The Data Processing Division (DPD) is established in the autumn to manufacture, lease, sell and service machine systems for processing business and scientific data. Louis H. LaMotte is named DPD's executive vice president and general manager on November 28.
The division maintains its headquarters at 112 East Post Road in White Plains, N.Y., and it operates sales offices throughout the United States.
Among the initial products in the DPD catalogue are the IBM 650 data processing system, the IBM 700 series data processing systems, the IBM 305 RAMAC, IBM 27 card proof punch and IBM 28 printing card proof punch.
DPD begins the first deliveries of production models of the new IBM 305 and the 650 RAMAC is put into volume production.
In November, DPD demonstrates an experimental system to automatically process intermixed checks -- card and paper -- in random sizes. The demonstration, at the Product Development Laboratory in Poughkeepsie, N.Y., uses a check inscriber and sorter-reader units with an IBM 650, a disk storage unit, an inquiry station and an IBM 407 accounting machine.
In July, DPD announces that it is transferring additional employees from New York City to its headquarters in leased space in White Plains, bringing the total number there to about 750 people.
Also that month, the division opens a new western regional headquarters in Los Angeles, Calif., to serve 12 states, Hawaii and Alaska.
McLain B. Smith becomes DPD's general manager on September 2, succeeding LaMotte.
DPD's 1958 activities and announcements also include:
The division announces on January 12 a wide range of major new products for banking, industry and science, including the Series 1200 character sensing equipment for an automated banking system; the fully transistorized IBM 7090; doubled capacity for the IBM 305 RAMAC; the IBM 409 accounting machine; an input reader and output punch for the IBM 650 electronic computer; and an input reader for the IBM 7070 system.
DPD introduces on March 30 new double capacity disk storage files: the IBM 355 Model 2 disk storage unit for the IBM 650 and the IBM 7300 Model 2 disk storage unit for the IBM 7070.
On April 13, DPD announces the coupling of the Series 1200 with an IBM 305 RAMAC, enabling checks to be processed and posted as they are received.
The IBM 84 sorter is rolled out on April 22.
The new DPD education center in Poughkeepsie, N.Y., is dedicated on May 22.
DPD's product development and manufacturing functions are realigned on May 25 into two new divisions: the Data Systems Division, with plants and laboratories in Poughkeepsie, and now responsible for large-scale systems; and the General Products Division, with plants and laboratories in Endicott, N.Y.; San Jose, Calif.; Burlington, Vt.; and Rochester, Minn.; and now responsible for intermediate and small systems. DPD continues to be responsible for the marketing and service of data processing systems.
Gilbert E. Jones is named division general manager on May 25, succeeding Smith. (His title is changed to president on December 21.)
On August 3, DPD introduces the IBM Datacenter -- facilities in which customers rent the use of IBM 7070 systems by the hour and supply their own programmers and operators. DPD foresees a nationwide network of 25 to 30 Datacenters in major cities, with the first three located in New York City, Chicago and Los Angeles.
The division unveils the IBM 357 data collection system at the September Office Equipment Exposition in Washington, D.C.
The IBM 1401 data processing system is introduced in October.
DPD announces on October 22 the IBM 1620 data processing system, a small, transistorized scientific computer that can perform more than 100,000 calculations a minute.
By the end of the year, the DPD product set includes the IBM 7070, 7090, 1401 and 1620 transistorized data processing systems; IBM 704, 705 and 709 large-scale data processing systems; IBM 650, 650 tape, RAMAC 650 and RAMAC-tape 650 computers; RAMAC 305 computers; IBM Series 1200 character sensing equipment and IBM 610 computers; IBM 604 and 607 calculators; the IBM 357 data collection system; and a full range of punched card accounting equipment, including a new low-cost IBM Series 50 line.