We believe the statement that you attribute to Thomas Watson is a misunderstanding of
remarks made at IBM’s annual stockholders meeting on April 28, 1953. In referring specifically
and only to the IBM 701 Electronic Data Processing Machine -- which had been introduced the
year before as the company’s first production computer designed for scientific calculations --
Thomas Watson, Jr., told stockholders that “IBM had developed a paper plan for such a machine
and took this paper plan across the country to some 20 concerns that we thought could use such a
machine. I would like to tell you that the machine rents for between $12,000 and $18,000 a
month, so it was not the type of thing that could be sold from place to place. But, as a result of
our trip, on which we expected to get orders for five machines, we came home with orders for
18.”