Service Bureau Corporation

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Service Bureau Corporation
Company typeSubsidiary
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FateAcquired by Control Data Corporation
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ParentInternational Business Machines
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The Service Bureau Corporation (SBC) had its origins in 1932 as the Service Bureau Division within IBM and was spun off as a wholly owned subsidiary in 1957 to operate IBM's burgeoning service bureau businesses.[1]

IBM had operated service bureaus in major cities beginning in the 1920s allowing users to rent time on tabulating equipment, and later computing equipment, to solve problems which couldn't justify a full-time equipment lease. In 1956, as a result of a consent decree with the United States Department of Justice, IBM spun off its service bureaus to force them to operate at "arms length" from the parent company.[1]

In 1968 IBM transferred its Information marketing Division to SBC. This included the CALL/360 time-sharing service, QUIKTRAN, BASIC, and DATATEXT (a text processing system similar to ATS).[2]

In 1973, to settle a multi-year lawsuit charging anti-competitive behavior in IBM's pre-announcement of a nonexistent high-end System/360 Model 92, IBM sold SBC for $16 million to Control Data Corporation, which had a growing service bureau business of its own.[1]

References

  1. ↑ 1.0 1.1 1.2 Yost, Jeffrey R. (2017). Making IT Work: A History of the Computer Services Industry. Cambridge, Massachusetts: The MIT Press. ISBN 978-0-262-03672-6. OCLC 978286108.
  2. ↑ IBM Corporation. "IBM Archived: DPD Chronology". Archived from the original on October 11, 2008. Retrieved Sep 11, 2013.

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