Informix Corporation

Informix Corporation

Company type	Public
Industry	Software
Predecessor	Relational Database Systems Inc.
Founded	1980
Founder	Roger Sippl, Laura King
Fate	Acquired by IBM; rebranded as Ascential Software in 2001
Headquarters	Menlo Park, California , United States
Area served	Worldwide
Key people	Roger Sippl (Founder, former CEO), Phillip E. White (former CEO)
Products	Informix database series, 4GL programming environment, Wingz spreadsheet software, Redbrick data warehouse databases, Ascential suite for information integration
Number of employees	Nearly 1,000 (approximate)
Parent	IBM (post-2001 acquisition)

Informix Corporation, originally known as Informix Software, Inc., was a software enterprise headquartered in Menlo Park, California. The company specialized in creating relational database solutions compatible with Unix, Microsoft Windows, and Apple Macintosh platforms.

Timeline

• 1980: Established under the name Relational Database Systems Inc. by entrepreneur Roger Sippl, who invested $200,000 and took on the roles of president, CEO, and chairman.
• 1986: Transitioned to Informix Corporation and completed an initial public offering, generating $9 million.
• 1989: Phillip E. White named as chief executive officer.
• 1996: Purchased Illustra Information Technologies, a provider of object/relational database technology; introduced the Universal Web Architecture which combined Illustra with Online Dynamic Server.
• 1997: Encountered allegations involving accounting irregularities and insider trading that affected financial outcomes.
• 1998: Acquired Red Brick Systems, a company focused on data warehouse database solutions.
• 2000: Integrated Ardent, a firm specializing in data management.
• 2001: Divested Informix Software subsidiary to IBM for $1 billion; subsequently rebranded as Ascential Software.
• 2005: IBM completed acquisition of Ascential Software for about $1.1 billion.

History

From its inception in 1980 until 2005, Informix Software, Inc. operated as a software firm concentrating on database products, desktop applications, development environments, and data integration tools. The company expanded to nearly $1 billion in revenue by serving Unix, PC, Linux, and Macintosh markets through both organic growth and strategic acquisitions. Its primary product lines were the Informix database series. Other significant offerings included the 4GL programming environment, Wingz spreadsheet software, Redbrick data warehouse databases, and the Ascential suite for information integration.

In 2001, IBM acquired Informix’s brand along with its database product portfolio, continuing development under the IBM Informix brand. Following this transaction, Ascential Software was spun off to specialize in ETL and information integration sectors before IBM acquired it as well in 2005.

Founding and early history

The founders Roger Sippl and Laura King initially worked at Cromemco developing a relational database system based on ISAM methodologies. They departed to launch Relational Database Systems (RDS) in 1980 and introduced their first product Marathon on Onyx Systems’ C8000 hardware.

By 1981, RDS launched Informix (INFORMation on unIX), aimed at the emerging relational database market with its Informer language plus tools such as the ACE report writer and PERFORM screen form utility. Revenues surpassed $1.35 million by 1984. Supported by OEMs including Altos Computers and Siemens, Informix quickly embraced SQL standards, releasing INFORMIX-SQL (ISQL) version 1.10 in 1985 featuring a new SQL-based query engine that implemented client-server architecture through a distinct engine process called sqlexec. The storage engine was built on C-ISAM.

Informix leveraged Unix’s expanding footprint and the absence of default database solutions within that ecosystem. Major Unix stakeholders like AT&T (accounting for 10% of revenue) and Altos became investors. By 1986, Informix had gone public under the new name Informix Software and offered INFORMIX-SQL 2.00 alongside INFORMIX-4GL 1.00—both integrating database engines with development tools tailored for programmers as well as end users.

Later product iterations introduced INFORMIX-Turbo utilizing RSAM technology to enhance multi-user performance capabilities. In 1989 Turbo was renamed INFORMIX-OnLine to emphasize its online backup features; concurrently, the original C-ISAM server was rebranded as INFORMIX-SE (Standard Engine). Informix OnLine version 5.00 debuted in late 1990 incorporating distributed transaction management and stored procedures; version 5.01 followed with trigger functionality.

During the late 1980s, Informix declined an acquisition proposal from Ashton-Tate, choosing instead to preserve independence amid a phase of rapid business growth and market expansion.

Acquisition of Innovative Software

In 1988, Informix expanded its portfolio by acquiring Innovative Software, the developers behind SmartWare, an office suite compatible with DOS and Unix systems, as well as WingZ, a spreadsheet application designed for the Apple Macintosh. WingZ stood out with its graphical user interface, support for extraordinarily large spreadsheets up to 32,768 by 32,768 cells, and a scripting language called HyperScript, analogous to HyperCard. It quickly rose to become the second most widely used spreadsheet after Microsoft Excel. By 1990, WingZ had broadened its availability across various Unix platforms, targeting financial organizations that employed Unix workstations for sophisticated financial modeling tasks. Despite early achievements, WingZ suffered from insufficient ongoing development and marketing efforts, which diminished its market position and resulted in Informix divesting it in 1995. The acquisition’s founder, Sippl, later explained that the purchase aimed to set Informix apart from dominant competitors like Oracle by incorporating an office suite aligned with his vision of a searchable database-driven file system. Additionally, Informix licensed WingZ technology to Claris, which subsequently upgraded it under the name Claris Resolve.

Dynamic Scalable Architecture Development

Following challenges in the office automation sector, Informix redirected its focus toward the rapidly growing database server industry. In 1994, in collaboration with Sequent Computer Systems, Informix introduced version 6.00 of its database server featuring the innovative Dynamic Scalable Architecture (DSA). This architecture fundamentally restructured the database engine to enable both horizontal and vertical parallel processing through a multi-threaded framework optimized for symmetric multiprocessing (SMP) platforms initially developed by Sequent and later adopted by manufacturers such as Sun Microsystems and Hewlett-Packard. The DSA provided outstanding scalability capabilities for online transaction processing (OLTP) and data warehousing applications.

Rebranded as Informix Dynamic Server (IDS), version 7 debuted in 1994 and consistently topped performance evaluations. Building on this momentum, Informix divided development into two branches: one concentrated on XMP (eXtended Multi-Processing), which evolved into version 8 or XPS (eXtended Parallel Server). This variant focused on advancing data warehousing functionality and parallel processing on high-end shared-nothing systems like IBM’s RS/6000 SP.

Acquisition of Illustra

The other strategic initiative was marked by the late 1995 acquisition of Illustra, centering on object-relational database (O-R) technology. Illustra was created by former members of the Postgres team under the leadership of renowned database innovator Michael Stonebraker. It offered the capability to retrieve fully structured objects directly from the database, thereby reducing programming complexity and development time. Illustra also introduced DataBlades—modular extensions that facilitated new data types and functionalities such as time series, spatial information, and multimedia content. Informix incorporated Illustra’s O-R features and DataBlade technology into its 7.x OnLine product line, resulting in the Informix Universal Server (IUS), also known as Version 9.

Both version 8 (XPS) and version 9 (IUS) were released in 1996, positioning Informix as the first among the leading three database vendors—Oracle and Sybase being the others—to provide integrated object-relational support. DataBlades rapidly gained traction with numerous modules developed within a year through collaborations with Illustra. Competitors lagged behind; Oracle introduced a time-series add-on in 1997 that was considered an afterthought, while Sybase relied on external third-party solutions.

Billboards Provoking Oracle

During the mid-1990s, Informix adopted a bold marketing tactic by placing billboards near Oracle Corporation's Redwood Shores campus. A memorable 1997 billboard proclaimed "Dinosaur Crossing," ridiculing Oracle as outdated within the industry. This exemplified the fierce competition among Informix, Oracle, and Sybase at that time.

Internal Challenges

By 1995, Informix commanded 16% of the database market and was widely regarded as Oracle's chief competitor. Although technologically advanced, the company experienced delays in product launches by late 1996. Difficulties in both technical development and marketing obstructed the success of new offerings such as Informix-NewEra, which was overshadowed by Java's emergence. The assimilation of Illustra technology extended beyond two years, surpassing Gartner Group's initial timeline.

Frustrated with the company's trajectory, Gary Kelley, lead architect of XPS, resigned in early 1997 to join Oracle, accompanied by 11 developers. Informix initiated legal action against Oracle for alleged trade secret misappropriation but eventually retracted the lawsuit following a confidential settlement that included withdrawing accusations against former staff members.

Governance Failures and Executive Misconduct

Informix’s technical progress was marred by significant corporate governance issues. On April 1, 1997, the company revealed a $100 million deficit in first-quarter revenues. CEO Phillip White attributed this shortfall to a diversion from core database priorities and excessive investment in object-relational technologies.

Consequently, Informix endured substantial operating losses and workforce reductions. The company restated earnings for 1994 through 1996 after uncovering revenue inflation exceeding $200 million caused by irregular software license transactions with partners instead of direct end-users. Even after White's departure in July 1997, accounting irregularities continued, prompting further earnings restatements in early 1998.

Leadership Changes and Market Recovery

Under new management, Informix Dynamic Server (IDS) saw enhanced capabilities. By 1998, with Robert Finnocchio as CEO, the firm fortified its market stance by incorporating a Universal Data Option into IDS to rival Oracle’s presence in the object/relational database domain. In 1997, Informix reported revenues totaling $662.3 million.

Phillip White Charged and Convicted

In November 2002, former CEO Phillip White faced indictment on eight counts involving securities fraud, wire fraud, and mail fraud. Thirteen months later, he admitted guilt for submitting a false registration statement to the SEC.

In May 2004, White received a sentence of two months in federal prison, a $10,000 fine, supervised release, and community service obligations. The Department of Justice acknowledged that shareholder losses could not be precisely quantified. His plea agreement limited incarceration to a maximum of one year.

Walter Königseder, who served as vice president for European operations, was also indicted but avoided extradition due to his German nationality.

In November 2005, Steve W. Martin, a long-term Informix employee, authored The Real Story of Informix Software and Phil White, chronicling the company's ascent and decline along with insights on leadership.

Informix's Acquisition of Ardent Software

In March 2000, Informix expanded its offerings by acquiring Ardent Software, thereby obtaining the established MultiValue database platforms UniVerse and UniData (currently known as Rocket U2). This deal also brought in a growing range of Extract, Transform, and Load (ETL) tools along with information integration solutions. This strategic move allowed Informix to enter a rapidly expanding sector.

By July 2000, Peter Gyenes, previously CEO of Ardent, assumed the role of Informix’s CEO and undertook a company restructuring aimed at increasing its attractiveness for future acquisition. A significant part of this reorganization involved separating the database engine technologies from the ETL and information integration products acquired from Ardent.

Divestiture: IBM’s Purchase of Informix’s Database Division

IBM had shown interest in acquiring Informix since the 1980s. In April 2001, influenced by one of Informix’s major clients, Wal-Mart, IBM initiated negotiations to acquire Informix’s core database business. Under the leadership of Janet Perna, IBM secured the database technology, brand rights, development initiatives (known internally as "Arrowhead"), and a customer base surpassing 100,000 users.

Don Haderle from IBM described the transaction as purchasing an installed customer base supported by a network of well-established value-added resellers (VARs). The acquisition was finalized on July 1, 2001, resulting in approximately 2,000 Informix employees transitioning to IBM.

Transition to Ascential Software and Focus on ETL

Following shareholder approval of a transaction that injected $1 billion in cash into the remaining smaller entity, the company rebranded itself as Ascential Software. This new identity reflected a strategic pivot toward the fast-growing ETL and information integration market segment, which was then largely led by Informatica. Leadership continued under CEO Peter Gyenes and President Peter Fiore.

With proceeds from the Informix sale, Ascential pursued acquisitions of several smaller technology firms at discounted valuations amid the post-9/11 software industry slowdown. Despite these efforts to grow through acquisitions, Ascential struggled to replicate Informix’s previous financial success and ultimately implemented a 4-for-1 reverse stock split to prevent delisting from NASDAQ.

IBM’s Acquisition of Ascential

In May 2005, IBM completed its acquisition of Ascential Software for $1.1 billion, thereby consolidating former Informix assets within IBM’s Information Management Software division. The agreement involved IBM taking control of $481 million in cash held by Ascential. Shareholders received $18.50 per share—a premium of 15% over the prior closing price—though investors holding shares since the original Informix period experienced significant losses after accounting for the reverse stock split; their net proceeds amounted to only $4.62 per share compared to over $7.00 before IBM’s initial purchase.

Sippl characterized this acquisition as essentially an exchange of one billion dollars for another, suggesting minimal ongoing business value remained.

Before its integration into IBM, Informix’s product suite included:

• Informix C-ISAM – the latest iteration of the original Marathon database system
• Informix Standard Engine (SE) – an entry-level embedded database solution
• Informix OnLine (Online 5) – designed for mid-tier database management
• Informix Dynamic Server (IDS) – core platform underpinning versions V9 through V11
• Informix Extended Parallel Server (XPS) – advanced clustering and Massively Parallel Processing (MPP) system tailored for data warehousing and online transaction processing (OLTP)
• Informix Universal Server (V9) – integrated OnLine engine featuring object-relational mapping and DataBlade modules
• Informix-4GL – a fourth-generation programming language for application development
• Red Brick Warehouse – specialized data warehousing software
• Cloudscape – a Java-based relational database management system targeting mobile and J2EE environments; open-sourced by IBM in 2004 under Apache Derby
• U2 family (UniVerse and UniData) – MultiValue databases supporting complex data structures beyond traditional SQL capabilities

This comprehensive lineup showcased Informix’s extensive presence across diverse database technologies before its assimilation into IBM's worldwide operations.

See also

• List of relational database management systems
• Comparison of relational database management systems

External links

• "Roger Sippl Oral History," Interview conducted by Luanne Johnson, December 2005–January 2006, Computer History Museum
• "History of Informix Corporation", FundingUniverse.com