Mainframes

Before the advent of the microprocessor in the early 1970s, computers were generally large, costly systems owned by universities, government agencies, and similar-sized institutions. End users often did not directly interact with the machine but instead would prepare tasks for the computer on off-line equipment, such as card punches. A number of assignments for the computer would be gathered up and processed in batch mode. After the job had completed, users could collect the results. In some cases it could take hours or days between submitting a job to the computing center and receiving the output.
A more interactive form of computer use developed commercially by the middle 1960's. In a time-sharing system, multiple computer terminals let many people share the use of one mainframe computer processor. This was common in business applications and in science and engineering.

A different model of computer use was foreshadowed by the way in which early, pre-commercial, experimental computers were used, where one user had exclusive use of a processor. Some of the first computers that might be called "personal" were early minicomputers such as the LINC and PDP-8, and later on VAX and larger minicomputers from DEC, Data General, Prime, and others. By today's standards they were very large (about the size of a refrigerator) and cost prohibitive (typically tens of thousands of US dollars), and thus were rarely purchased by an individual. However, they were much smaller, less expensive, and generally simpler to operate than many of the mainframe computers of the time. Therefore, they were accessible for individual laboratories and research projects. Minicomputers largely freed these organizations from the batch processing and bureaucracy of a commercial or university computing center.

In addition, minicomputers were relatively interactive and soon had their own operating systems. The minicomputer Xerox Alto (1973) was a landmark step in the development of personal computers, because of its graphical user interface, bit-mapped high resolution screen, large internal and external memory storage, mouse, and special software. The minicomputer era was an intermediary step from mainframes to personal computer usage.

Minicomputers were available to smaller organizations than those that once used mainframes, but were not aimed at individuals, Ken Olsen, founder of DEC, has been widely quoted as saying in 1971 "I can think of no reason why an individual would want to own a computer." A few individuals, such as Steve Wozniak, had differing views, as will be seen below.