In early 1955, Dr.
Edward Teller of the
University of California Radiation Laboratory wanted a new scientific computing system for three-dimensional
hydrodynamic calculations. Proposals were requested from IBM and
UNIVAC for this new system, to be called
Livermore Automatic Reaction Calculator or
LARC. According to IBM executive
Cuthbert Hurd, such a system would cost roughly $2.5 million and would run at one to two
MIPS. Delivery was to be two to three years after the contract was signed. At IBM, a small team at
Poughkeepsie including John Griffith and
Gene Amdahl worked on the design proposal. Just after they finished and were about to present the proposal, Ralph Palmer stopped them and said, "It's a mistake." In September 1955, fearing that
Los Alamos National Laboratory might also order a LARC, IBM submitted a preliminary proposal for a high-performance binary computer based on the improved version of the design that Livermore had rejected, which they received with interest. In January 1956, Project Stretch was formally initiated. In November 1956, IBM won the contract with the aggressive performance goal of a "speed at least 100 times the
IBM 704" (i.e. 4 MIPS). Delivery was slated for 1960. During design, it proved necessary to reduce the clock speeds, making it clear that Stretch could not meet its aggressive performance goals, but estimates of performance ranged from 60 to 100 times the IBM 704. In 1960, the price of $13.5 million was set for the IBM 7030. In 1961, actual
benchmarks indicated that the performance of the IBM 7030 was only about 30 times the IBM 704 (i.e. 1.2 MIPS), causing considerable embarrassment for IBM. In May 1961,
Thomas J. Watson Jr. announced a price cut of all 7030s under negotiation to $7.78 million and immediate withdrawal of the product from further sales. Its
floating-point addition time is 1.38–1.50
microseconds, multiplication time is 2.48–2.70 microseconds, and division time is 9.00–9.90 microseconds. ==Technical impact==