Information technology is deeply ingrained in modern society, impacting every industry. Today, let’s delve into the history of “Systime Computers,” a company founded in Leeds in the last century. It achieved success through the sale of systems built on OEM components from Digital Equipment Corporation (DEC). Next on leeds-future.com.
The Beginnings of “Systime Computers”
The story of “Systime Computers” started in Leeds, where University of Leeds graduate John Gow began his career in computer programming. Initially a software support manager at Digital Equipment Corporation (DEC), Gow partnered with three friends to establish their own venture. Working from Gow’s workshop, they officially founded “Systime Computers” in 1973, operating initially out of a canteen in an abandoned Leeds mill.
In its early years, Systime collaborated with Leeds-based jukebox company “Musicchire,” providing them with DEC computers, software, and new hardware. Musicchire later acquired a financial stake in Systime, with their finance director joining Systime’s board of directors.
By 1975, the company’s turnover had reached £2.75 million, with profits of £300,000. Systime continued to grow, opening offices and subsidiaries abroad. In 1977, Gow negotiated with investment firm “Ivory and Sime” to buy out Musicchire’s stake. The National Enterprise Board (NEB) also invested £500,000, acquiring a 26% share in return.
The Company’s Growth
“Systime Computers” specialized in computer-related products, including devices, software, and systems. Over time, it began manufacturing its own DEC-compatible memory boards and storage devices, as well as mini-computers such as the Systime 1000, 3000, and 5000. By the 1980s, one-third of all VAX systems in the UK were based on Systime platforms.
The company’s financial performance continued to improve, with a turnover of £24.6 million and profits of £1.6 million in 1980. Employing 1,150 staff across the UK, Systime operated 11 offices nationwide. In 1981, it was recognized with the Business Enterprise Award from the Institute of Directors, cementing its reputation as a trailblazer in the industry.
Systime further expanded into desktop systems, terminals, and printers, while also offering bespoke software development services. It became the second-largest computer manufacturer in the UK, frequently visited by government ministers as a model of British innovation.
In 1983, Control Data Corporation acquired a 38% stake in Systime for £8 million, with another 25% held by Ivory and Sime. That same year, Systime opened a factory in Leeds. Its turnover reached £60 million, with nearly 1,400 employees, supported by significant advertising efforts to boost brand recognition. However, founder and managing director John Gow left the company in 1983 to start his own venture, “WGK Electronics.”
Following Gow’s departure, Systime faced several challenges. DEC filed a lawsuit over intellectual property violations, and the company was accused of breaching US export restrictions during the Cold War by selling systems to Eastern Bloc countries. These allegations severely damaged its reputation.
The US imposed a $400,000 fine and banned Systime from using American components. Investor confidence waned, leading to significant financial losses and the elimination of 1,000 jobs at its Leeds factory.
In 1985, Control Data Corporation acquired full ownership of Systime. By 1989, it had divided the company into four smaller entities, effectively ending Systime’s operations as a unified brand.
The story of “Systime Computers” is one of remarkable success and subsequent decline. Founded by a university graduate, it rose to prominence as a leader in British computing before succumbing to geopolitical and legal pressures.
John Gow’s gamble in launching Systime paid off in many ways, showcasing the potential of innovation and entrepreneurship. His legacy endures as a reminder of Leeds’s contributions to the tech industry.
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