IBM launched the Application System/400 on June 21, 1988. IBM designed the AS/400 computers for small and medium-sized businesses. The initial range of AS/400 computers included six different processor models offering increased memory, capacity and performance to those of earlier models.
IBM continued to broaden and enhance its range of AS/400 processors and had sold nearly 500,000 in the first 10 years of production. Development continued until the end of the century, when IBM introduced the eServer iSeries. The new product, like the AS/400, was for small to medium-sized organizations and helped them to link their businesses to the rapidly expanding online market.