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<title>Computer Usage Company</title>

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</style><table class="infobox ib-company vcard"><caption class="infobox-title fn org" style="font-size: 125%;">Computer Usage Company</caption><tbody><tr><td colspan="2" class="infobox-image ib-company-logo logo"><span typeof="mw:File"></span><div class="infobox-caption">The company logo featured an <a href="Abacus" title="Abacus">abacus</a></div></td></tr><tr><th scope="row" class="infobox-label">Industry</th><td class="infobox-data category"><a href="Computer_software" class="mw-redirect" title="Computer software">computer software</a></td></tr><tr><th scope="row" class="infobox-label">Founded</th><td class="infobox-data"><a href="New_York_City" title="New York City">New York City</a> (March 1955<span style="display: none;"> (<span class="bday dtstart published updated itvstart">1955-03</span>)</span>)</td></tr><tr><th scope="row" class="infobox-label">Founder</th><td class="infobox-data agent">Elmer C. Kubie <br> John W. Sheldon</td></tr><tr><th scope="row" class="infobox-label">Defunct</th><td class="infobox-data">1986<span style="display: none;"> (<span class="dtend itvend">1986</span>)</span></td></tr><tr><th scope="row" class="infobox-label">Fate</th><td class="infobox-data"><a href="Bankruptcy" title="Bankruptcy">Bankruptcy</a></td></tr><tr><th scope="row" class="infobox-label"><div style="display: inline-block; line-height: 1.2em; padding: .1em 0;">Area served</div></th><td class="infobox-data"><a href="United_States" title="United States">United States</a></td></tr></tbody></table>

<p><b>Computer Usage Company</b> (<b>CUC</b>) (1955–1986), sometimes called <b>Computer Usage Corporation</b>, was the first independent company to market <a href="Computer_software" class="mw-redirect" title="Computer software">computer software</a>.

</p>

<div class="mw-heading mw-heading2"><h2 id="History">History</h2></div>

<p>CUC is generally considered the first company to develop software independently and to have pioneered the field of programming services.<sup id="cite_ref-1" class="reference"><a href="#cite_note-1"><span class="cite-bracket">[</span>1<span class="cite-bracket">]</span></a></sup><sup id="cite_ref-2" class="reference"><a href="#cite_note-2"><span class="cite-bracket">[</span>2<span class="cite-bracket">]</span></a></sup>

Before this time, software was developed either by the users of the computers, or by the few commercial computer vendors.

</p><p>Computer Usage Company (CUC) was founded in March 1955 by Elmer C. Kubie (1926–2004) and John W. Sheldon. They had formerly worked together at <a href="IBM" title="IBM">IBM</a>, and planned to offer services to help develop computer programs. The initial investment of US$40,000 supported the founders and a staff of five. The first offices were located in <a href="New_York_City" title="New York City">New York City</a>.<sup id="cite_ref-MakingITWork-2017_3-0" class="reference"><a href="#cite_note-MakingITWork-2017-3"><span class="cite-bracket">[</span>3<span class="cite-bracket">]</span></a></sup>

</p><p>CUC's first project was a program written for California Research Corporation to simulate the flow of oil.<sup id="cite_ref-4" class="reference"><a href="#cite_note-4"><span class="cite-bracket">[</span>4<span class="cite-bracket">]</span></a></sup>

</p><p>On October 3, 1955, Computer Usage Company, Inc., was incorporated in <a href="Delaware" title="Delaware">Delaware</a>. George R. Trimble Jr. became Corporate Technical Director in February 1956 after work on the <a href="IBM_650" title="IBM 650">IBM 650</a>. Trimble headed a project to computerize the <a href="Air_traffic_control" title="Air traffic control">air traffic control</a> system of the <a href="Federal_Aviation_Administration" title="Federal Aviation Administration">Federal Aviation Administration</a>. This work was done at the <a href="National_Aviation_Facilities_Experimental_Center" class="mw-redirect" title="National Aviation Facilities Experimental Center">National Aviation Facilities Experimental Center</a> in <a href="New_Jersey" title="New Jersey">New Jersey</a>.<sup id="cite_ref-timeline_5-0" class="reference"><a href="#cite_note-timeline-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup>

</p><p>In 1959 an office in <a href="Washington%2C_DC" class="mw-redirect" title="Washington, DC">Washington, DC</a> was opened, since CUC had business with the <a href="US_Navy" class="mw-redirect" title="US Navy">US Navy</a>.

In April 1960 the company had an <a href="Initial_public_offering" title="Initial public offering">initial public offering</a> of stock shares, and grew to three managers, 37 mathematicians, 6 physicists, and 3 engineers.<sup id="cite_ref-6" class="reference"><a href="#cite_note-6"><span class="cite-bracket">[</span>6<span class="cite-bracket">]</span></a></sup>

Later in 1960 CUC established a division to sell computer time and in Spring 1961 opened an office in <a href="Los_Angeles" title="Los Angeles">Los Angeles</a>.<sup id="cite_ref-7" class="reference"><a href="#cite_note-7"><span class="cite-bracket">[</span>7<span class="cite-bracket">]</span></a></sup>

<a href="Cuthbert_Hurd" title="Cuthbert Hurd">Cuthbert Hurd</a> joined the company as <a href="Chairman" class="mw-redirect" title="Chairman">chairman</a> in 1962, a former division director from IBM.<sup id="cite_ref-Lee_8-0" class="reference"><a href="#cite_note-Lee-8"><span class="cite-bracket">[</span>8<span class="cite-bracket">]</span></a></sup>

</p><p>The FAA was planning to use the <a href="IBM_9020" title="IBM 9020">IBM 9020</a> model of the new <a href="IBM_System/360" title="IBM System/360">IBM System/360</a>, so contracted with CUC to develop a compiler for the <a href="JOVIAL" title="JOVIAL">JOVIAL</a> computer language. The compiler was first developed on a simulator using the <a href="IBM_7030" class="mw-redirect" title="IBM 7030">IBM 7030</a> before actual hardware was available.

In early 1964, CUC developed software used by <a href="CBS" title="CBS">CBS Television</a> to track the election results. Sheldon left later in 1964.

Another major contract was to implement part of IBM's first <a href="Time-sharing" title="Time-sharing">time-sharing</a> system, <a href="TSS/360" class="mw-redirect" title="TSS/360">TSS/360</a>. CUC was asked to manage the TSS project, as it was seen as losing ground to competitors in time-sharing. Realizing that performance would never meet expectations, CUC declined.<sup id="cite_ref-cch_9-0" class="reference"><a href="#cite_note-cch-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup>

In 1965 the Computer Usage Education subsidiary was formed, headed by Ascher Opler, which published software books and offered courses. One of its best sellers was on Programming the IBM system/360.<sup id="cite_ref-10" class="reference"><a href="#cite_note-10"><span class="cite-bracket">[</span>10<span class="cite-bracket">]</span></a></sup>

Carl H. Reynolds joined as President of the new Computer Usage Development Company subsidiary in 1966. Reynolds had been director of programming for the Data Systems Division of IBM during the development of the System/360.<sup id="cite_ref-11" class="reference"><a href="#cite_note-11"><span class="cite-bracket">[</span>11<span class="cite-bracket">]</span></a></sup>

</p><p>By 1967 CUC had a staff of over 700 people in 12 offices and revenues over $13 million. An office in <a href="Dallas%2C_Texas" class="mw-redirect" title="Dallas, Texas">Dallas, Texas</a> was established to work on a contract with <a href="Texas_Instruments" title="Texas Instruments">Texas Instruments</a> to develop software including an <a href="Operating_system" title="Operating system">operating system</a> and a <a href="FORTRAN" class="mw-redirect" title="FORTRAN">FORTRAN</a> compiler for the <a href="TI_Advanced_Scientific_Computer" title="TI Advanced Scientific Computer">TI Advanced Scientific Computer</a>.<sup id="cite_ref-timeline_5-1" class="reference"><a href="#cite_note-timeline-5"><span class="cite-bracket">[</span>5<span class="cite-bracket">]</span></a></sup> During that time, the company's vice president was <a href="H._Dean_Brown" title="H. Dean Brown">H. Dean Brown</a>.

Kubie and Reynolds left in July 1968 and the company changed direction under new president Charles Benton, Jr. from IBM's Federal Systems Division.<sup id="cite_ref-12" class="reference"><a href="#cite_note-12"><span class="cite-bracket">[</span>12<span class="cite-bracket">]</span></a></sup>

Benton hired sales people instead of technical people, and contracts did not keep up with overhead.<sup id="cite_ref-cch_9-1" class="reference"><a href="#cite_note-cch-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup>

</p><p>CUC declared its first loss as a public company in 1969. Other competitors such as <a href="Computer_Sciences_Corporation" title="Computer Sciences Corporation">Computer Sciences Corporation</a> were now larger. <a href="Sears" title="Sears">Sears</a> announced they were in discussions for an acquisition, but talks fell through.<sup id="cite_ref-13" class="reference"><a href="#cite_note-13"><span class="cite-bracket">[</span>13<span class="cite-bracket">]</span></a></sup>

By early 1970 Benton resigned and Hurd stepped in as president, although he lived in <a href="California" title="California">California</a>. Other potential mergers were discussed, including <a href="Ross_Perot" title="Ross Perot">Ross Perot</a> who by now had founded his own service business <a href="Electronic_Data_Systems" title="Electronic Data Systems">Electronic Data Systems</a>.<sup id="cite_ref-cch_9-2" class="reference"><a href="#cite_note-cch-9"><span class="cite-bracket">[</span>9<span class="cite-bracket">]</span></a></sup>

CUC negotiated a contract to manage computer facilities at the <a href="Firemans_Fund_Insurance_Company" class="mw-redirect" title="Firemans Fund Insurance Company">Firemans Fund Insurance Company</a>, which restored profitability for a time.

Hurd left in 1974. Victor Bartoletti became president, but died in 1984 and George C. Strohl from <a href="Bank_of_America" title="Bank of America">Bank of America</a> became president. However, losses continued to mount as the computer business was now very different from the field dominated by IBM 30 years earlier. By 1985, CUC lost $2.4 million on revenues of only $1.5 million.

In 1986 CUC declared <a href="Bankruptcy" title="Bankruptcy">bankruptcy</a> and was liquidated in what is known as <a href="Chapter_7%2C_Title_11%2C_United_States_Code" title="Chapter 7, Title 11, United States Code">Chapter 7</a>.<sup id="cite_ref-14" class="reference"><a href="#cite_note-14"><span class="cite-bracket">[</span>14<span class="cite-bracket">]</span></a></sup>

</p>

<ul><li><a href="Software_industry" title="Software industry">Software industry</a></li>

<li><a href="History_of_IBM" title="History of IBM">History of IBM</a></li></ul>

<div class="mw-heading mw-heading2"><h2 id="References">References</h2></div>

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</style><cite id="CITEREFJames_W._Cortada1996" class="citation book cs1">James W. Cortada (January 1996). <a rel="nofollow" class="external text" href="https://books.google.com/books?id=cUxDqNb9smQC&pg=PA27"><i>Second bibliographic guide to the history of computing, computers, and the information processing industry</i></a>. Greenwood Publishing Group. p. 27. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>978-0-313-29542-3</bdi>.</cite></span>

</li>

<li id="cite_note-2"><span class="mw-cite-backlink"><b><a href="#cite_ref-2">^</a></b></span> <span class="reference-text"><cite id="CITEREFSwedinFerro2007" class="citation book cs1"><a href="Eric_G._Swedin" title="Eric G. Swedin">Swedin, Eric G.</a>; Ferro, David L. (2007). <a rel="nofollow" class="external text" href="https://books.google.com/books?id=aeekluUpc7kC&pg=PA60"><i>Computers: The Life Story of a Technology</i></a>. JHU Press. p. 60. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>978-0-8018-8774-1</bdi>.</cite></span>

</li>

<li id="cite_note-MakingITWork-2017-3"><span class="mw-cite-backlink"><b><a href="#cite_ref-MakingITWork-2017_3-0">^</a></b></span> <span class="reference-text"><cite id="CITEREFYost2017" class="citation book cs1">Yost, Jeffrey R. (2017). <i>Making IT Work: A History of the Computer Services Industry</i>. Cambridge, Massachusetts: The MIT Press. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>978-0-262-03672-6</bdi>. <a href="OCLC_(identifier)" class="mw-redirect" title="OCLC (identifier)">OCLC</a> <a rel="nofollow" class="external text" href="https://search.worldcat.org/oclc/978286108">978286108</a>.</cite></span>

</li>

<li id="cite_note-4"><span class="mw-cite-backlink"><b><a href="#cite_ref-4">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="https://web.archive.org/web/20100714052200/http://www.softwarehistory.org/history/cuc.html">"Computer Usage Corporation (CUC)"</a>. <i>Computer Museum web site</i>. Archived from <a rel="nofollow" class="external text" href="http://www.softwarehistory.org/history/cuc.html">the original</a> on July 14, 2010<span class="reference-accessdate">. Retrieved <span class="nowrap">May 29,</span> 2010</span>.</cite></span>

</li>

<li id="cite_note-timeline-5"><span class="mw-cite-backlink">^ <a href="#cite_ref-timeline_5-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-timeline_5-1"><sup><i><b>b</b></i></sup></a></span> <span class="reference-text"><cite id="CITEREFGeorge_R._Trimble_Jr.2005" class="citation web cs1">George R. Trimble Jr. (June 24, 2005). <a rel="nofollow" class="external text" href="http://corphist.computerhistory.org/corphist/documents/doc-437a4a92bbf21.doc">"CUC History"</a>. Computer History Museum<span class="reference-accessdate">. Retrieved <span class="nowrap">May 30,</span> 2010</span>.</cite></span>

</li>

<li id="cite_note-6"><span class="mw-cite-backlink"><b><a href="#cite_ref-6">^</a></b></span> <span class="reference-text"><cite id="CITEREFJohn_H._Gribbin1960" class="citation book cs1">John H. Gribbin (1960). <a rel="nofollow" class="external text" href="https://books.google.com/books?id=pzgrAAAAYAAJ&pg=PA120"><i>Industrial research laboratories of the United States</i></a> (11th ed.). National Academies. p. 120. NAP:14698.</cite></span>

</li>

<li id="cite_note-7"><span class="mw-cite-backlink"><b><a href="#cite_ref-7">^</a></b></span> <span class="reference-text"><cite class="citation web cs1"><a rel="nofollow" class="external text" href="http://archive.computerhistory.org/resources/text/Computer_Usage_Company/cuc.annual_report.1961.102651923.pdf">"Annual Report 1961"</a> <span class="cs1-format">(PDF)</span>. Computer Usage Company.</cite></span>

</li>

<li id="cite_note-Lee-8"><span class="mw-cite-backlink"><b><a href="#cite_ref-Lee_8-0">^</a></b></span> <span class="reference-text"><cite id="CITEREFJohn_A._N._Lee1995" class="citation book cs1">John A. N. Lee (1995). <a rel="nofollow" class="external text" href="https://books.google.com/books?id=ocx4Jc12mkgC&pg=PA388">"Cuthbert C. Hurd"</a>. <i>International biographical dictionary of computer pioneers</i>. Taylor & Francis for IEEE Computer Society Press. pp. <span class="nowrap">388–</span>389. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>978-1-884964-47-3</bdi>.</cite></span>

</li>

<li id="cite_note-cch-9"><span class="mw-cite-backlink">^ <a href="#cite_ref-cch_9-0"><sup><i><b>a</b></i></sup></a> <a href="#cite_ref-cch_9-1"><sup><i><b>b</b></i></sup></a> <a href="#cite_ref-cch_9-2"><sup><i><b>c</b></i></sup></a></span> <span class="reference-text"><cite id="CITEREFCharles_R._Fillerup1995" class="citation web cs1">Charles R. Fillerup (August 28, 1995). <a rel="nofollow" class="external text" href="http://purl.umn.edu/107371">"An Interview with Cuthbert C. Hurd"</a>. <a href="Charles_Babbage_Institute" class="mw-redirect" title="Charles Babbage Institute">Charles Babbage Institute</a>, University of Minnesota<span class="reference-accessdate">. Retrieved <span class="nowrap">May 29,</span> 2010</span>.</cite></span>

</li>

<li id="cite_note-10"><span class="mw-cite-backlink"><b><a href="#cite_ref-10">^</a></b></span> <span class="reference-text"><cite id="CITEREFComputer_Usage_Company1966" class="citation book cs1">Computer Usage Company (1966). Ascher Opler (ed.). <a rel="nofollow" class="external text" href="https://books.google.com/books?id=NRg1AAAAIAAJ"><i>Programming the IBM system/360</i></a>. Wiley. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>0-471-16705-3</bdi>.</cite></span>

</li>

<li id="cite_note-11"><span class="mw-cite-backlink"><b><a href="#cite_ref-11">^</a></b></span> <span class="reference-text"><cite id="CITEREFEmerson_W._PughLyle_R._JohnsonJohn_H._Palmer1991" class="citation book cs1">Emerson W. Pugh; Lyle R. Johnson; John H. Palmer (January 4, 1991). <span class="id-lock-registration" title="Free registration required"><a rel="nofollow" class="external text" href="https://archive.org/details/ibms360early370s0000pugh"><i>IBM's 360 and early 370 systems</i></a></span>. MIT Press. p. <a rel="nofollow" class="external text" href="https://archive.org/details/ibms360early370s0000pugh/page/303">303</a>. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>978-0-262-16123-7</bdi>.</cite></span>

</li>

<li id="cite_note-12"><span class="mw-cite-backlink"><b><a href="#cite_ref-12">^</a></b></span> <span class="reference-text"><cite class="citation news cs1"><a rel="nofollow" class="external text" href="http://archive.computerhistory.org/resources/text/Computer_Usage_Company/070910_download/computerusagecompany.cu_bits_1968_jul/computerusagecompany.cu_bits_1968_jul.pdf">"Charles Benton, Jr. Elected President of CUC"</a> <span class="cs1-format">(PDF)</span>. <i>CU/Bits</i>. Computer Usage Corporation<span class="reference-accessdate">. Retrieved <span class="nowrap">May 29,</span> 2010</span>.</cite></span>

</li>

<li id="cite_note-13"><span class="mw-cite-backlink"><b><a href="#cite_ref-13">^</a></b></span> <span class="reference-text"><cite id="CITEREFHammer1969" class="citation news cs1">Hammer, Alexander R. (November 1, 1969). <a rel="nofollow" class="external text" href="https://select.nytimes.com/gst/abstract.html?res=F40F16F93B551B7B93C3A9178AD95F4D8685F9">"Sears Is Seeking Computer Company; Acquisitions and Combinations Are Planned by Corporations"</a>. <i><a href="The_New_York_Times" title="The New York Times">The New York Times</a></i><span class="reference-accessdate">. Retrieved <span class="nowrap">May 29,</span> 2010</span>.</cite></span>

</li>

<li id="cite_note-14"><span class="mw-cite-backlink"><b><a href="#cite_ref-14">^</a></b></span> <span class="reference-text"><cite id="CITEREFDetlev_J._Hoch2000" class="citation book cs1">Detlev J. Hoch (2000). <span class="id-lock-registration" title="Free registration required"><a rel="nofollow" class="external text" href="https://archive.org/details/secretsofsoftwar00hoch"><i>Secrets of software success: management insights from 100 software firms around the world</i></a></span>. Harvard Business Press. pp. <a rel="nofollow" class="external text" href="https://archive.org/details/secretsofsoftwar00hoch/page/37">37</a>–38. <a href="ISBN_(identifier)" class="mw-redirect" title="ISBN (identifier)">ISBN</a> <bdi>978-1-57851-105-1</bdi>.</cite></span>

</li>

</ol></div></div>

<div class="mw-heading mw-heading2"><h2 id="Further_reading">Further reading</h2></div>

<ul><li><cite id="CITEREFGeorge_R._Trimble_Jr.2001" class="citation journal cs1">George R. Trimble Jr. (Summer 2001). "A brief history of computing. Memoirs of living on the edge". <i>IEEE Annals of the History of Computing</i>. <b>23</b> (3). IEEE Computer Society: <span class="nowrap">44–</span>59. <a href="Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1109%2F85.948905">10.1109/85.948905</a>. <a href="S2CID_(identifier)" class="mw-redirect" title="S2CID (identifier)">S2CID</a> <a rel="nofollow" class="external text" href="https://api.semanticscholar.org/CorpusID:5259268">5259268</a>.</cite></li>

<li><cite id="CITEREFLuanne_(James)_Johnson1998" class="citation journal cs1">Luanne (James) Johnson (Summer 1998). "A View From the 1960s: How the Software Industry Began". <i>IEEE Annals of the History of Computing</i>. <b>20</b> (1). IEEE Computer Society: <span class="nowrap">36–</span>42. <a href="Doi_(identifier)" class="mw-redirect" title="Doi (identifier)">doi</a>:<a rel="nofollow" class="external text" href="https://doi.org/10.1109%2F85.646207">10.1109/85.646207</a>.</cite></li></ul>

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