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The initial installation of SAGE, the first U.S. large-scale computer air defense network, is declared operational. Fully deployed by 1963, the IBM-built early warning system remained operational until 1984. With 23 direction centers situated on the nation's northern, eastern, and western boundaries, SAGE pioneered the use of computer control over large, geographically distributed systems.
The Electric Typewriter Division produces its one millionth typewriter and celebrates its 25th anniversary.
IBM sells the Time Equipment Division to Simplex Time Recorder Co., exiting one of its original lines of business.
New products introduced in 1958 include the IBM 7090 high-capacity computer, the 7070 intermediate data processing system, and the 632 Electronic Typing Calculator for card output.