Keydata Corporation

Keydata Corporation

Company type	Private
Industry	Computer services, Time-sharing
Founded	1959
Founder	Charles W. Adams
Defunct	1981
Headquarters	Cambridge, Massachusetts (initially), later Watertown, Massachusetts , United States
Products	Time-sharing services, commercial software (inventory control, accounting)

Keydata Corporation emerged as a trailblazer in the time-sharing sector throughout the 1960s. Established by entrepreneur Charles W. Adams, recognized for his involvement with Adams Associates and expertise in computer equipment assessments, the company initially operated out of Technology Square in Cambridge, Massachusetts, before moving its base to Watertown.

Positioned in close proximity to significant initiatives such as Project MAC at MIT, which was responsible for creating the MULTICS time-sharing operating system (a forerunner to UNIX), as well as IBM's Cambridge Scientific Center, Keydata was part of a vibrant environment of advanced IT development. IBM’s center was notable for developing the pioneering virtual memory system on the adapted IBM System/360 Model 40, which had a lasting impact on contemporary computing designs.

Keydata utilized a UNIVAC 490 machine equipped with drum memory to provide commercial software solutions including inventory control and accounting through networked Teletype terminals. The company’s highly tailored, parameter-driven software for distribution and manufacturing replaced bespoke internal systems across many customer organizations. This comprehensive online transaction processing system was crafted in a proprietary high-level programming language and allowed broad customization via parameter settings. Customer connections were maintained through dedicated point-to-point lines supplied by AT&T.

The Keydata platform supported early applications such as Instinet, now under Reuters’ ownership, which enabled substantial block trading on American stock exchanges, alongside an advanced inventory network system developed for Shell Oil. At its operational zenith, Keydata catered to hundreds of online users. Nevertheless, efforts to migrate their software to emerging minicomputer platforms like DEC’s VAX 780 and Hewlett-Packard’s 3000 series were unsuccessful due to the complexity of these initiatives and insufficient resources.