ROLM

ROLM Corporation

Company type	Private (before acquisition)
Industry	Technology, Telecommunications, Military Computers
Founded	January 1, 1969 (1969-01-01) in Silicon Valley, California, United States
Founder	Gene Richeson, Ken Oshman, Walter Loewenstern, Robert Maxfield
Defunct	June 30, 1998 (1998-06-30)
Fate	Acquired by IBM in 1984; Mil-Spec division sold to Loral Corporation; Telecom division sold to Siemens AG
Headquarters	Santa Clara , United States
Area served	North America, International
Key people	Leo Chamberlain (corporate culture), Bob Maxfield (engineering)
Products	Ruggedized military computers (e.g., 1601 Ruggednova Processor), ROLM CBX telephone switching systems, ROLM Redwood PBX and Key Systems, PhoneMail voicemail system
Parent	IBM (1984–1989), Siemens AG (from 1989)

ROLM Corporation was a technology firm based in Silicon Valley, established in 1969 by four electrical engineers: Gene Richeson, Ken Oshman, Walter Loewenstern, and Robert Maxfield. The company gained prominence for creating a computerized telephone switching system. Its first offering was the pioneering portable, ruggedized computer designed for the U.S. military market. In 1973, ROLM ventured into telecommunications with the introduction of the ROLM CBX, an automated telephone switching system. The organizational environment at ROLM became exemplary within the industry, earning accolades as a "Great Place to Work." In 1984, IBM acquired the company.

After IBM's takeover, the ROLM Mil-Spec division was sold to Loral Corporation, and subsequently transferred to Lockheed Martin in 1996 under the name Tactical Defense Systems. IBM retained partial ownership of ROLM’s telephony operations until 1989 when it sold a 50% stake to Siemens AG. Siemens then assumed full control of manufacturing and development through ROLM Systems, while marketing and service functions were managed via a joint venture named ROLM Company. By the late 1990s, after nearly three decades in operation, ROLM-branded telephony products were phased out due to declining sales amid technological shifts in the market.

Products

ROLM maintained two separate divisions targeting distinct hardware sectors, although there was technological overlap between them.

Military hardware

Initially, the company focused on producing ruggedized "mil-spec" computer systems utilizing Data General software platforms. In 1978, ROLM split into two divisions: Rolm Mil-Spec Computers and Rolm Telecom. Throughout the 1980s, the Telecom division reinvested much of Mil-Spec’s profits to penetrate the sophisticated telephone interconnect market.

The inaugural product, the 1601 Ruggednova Processor, was unveiled in 1969 with shipments commencing in 1970. Known by the military designation AN/UYK-12(V), this system was a licensed adaptation of Data General’s Nova architecture, comprising a five-board processor card set and supporting up to 32K memory within a standard ATR enclosure. The 1601 achieved success with RCA TIPI and evolved into smaller card configurations (ALR-62 and ALR-46A) marketed to Dalmo Victor.

Later iterations such as models 1602 and 1603 delivered improved performance and expanded memory capabilities. The ROLM 1602 served as the central computer for the AN/MLQ-34 TACJAM electronic jamming system. The 1606 model was integrated into Raytheon’s AN/SLQ-32 naval electronic warfare platform and units sold to Singer Librascope. Initial processor chassis designs were led by Bob Maxfield and Alan Foster; mechanical design advancements followed under Art Wellman, who developed half-ATR and full-ATR chassis configurations for diverse defense applications.

The 1602B processor along with the 2150 I/O boxes—created specifically for the Army’s ILS program—became top-selling components. The 1666 model supported missile systems such as McDonnell Douglas’s GLCM and SLCM hardware; its upgrade, the 1666B, was incorporated into their Tomahawk Weapons Control System (TWCS). Although much of this development was self-financed, escalating military sales during the 1980s necessitated direct pricing negotiations with the Department of Defense, compressing profit margins. Additionally, ROLM produced well-received 32-bit Hawk/32 computers.

In later years, engineering efforts shifted toward new product lines amid competition from rugged commercial systems like those from Rugged Digital. ROLM also developed militarized versions of Mercury Computer’s Digital Signal Processor technology. Despite ongoing competition, DG-based computers sustained strong sales until the closure of Rolm Mil-Spec Computer division in June 1998.

Commercial hardware

The Telecom division incorporated the 1603 processor into its initial CBX, emphasizing advancements in digital voice technology. ROLM was among the pioneers in manufacturing fully digital voice systems, including Computerized Branch Exchanges (CBXs) and digital telephones. Their flagship offerings comprised the ROLM CBX and the ROLM Redwood PBX and Key Systems Unit models. The CBX directly rivaled Northern Telecom's SL-1 and AT&T Dimension platforms, securing the position of the second-leading PBX in North America by 1980. The Redwood, which achieved less market traction, aimed at competing with Nortel’s Norstar Key System segment. Following Siemens’ acquisition of ROLM from IBM and subsequent rebranding of their switches, numerous early ROLM installations—especially the 8000 and 9751-9005 CBXs—remained operational. The later model, the ROLM 9200 (a Siemens HCM200 Hybrid system), incorporated sophisticated Least Call Routing software that outperformed the Redwood. Additionally, ROLM was a trailblazer in bringing one of the earliest commercially viable voicemail solutions to market, known as PhoneMail. Their digital handsets, marketed as ROLMphones, were distinguished by a magnet-based hook switch mechanism instead of conventional physical buttons.

Start up to Fortune 500

The company name "ROLM" originates from its founders: Gene Richeson, Ken Oshman, Walter Loewenstern, and Robert Maxfield—all electrical engineers educated at Rice University and Stanford University. Though not a founder, Leo Chamberlain played a crucial role in cultivating ROLM’s corporate ethos through initiatives like GPW (Great Place to Work). The Santa Clara campus was designed with employee wellness in mind, featuring various supportive amenities.

ROLM initially specialized in manufacturing flight computers for military and heavy industrial clients such as Halliburton. In the 1970s, its growth accelerated when International Paper adopted ROLM’s 1602 series computers for process control applications. Expanding its portfolio further, ROLM entered the energy management sector by acquiring a firm focused on early energy systems before launching its telecom CBX based on the 1603 computer. This telecom division quickly outpaced AT&T’s digital PBX developments and secured second place behind Nortel’s SL-1 by 1980. At its height, ROLM appeared poised to overtake Nortel as North America’s leading PBX provider. By 1984, it had become a Fortune 500 company with international operations until IBM acquired it in one of Silicon Valley’s largest transactions at that time.

Acquired by IBM

In May 1982, IBM acquired a 15% stake in Rolm, raising its ownership to 23% by September 1984. Subsequently, IBM completed the purchase of ROLM Corporation based in Santa Clara, California, integrating it into their corporate structure. Due to regulatory scrutiny regarding IBM’s Federal Systems Division dominance within military markets, the Mil-Spec Computer segment was divested to Loral Corporation, which later became part of Lockheed Martin’s Tactical Defense Systems.

ROLM faced challenges maintaining its foothold in telecom hardware against rivals like Nortel. Although the 9751 CBX initially gained traction, IBM did not provide timely updates to support cost-effective ISDN services, enabling competitors such as Nortel and AT&T (now Avaya) to surpass ROLM’s offerings.

Acquired by Siemens

In 1989, IBM divested half of its ROLM division to Siemens AG, with Siemens assuming complete responsibility for manufacturing and product development under ROLM Systems. Marketing and service functions operated as a joint venture called ROLM Company. By 1992, Siemens purchased IBM’s remaining shares and rebranded the business as SiemensROLM Communications. Despite these transitions, ongoing downturns in the telecommunications market led to the gradual discontinuation of the ROLM brand by the late 1990s; however, Siemens maintained ownership of the trademark.

Conclusion of ROLM

Support for ROLM telephone systems is still provided by third-party vendors, who offer maintenance services along with sales of refurbished equipment and Phonemail systems. These products continue to be utilized by major universities, organizations, and corporations including Entergy, the School of the Art Institute of Chicago, Huntsman, Southern Company, and the Santa Fe railroad (now integrated into BNSF), demonstrating the lasting impact of ROLM’s early presence in the market.

The original Great America Campus was torn down in 2014 to make way for parking facilities serving Levi's Stadium. The River Oaks site was redeveloped into high-density residential housing, whereas the Zanker campus remains operational with Broadcom as its occupant.

References

• "At ROLM, an Independent Style"—The New York Times, September 27, 1984
• "I.B.M. to Sell Rolm to Siemens"—The New York Times, December 14, 1988

External links

• Computer History Museum