Jump to content

Control Data Corporation

From Alfawiki
Control Data Corporation
Company typePublic
IndustryComputer hardware, Supercomputers, Peripherals
Founded1957
FounderWilliam Norris, Seymour Cray, Robert Perkins, William R. Keye, Howard Shekels, Robert Kisch
Defunct1988 (withdrew from computer production)
FateWithdrew from computer production and divested subsidiaries; restructured as Control Data Systems, Inc. in 1992
Headquarters
Minneapolis, Minnesota
,
United States
Key people
William Norris (CEO), Seymour Cray (Chief Designer)
ProductsMainframe computers, Supercomputers (e.g., CDC 1604, CDC 6600, CDC 7600), Peripheral devices (tape drives, card readers/punches, printers)

Control Data Corporation (CDC) emerged as a prominent mainframe and supercomputer manufacturer during the 1960s, ranking among the top nine U.S. computer enterprises alongside IBM, Burroughs Corporation, and Digital Equipment Corporation (DEC). The company's competitive strength was largely attributed to electrical engineer Seymour Cray, who engineered some of the fastest computing systems worldwide. In the 1970s, Cray departed from CDC to establish Cray Research (CRI), concentrating exclusively on supercomputing technology. Following substantial financial setbacks, CDC withdrew from computer production in 1988 and divested its associated subsidiaries. By 1992, CDC restructured as Control Data Systems, Inc., with its remaining business units evolving into the software firm Dayforce.

Background: World War II – 1957

During World War II, the U.S. Navy formed a confidential engineering group tasked with developing cryptanalysis devices for Japanese and German codes. To retain this specialized workforce after the war, the Navy arranged for John Parker of Northwestern Aeronautical Corporation in St. Paul, Minnesota to employ them, despite limited transparency regarding their assignments. This arrangement led to the founding of Engineering Research Associates (ERA) in 1946, a contract engineering company responsible for pioneering military stored-program computers such as the ERA Atlas, which served as a precursor to the Univac 1101 series.

In the early 1950s, ERA faced political and legal difficulties that depleted its resources; consequently, in 1952, Parker sold the company to Remington Rand. Remington Rand subsequently merged with Sperry Corporation to form Sperry Rand, integrating ERA into Sperry's UNIVAC division. However, ERA's operational independence was limited under Sperry’s corporate framework, prompting several leading engineers—including Robert Perkins, William R. Keye, Howard Shekels, Robert Kisch, and Seymour Cray—to resign in September 1957 and launch Control Data Corporation in Minneapolis at 501 Park Avenue.

William Norris assumed the role of CDC’s CEO, while Seymour Cray became chief designer after completing a transistor-based prototype computer for the Naval Tactical Data System (NTDS). This early emphasis on cutting-edge computing architectures positioned CDC as a key contender in the supercomputing sector.

Early designs and Cray's big plan

Initially, CDC focused on marketing subsystems such as drum memory units to other companies. Cray joined the organization shortly thereafter and developed a transistorized 6-bit machine named the "CDC Little Character" to experiment with concepts intended for large-scale systems. This prototype proved highly successful.

In 1959, CDC introduced a 48-bit transistorized redesign of the ERA-Univac 1103 called the CDC 1604, with the inaugural system delivered to the U.S. Navy's Naval Postgraduate School in 1960. A more compact 12-bit model, the CDC 160A, was released in 1960 and regarded as one of the earliest minicomputers, notable for its desk-sized design suited for office environments. The architecture of the 1604 evolved into the CDC 3000 series, which achieved strong sales throughout the mid-1960s.

Cray then set out to build the world’s fastest computer—targeting performance fifty times greater than that of the 1604—which necessitated revolutionary design innovations. As development extended over four years, executive management intensified supervision. In reaction, Cray insisted on establishing an independent laboratory in 1962 or threatened resignation. Bill Norris consented, allowing Cray to relocate his team to Chippewa Falls, Wisconsin; access to this facility was so restricted that even Norris required an invitation to enter.

Peripherals business

In the early 1960s, Control Data Corporation (CDC) moved its operations to the Highland Park area of St. Paul, Minnesota, where its founder William Norris resided. To effectively challenge IBM's dominance, Norris adopted an assertive acquisition approach to assemble a broad range of peripheral devices. CDC’s goal was to deliver peripherals that were generally 10% faster and 10% less expensive than IBM’s comparable products.

One of CDC’s initial peripheral devices was a tape transport unit, which sparked internal discussions regarding pricing strategies and profit-sharing arrangements between divisions. This approach to profit-sharing eventually became a standard practice throughout the company. Following this, CDC introduced the 405 Card Reader and 415 Card Punch, along with internally developed tape drives and drum printers.

To bolster its printer manufacturing capabilities, CDC collaborated with Holley Carburetor in Rochester, Michigan, establishing Holley Computer Products. Eventually, CDC reacquired Holley’s ownership share, forming the Rochester Division. Additionally, CDC joined forces with NCR and ICL in a joint venture named Computer Peripherals, Inc. (CPI), which specialized in producing train and band printers. In the early 1980s, CPI merged with Centronics, a manufacturer known for dot matrix printers.

Aiming to disrupt IBM’s control over punched card technology, Norris acquired Rabinow Engineering, an early innovator in optical character recognition (OCR). The plan was to replace punched cards with OCR-processed typewritten documents to improve data density and reduce expenses. Although CDC initially became a leading OCR provider, it exited this market in 1976 after shutting down Rabinow’s Rockville facility due to technical difficulties and limited commercial success.

Since punched cards remained prevalent, CDC purchased Bridge Engineering to offer card punches that were more cost-effective and faster. The company transferred card-handling product lines to the Valley Forge Division, which later merged with the Rochester Division into CPI alongside NCR and ICL to share development expenses. In 1982, Centronics acquired the Rochester Division.

Norris also launched service bureaus aimed at smaller businesses unable to invest in their own computers. Despite these centers operating at a loss and facing closure recommendations in 1965, Norris opposed shutting them down and instead enforced company-wide cost-cutting measures to maintain their operation.

This strategic expansion into peripheral devices complemented CDC’s mainframe computing business by broadening its product portfolio and leveraging partnerships to strengthen its competitive position against IBM.

Control Data Institute

Between the mid-1960s and late 1980s, Control Data operated an international technical vocational training network known as the Control Data Institute. By the late 1970s, it had established sixty-nine centers worldwide, educating approximately 18,000 students.

CDC 6600: defining supercomputing

At CDC’s Chippewa Falls laboratory, a team of 34 engineers led by Seymour Cray, Jim Thornton, and Dean Roush developed an innovative computer design. Building upon the CDC 1604 model, they incorporated faster silicon transistors supplied by Fairchild Semiconductor and implemented a compact refrigerated design. Launched in 1964, the CDC 6600 outperformed competitors by roughly tenfold and sold over 100 units priced at $8 million each (equivalent to $ million today), earning recognition as the first genuine supercomputer.

The CDC 6600 featured a CPU based on transistor technology with a 100-nanosecond cycle time. It utilized multiple asynchronous functional units alongside ten external input/output processors dedicated to handling peripheral operations—freeing the CPU to concentrate on computation tasks. Performance reached approximately 500 kiloFLOPS when using compilers and up to one megaFLOPS with optimized assembly code. A more affordable serial processor variant was marketed as the CDC 6400, while a dual-processor configuration was sold under the name CDC 6500.

A FORTRAN compiler called MNF (Minnesota FORTRAN) was created at the University of Minnesota specifically for use with the CDC 6600.

In response, IBM launched the ACS-1 project in 1965 intending to surpass the CDC 6600's performance. Despite its innovative architecture, ACS was incompatible with IBM's System/360 platform and was canceled in 1969—resulting in significant personnel losses. Subsequently, IBM announced a System/360 Model 92 claiming parity with CDC's speed capabilities. This announcement caused many customers to delay purchases of the CDC 6600 while awaiting IBM’s release.

Reacting to IBM’s competitive tactics—later identified as fear, uncertainty and doubt (FUD)—Control Data chairman William C. Norris initiated an antitrust lawsuit against IBM. The legal dispute concluded with an $80 million settlement that included Control Data acquiring IBM's subsidiary Service Bureau Corporation (SBC), thereby strengthening CDC’s service bureau operations. The agreement also barred IBM from entering the U.S. services market for six years and covered legal expenses.

During development of the CDC 6600, Project SPIN focused on creating high-speed hard disk storage solutions. It investigated both fixed and removable disk technologies, resulting in a large fixed disk measuring 28 inches as well as a smaller multi-platter removable disk-pack system. This project laid groundwork for Control Data’s extensive hard disk product offerings.

CDC 7600 and 8600

In the same month that CDC prevailed in its legal dispute against IBM, it unveiled the CDC 7600 (initially designated as the 6800). The 7600 operated at a clock speed nearly quadruple that of the 6600 (36 MHz compared to 10 MHz) and achieved more than four times the processing throughput, largely attributed to its extensive implementation of pipelining techniques.

Launched amid the economic downturn of 1969, the 7600 encountered sluggish sales and reliability complications stemming from its complex design. It necessitated a new operating system that was incompatible with the existing 6000-series software. Nevertheless, it held the title of fastest uniprocessor from 1969 until 1976 and was adopted by numerous supercomputing centers globally. Although financially self-sustaining, the project adversely affected CDC’s market reputation.

Following this, Cray developed the CDC 8600, which integrated four processors similar to the 7600 into a compact chassis to boost clock speeds and overall performance. However, its densely packed configuration caused significant cooling and maintenance difficulties, leading to unreliable operation and eventually requiring a complete redesign.

The STAR and the Cyber

While working on redesigning the 8600, CDC also created the CDC STAR-100 under Jim Thornton’s leadership, pioneering what is now recognized as the vector processor. This architecture excelled in certain mathematical computations but was generally slower than the 7600 in overall performance. Due to limited financial resources in the late 1960s, CDC had to prioritize projects, prompting Cray to depart in 1972 to establish Cray Research, with financial backing from founder William C. Norris.

Introduced in 1974 as the Cyber 203, the STAR system fell short in practical applications. Its principal designer left to found Network Systems Corporation. In 1975, CDC installed a STAR-100 at a service center promoted as the world’s first supercomputer data center. Norris orchestrated a widely publicized event that secured Guinness World Records recognition for speed. Major clients included oil companies utilizing simulations for reservoir management and hydropower turbine maintenance, which attracted significant media attention and generated new business opportunities.

Throughout the 1970s, CDC’s Cyber series repackaged various systems based on the 6600/7600 architecture to target different market segments. An enhanced version of the STAR architecture appeared in the Cyber 205 but was outperformed by Cray Research’s models such as the Cray-1, which delivered superior results on typical workloads despite having less vector processing capacity.

Although STAR did not achieve strong sales, CDC’s Cyber 200/205 lineup provided some competitive pressure against Cray Research. Additionally, CDC developed specialized classified projects including the CDC Advanced Flexible Processor (AFP), also known as CYBER PLUS.

Another project dubbed "Cyber 80" aimed for a release around 1980 featuring backward compatibility with legacy software alongside a new 64-bit architecture. Development extended beyond this timeframe, with products eventually launched under alternative names.

To expand revenue streams beyond hardware sales, CDC also marketed services such as the PLATO computer-assisted learning platform running on Cyber machines, notable for pioneering early innovations like bit-mapped touchscreen terminals.

Magnetic Peripherals Inc.

Magnetic Peripherals Inc., which was later renamed Imprimis Technology, was founded in 1975 as a collaborative venture with Honeywell to produce hard disk drives (HDDs). Over time, the ownership structure shifted: CII-Honeywell Bull acquired a 3% interest, and in 1983, Sperry Corporation joined with a 17% stake. Consequently, CDC retained a 67% share while Honeywell held 17%. MPI functioned primarily as an internal supplier, distributing its products solely on an OEM basis to its parent companies. Meanwhile, CDC marketed MPI’s drives under its own brand name.

MPI established itself as a key contender within the HDD sector, dominating the global OEM market for 14-inch disk drives throughout the late 1970s and early 1980s. Its notable products included the SMD (Storage Module Device) and CMD (Cartridge Module Drive) lines. The Brynmawr plant in South Wales operated around the clock, having manufactured over one million disks and three million magnetic tapes by 1979. CDC furthered the development of eight-inch drive technology via MPI’s Oklahoma City facility. The CDC Wren series gained popularity among high-end users, although it trailed behind emerging competitors such as Micropolis Corporation, Maxtor, and Quantum Corporation in terms of capacity and performance enhancements. Additionally, CDC collaborated with Compaq and Western Digital to co-develop the widely implemented Advanced Technology Attachment (ATA) interface, designed to lower costs for entry-level drives.

To enter the growing market for 3.5-inch drives, CDC established the Rigidyne division in Simi Valley, California. This unit developed the "Swift" series, which was based on Wren technology and became one of the earliest high-performance 3.5-inch drives introduced in 1987.

In September 1988, CDC merged Rigidyne and MPI under the newly formed Imprimis Technology subsidiary. The following year, Seagate Technology purchased Imprimis for $250 million in cash, issued 10.7 million shares of Seagate stock, and included a $50 million promissory note. This acquisition strategically bolstered Seagate’s position in the HDD market and expanded its product offerings.

Investments

Control Data held equity interests in several enterprises, including computer research company Arbitron, Commercial Credit Corporation, and Ticketron.

Commercial Credit Corporation

In 1968, Commercial Credit Corporation (CCC) faced an attempted hostile takeover by Loews Inc., which had acquired nearly 10% of CCC’s shares with intentions to dismantle the company. To resist this bid, CCC secured financial backing from Control Data to maintain control. This initiative led Control Data to diversify into unrelated sectors, including owning a fleet of fishing vessels operating in Chesapeake Bay. By the 1980s, Control Data encountered financial difficulties and began divesting assets. In 1986, Sandy Weill convinced Control Data’s leadership to spin off Commercial Credit rather than liquidate it. Weill subsequently transformed Commercial Credit into what became the financial powerhouse Citigroup. In 1999, Commercial Credit was rebranded as CitiFinancial; by 2011, its U.S. retail operations had evolved into OneMain Financial.

Ticketron

In 1969, Control Data purchased a majority interest (51%) in Ticketron for $3.9 million from Cemp Investments. By 1970, Ticketron had become the exclusive computerized ticketing service provider within the United States. Control Data increased its stake further in 1973. Ticketron also provided ticketing equipment and systems for parimutuel wagering and various state lotteries across New York, Illinois, Pennsylvania, Delaware, Washington, and Maryland.

Despite overall corporate losses during the mid-1980s, Ticketron emerged as Control Data’s most lucrative division with revenues reaching $120 million. Considering divestiture options, Control Data sold most of Ticketron’s assets (excluding Broadway’s "Telecharge" unit) in 1990 to The Carlyle Group, which subsequently sold them to competitor Ticketmaster in 1991.

ETA Systems, asset liquidation, and company divestitures

CDC aimed to establish a presence in the high-performance computing sector, but the departure of founder Seymour Cray combined with internal difficulties slowed its pace of innovation. In 1983, CDC created the spinoff ETA Systems to build a supercomputer capable of 10 GFLOPs—approximately 40 times the speed of the Cray-1. While ETA did not fully achieve its intended objectives, it manufactured some of the era’s fastest machines, delivering 7 liquid nitrogen-cooled and 27 air-cooled systems utilizing low-power CMOS technology. Nevertheless, sales declined sharply, and by 1989 most ETA personnel were either dismissed or absorbed back into CDC.

Although the technology held significant promise, CDC endured heavy financial setbacks in 1985 (losing $567 million) and again in 1986 amid restructuring efforts. In 1987, CDC divested its PathLab Laboratory Information System to 3M. Facing shrinking margins in hardware production, CDC began withdrawing from the computer business in 1988 by offloading divisions such as Imprimis, VTC (a semiconductor firm focused on mass-storage components), and non-core businesses like Ticketron.

In 1992, CDC split into two separate entities: Control Data Systems, Inc. (CDS), responsible for computing operations, and Ceridian Corporation, which concentrated on information services. CDS acquired ICEM Technologies—producers of ICEM DDN and ICEM Surf software—but later sold it to PTC for $40.6 million in 1998. The following year, CDS was purchased by Syntegra, a BT Group subsidiary, and merged into BT’s Global Services division.

Ceridian transformed into a thriving outsourced IT company, emphasizing human resources solutions. Its Energy Management Division—overseeing as much as one-quarter of global electricity use—was transferred to Ceridian during the split, rebranded as Empros, and subsequently sold to Siemens in 1993. In 1997, General Dynamics acquired Ceridian’s Computing Devices International Division (previously CDC’s Government Systems Division), which specialized in defense electronics.

March 2001 saw another reorganization: the original Ceridian corporation was renamed Arbitron Inc., while the human resources services and Comdata units retained the Ceridian name. The final division occurred in 2013 with the creation of Ceridian HCM Holding Inc. (focused on human capital management) and Comdata Inc. (specializing in payment services), marking the conclusion of CDC’s legacy asset partitioning.

Chronology of system launches

  • CDC 1604 family – including models 1604, 1604-A, 1604-B, 1604-C, and the simplified variant 924
  • CDC 160 series – models such as 160, 160A (160-A), and 160G (160-G)
  • CDC 3000 series – encompassing models 3100, 3200, 3300, 3400, 3500, 3600, and 3800
  • CDC 6000 series – including the 6200, 6400, 6500, and 6700
  • CDC 6600
  • CDC 7600
  • CDC CYBER lineup – featuring models ranging from Cyber 17 through Cyber 176, Omega/480, and Cyber 700
  • CDC STAR-100
  • 1957 – Establishment of the company
  • 1959 – Debut of CDC 1604
  • 1963 – Launch of CDC 6600 alongside several models including the 3400
  • 1968 – Introduction of CDC 7600
  • 1970 – STAR-100 released
  • 1971–1989 – Expansion of Cyber series from Cyber 71 up to Cyber 2000 models
  • 1982 – Rollout of Cyber 180 series (64-bit machines with virtual memory running NOS/VE OS)
  • 1983 – Release of ETA10 supercomputer

Note: The Cyber 180 series (models beginning with digits in the 8xx & 9xx range) incorporated sophisticated virtual memory features and a hybrid design utilizing Peripheral Processors operating at a 16-bit level. These systems were tailored for high-end computing markets.

Peripheral Systems Group

Throughout the 1970s and 1980s, Control Data Corporation's Peripheral Systems Group functioned as a principal division dedicated to the creation of both hardware and software, concentrating specifically on IBM-compatible operating system software. This segment aligned with CDC's strategic objective to penetrate the IBM mainframe market by designing and promoting systems software compatible with IBM's MVS operating system.

Among its significant offerings was CUPID (Control Data’s Program for Unlike Data Set Concatenation), a tool crafted for systems programmers working within IBM MVS settings. CUPID provided sophisticated data management capabilities, featuring customizable system generation parameters and user-accessible control mechanisms, thereby strengthening CDC’s position in delivering competitive enterprise software solutions.

Film and science fiction references

  • Mars Needs Women (1967) – a CDC 3400 computer is utilized for radio communications and coordinating military responses against Martian spacecraft.
  • Colossus: The Forbin Project (1970) – the opening credits showcase tape drives alongside early CDC hardware.
  • The Mad Bomber (1973) – law enforcement employs a CDC 3100 to develop a profile of the bomber.
  • The Adolescence of P-1 (1977), authored by Thomas Ryan – Control Data computers play a central role in the narrative.
  • The New Avengers – episode 2-10 ("Complex," 1977) includes a CDC card reader.
  • Mi-Sex – Computer Games (1979) music video features the band interacting with CDC equipment located in the North Sydney facility.
  • Tron (1982) – scenes filmed at Lawrence Livermore National Laboratory display both a CDC 7600 and a Cray-1.
  • Die Hard (1988) – the computer room contains operational Cyber 180 systems and a fabricated ETA-10 supercomputer, supplied by CDC Demonstration Services. The hardware was transported from Minnesota under supervision for filming and subsequently returned to inventory.
  • They Live (1988), directed by John Carpenter – an advertisement for Control Data Corporation is visible, showing the word OBEY through special sunglasses. The film’s credits include a "special thanks" to CDC.

Further reading

  • Lundstrom, David. Univac's Distinguished Contributors. MIT Press, 1987. .
  • Misa, Thomas J., editor. The Legacy of Control Data: The Professional Journey of Robert M. Price. Charles Babbage Institute, 2012
  • Murray, Charles J. The Supermen: Chronicles of Seymour Cray and the Innovators Behind the Supercomputer. John Wiley, 1997. .
  • Price, Robert M. The Eye for Innovation: Identifying Opportunities and Leading Creative Enterprises. Yale University Press, 2005
  • Thornton, J. E. Computer Design: The Control Data 6600. Scott, Foresman, 1970
  • Worthy, James C. William C. Norris: A Maverick’s Profile. Ballinger Pub Co., 1987.

External links

Retrieved from "https://www.alfawiki.org/index.php?title=Control_Data_Corporation&oldid=8917"