Computer Usage Company
| Company type | Public |
|---|---|
| Industry | Software development |
| Founded | March 1955 |
| Founder | Elmer C. Kubie, John W. Sheldon |
| Defunct | 1986 |
| Headquarters | New York City , United States |
Key people | George R. Trimble Jr. (Corporate Technical Director), Cuthbert Hurd (Chairman), Carl H. Reynolds (President), Charles Benton Jr. (President), Victor Bartoletti (President), George C. Strohl (President) |
| Products | Software development, programming services, computer time marketing, software literature and training |
Number of employees | 700+ (1967) |
Computer Usage Company (CUC) (1955–1986), occasionally referred to as Computer Usage Corporation, holds the distinction of being the inaugural independent firm to commercialize computer software.
History
CUC is acknowledged as the pioneering independent software developer and a trailblazer in offering programming services. Prior to its establishment, software was typically produced either by the users themselves or directly by hardware vendors.
Established in March 1955 by former IBM employees Elmer C. Kubie and John W. Sheldon, CUC commenced operations with an initial capital of $40,000, employing five personnel based in New York City. Its debut assignment involved simulating oil flow for California Research Corporation.
The company was incorporated in Delaware in October 1955. In 1956, George R. Trimble Jr. joined as Corporate Technical Director, overseeing projects such as computerizing the FAA’s air traffic control system at the National Aviation Facilities Experimental Center in New Jersey.
By 1959, CUC expanded with a Washington, DC branch dedicated to serving the US Navy. The firm went public in April 1960, at which point its workforce included three managers, 37 mathematicians, six physicists, and three engineers. That same year, it initiated a division focused on marketing computer time and launched an office in Los Angeles.
In 1962, IBM alumnus Cuthbert Hurd assumed the role of chairman. CUC secured FAA contracts to create a compiler for the JOVIAL language on IBM’s System/360 platform, initially utilizing an IBM 7030 simulator. Early in 1964, it developed election result tracking software for CBS Television. Later that year, Sheldon exited the company.
Although invited to oversee IBM’s TSS/360 time-sharing project, CUC declined participation due to concerns over performance issues. In 1965, it established Computer Usage Education to publish software literature and provide training; its book Programming the IBM system/360 achieved bestseller status.
Carl H. Reynolds joined in 1966 as president of Computer Usage Development Company; he previously led programming efforts within IBM’s System/360 Data Systems Division.
By 1967, CUC employed more than 700 individuals across twelve offices and reported revenues exceeding $13 million. Its Dallas location concentrated on contracts with Texas Instruments involving development of an operating system and FORTRAN compiler for the TI Advanced Scientific Computer. The vice president at that time was H. Dean Brown.
In July 1968, founders Kubie and Reynolds departed; Charles Benton Jr., formerly with IBM’s Federal Systems Division, took over as president. Benton emphasized sales over technical expertise, which contributed to missed contracts and rising overhead expenses.
CUC experienced its first public financial loss in 1969 amid intensified competition from larger companies such as Computer Sciences Corporation. Sears explored acquisition possibilities but talks did not materialize. By early 1970, Benton resigned and Hurd returned as president while residing in California. Merger discussions also involved Ross Perot’s Electronic Data Systems.
A contract to manage Firemans Fund Insurance Company’s computer operations briefly restored profitability. Hurd left in 1974; Victor Bartoletti succeeded him until his death in 1984, followed by George C. Strohl from Bank of America.
Despite these leadership changes, ongoing losses continued as industry shifts moved beyond CUC’s traditional IBM-focused market niche. By 1985, the company reported a $2.4 million loss on revenues of $1.5 million.
Ultimately, facing persistent financial difficulties, CUC filed for bankruptcy in 1986 and was liquidated under Chapter 7 provisions.
See also
Further reading
- Articles with short description
- Software companies based in New York (state)
- Defunct software companies of the United States
- Defunct computer companies based in New York (state)
- Computer companies established in 1955
- Software companies established in 1955
- Technology companies disestablished in 1986
- 1955 establishments in New York City
- 1986 disestablishments in New York (state)
- Companies that filed for Chapter 7 bankruptcy in 1986
- Companies that have filed for Chapter 7 bankruptcy