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It was the year 1977, and a new company, Apple Computers, had recently become very successful with the first PC, the Apple II.

This new machine was the first mass produced personal computer that you didn’t have to put together yourself. Within 3 years of their breakthrough success, the personal computer industry was worth over a billion dollars. This is because for the first time in history, having a computer meant you could amplify your productivity and intellect in the comfort of your own home.

IBM, who at the time was in the corporate computer business, only sold large mainframes. These were more or less newer versions of the original computers, like the ENIAC and UNIVAC. And being the massive business that they are, IBM saw huge economic opportunity in the burgeoning PC industry. In fact, this was the opportunity of all opportunities.

By 1980 IBM had an eye on Apple’s success in the home computer market, and they realized that they were wrong about what they originally thought of the PC. It wasn’t just a toy for hobbyist’s anymore. These things could actually be useful. The problem for IBM, is that it was such a huge company, that it was bogged down by its own bureaucracy and red tape. This made it very slow when it came to decisions. There was an approval process for absolutely everything.

It would have taken them years to come up with just a PC design, let alone a finished product. They were aware of this, and there was concern within the company that they may not be able to bring a computer to market fast enough to compete with Apple. The solution to this problem came in the form of a small, and somewhat secret team within the company.

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