Borland’s Decline: Key Events Behind the Fall

Over the years since Phillipe Kahn moved Turbo Pascal to the forefront Delphi has had its struggles.

The fall of Borland was driven by aggressive, ill-timed acquisitions. Intense competition with Microsoft contributed as well. Additionally, there was a lack of clear strategic direction.

Here are the key steps and events that led to Borland decline:

• Aggressive Acquisitions (1987-1991): Borland expanded rapidly. It purchased Ansa Software (makers of Paradox) for $38 million in 1987. Later, it acquired Ashton-Tate, the maker of database management software. This acquisition cost $440 million in 1991. These acquisitions, particularly the costly buy of a struggling Ashton-Tate, put significant strain on the company’s finances.
• The Spreadsheet Price War (1989-1994): Borland launched its Quattro Pro spreadsheet. This launch initiated a fierce price war against Lotus 1-2-3 and Microsoft Excel. While competitive, this eroded profit margins.
• Failed Competition with Microsoft (Early 1990s): Borland struggled to compete with Microsoft’s Access database program. This struggle led to deep price cuts on their own software in 1992.
• Financial Strain and Asset Sale (1994): Borland faced a cash crunch. As a result, they had to sell their successful Quattro Pro product line. WordPerfect purchased it for $145 million in March 1994.
• Leadership Change (1995): Founder Philippe Kahn resigned as chief executive in January 1995. This occurred after the company experienced a tumultuous period of acquisitions and market pressure.
• Lack of Strategic Vision (Post-1995): After its peak, the company was unable to consolidate its product portfolio effectively.
• Disposal of Developer Tools (2000s): The company eventually sold or spun off its core developer tools. These tools became CodeGear. This decision came after the company struggled to find success in other areas. The tools division was later acquired by Embarcadero.
• Final Absorption (2009-2023): Borland became a subsidiary of Micro Focus International in 2009. Micro Focus International was later acquired by OpenText in 2023. This effectively ended the company as an independent entity.

The company lost its market dominance. However, its legacy lived on through tools like Delphi. The work of Anders Hejlsberg also continued, who left for Microsoft.