel processor, 16KB of user memory - expandable to 256KB, up to two floppy disks, and an optional color monitor. The operating system was called DOS and was made by a 32-person company called Microsoft.
In 1986 IBM, scientists won the Nobel Peace Prize for the scanning tunneling microscope - which would eventually manipulate atoms to spell I-B-M.
The huge changes in the computing world caught IBM by surprise in the 1990s with the PC and client/server revolutions. Business purchasing decision making changed radically and IBM was slow to adapt resulting in billions of dollars in losses.
Enter Lou Gerstner in 1993 as IBM's new chairman and CEO. The first outside leader of the company, Gerstner cut costs by shrinking the company's workforce while developing new product lines. He anticipated the growth of network computing and pushed IBM toward that goal.