IBM was not having the best year in 1985. In October, Big Blue reported its third consecutive drop in quarterly profits. TopView, IBM’s attempt to introduce multi-tasking into DOS, had not taken the business market by storm. And then there was the ever-increasing competition from various PC clone makers.
But we’re still in the period where many industry observers kept their faith in IBM’s ability to brute-force its will upon the market. That leads into our next Computer Chronicles episode from October 1985, which focused on computer networks. As Stewart Cheifet mentioned during the last episode’s “Random Access” segment, IBM had recently launched its new token ring system, which was the company’s challenge to 3Com’s Ethernet standard in local area networking.