1890: The first electric computer
The first electric computer was built in 1890 in response to a competition
that was held to find ways of speeding up the processing of US census data (the
hand tabulation of the 1880 census data had taken more than 7 years!). The
designer founded a company called the Tabulating Machine
Company which later became the International Business
Machines Corporation, or IBM. Maybe you've heard of it?
1944: The Mark 1
In 1936, a young Harvard professor of mathematics read Lady Lovelace's notes
and realised that a modern equivalent of the analytical engine could be built.
He approached the director of IBM to ask for money, and was given 1 million
dollars (a lot of money in those days!). The Mark 1, a noisy steel and
glass monster 3 meters tall and 18 meters long was soon unveiled to the public.
People said it sounded like 'a roomful of ladies knitting'! It
didn't actually work very well, but it won enormous publicity for IBM and
encouraged them to invest even more in the development of computers.
1940s: The ABC and the ENIAC
A teacher of physics at Iowa State University built the first electronic
digital computer, called the ABC, in the late 1930's. This was the basis
of the ENIAC (Electronic Numerical Integrator And
Calculator), the first general-purpose computer, which was developed in
the 1940s to help the US military calculate the trajectories for artillery and
missiles.
1951: The first business computer
The UNIVAC (UNIVersal Automatic Computer) was the
first computer to be sold for business use rather than military, scientific or
engineering. It was actually just an ENIAC computer in disguise. The UNIVAC was
an example of a 'first generation' computer - it used vacuum tubes
instead of transistors. These tubes would get hot and attract insects into the
computer, causing short-circuits and other problems. Problems in computers are still called 'bugs'
even though insects are rarely to blame nowadays!
1959: The transistor
In 1959 three scientists at Bell Labs invented a small, fast, reliable and
efficient alternative to the vacuum tube, which they called the transistor.
Their invention was so revolutionary that they were awarded the Nobel prize.
Computers using separate transistors were called second generation computers.
1965: The integrated circuit
In 1965 it became possible to put several, even hundreds of transistors onto
a tiny piece of silicon, which was then known as an integrated circuit or
IC. This made possible the introduction of the third generation of
computers that were smaller, cheaper and more reliable.
1971: The microprocessor
The first integrated circuits were designed to perform specific functions but
in 1971 the first general-purpose ICs, or microprocessors were introduced
and incorporated into the fourth generation of computers.
1975: The Altair, Microsoft and MS-DOS (and a Harvard drop-out called Bill)
The first personal computer was called the Altair - it went on
sale in 1975. It had no keyboard or screen, just a few switches and
lights, so it was very difficult to use. A Harvard student called Bill Gates
bought one and liked it so much that he dropped out of Harvard and created a
little company called Microsoft to write software for the Altair. In 1980 IBM
approached Bill Gates and asked him to develop an operating system for their new
personal computer. Bill and his 32 employees worked hard and created the
Microsoft Disk Operating System (MS-DOS) - the rest is history.
1977: Apple
Before the first IBM PC was announced, 1981, two teenagers called Steve Jobs
and Steve Wozniak sold their old Volkswagen and used the $1300 to build a
computer in their garage. It was the first computer to have an easy-to-use keyboard
and screen. When the computer went on sale in 1977, carrying the Apple
label, it was a great success, and the Macintosh computers introduced
later by the same company were also very popular.
1990s: The fifth generation
The Japanese announced their intention to create powerful 'fifth
generation' computers with artificial intelligence by the mid 1990s
but progress towards this goal has been disappointing.

The future
The development of computer technology over the last 40 years has been
incredibly rapid and since this technology is going to become ever cheaper and
more powerful (with speech recognition and artificial intelligence, for example)
it is hard to imagine the extent to which computers will impact our lives in the
future. See the issues page for discussions about this.
It is often stated that the price of computer power has been halved every 18
months for the last few decades - what would happen if car prices fell this
fast?

This car (not mine, unfortunately) is the Ferrari 550 - it has a price tag of
250 000€ in 2003. If the price of this car were to fall as fast as
computer prices have fallen then this car would cost 2500€ after 10 years and
just 25€ after 20 years - even teachers would be able to afford it! Wouldn't
it be great if the prices of everything could fall as fast as the price of
computing power???