Egghead Software was a computer software retail company.[1] It was founded by Victor Alhadeff in 1984, and grew into a chain with over 200 stores in the United States and a few in Canada. Its stores were primarily located adjacent to shopping malls. Egghead operated two distinct divisions - Retail Division and the Corporate, Government & Education (CGE) Division.[2] Competition grew especially from big box retailers. Severe price pressures also grew in the CGE division. In May 1996 Egghead sold the CGE division to Software Spectrum of Dallas, Texas.[3][4] Reported proceeds of the sales vary from $45 million to $90 million and the associated revenue was documented at between $362 million to $440 million. The SEC filing regarding discontinued operations had this to say about the transaction, 'The Company has also historically served corporate, government, and education customers through its corporate, government, and education (CGE) division. On May 13, 1996, the Company sold the CGE Division to Software Spectrum, Inc. (SSI) a Texas corporation, for $45.0 million in cash whichdid not include the CGE division's receivables and inventory that Egghead is liquidating in an orderly manner.'[5]
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Faced with declining revenues, in 1998, the company shifted its focus to online business, closing its retail locations and selling entirely through its Egghead.com website.[1] Egghead.com merged with online auctioneer OnSale.com in 2000 and assumed the name Egghead.com.[1][6]
Egghead was hurt by a December 2000 revelation that hackers had accessed its systems and potentially compromised customer credit card data.[7] The company filed for bankruptcy in August 2001. After a deal to sell the company to Fry's Electronics for $10 million fell through, its assets were acquired by Amazon.com for $6.1 million.
Brick-and-mortar period (1984–1998)[edit]
Employee coffee cup, circa 1988
Egghead was successful from the early days, expanding from a single store in Bellevue, Washington, to a 200-store chain, with locations primarily on the West Coast.[1] A 1989 newspaper promotion in the Los Angeles area announcing the grand opening of the Pasadena, California, store offered a coupon offering customers a free 5¼' 360k floppy disk for showing up—at the time an unprecedented offer. Customers were lined up out the doors and down the block, an indication of the insatiable desire for software in the booming personal computer market.[citation needed]
Early on, the company focused on repeat business, customer service, and sales integrity. Egghead easily became the premier retail vendor of software and peripherals in the United States. The company sold more Microsoft product than any other U.S. vendor for a number of years and enjoyed distinctly favorable pricing as a result.[citation needed]
Among other things, Egghead's customers could sign up for a 'CUE' card (for 'Customer Updates and 'Eggs'tras') that would guarantee a slightly reduced price on certain items, while at the same time tracking user purchases.[8]
Internet period (1998–present)[edit]
Several years into the business expansion, the original founder, Victor Alhadeff, went into semi-retirement.[citation needed] The board brought in George Orban as CEO, a man with retail experience in building the businesses of Ross Stores, Devon Stores, and Office Mart. George Orban was chairman of the board as well as a major stockholder.[1][9] After a huge run up in Internet stocks (1997–1999), and facing declining margins from increased manufacturer pricing as well as increased competition from so-called 'superstores', Orban closed all 250 of its loss-generating retail stores to focus entirely on its small, but profitable and growing, web business in January 1998.[1] The decision to close all retail stores was unprecedented, but bolstered by market research and a belief that web sales represented the future.[citation needed]
Even as its retail outlets closed, Egghead expanded its online offerings with the purchase of Surplus Direct.[1] In response, Onsale.com, a struggling online auctioneer, merged with Egghead to form Egghead.com in 2000.[1] Onsale CEO Jeff Sheahan and president Jerry Kaplan assumed the same roles for the merged company, and Orban was named chairman of the board.[1][6][10] Kaplan later became co-chairman.[10]
In December 2000, the company's IIS-based servers were compromised, potentially releasing credit card data of over 3.6 million people.[11][12] In addition to poor timing near the Christmas season, the handling of the breach by publicly denying that there was a problem, then notifying Visa, who in turn notified banks, who notified consumers, caused the breach to escalate into a full blown scandal.[13]
Although Egghead had more PC software sales experience than almost any other retailer, having been in business with outlets across the nation since PCs became popular in the mid-1980s, and having pioneered Internet software and hardware sales, they were nevertheless out-resourced and surpassed by the publicly traded giant Amazon.com. Sales were insufficient to sustain the business in the face of such a multinational giant, their stock plummeted, and the company went into bankruptcy. In 2001, Amazon purchased Egghead for $6.1 million. Egghead.com now redirects to Amazon's software pages.
References[edit]
- ^ abcdefghi'Egghead.com, Inc'. Company Histories. Funding Universe. Retrieved 2009-06-13.
- ^'Archived copy'. Archived from the original on 2013-07-30. Retrieved 2013-07-10.CS1 maint: archived copy as title (link)
- ^https://www.nytimes.com/1996/03/26/business/company-news-software-spectrum-plans-to-buy-egghead-division.html
- ^http://fcw.com/articles/1996/08/11/software-spectrum-absorbs-egghead-fed-biz-aims-for-larger-market.aspx
- ^https://www.sec.gov/Archives/edgar/data/832320/0000912057-96-017576.txt
- ^ abJunnarkar, Sandeep (November 22, 1999). 'Egghead, Onsale complete merger'. CNET News. CNET Networks. Retrieved 2009-06-13.
- ^http://www.sfgate.com/business/article/Fallout-Remains-From-Egghead-com-Hacking-Some-2966203.php
- ^CUE Cards Introduced http://www.highbeam.com/doc/1G1-13575064.htmlArchived 2012-10-26 at the Wayback Machine
- ^Flynn, Laurie J (March 1999). 'Quick-change artist: Egghead's CEO bets the company on a plan to become a 'store without stores''. The New York Times. ContextMag.com. Archived from the original on August 5, 2009. Retrieved 2009-06-13.
- ^ ab'Jerry Kaplan: Serial Entrepreneur'. Entrepreneurial Thought Leaders Seminar. Stanford University. Archived from the original on 2009-02-27. Retrieved 2009-06-13.
- ^Lemos, Robert (December 22, 2000). 'Egghead cracked; data at risk'. ZDNet News. Ziff Davis. Archived from the original on January 2, 2008. Retrieved 2009-06-13.
- ^'Credit Card Thievery Report; Crackers May Have Stolen Personal Information from Hundreds of Thousands of Computer Users'. EmergencyNet. Emergency Response & Research Institute. January 8, 2001. Archived from the original on June 10, 2008. Retrieved 2009-06-13.
- ^Greene, Thomas C (April 27, 2001). 'Egghead credit card hack: serious questions remain'. The Register. Retrieved 2009-06-13.
External links[edit]
- Egghead Computer at the Wayback Machine (archived June 19, 1997)
- 'Amazon Relaunches Egghead.com'. Archived from the original on 2004-10-23. Retrieved 2016-03-14.
Retrieved from 'https://en.wikipedia.org/w/index.php?title=Egghead_Software&oldid=916567540'
Sometimes abbreviated as SW and S/W, software is a collection of instructions that enable the user to interact with a computer, its hardware, or perform tasks. Without software, most computers would be useless. For example, without your Internet browser software, you could not surf the Internet or read this page. Without an operating system, the browser could not run on your computer. The picture shows a Microsoft Excel box, an example of a spreadsheet software program.
Examples and types of software
Below is a list of the different kinds of software a computer may have installed with examples of related programs. Click any of the links below for additional information.
It should be noted that although application software is thought of as a program, it can be anything that runs on a computer. The table below also includes a program column to clarify any software that is not a program.
Software | Examples | Program? |
---|---|---|
Antivirus | AVG, Housecall, McAfee, and Norton. | Yes |
Audio / Music program | iTunes and WinAmp. | Yes |
Database | Access, MySQL, and SQL. | Yes |
Device drivers | Computer drivers. | No |
Outlook and Thunderbird. | Yes | |
Game | Madden NFL football, Quake, and World of Warcraft. | Yes |
Internet browser | Firefox, Google Chrome, and Internet Explorer. | Yes |
Movie player | VLC and Windows Media Player. | Yes |
Operating system | Android, iOS, Linux, macOS, and Windows. | No |
Photo / Graphics program | Adobe Photoshop and CorelDRAW. | Yes |
Presentation | PowerPoint | Yes |
Programming language | C++, HTML, Java, Perl, PHP, Python, and Visual Basic. | Yes |
Simulation | Flight simulator and SimCity. | Yes |
Spreadsheet | Excel | Yes |
Utility | Compression, Disk Cleanup, encryption, registry cleaner, and screen saver. | No |
Word processor | Microsoft Word | Yes |
See our program definition for additional examples of computer programs.
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How do you get software?
Software can be purchased at a retail computer store or online and come in a box containing all the disks (floppy diskette, CD, DVD, or Blu-ray), manuals, warranty, and other documentation.
Software can also be downloaded to a computer over the Internet. Once downloaded, setup files are run to start the installation process on your computer.
Free software
There are also a lot of free software programs available that are separated into different categories.
- Shareware or trial software is software that gives you a few days to try the software before you have to buy the program. After the trial time expires, you'll be asked to enter a code or register the product before you can continue to use it.
- Freeware is completely free software that never requires payment, as long as it is not modified.
- Open source software is similar to freeware. Not only is the program given away for free, but the source code used to make the program is as well, allowing anyone to modify the program or view how it was created.
See our top 10 free PC programs everyone should have, for a list of software you may want to install on your computer first.
Installing and uninstalling software
How do you use computer software?
Once the software is installed on the computer hard drive, the program can be used anytime by finding the program on the computer. On a Windows computer, a program icon is added to the Start menu or Start screen, depending on your version of Windows.
How to maintain software
After the software is installed on your computer, it may need to be updated to fix any found errors. Updating a program can be done using software patches. Once updates are installed, any problems that may have been experienced in the program will no longer occur.
How is software created and how does it work?
A computer programmer (or several computer programmers) write the instructions using a programming language, defining how the software should operate on structured data. The program may then be interpreted, or compiled into machine code.
When I save a document, is that file also considered software?
When you create or edit a file using your software — a Microsoft Word document, for instance, or a Photoshop image — that file is considered a 'resource' or 'asset' used by the software. However, the file itself is not considered 'software' even though it is an essential part of what your software is doing.
What was the first piece of computer software?
The first software program that was held in electronic memory was written by Tom Kilburn. The program calculated the highest factor of the integer 218 = 262,144, and was successfully executed on June 21, 1948, at the University of Manchester, England. The computer that held that program was called the SSEM (Small Scale Experimental Machine), otherwise known as the 'Manchester Baby.' This event is widely celebrated as the birth of software.
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How expensive is software?
The price for certain applications can vary widely. For example, there are games on Steam that go for less than $5 and advanced programs, such as Cinema 4D Studio, can cost more than $3,500.
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Related software pages
Application, Computer abbreviations, Firmware, Hardware, Maxwell Newman, Software Copyright, Software engineering, Software terms, System software