IBM's Data Encryption Standard (DES), an enciphering and deciphering algorithm, is accepted as a standard by National Bureau of Standards. Providing a high level of security for data transmitted over communication lines by making a stream of characters unintelligible, the algorithm is incorporated in the IBM 3845 encryption unit and can access more than 70 quadrillion possible keys, making unauthorized discovery extremely difficult.
Demolition of the original 590 Madison Avenue IBM building (New York City) begins. Construction begins on the Management Development Center in Armonk, New York.
IBM changes its mode of business operations in India in response to equity requirements of the Indian government. The Indonesian government accepts in principle an IBM reorganization plan, enabling IBM to continue offering its products and services there. IBM Mexico celebrates its 50th anniversary.
IBM announces the IBM 3033 processor, a top-of-the-line, high-capacity computer for customers requiring large scale systems; the 3895 Deposit Processing System for banks; the 3250 graphics display system, offered to help shorten product design and manufacturing time; the Cryptographic Subsystem programming to safeguard information stored and sent by computer; and the System/34, a low-cost data processing system with multiple workstations, designed for both experienced and first-time data processing users.
Also introduced in 1977 are the Office System/6 Information Processors; the 6240 Mag Card Typewriter; and the 2997 Blood Cell Separator.
Research scientists produce experimental solar cells of gallium arsenide to increase solar cell efficiency.
A new General Systems Division headquarters building in Atlanta, Georgia, is dedicated, as is the Santa Teresa Laboratory in California.
The General Technology Division is formed to meet the technology requirements of other divisions in the General Business Group.