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Data input required intermediate processing via [[Punched tape|punched paper tape]] or [[punched card]] and separate input to a repetitive, labor-intensive task, removed from user control and error-prone. Invalid or incorrect data needed correction and resubmission with consequences for data and account reconciliation.
Data storage was strictly serial on paper tape, and then later to [[magnetic tape]]: the use of data storage within readily accessible memory was not cost-effective until [[hard disk drives]] were first invented and [[History of IBM magnetic disk drives#IBM 350|began shipping in 1957]]. Significant developments took place in 1959 with IBM announcing the [[IBM 1401|1401 computer]] and in 1962 with [[International Computers and Tabulators|ICT (International Computers & Tabulators)]] making delivery of the [[ICT 1301]]. Like all machines during this time the processor together with the [[Peripheral|peripherals]] – magnetic tape drives, disks drives, drums, printers and card and paper tape input and output required considerable space in specially constructed air conditioned accommodation.<ref name="IT">{{cite book |last1=Goyal |first1=Meera |last2=Mathur | first2=Nishit |title=Information Technology & Its Implications in Business |date=2020 |publisher=SBPD Publications |url=https://
Data processing facilities became available to smaller organizations in the form of the [[computer bureau|computer services bureau]]. These offered processing of specific applications e.g. payroll and were often a prelude to the purchase of customers' own computers. Organizations used these facilities for testing programs while awaiting the arrival of their own machine.
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