Bonus B – Using Technology to Manage Information
B-65
lecture enhancer B-6
JOHN ATANASOFF’S COMPUTER
Dr. John Vincent Atanasoff built the first digital computer over half a century ago, but his contri-
bution to computing was nearly lost to history. Atanasoff worked on his machine during the 1930s at Io-
wa State University. After hours of work one night in 1937, he found that he was stumped by a basic
problem of electronic design. In exhaustion, Atanasoff drove 170 miles over the state line to a roadhouse
in Illinois. (“There wasn’t any place to get a drink in Iowa,” he recalls.) In the Illinois tavern, he saw
things from a new perspective and solved some of the thorny problems that had plagued him. The com-
puter would be a digital device, unlike the analog devices that were then in use. It would use vacuum
tubes and have an on–off configuration. The computer would also have memory and be based on the
base-two number system. Finally, it would have a “jogging” function to refresh the computer memory and
prevent loss of information.
With his assistant, Clifford Berry, Atanasoff finally built his machine—the “ABC” (Atanasoff
Berry Calculator). Atanasoff signed over his rights to the invention to the Iowa State College Research
Foundation in exchange for a $5,330 grant, assuming that the college would patent the invention. World
War II intervened, however, and no one followed up. Later, personnel in charge apparently did not realize
the significance of the device, and no patent was ever obtained.
Meanwhile, Drs. John Mauchly and J. Presper Eckert of the Moore School of Electrical Engineer-
ing at University of Pennsylvania were working on a computing machine for the U.S. Army. ENIAC, the
machine they developed, was completed in 1946 and has been widely referred to as the first modern com-
puter. They applied for and received two patents, one for ENIAC and one for the “jogging” memory func-
tion they used. Mauchly and Eckert assigned their patents to the Sperry Rand Corporation, for which they
later went to work. Sperry collected royalties from other computer companies for all computers using the
technology developed in ENIAC, which, over the years, has been estimated to total over $1 billion.
It was not until 1967 that another computer company, Control Data Corporation, found an ob-
scure reference to Atanasoff’s machine. CDC, along with several other companies, sued and won release
from the royalties, largely on the basis of Atanasoff’s testimony. The court ruled that the patents had
wrongly been issued and that the original theory was Dr. Atanasoff’s. However, neither Iowa State nor
Atanasoff has received any financial reward from the decision.
lecture enhancer B-7
SHARING IN SILICON VALLEY
In most industries, companies don’t share their most valuable information with competitors. For
example, the business community would consider Coca-Cola crazy if it shared its secret recipe with
Pepsi. In Silicon Valley, however, sharing information with the world, including rivals, is an everyday
practice. For instance, Google dedicates an entire team of engineers exclusively to the practice of moving
data into a format understood by their competitors’ programs in case a client wants to switch companies.
Former CEO Eric Schmidt said that the free service is meant to ensure that no users feel trapped in
Google’s networks should something go wrong.
Just as the tech industry started to boom in the 1990s, a landmark California court decision re-
fused to uphold noncompete clauses commonly found in East Coast firms. With no barriers between
them, engineers and developers were free to jump from company to company. This created a sense of
community and fellowship in Silicon Valley unlike anywhere else in the business world. Sometimes col-
laborating with a competitor just makes good sense financially. Facebook is the prime example of a tech
giant whose dominance is feared by some companies, but at the same time makes them impossible not to