Word: amdahl
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Such measures sometimes thwart the outright theft of classified documents. But they are less effective in preventing employees with trade secrets stored in their heads from jumping to competitors or starting their own firms. Since 1970, ex-IBMers have launched several highly successful computer companies, including Amdahl Corp., which makes equipment that plugs into IBM systems...
Newer firms, such as Amdahl, Magnuson and National Advanced Systems, have become strong competitors at the big end of the market. Digital Equipment, Data General and Datapoint are leading companies in the minicomputer part of the business. Meanwhile, such firms as Apple and Tandy are running away with the small-computer market. Indeed, IBM was late to recognize the potential of personal computers, and introduced its first entrant into the field only last summer...
...Allstate Insurance Co.'s private placement division maintained a growth rate of 40% a year during most of the 1960s by making prescient purchases in such companies as Memorex, Teledyne and Control Data. Chicago Financier E.F. ("Ned") Heizer has put his Heizer Corp. into a 32% ownership of Amdahl Corp., a computer maker that has booked $30 million of orders in its first year of production. The biggest hit of all was made by former Harvard Business School Professor Georges F. Doriot, who launched American Research and Development Corp. in 1946 as the nation's first publicly held...