The IBM Series-1 was a technological dead-end, even within IBM's Wonderful World of Blue. There was no path from the Series-1 to any other IBM mini or mainframe system. That meant that at some point from initial installation forward the entire control system would have to be re-written from scratch to migrate to anything more modern.
8-inch floppies are a great symbol of the obsolescence, but the bigger boondoggle was not using something from IBM's System 370 line, which had migration paths well into at least the early 90s.