History
For procedural, or Algol-like languages, interprocedural analysis and optimization appears to have entered commercial practice in the early 1970s. IBM's PL/I Optimizing Compiler performed interprocedural analysis to understand the side effects of both procedure calls and exceptions (cast, in PL/I terms as "on conditions") and in papers by Fran Allen. Work on compilation of APL was, of necessity, interprocedural.
The techniques of interprocedural analysis and optimization were the subject of academic research in the 1980s and 1990s. They re-emerged into the commercial compiler world in the early 1990s with compilers from both Convex (the "Application Compiler" for the Convex C4) and from Ardent (the compiler for the Ardent Titan). These compilers demonstrated that the technologies could be made sufficiently fast to be acceptable in a commercial compiler; subsequently interprocedural techniques have appeared in a number of commercial and non-commercial systems.
Read more about this topic: Interprocedural Optimization
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