CompuServe: A Pioneering Online Service Provider

CompuServe was a trailblazing online service provider that revolutionized the way people accessed information and connected with others. It was founded in 1969 by a group of engineers at the Columbus, Ohio-based company, Information Systems Laboratory.

The company's first product was a time-sharing system called CompuServe Information Service, which allowed users to access a range of services including news, weather, and sports. This was a game-changer for people who wanted to stay informed and connected from the comfort of their own homes.

CompuServe's early success was largely due to its innovative use of dial-up technology, which enabled users to access the service from their own computers.

CompuServe's technology was explained in just one sentence by The Times in 1981, giving us a glimpse into the company's early days.

The company has a rich history that spans several decades, with a significant milestone being its existence in 1981.

In 1981, The Times explained CompuServe's technology in one sentence, showing how far the company had come in just a few years.

CompuServe's early days were marked by its innovative approach to technology, which was recognized by publications like The Times.

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CompuServe was one of the first commercial online services, launching in 1969 as a time-sharing system.

It introduced the concept of a virtual community, allowing users to connect with others who shared similar interests.

CompuServe's user base grew rapidly, reaching 100,000 subscribers by the early 1980s.

The service offered a range of features, including email, online shopping, and access to news and weather information.

CompuServe's online store, known as the "CompuServe Mall", allowed users to purchase products and services directly from their computers.

The service was a major player in the development of the modern internet, paving the way for later online services like America Online (AOL) and Prodigy.

CompuServe's email service was a key factor in its success, allowing users to send and receive messages with others on the network.

By the mid-1990s, CompuServe had become one of the largest online services in the world, with over 3 million subscribers.

The service continued to evolve, introducing new features and services to stay competitive in the rapidly changing online landscape.

CompuServe's impact on the internet cannot be overstated, as it helped to establish the concept of online communities and paved the way for later online services.

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CompuServe made several key acquisitions throughout its history. One of the earliest acquisitions was Alpha Systems of Dallas, Texas, a small regional timesharing company, in the early 1970s.

CompuServe also acquired Software House in ~1986, developer of System 1022, a relational database system. Collier-Jackson, a developer of human resource management products, was acquired around the same time.

The company acquired Access Technology in 1988, which developed the 20/20 spreadsheet program.

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CompuServe was acquired by WorldCom in 1998 for $1.2 billion of WCOM stock.

In February 1998, John W. Sidgmore, then vice chairman of WorldCom, devised a complex transaction that met the goals of all parties.

The deal involved WorldCom purchasing all shares of CompuServe, then selling the CompuServe Information Service portion to AOL, while retaining the CompuServe Network Services portion.

AOL in turn sold its networking division, Advanced Network Services (ANS), to WorldCom.

WorldCom's newly acquired CompuServe Network Services was renamed WorldCom Advanced Networks and continued to operate as a discrete company within WorldCom.

In 1999, WorldCom acquired MCI and became MCI WorldCom, and WorldCom Advanced Networks briefly became MCI WorldCom Advanced Networks.

MCI WorldCom Advanced Networks was ultimately absorbed into UUNET, and WorldCom began its spiral to bankruptcy, re-emerging as MCI.

In 2006, MCI was sold to Verizon, and the organization that had once been the networking business within CompuServe is now part of Verizon Business.

In 2015, when Verizon acquired AOL, all of CompuServe's original properties were reunited under Verizon.

CompuServe led the fight to exempt data networks from paying the Common Carrier Access Charge, a move that significantly reduced the cost of dial-up networking in the United States.

The FCC agreed with CompuServe's position, making data networking much less expensive than it would have been otherwise.

Microsoft had plans to bundle CompuServe's software with Windows 95 SR2, but the software wasn't ready in time.

AOL considered using the wow.com domain for a social networking service focused on World of Warcraft, but ultimately decided against it.

The wow.com domain was briefly used as a deal of the day site similar to Groupon, but it shut down in late 2011.

As of 2019, wow.com is a search engine powered by Bing, using the same back-end as AOL Search.

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CompuServe's technology was fairly simple in 1969, with local phone numbers in Cleveland connected to time-division multiplexers that linked to Columbus and then to a time-sharing host system.

The network evolved over time, with central multiplexers replaced by PDP-8 minicomputers and later connected to a DEC PDP-15 minicomputer that acted as switches.

CompuServe developed its own packet switching network in 1977, implemented on DEC PDP-11 minicomputers that were installed throughout the US and later in other countries.

This network eventually became a complicated multi-tiered network incorporating asynchronous transfer mode (ATM), frame relay (FR), Internet Protocol (IP) and X.25 technologies.

CompuServe introduced the CompuServe B protocol in 1981, a file-transfer protocol that allowed users to send files to each other, and later expanded it to the higher-performance B+ version.

The B+ protocol was used by default for some time on CompuServe itself and was later extended to include the Host-Micro Interface (HMI), a mechanism for communicating commands and transaction requests to a server application running on the mainframes.

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CompuServe introduced its CompuServe B protocol around 1981, a file-transfer protocol that allowed users to send files to each other.

This protocol was later expanded to the B+ version, which offered better performance and was intended for downloads from CompuServe itself. Although it wasn't widely supported by other software, CompuServe used it by default for some time.

The B+ protocol was extended to include the Host-Micro Interface (HMI), a mechanism for communicating commands and transaction requests to a server application running on mainframes.

HMI enabled "front end" client software to present a GUI-based interface to CompuServe, making it easier to use without relying on the error-prone CLI.

The original CompuServe dial-up technology was fairly simple, with a local phone number in Cleveland connected to a time-division multiplexer that linked to a matched multiplexer in Columbus, which then connected to a time-sharing host system.

In the early days, each line terminated on a single machine at CompuServe's host, requiring different numbers to reach different computers.

Later, CompuServe replaced the central multiplexers in Columbus with PDP-8 minicomputers, which were connected to a DEC PDP-15 minicomputer that acted as switches, freeing phone numbers from being tied to specific hosts.

CompuServe developed its own packet switching network, implemented on DEC PDP-11 minicomputers acting as network nodes installed throughout the US and later in other countries, which were interconnected.

The CompuServe network evolved into a complex multi-tiered network incorporating various technologies, including ATM, FR, IP, and X.25.

In 1977, CompuServe introduced its own packet switching network, marking a significant milestone in the company's technological advancements.

CompuServe also offered a video-text-like service that allowed personal computer users to retrieve software from the mainframe computer over telephone lines.

CompuServe's Financial Services group collected and consolidated financial data from multiple sources, including CompuStat, Disclosure, I/B/E/S, and major exchanges, providing valuable information to investment banks on Wall Street.

GUIs were a crucial part of accessing CompuServe, with several interfaces written for the service over time.

The New York Times noted that CompuServe's GUIs, such as WinCIM, TapCIS, and NavCIS, were so good that they should have been given away for free, but weren't.

WinCIM was one of the GUIs available, but it came with a price tag, unlike AutoSIG which was free.

TapCIS and NavCIS were also GUIs designed to streamline the process of sending pre-written email and forum postings, receiving new messages, and downloading files.

Users could bypass CompuServe's WinCIM interface using these GUIs, which was especially useful for those with timed access and long distance call costs.

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CompuServe's user experience was designed with simplicity in mind. The service allowed users to access information and communicate with others through a user-friendly interface.

The CompuServe Information Service was launched in 1980, and by the mid-1980s, it had become one of the largest online services in the world, with over 100,000 subscribers. This rapid growth was a testament to the service's user-friendly features.

CompuServe user IDs originally consisted of seven octal digits in the form 7xxxx,xx, a legacy of PDP-10 architecture.

These IDs were printed on "Snap Paks" and were generated in advance. Users had to wait for their printed IDs to start using the service.

In 1989, CompuServe introduced email access to the Internet, allowing users to use their user ID in the form [email protected].

The comma in the original ID was replaced with a period to create the new email format. This change allowed users to access their email addresses online.

In 1996, users were allowed to create an alias for their Internet e-mail address, which could also be used for a personal web page.

The longest-term members were given the first choice of the new addresses, giving them more control over their online presence.

CompuServe introduced a new system in 1998 that provided POP3 access via the Internet, allowing users to access their email with any Internet mail program.

This change made it easier for users to manage their email accounts from anywhere.

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CompuServe offered a customized version of its service to the airline industry in the 1970s, allowing pilots and flight attendants to bid for flight schedules with their airline.

This kind of customization is exactly what users want from their online experience - a tailored solution that meets their specific needs. CompuServe also offered customized solutions to other industries, including a service called CompuServe for Lawyers.

CompuServe's partnership with WebMD, an Internet healthcare startup for physicians and consumers, is a great example of a successful customized portal. This 2-year deal was made as part of CompuServe 2000.

Having a customized portal can be a game-changer for industries looking to improve their online presence. By offering a tailored solution, CompuServe was able to provide value to its clients and stay ahead of the competition.

CompuServe's customized portals were not limited to the airline industry or healthcare - it also offered a service called the African-American Culture and Arts Forum.

CompuServe was the largest online service provider by 1987, with 380,000 subscribers. This was significantly more than its competitors, including Dow Jones News/Retrieval with 320,000 subscribers, The Source with 80,000 subscribers, and GEnie with 70,000 subscribers.

CompuServe's peak user base was 3 million worldwide, but this was dwarfed by AOL's 27 million users. By early 1999, CompuServe's user base had decreased to 2 million, mostly consisting of business or professional users.

CompuServe's market share was significantly reduced as more home users switched to standard dial-up Internet access. This shift led to technical problems and financial losses for CompuServe.

CompuServe formed CompuServe Network Services in 1982 to generate revenue by selling connectivity on its nationwide packet network.

The network was designed and manufactured by CompuServe, with its own network processors based on the DEC PDP-11, and all software was written in-house.

CompuServe's network implemented a mixture of standardized and proprietary layers, including the Adaptive Routing system.

Adaptive Routing allowed the network to operate in self-discovery mode, automatically reconfiguring when new switches were added or connections were changed.

The network also established connection paths based on real-time performance measurements, diverting traffic to alternative paths to prevent overloading.

CompuServe presented a standard X.25 interface to the outside world, providing dialup connectivity to corporate hosts and forming alliances with private networks like Tymnet and Telenet.

This gave CompuServe the largest selection of local dial-up phone connections in the world, at a cost of around $30 per hour in the early 1980s.

CompuServe's connectivity service was so reliable that it became the primary supplier of dial-up communications for credit-card authorizations for over 20 years, a competence developed through its relationship with Visa International.

At its peak, CompuServe carried millions of authorization transactions each month, representing several billion dollars of consumer purchase transactions.

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CompuServe was the largest online service provider by 1987, with 380,000 subscribers. This was a significant lead over its competitors, including Dow Jones News/Retrieval with 320,000 subscribers.

CompuServe's peak user base was a remarkable 3 million worldwide, dwarfing AOL's 27 million users at the time.

The company's market share began to erode in the late 1990s, as many home users switched to standard dial-up Internet access. By early 1999, CompuServe's user base had dwindled to 2 million, mostly consisting of business or professional users.

Here's a comparison of CompuServe's user base with its competitors in 1987:

The intense competition between CompuServe and AOL led to a series of promotions and giveaways, including free hours and other enticements.