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The term beta test comes from an IBM convention, dating back to punched card tabulating and sorting machines. Hardware first went through an alpha test for preliminary functionality and small scale manufacturing feasibility. Then came a beta test, to verify that the hardware correctly performed the intended functions and could be manufactured at scale. Ultimately, a gamma test was performed to verify safety.

When IBM began testing software, it used the same terminology as it had for hardware. As other companies began developing their own software, the terminology stuck-and now is part of the common vocabulary.

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