Informatics General Corporation

Informatics General Corporation was a pioneering American software company that played a foundational role in the commercial software industry. Founded in 1962, it was among the first independent firms to market and license proprietary software as a distinct product, separate from computer hardware. The company developed influential database management systems and application software, establishing key business models and technological precedents for the sector. Its trajectory, from innovative startup to major acquisition target, mirrors the early evolution and consolidation of the software market.

History

The company was founded in 1962 by Walter F. Bauer and A. George Battle, emerging from the RAND Corporation where Bauer had been a prominent researcher. Initially named Informatics Inc., the firm was established in Los Angeles, California, with early contracts from the United States Department of Defense and NASA providing crucial revenue. A significant early milestone was the 1965 development of the MARK IV file management system, which became one of the first software products to achieve substantial commercial success. Throughout the late 1960s and 1970s, the company expanded its product portfolio and grew through strategic acquisitions, including purchasing the software division of Philco and later CEIR Inc.. In 1978, it merged with the Franchise Tax Board's software development unit, adopting the name Informatics General Corporation. The company was publicly traded on the New York Stock Exchange before being acquired by Sterling Software in 1985, a deal valued at approximately $225 million.

Products and services

The company's flagship product was the MARK IV system, a file management and data processing package for IBM System/360 mainframes that simplified report generation and data manipulation. MARK IV is widely recognized as the first software product to surpass $100 million in cumulative revenue. Other significant offerings included the ADABAS database system, developed by its European subsidiary Software AG, which became a major competitor to IBM's IMS. The company also provided a suite of application software for financial management, personnel systems, and scientific computing. Its professional services division offered software consulting, custom programming, and education and training services for major information technology platforms, catering to clients in government, aerospace, and corporate sectors.

Corporate affairs

For much of its history, the company was headquartered in Woodland Hills, California. Key leadership included co-founder and chairman Walter F. Bauer, a former president of the Association for Computing Machinery, and president A. George Battle. The company maintained a significant international presence, particularly through its relationship with the independent European firm Software AG, which licensed and further developed its database technology. Operations included major offices across the United States and in the United Kingdom. Its acquisition by Sterling Software in 1985 was a landmark transaction in the software industry, reflecting the ongoing market consolidation during that era. Subsequently, parts of its technology portfolio, including MARK IV, were later integrated into Computer Associates after its merger with Sterling Software.

Legacy and impact

The company is historically significant as a trailblazer in establishing the independent commercial software industry. The phenomenal success of its MARK IV product demonstrated the viability of selling proprietary software as a licensed product, creating a new business model that diverged from the bundled hardware-software approach of manufacturers like IBM and DEC. Its early work influenced subsequent developments in database management systems and enterprise software. Furthermore, the corporate journey of its founders and employees, often called "Informatics alumni," contributed to the growth of Southern California as a technology hub and seeded numerous other ventures in Silicon Valley and beyond. The company's eventual acquisition underscored the maturation and competitive dynamics of the software market in the 1980s.

Category:Software companies of the United States Category:Companies based in Los Angeles Category:Defunct software companies Category:Computer companies established in 1962