Compuware Corp - Early History

EARLY HISTORY

Along with partners Thomas Thewes and Allen Cutting, Peter Karmanos Jr. founded Compuware Corp. in 1973. Based in Southfield, Michigan, the company offered professional data processing, computer installation help, and a team of programming consultants willing to take on short-term projects. Compuware operated on the premise that its technical services allowed clients to spend more time running their business, rather than dealing with technology concerns. Four years later, the firm unveiled its first software product, Abend-AID. The fault diagnosis tool made the jobs of programmers easier by examining corporate mainframe systems for errors and offering suggestions for alterations. Abend-AID's success prompted the firm to establish a separate software division.

In 1978, Compuware established an office in the northeastern United States. A year later, the company developed an interactive analysis and debugging software program called MBX Xpediter/TSO, which eventually won an International Computer Program (ICP) award. Sales exceeded $1 million in 1983. That year, Compuware shipped File-AID, a data management software line for IBM and IBM-compatible mainframe computers. The firm created its first automated testing tool, MVS PLAYBACK, in 1986. The following year, Abend-AID received an ICP award, and Compuware expanded internationally for the first time by purchasing European distributors. By the end of the decade, sales had grown to roughly $100 million. Software brought in 65 percent of that total, while services accounted for 30 percent.

In an attempt to shore up its position in the interactive analysis and debugging industry, Compuware acquired Centura Software in 1990. The firm created its first personal computer (PC) software product in 1991 by developing a PC version of File-AID. However, most of Compuware's new products continued to focus on improving the performance of large corporate mainframes. Other product releases included database manager DBA-XPERT and Pathvu/2, an interactive analysis and debugging program for the OS/2 platform. The purchase of XA Systems Corp. gave Compuware access to a business-critical application testing and management software program. In 1992, the firm completed its initial public offering.

International growth continued early in the decade with the creation of Tokyo-based Compuware Japan Corp. and Compuware Corporation Do Brasil. Compuware upped the number of its software product lines to nearly 30 with the acquisition of Landmark Systems Corp.'s Eyewitness software. Compuware also bought EcoSystems Software Inc., including its client/server network management software. According to the firm's corporate history, the acquisition was a pivotal one because it allowed Compuware to offer "the most comprehensive suite of end-to-end applications and e-commerce performance management tools available."