Oracle’s evolution — overview
The single company whose history people most often ask me about is Oracle. That makes sense — Oracle is a hugely important company, which I’ve known for almost all of its 30-year commercial life. And of course, this being the week of Oracle OpenWorld, Oracle is top-of-mind.
Let’s start with a breezy overview, setting the stage for more detailed posts to follow. As I see it, there have been four eras at Oracle, which between them reflect just about every tech company management theory I can think of.
Startup: This period comprised initial development, custom contract with the US military (CIA, I think, even though the demo database was always naval), and initial product release. This is the one phase of Oracle’s history I didn’t witness personally. But it seems to have been pretty much a story of “build a minimum viable product for a great vision, and hustle until somebody buys it.”
Hypergrowth: Roughly speaking, Oracle grew 100% per year on its way from $5 million in revenue to $1 billion. This period formed much of the basis for Geoffrey Moore’s famous “Crossing the Chasm” series of books. In line with Moore’s later observations, Oracle’s priorities in this period were: Read more
| Categories: Oracle | 7 Comments |
Enterprise application software, past and present
I recently wrote a long post on the premise that enterprise analytic applications are not like the other (operational) kind. That begs the question(s): What are operational enterprise applications like?
Historically, the essence of enterprise applications has been data management — they capture business information, then show it to you. User interfaces are typically straightforward in the UI technology of the era — forms, reports, menus, and the like. The hard part of building enterprise applications is getting the data structures right. That was all true in the 1970s; it’s all still true today.
Indeed, for many years, the essence of an application software acquisition was the database design. Maintenance streams were often unimportant; code would get thrown out and rewritten. But the application’s specific database structure would be adapted into an extension to the acquirer’s own.
Examples that come to mind from the pre-relational era include: Read more
| Categories: Application software, Cullinet, McCormack & Dodge, MSA, Pre-relational era, SAP | 2 Comments |
Historical notes on analytics — terminology
This post is part of a short series on the history of analytics, covering:
- Historical notes on analytics — the pre-computer era
- Historical notes on analytic terminology (this post)
- Historical notes on analytics — departmental adoption
Discussions of the history of analytic technology are complicated by the broad variety of product category names that have been used over the decades. So let me collect here in one place some notes on how (and when) various terms have been used, specifically:
- Management information systems
- Decision support (systems)
- Report writer
- Fourth-generation language
- Executive information system
- Business intelligence
- OLAP (OnLine Analytic Processing)
| Categories: Analytics, Cullinet | 15 Comments |
When professional services and software mix
I blogged a little last year about the rewards and challenges of combining professional services and software in a mature company’s business model. My main example was Oracle. But other examples from Oracle’s history might have been equally instructive. For example:
- Oracle started out doing what amounted to custom development for government (military/intelligence) clients.
- Even when Oracle said it had productized its software, the stuff didn’t work very well without services to get it running.
- Oracle and Ingres both got a huge fraction of their early revenue* from deals to port their software to various brands of hardware. That’s a lot like professional services.
- Oracle’s huge Tools Group grew out of professional services, if I have the story straight. Indeed, its first product was written by later long-time group chief Sohaib Abbasi when he was a consultant.
| Categories: Database management systems, Ingres, Oracle | 5 Comments |
Software AG and the commie spies
Something (I’ll drop in a link when allowed) made me recall the story of Software AG and the USSR. Apparently, the USSR attempted to acquire a lot of Western technology, including ADABAS. Software AG of North America cooperated with the Feds to try to catch the Soviet agent in indictable technological espionage — but then, with its usual flamboyance, ran ads bragging about the event. The writeup of all this I found when searching was some subsequent Congressional testimony.
This was all slightly before my time — I only entered the industry and met Software AG in 1981. So does anybody else out there recall more of the story than I do? 🙂
| Categories: Software AG | 3 Comments |
Sterling Commerce predecessor company Management Horizons Data Systems (MHDS)
I started drafting this post along with others around the time of my parents’ deaths, then put it aside. However, I have been informed that my father’s old colleague Alton Doody has cancer himself, and if we are ever to get his input, it would be best to solicit it REALLY SOON. 🙁 So I’m finishing this up now as best I can.
Here’s the part I know from my own memories as
- The son of a Management Horizons employee (namely my Dad).
- A software industry stock analyst (in particular, one who followed Informatics General).
My father moved to the Columbus area in 1973 to join Management Horizons, a consulting firm serving retailers. Management Horizons had its own spin-out already, a time-sharing company called Management Horizons Data Services (MHDS), with which it still shared a building on what is now Old Henderson Road in Upper Arlington. And, this being a world full of coincidences, MHDS is very on-topic for the primary focus of this blog (software industry history).
MHDS’ main business was a full suite of what we might now call ERP for distributors and/or retailers. That never amounted to much. But its secondary business was an electronic interchange for direct placement of orders, called Ordernet. Ordernet turned into Sterling Commerce, a > $1/2 billion company that has been acquired for >$1 billion more than once.
The chain of events, roughly, is: Read more
| Categories: Application software, Companies and products, Computer services, Pre-relational era | 30 Comments |
Ray Lane and the integration of software and consulting at Oracle
Oracle pretty much doubled revenue every year until it got around the $1 billion level. Then things got tougher, industry-standard revenue recognition scandals not excepted. At one point there were only three buildings on the Oracle campus, with large portions of them eerily empty. But the ship righted itself, best exemplified by three transitions:
- Mature financial management arrived in the person of Jeff Henley.
- A serious commitment to product quality emerged, often credited to the late Bob Koii.
- Mike Fields* brought enterprise-class adult supervision to Oracle’s US field operations.
Political battles still raged at Oracle — Mike Fields vs. Craig Conway, Terry Garnett vs. Jerry Baker, and later on Mark Benioff vs. pretty much everybody. But the company was ready to move to next level. Read more
| Categories: Application software, Oracle, SAP | 10 Comments |
Ingres history
Roland Bouman reminded us on Twitter of an old post I did on another blog about Ingres history, the guts of which was:
Ingres and Oracle were developed around the same time, in rapidly-growing startup companies. Ingres generally was the better-featured product, moving a little earlier than Oracle into application development tools, distributed databases, etc., whereas Oracle seems to be ahead on the most important attributes, such as SQL compatibility — Oracle always used IBM’s suggested standard of SQL, while Ingres at first used the arguably superior Quel from the INGRES research project. Oracle eventually pulled ahead on superior/more aggressive sales and marketing.
Then in the 1990s, Ingres just missed the DBMS architecture boat. Oracle, Informix, Microsoft, and IBM all came out with completely new products, based respectively on Oracle + Rdb, Informix + a joint Ingres/Sequent research project, Sybase, and mainframe DB2. Ingres’s analogous effort basically floundered, in no small part because they made the pound-wise, penny-foolish decision to walk away from a joint venture research product they’d undertaken with innovative minicomputer vendor Sequent in the Portland, OR area.
Computer Associates bought Ingres in mid-1994, and immediately brought me in to do a detailed strategic evaluation. (Charles Wang telephoned the day the acquisition closed, in one of the more surprising phone calls I’ve ever gotten, but I digress … Anyhow, the relevant NDA agreements, legal and moral alike, have long since expired.) There was nothing terribly wrong with the product, but unfortunately there was nothing terribly right either. Aggressive investment — e.g., to get fully competitive in parallelism and object/relational functionality, the two biggest competitive differentiators in those days — would have been no guarantee of renewed market success.
Notwithstanding the economic question marks, CA surprised me with its enthusiasm for taking on these technical challenges. But another problem reared its head — almost all the core developers left the company. (If you weren’t willing to sign a noncompete agreement that was utterly ridiculous in those days, at least in the hot Northern California market, you couldn’t keep your job post-merger.) And so, like almost all CA acquisitions outside of the system management/security/data center areas, Ingres fell further and further behind the competition.
Some of the same information made it into my post here on Ingres history later the same year, but for some reason not all did.
| Categories: Database management systems, Ingres, Oracle | 2 Comments |
Those who forget history are doomed to believe it is recurring
The top PostgreSQL-related April Fool’s joke this year, which seems to have successfully pranked at least a few people, was that Postgres is dropping SQL in favor of an alternative language QUEL.
Folks, QUEL was the original language for Postgres. And Ingres. And, more or less, Teradata.* I’d guess Britton-Lee too, but I don’t recall for sure.
*Once upon a distant time, when I was a cocky young stock analyst, I explained to Phil Neches, chief scientist of Teradata, just why it was a really good business idea to drop T-QUEL for SQL. I doubt he was convinced quite on that day, more’s the pity.
| Categories: Database management systems, Fun stuff, Ingres, Teradata | Leave a Comment |
No-fooling: A new blog-tagging meme
On April Fool’s Day, it is traditional to spread false stories that you hope will sound true. Last year, however, I decided to do the opposite – I posted some true stories that, at least for a moment, sounded implausible or false. This year I’m going to try to turn the idea into a kind of blog-tagging meme.*
*A blog-tagging meme is, in essence, an internet chain letter without the noxious elements.
Without further ado, the Rules of the No-Fooling Meme are:
Rule 1: Post on your blog 1 or more surprisingly true things about you,* plus their explanations. I’m starting off with 10, but it’s OK to be a lot less wordy than I’m being. 😉 I suggest the following format:
- A noteworthy capsule sentence. (Example: “I was not of mortal woman born.”)
- A perfectly reasonable explanation. (Example: “I was untimely ripped from my mother’s womb. In modern parlance, she had a C-section.”)
*If you want to relax the “about you” part, that’s fine too.
Rule 2: Link back to this post. That explains what you’re doing. 🙂
Rule 3: Drop a link to your post into the comment thread. That will let people who check here know that you’ve contributed too.
Rule 4: Ping 1 or more other people encouraging them to join in the meme with posts of their own.
Hopefully, the end result of all this will be that we all know each other just a little bit better! And hopefully we’ll preserve some cool stories as well.
To kick it off, here are my entries. (Please pardon any implied boastfulness; a certain combustibility aside, I’ve lived a pretty fortunate life.)
I was physically evicted by hotel security from a DBMS vendor’s product announcement venue. It was the Plaza Hotel in NYC, at Cullinet’s IDMS/R announcement. Phil Cooper, then Cullinet’s marketing VP, blocked my entrance to the ballroom for the main event, and then called hotel security to have me removed from the premises.
A few years later, the same Phil Cooper stood me up for a breakfast meeting in his own house in Wellesley. When one’s around Phil Cooper, weird things just naturally happen. Read more
| Categories: Cullinet, Database management systems, Fun stuff, Oracle, Personal | 8 Comments |