FORM 3
         U.S. SECURITIES AND EXCHANGE COMMISSION       _____________________
                 WASHINGTON, D.C.  20549              |    OMB APPROVAL     |
                  INITIAL STATEMENT OF                |_____________________|
           BENEFICIAL OWNERSHIP OF SECURITIES         |OMB NUMBER: 3235-0104|
                                                      |EXPIRES:             |
                                                      |September 30, 1998   |
       Filed pursuant to Section 16(a) of the         |ESTIMATED AVERAGE    |
         Securities Exchange Act of 1934,             |BURDEN HOURS         |
        Section 17(a) of the Public Utility           |PER RESPONSE 0.5     |
          Holding Company Act of 1935                 |_____________________|
       or Section 30(f) of the Investment
              Company Act of 1940
 ____________________________________________________________________________
 1. Name and Address of Reporting Person

       Sterling Software, Inc.
    _________________________________________________________________________
        (Last)                      (First)                    (Middle)

      300 Crescent Court, Suite 1200
    _________________________________________________________________________
                                   (Street)

       Dallas                       Texas                         75201
    _________________________________________________________________________
        (City)                      (State)                      (Zip)
 ____________________________________________________________________________
 2. Date of Event Requiring Statement (Month/Day/Year)

    July 15, 1999
 ____________________________________________________________________________
 3. IRS OR SOCIAL SECURITY NUMBER OF REPORTING PERSON (VOLUNTARY)

    75-1873956
 ____________________________________________________________________________
 4. Issuer Name and Ticker or Trading Symbol

    Information Advantage, Inc. (IACO)

 ____________________________________________________________________________
 5. RELATIONSHIP OF REPORTING PERSON(S) TO ISSUER (CHECK ALL APPLICABLE)
  ( ) DIRECTOR
  (x) 10% OWNER
  ( ) OFFICER (GIVE TITLE BELOW)
  ( ) OTHER (SPECIFY TITLE BELOW)

 ____________________________________________________________________________
 6. IF AMENDMENT, DATE OF ORIGINAL (MONTH/DAY/YEAR)

 ____________________________________________________________________________
 7. INDIVIDUAL OR JOINT/GROUP FILING (CHECK APPLICABLE LINE)
    _x_FORM FILED BY ONE REPORTING PERSON
    ___FORM FILED BY MORE THAN ONE REPORTING PERSON

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 TABLE I - NON-DERIVATIVE SECURITIES BENEFICIALLY OWNED
 ____________________________________________________________________________
 |1. TITLE OF SECURITY|2. AMOUNT OF   |3. OWNERSHIP  |4. NATURE OF INDIRECT  |
 |   (INSTR. 4)       |   SECURITIES  |   FORM DIRECT|   BENEFICIAL OWNERSHIP|
 |                    |   BENEFICIALLY|   DIRECT (D) |   (INSTR. 5)          |
 |                    |   OWNED       |   OR INDIRECT|                       |
 |                    |   (INSTR. 4)  |   (I) (INSTR.|                       |
 |                    |               |   5)         |                       |
 |____________________|_______________|______________|_______________________|

 Common Stock, par
 value $.01 per share, 6,305,846(1)      D

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 TABLE II - DERIVATIVE SECURITIES BENEFICIALLY OWNED
        (E.G., PUTS, CALLS, WARRANTS, OPTIONS, CONVERTIBLE SECURITIES)
 ____________________________________________________________________________
 1. Title of Derivative Security (Instr. 4)

 ____________________________________________________________________________
 2. Date Exercisable and Expiration Date (Month/Day/Year)
      ________________________                  _________________________

          Date Exercisable                          Expiration Date
 ____________________________________________________________________________
 3. Title and Amount of Securities Underlying Derivative Security (Instr. 4)
    ________________________________        _______________________________
                 Title                         Amount of Number of Shares
 ____________________________________________________________________________
 4. Conversion or Exercise Price of Derivative Security

 ____________________________________________________________________________
 5. Ownership Form of Derivative Security: Direct(D) or Indirect(I)(Instr. 5)

 ____________________________________________________________________________
 6. Nature of Indirect Beneficial Ownership (Instr. 5)


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    EXPLANATION OF RESPONSES:

 1.   On July 15, 1999, the Reporting Person and Sterling Software
      Acquisition Corp., a Delaware corporation and a wholly owned
      subsidiary of the Reporting Person ("Purchaser"), entered into
      Stockholder Agreements (the "Stockholder Agreements") with certain
      significant stockholders and executive officers and the directors
      (collectively, the "Stockholders") of Information Advantage, Inc., a
      Delaware corporation (the "Company"), pursuant to which the
      Stockholders, among other things, granted to the Reporting Person (a)
      an option to purchase an aggregate of 6,305,846 shares of common
      stock, $.01 par value per share (including the associated Preferred
      Stock Purchase Rights issued pursuant to the Rights Agreement, dated
      as of March 1, 1999, between the Company and Norwest Bank Minnesota
      N.A., the "Shares"), of the Company owned by them, and (b) an
      irrevocable proxy with respect to the voting of their Shares in
      favor of the merger contemplated by the Agreement and Plan of Merger,
      dated as of July 15, 1999, by and among the Reporting Person,
      Purchaser and the Company, upon the terms and subject to the
      conditions set forth in the Stockholder Agreements.



    /s/ Don J. McDermett, Jr.                           July 15, 1999
    ---------------------------------               -------------------
       Name:  Don J. McDermett, Jr.                          DATE
       Title: S.V.P., General Counsel
               and Secretary
 **  SIGNATURE OF REPORTING PERSON


 _____________________________

    **  INTENTIONAL MISSTATEMENTS OR OMISSIONS OF FACTS CONSTITUTE FEDERAL
        CRIMINAL VIOLATIONS.
        SEE 18 U.S.C. 1001 AND 15 U.S.C. 78FF(A).

   NOTE:  FILE THREE COPIES OF THIS FORM, ONE OF WHICH MUST BE MANUALLY
          SIGNED. IF SPACE PROVIDED IS INSUFFICIENT, SEE INSTRUCTION 6
          FOR PROCEDURE.

   POTENTIAL PERSONS WHO ARE TO RESPOND TO THE COLLECTION OF INFORMATION
   CONTAINED IN THIS FORM ARE NOR REQUIRED TO RESPOND UNLESS THE FORM
   DISPLAYS A CURRENTLY VALID OMB NUMBER.
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