Oracle’s cloudy future

Meanwhile, a young programmer named Larry Ellison had formed a company called Software Development Laboratories, originally to do contract work, but quickly decided that selling packaged software was a far better proposition: doing the work once and reselling it multiple times was an excellent way to get rich. They just needed a product, and IBM effectively gave it to them; because the System R team was being treated as a research project, not a commercial venture, they happily wrote multiple papers explaining how System R worked, and published the SQL spec. Software Development Laboratories implemented it and called it Oracle, and in 1979 sold it to the CIA; a condition of the contract was that it run on IBM mainframes.

In other words, IBM not only created the conditions for the richest packaged software company ever to emerge (Microsoft), they basically gave an instruction manual to the second.


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