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DEHOMAGDeutsche Hollerith-Maschinen Gesellschaft mbH
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Its German subsidiary, Dehomag, provided the Nazis with the punch-card machine -- forerunner of the computer -- required to automate production in the country, and in doing so IBM-Germany made plenty of money.
By late 1938 the net worth of Dehomag had doubled from 7.7 million R.M in 1934 to over 14 million RM.
In's German subsidiary supplied most of that apparatus, while other state-of-the-art technology useful for Blitzkrieg purposes came compliments of IBM via its German branch plant, Dehomag. According to Edwin Black, IBM's know-how enabled the Nazi war machine to "achieve scale, velocity, efficiency;" IBM, he concludes, "put the 'blitz' in the krieg for Nazi Germany." (Black, 208)
Throughout the 1930s IBM's German profits soared as Watson greatly expanded Dehomag's operations.
Watson went to Germany in 1935 to celebrate the 25th anniversary of Dehomag. In his capacity as president of the International Chamber of Commerce, Watson chose Berlin as the site for the 1937 meeting of the ICC, and constantly encouraged other captains of industry worldwide to wade with Germany.
With the advent of war, Watson and IBM directed Dehomag though agents in Switzerland and established additional subsidiaries right along with the Nazi conquest of Europe.
This was perceived as an insult in Germany, and, in Black's words, "all hell broke loose" at Dehomag.
Dehomag became a wholly owned subsidiary of IBM in 1947.