"Evolution of Small Real-Time IBM Computer Systems" (http://domino.research.ibm.com/tchjr/journalindex.nsf/4ac37cf0bdc4dd6a85256547004d47e1/f5de4ef3d47f081c85256bfa0067f4d2?OpenDocument) (1.25 MB PDF file), from the IBM Journal of Research and Development.
IBM's first multi-purpose industrial control system -- the IBM1710 -- was introduced in March 1961 and was designed for a wide variety of uses which called for the frequent sampling and interpretation of data in the processing and manufacturing industries.
The 1710 was composed of the new IBM 1711 data converter, which translated instrument readings into language understood by a computer, and the solid-state IBM1620 data processing system.
When initially offered, the IBM1710 system ranged in price, depending on optional features, from approximately $111,000 to $135,000, and could be rented for between $2,600 and $3,300 a month.
In 1958 IBM assembled a team at the Poughkeepsie, New York development laboratory to study the "small scientific market".
IBM could only build one of the two and the Poughkeepsie proposal won because "the San Jose version is top of the line and not expandable, while your proposal has all kinds of expansion capability - never offer a machine that cannot be expanded".
Following announcement of the IBM1620 on October 22, 1959, due to an internal reorganization of IBM, it was decided to transfer the computer from the Data Processing Division at Poughkeepsie (large scale mainframe computers only) to the General Products Division at San Jose (small computers and support products only) for manufacturing.
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