In an effort to shed light on the advent of the computer and its applications at small, two-year colleges, this report describes a national survey and case studies of five small colleges to determine their current use of computer services, the role and method of governance of computer-based information systems, and the policies affecting them. The first section of the report reviews literature and research to provide background for the study, tracing changes in the status of computers from luxuries to necessities, the development of computers and information systems, and other current problems and issues related to computer use. After describing the study design, the report presents study findings, based on survey responses from 165 two-year colleges with fall 1979 enrollments of 2,000 students or less. Results are provided in terms of planning and procurement of computers and information systems, governance and administration, hardware and software systems, administrative information systems, instructional applications, costs, educational vs. technical perspectives, and problems. The next section projects future directions in computer applications, considering new technological possibilities, new economies, and trends in information systems and instructional capacities. Finally, the implications of the study findings for policy, hardware, software, and personnel are summarized. (AYC)