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Soon after ENIAC become functional, Mauchly and Eckert formed the Electronic Control Corporation (ECC) and received contracts from the government to design and build a computer for the Bureau of the Census. ECC developed financial difficulties and as a result sold its patents to, and became an employee of, the Remington Rand Corporation. In 1951 Remington Rand delivered the Universal Automatic Computer (UNIVAC) to the census bureau. UNIVAC was the fastest computer of the time and was the only commercially available general-purpose computer. It contained only 5000 vacuum tubes and was more compact than its predecessors. UNIVAC computers were sold to government agencies, the A.C. Neilson Company (market researchers), and Prudential Insurance. By 1957 Remington Rand had sold over 40 machines. Probably what made UNIVAC most famous was its use by CBS to predict the results of the 1952 presidential election. Opinion polls predicted that Adalai Stevenson would beat Dwight D. Eisenhower by a landslide. UNIVAC s analysis of early returns, however, showed a clear victory for Eisenhower. Newscasters Walter Cronkite and Charles Collingwood questioned the validity of the computer s forecast, so they postponed announcing UNIVAC s prediction until very late. For many years, Mauchly and Eckert were considered the inventors of the electronic computer. In fact they applied for, and received, a patent for their work in 1947. After purchasing ECC, Remington Rand owned the rights to their patent and was collecting royalties from firms building computers. In a legal battle, initiated by Honeywell s refusal to pay royalties, a judge ruled the original patent invalid. Part of his decision to invalidate the patent was based on the fact that Mauchly had visited John Atanasoff s laboratory in 1941, and used the knowledge he gained during the visit to build ENIAC. The results of this lawsuit legally established John Atanasoff as the inventor of the modern computer. After the war, commercial development of computers continued, resulting in the development of many new machines that provided improved performance in terms of computing capability and speed. Computers at this time were large, cumbersome devices that were capable of performing simple operations. These machines were very expensive to build and maintain. The only organizations that could afford to purchase and run the equipment were the government and large corporations. Not surprisingly, many individuals working in the computing field felt that the use of computers would be limited. In a 1950 article, Business Week noted, Salesmen will find the market limited. The UNIVAC is not the kind of machine that every office could use. And though the story is probably apocryphal, the lore of computing attributes the following prediction to Thomas Watson, the founder of IBM, in 1943: I think there is a world market for maybe five computers. In the early 1950s, a group of scientists working at Bell Laboratories in New Jersey was studying the behavior of crystals as semiconductors in an attempt to replace vacuum tubes. Its work resulted in the development of the transistor, which changed the way computers and many electronic devices were built. Transistors switch and modulate electric current in much the same way as a vacuum tube. Using transistors instead of vacuum tubes in computers resulted in machines that were much smaller and cheaper, and that required considerably less electricity to operate. The transistor is one of the most important inventions in the 20th century. While computer companies such as IBM and Honeywell focused on the development of mainframe computers, Digital Equipment Corporation (DEC) focused on the development of smaller computers. DEC s PDP series of computers were small and designed to serve the computing needs of laboratories. The PDP-8 was one of the first computers purchased by end users. Because of their low cost and portability, these machines could be purchased to fill a specific need. The PDP-8 is generally regarded as the first minicomputer. The invention of the integrated circuit caused the trend toward smaller, cheaper, and faster computers to accelerate. Popular Electronics featured an article on a kit that home hobbyists could purchase that would enable them to build a computer at home. This machine, offered first in 1974, was the Altair 8800, manufactured by a company named MITS. It ushered in the personal computer era. These initial machines were designed to be built at home, which was fine for the home hobbyist but limited the availability of the machine. The first programming language for the Altair was Altair BASIC, the first product of a little company called Microsoft. In 1981 IBM introduced its personal computer, or PC, which changed the face of computing forever. It was now possible for individuals to simply purchase these machines and use them at home.
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