Ithaca InterSystems
| Company type | Private |
|---|---|
| Industry | Computer hardware, Software |
| Founded | March 1977 |
| Founder | Steven Edelman and associates |
| Defunct | 1986 |
| Headquarters | Ithaca, New York , United States |
| Products | DPS-1 microcomputer, DPS-8000 minicomputer, Graphos graphical terminal, Encore workstation |
Number of employees | 90 (1982) |
Ithaca InterSystems, Inc., originally known as Ithaca Audio and frequently referred to as InterSystems, was a U.S.-based computer firm operating during the 1970s and 1980s, headquartered in Ithaca, New York. The company specialized in producing microcomputer systems and related peripherals, alongside developing its own proprietary software solutions.
History
The company was established in March 1977 and formally incorporated in April 1978 by Steven Edelman together with two associates. Initially called Ithaca Audio, the name reflected Edelman’s early venture into reselling high-fidelity audio equipment at Cornell University. After earning an electrical engineering degree in 1976, Edelman briefly joined NCR Corporation before departing to launch the enterprise with a modest initial investment of $6,000. The first office occupied a small leased space close to Cornell’s campus. By mid-1979, the business had expanded into an 8,300-square-foot facility on Hanshaw Road, significantly increasing manufacturing capabilities and employing 34 staff members.
InterSystems’ primary offering was the DPS-1, an S-100 bus microcomputer powered by a Z80 processor introduced in 1979. This product secured substantial contracts with prominent organizations including Bank of America, CBS, General Electric, Jet Propulsion Laboratory, and NASA. The company pursued growth initiatives supported by grants from local government entities. By 1981, employee numbers had risen to 75.
In 1980, the firm encountered financial difficulties but managed to obtain several rounds of venture capital funding from Italy’s Olivetti S.p.A. and Oak Management based in Connecticut. Disagreements over company control led to Edelman’s amicable exit in early 1981; he subsequently founded SuperMac Technology in 1984. Following his departure, InterSystems developed the DPS-8000 minicomputer featuring a 16-bit Z8002 CPU and operating on the Unix-like Coherent OS.
During the economic downturn of the early 1980s, InterSystems reduced its workforce by 22% of its then 90 employees in mid-1982. The company recovered by early 1983 through $1 million in fresh venture capital investment and relocated its management and engineering teams to a downtown office while maintaining production facilities on Hanshaw Road. In late 1982, it successfully launched the Graphos graphical terminal; by August 1983, it introduced the Encore workstation aimed at sectors including scientific research, industrial process control, and business accounting.
Despite these strategic moves, InterSystems faced mounting challenges from the growing dominance of IBM PCs and compatible systems throughout the mid-1980s. Unable to sustain market presence or effectively pivot its business approach, the company ceased operations by 1986. Reflecting on this downturn in 1989, founder Edelman remarked on the conclusion of an era for companies built around S-100 technology such as InterSystems.
External links
- Ithaca InterSystems DPS-1 at Old-Computers.com
- Ithaca Audio, Ithaca InterSystems history by Herbert R. Johnson at RetroTechnology.com
- Articles with short description
- 1978 establishments in New York (state)
- 1986 disestablishments in New York (state)
- American companies established in 1978
- American companies disestablished in 1986
- Computer companies established in 1978
- Computer companies disestablished in 1986
- Defunct computer companies of the United States
- Defunct computer companies based in New York (state)
- Defunct manufacturing companies based in New York (state)
- Defunct computer hardware companies
- Defunct computer systems companies
- Ithaca, New York
- S-100 machines
- Companies of the United States by year of establishment
- 5