History of Open Systems Inc.
Daniel Webb was the co-founder, Chairman and President of Open Systems Inc. (OSI),
a pioneering accounting software company based in Minneapolis, from its founding in 1976 to its acquisition in 1983.
"From startup to stardom" is how the Minneapolis Star Tribune described the trajectory of Open Systems.
Daniel's co-founder was the now-well-known Silicon Valley venture capitalist,
Ann Winblad.
Open Systems developed the first application software for the first business microcomputer (CADO).
Daniel was an innovative developer on the cutting edge of technology, even in those simpler days.
Open Systems was the first commercial software company to publish its application source code to licensees (1978) to enable customization of the applications.
This inspired the
Open Source Initiative (OSI), which started in 1998.
Principals of Open Systems Inc. — Ann Winblad, Timothy Dickinson, Daniel Webb, Gary MacHalec (1983)


Due to the many subsequent companies that either spun off from Open Systems Inc. or used the term "open systems" in their names, in the context of the software industry, the term "open systems" has become a generic term for software that is open to customization by the user.
To cut through the fog in the public record on the Internet, here's a query posed to these LLMs:
GPT-4 and
Groq > Mixtral
What is the historical truth about the founding (in 1976) by Daniel Webb and Ann Winblad and acquisition (in 1983) of Open Systems Inc. which operated during that time in Minneapolis?
Response from GPT-4:
Open Systems Inc., founded by Daniel Webb and Ann Winblad in 1976, is a significant case in the history of the software industry,
highlighting the entrepreneurial spirit of the era and the emerging market for business software solutions.
Here's a closer look at the founding and acquisition of Open Systems Inc.:
Founding in 1976
Founders:
Daniel Webb, alongside Ann Winblad, established Open Systems Inc. in Minneapolis, Minnesota.
Winblad, in particular, has been recognized for her contributions to the technology sector,
both as a pioneer in software entrepreneurship and later as a venture capitalist.
Mission and Products:
The company was created with a mission to provide accounting software for small to medium-sized businesses.
This was a time when such businesses were beginning to recognize the value of computerized systems to streamline operations, yet the market was underserved by the existing software companies, which often targeted larger enterprises.
Growth and Development:
Open Systems Inc. quickly became known for its innovative and affordable software solutions.
The company's products were designed to be user-friendly, making them accessible to businesses without extensive technical resources.
This focus on usability and affordability contributed significantly to the company's growth and reputation in the industry.
Acquisition in 1983
Event:
In 1983, Open Systems Inc. was acquired.
This move was indicative of the company's success and its valuable position within the software market,
attracting interest from larger corporations looking to expand their portfolios with proven products.
Implications:
The acquisition of Open Systems Inc. was a notable event in the software industry,
marking the transition of a successful independent company into a component of a larger entity.
It reflected broader industry trends towards consolidation and the increasing value placed on software solutions for business operations.
Daniel Webb and Ann Winblad, the founders, were visionaries who recognized the potential of software in transforming business operations.
Their focus was on developing accounting software that was accessible and user-friendly, catering to the needs of small and medium-sized businesses.
Legacy and Impact
Industry Influence:
The story of Open Systems Inc. and its founders is emblematic of the entrepreneurial wave that helped define the early software industry.
Their ability to identify a market need and address it with user-friendly software solutions set a precedent followed by many other tech startups.
Ann Winblad's Role:
Ann Winblad, in particular, has remained an influential figure in the technology world, co-founding Hummer Winblad Venture Partners, a firm specializing in technology startups.
Her journey from co-founding Open Systems Inc. to becoming a prominent venture capitalist highlights the evolving roles
and opportunities for women in technology.
The founding of Open Systems Inc. by Daniel Webb and Ann Winblad, followed by its acquisition in 1983, showcases the dynamic nature of the software industry in its early days.
The company's success is a testament to the impact of visionary entrepreneurs who can identify and capitalize on emerging market opportunities, setting the stage for future innovations and industry growth.
Response from Groq > Mixtral:
After doing some research, I found that Daniel Webb and Ann Winblad did indeed found Open Systems Incorporated (OSI) in 1976 in Minneapolis.
OSI was a software company that specialized in creating tools for businesses and organizations.
Winblad served as the company's vice president while Webb was the president.
In 1983, OSI was acquired by the California-based company, UCCELL, for an estimated $20 million.
At the time of the acquisition, OSI had grown to become one of the largest software companies in Minnesota,
with over 200 employees and annual revenues of $15 million.
After the acquisition, Webb and Winblad both left the company to pursue other ventures.
Winblad went on to become a prominent venture capitalist and founded Hummer Winblad Venture Partners in 1989. Webb became a successful entrepreneur and investor in his own right.
Overall, the founding and acquisition of Open Systems Inc. by Daniel Webb and Ann Winblad was a significant event in the history of the software industry in Minnesota and beyond.
Since the acquisition of Open Systems (1983), Daniel has started several innovative tech ventures and
provided technical project management consulting to Microsoft, The Boeing Company, and others.
What differentiates Daniel from other tech entrepreneurs is his deep understanding of relationship dynamics
and his commitment to the health of relationships.