Tallgrass Technologies
| Company type | Private |
|---|---|
| Industry | Computer hardware |
| Founded | December 1, 1980 in Kansas City, Missouri, United States |
| Founder | David M. Allen |
| Defunct | 1993 |
| Fate | Assets sold to Exabyte Corporation in 1993 |
| Headquarters | Kansas City , United States |
Key people | David M. Allen (Founder), Steven B. Volk (Executive Vice President of Sales and Marketing) |
| Products | Hard disk drives, tape backup systems |
Number of employees | 400 (mid-1985) (1985) |
Tallgrass Technologies Corporation was a pioneering American computer hardware firm, recognized as the first to introduce a hard disk drive solution compatible with the IBM PC in 1981. Established in December 1980 in Kansas City, Missouri by entrepreneur David M. Allen, Tallgrass initially distributed hard disk drives through Computerland outlets alongside the launch of the original IBM PC. By 1982, the company broadened its offerings to include tape backup systems.
Tallgrass significantly impacted the PC sector by supplying hard-drive options soon after IBM's PC debut, facilitating the early availability of professional software that demanded enhanced speed and storage capacity. This timely introduction contributed to accelerating growth within the PC market. The company primarily sourced drives from Miniscribe, with initial supplies also coming from Shugart Technology (later Seagate) and its licensee, Texas Instruments. Their product lineup focused on the ST-506 hard drive model, which required a separate controller unit.
History
David M. Allen, Tallgrass’s founder, invented patented all-digital phase-locked loop controllers utilizing Group Coded Recording (GCR) encoding to achieve increased storage density. After departing his former employer in 1980 with authorization to use these designs, Allen founded Tallgrass alongside a programmer colleague. The company’s initial income was generated through a contract for developing a 68000 interpreter for UCSD Pascal.
By spring 1981, Tallgrass finalized its hard disk controller design and redirected efforts toward marketing complete external hard-disk subsystems to computer dealers. Early targets for these products included Xerox 820 and Alpha Microsystems systems before IBM announced its PC in August 1981.
Allen capitalized on access to an IBM PC demonstration unit provided by a local Computerland partner to create an interface card and device driver that enabled connectivity between Tallgrass’s subsystem and the IBM PC’s PC DOS operating system. Production runs of these subsystems began shipping by November 1981, shortly after IBM’s PC release, supported by Computerland’s extensive national distribution network.
To accelerate growth, Allen appointed Steven B. Volk as Executive Vice President of Sales and Marketing in late 1981. Volk established a sales force and initiated advertising campaigns featuring unique branding elements such as macaws. Backed by gross margins reaching up to 35%, Tallgrass experienced rapid expansion.
In 1982, the company launched tape backup products using outsourced components before developing smaller tape drives at a facility in Boulder, Colorado. Allen’s patented digital phase-locked loop technology was adapted for tape motor control, enabling cost reductions through shared controller architecture.
By mid-1985, Tallgrass achieved annual revenues approaching $70 million with about 400 employees; however, increasing competition caused sales to stagnate. To support renewed marketing initiatives, venture capital funding was obtained in 1986 from Gateway Associates L.P. and Reimer and Koger Associates (managers of KPERS pension funds). Despite this infusion, sales declined and internal management disputes arose.
In 1987, investors removed Allen from leadership and assumed control; Volk departed later that year. A $4 million buyout proposal from competitor CMS Enhancements was considered but ultimately lapsed without completion. By late 1987, total investments reached $7 million, staff numbers dropped to approximately 130 employees, and annual revenue fell below $40 million.
Tallgrass reported $9.3 million in sales for 1992 while asserting profitability. In 1993, the company’s remaining assets were sold to Exabyte Corporation for $1.5 million; by that time KPERS had invested over $14 million.
Following acquisition, Exabyte sold the "Tallgrass Technologies" brand name to former Vice President Jim Worrell, who rebranded his import/export enterprise under this title. The business continues operating today under new ownership but with a distinct commercial focus.
External links
- Companies founded in Kansas in 1980
- Companies dissolved in Kansas in 1993
- American enterprises established in 1980
- American enterprises closed in 1993
- Computer firms founded in 1980
- Computer firms closed in 1993
- Former computer companies of the United States
- Former software companies of the United States
- Former computer hardware companies
- Software firms headquartered in Kansas
- American companies established in 1980
- Companies of the United States by year of establishment