Pure Software
| Company type | Public |
|---|---|
| Industry | Software |
| Founded | October 1991 |
| Founder | Reed Hastings, Raymond Peck, Mark Box |
| Fate | Merged with Atria Software to form Pure Atria Corporation in August 1996; acquired by Rational Software in August 1997 |
| Products | Purify, Quantify, PureLink |
Pure Software was established in October 1991 by Reed Hastings, Raymond Peck, and Mark Box. The company's first offering was Purify, a debugging utility designed for C-based UNIX applications. Following the introduction of additional products such as Quantify and PureLink, and experiencing a consistent doubling of revenue over four consecutive years, Pure Software went public in August 1995 with backing from Morgan Stanley. In August 1996, the company combined forces with Atria Software, resulting in the creation of Pure Atria Corporation. Subsequently, in August 1997, Rational Software purchased Pure Atria, which provided Hastings with the financial resources to start Netflix.
The takeover by Rational Software led to a 42% decline in stock value for both entities. Although Hastings was named Chief Technical Officer, he departed soon after. Reflecting on his tenure, Hastings observed that the organization became increasingly bureaucratic as it expanded. He then dedicated two years to strategizing how to prevent similar challenges in his next enterprise, Netflix.