IBM’s new System 360 computers come onto the market and set the de facto worldwide standard of the 8-bit byte, making the 12-bit and 36-bit word machines almost instantly obsolete. The $5 billion investment by IBM into this family of six mutually compatible computers pays off, and within two years orders for the System 360 reach 1,000 per month.
On-line transaction processing debuts with IBM’s SABRE air travel reservation system for American Airlines. SABRE (Semi-Automatic Business Research Environment) links 2,000 terminals in sixty cities via telephone lines.
Licklider leaves ARPA to return to MIT, and Ivan Sutherland moves to IPTO. With IPTO funding, MIT’s Project MAC acquires a GE-635 computer and begins the development of the Multics timesharing operating system.