Seymour Cray became frustrated with Control Data building too small a computer, and left to form Cray Research, specialising in supercomputers. Control Data helped him to found his company, investing $300 000 to help with startup costs.

Control Data began to build computer peripherals as well as their computers, and diversified into software. It purchased numerous smaller companies in the 1960s, even buying the Commerical Credit Company in 1968. They began developing an automated teaching application with the University of Illinois, (PLATO) which met with lukewarm results. The company developed numerous database and educational applications, and grew into many divisions.

In 1982 the peripheral division saw a slowdown in profits, and completely fell apart in 1985. The advent of the microcomputer in the early 1980s saw a massive reduction in sales. With a restructured and sleeker company, Control Data started to make a comeback in 1986. In the same year, Norris, at age 75, decided to retire. But the slide was not over, the company continued to rationalise, and returned to profit in 1992, changing its name to the Ceridian Corporation. What was left was a mere skeleton, a small company specialising in computing and systems integration services.