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In the mid-1960s a number of organizations were interested in offering interactive computing services using [[time-sharing]].<ref name=Topol30Years>{{cite journal|url=https://www.msu.edu/~mrr/mycomp/mts/others/feat02.htm|title=A History of MTS—30 Years of Computing Service|author=Susan Topol|journal=Information Technology Digest|volume=5|issue=5|date=May 13, 1996|publisher=University of Michigan|archive-url=https://web.archive.org/web/20130501092032/https://www.msu.edu/~mrr/mycomp/mts/others/feat02.htm|archive-date=May 1, 2013}}</ref> At that time the work that computers could perform was limited by their lack of real memory storage capacity. When IBM introduced its [[System/360]] family of computers in the mid-1960s, it did not provide a solution for this limitation and within IBM there were conflicting views about the importance of time-sharing and the need to support it.
A paper titled ''Program and Addressing Structure in a Time-Sharing Environment'' by [[Bruce Arden]], [[Bernard Galler]], [[Franklin H. Westervelt|Frank Westervelt]] (all associate directors at the University of Michigan's academic Computing Center), and Tom O'Brian building upon some basic ideas developed at the Massachusetts Institute of Technology (MIT) was published in January 1966.<ref name=ArdenVM1966>{{cite journal|url=http://portal.acm.org/citation.cfm?doid=321312.321313|title=Program and Addressing Structure in a Time-Sharing Environment|author1=B. W. Arden|author-link1=Bruce Arden|author2=B. A. Galler|author-link2=Bernard Galler|author3=T. C. O'Brien|author4=F. H. Westervelt|author-link4=Franklin H. Westervelt|journal=[[Journal of the ACM]]|volume=13|issue=1|pages=1–16|date=January 1966|doi=10.1145/321312.321313|s2cid=9302487 |doi-access=free}}</ref> The paper outlined a [[virtual memory]] architecture using dynamic address translation (DAT) that could be used to implement time-sharing.
After a year of negotiations and design studies, IBM agreed to make a one-of-a-kind version of its S/360-65 mainframe computer for the University of Michigan. The S/360-65M<ref name=Topol30Years/> would include dynamic address translation (DAT) features that would support [[virtual memory]] and allow support for time-sharing. Initially IBM decided not to supply a time-sharing operating system for the new machine.
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