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The slowing and maturing trend in computer technology that became evident during 1976 was even more pronounced in the following year. Computer-aided design and software engineering made significant progress, and fault-tolerant techniques continued to advance toward their goal of ultrareliable systems. The major story in memory systems appears to be that traditional technologies such as cores, tapes, and disks are showing surprising resiliency and the ability to sustain continued improvement. Bubble memories and charge-coupled devices seem destined to play their expected roles, particularly in 10-100-Mbyte applications, but dramatic improvements are foreseen in the traditional memory technologies as well.