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Hopper:
They want to sell you more hardware. They aren’t going to make any money in
the long run… [as much] as from renting hardware. The more the program sprawls the better off
IBM is.
Pantages:
Except they are starting to charge for the software now, but they are still getting
away with those practices.
Hopper:
They don’t charge for the run time on the software. My aim was to cut run time. I
really think that the future holds more and more information that they need for faster and faster
answers. The whole future looks that way, and that’s the direction you have to aim in.
Pantages:
When you talk about speed, I conceive of the need for speed for weather
forecasting and other massive applications.
Hopper:
Suppose you have a salesman in Kansas City and he’s got a customer who calls
you up and wants to know if you’ve got five large anchors on hand. You need speed. You’ve got
to be able to get into inventory and find out if you have five large anchors and tell him so. You
can’t afford to have a clunk, clunk, clunk program that’s going to keep him sitting quiet on the
end of the phone for 10 minutes. Even inventory will have to go at a high rate of speed.
Pantages:
Don’t we have technology fast enough now to solve the vast majority of problems
like that?
Hopper:
Yes, we’re beginning to get there. One of the things that Westinghouse tackled
right off the bat was a close-to-online inventory. But they are slow compared to what we need
today, and that of course is the reason I wanted to pull the inventory program off the mainframe
and put it on its own computer. And I finally realized that the only reason we put inventory and
payroll on the same computer is because we only owned one computer. A logical common
sense reason why they should be there. So let’s pull them apart and they go faster if you get
them on their own computers.
Plus the fact that the dollars are pushing in that direction – that a system of small computers
could cost a lot less than a big computer and you could be rid of a lot of the overhead. Because
each one could be dedicated to its own job, it didn’t have to be general purpose.
So see all of these things are ending in the same direction: pointing toward individual computers
for the individual job.
Pantages:
In the context of time – back then...
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Hopper:
Back then the cost wasn’t one of the influencing factors. It wasn’t until we began
to get the chips and the small computers that it became economical as well. But there was a
question even then how much we were willing to pay for an instant answer. And some
companies were beginning to become ready to – because it meant sales and all sorts of things.
I think that too often we look at the computer separate from the rest of the company, and you
have to look at it as integrated, as part of the company. And if the speed of the reaction of the
computer helps sales, then you are going to go for it. If you only look at the computer all by
itself, you may not pay any attention to that. But you have to look at it as supporting sales and
shipments and everything under the sun. You can’t just leave it off in the machine room. It
interacts – not just for processing data, but it interacts for speed and response and everything
like that for the rest of the company, and the kind of the records you keep and everything else.
Integrating Computers into “The Whole Company”
Pantages:
Where do you think we are now?
Hopper:
I’ve used the analogy of the Model T, which is what made a tremendous
difference in the development of automobiles and transportation in this country.
I think we have the Model T computers. By analogy we are at the beginning of what will be the
world of computers. We’ve been sort of through a bunch of preliminaries. Now we are really
ready to begin to use computers.
Pantages:
You are talking about end use and true integration through an organization
Hopper:
Where they become an integral part of the whole company.
Pantages:
You are saying that even though they have been talking about this, they haven’t
really been doing it.
Hopper:
No. Well for one thing, there still aren’t enough people who can do that systems
design, who can look at the total flow of information through a company and then design a
method of implementing it. We began to get those real systems design methods when NASA
started work. And their whole concept was that you took anything and broke it down into
subsystems and defined the subsystems and the interfaces between them. It’s just what we
need to do with the systems in the company. And it’s non-linear of course; things do happen in
parallel in any given company. Sales is working the inventory at the same time Personnel is
working.