Information Technology Reference
In-Depth Information
As background software application interfaces evolved from command lines to
graphics, a new form of input called “what you see is what you get” (WYSIWYG)
began to emerge.
The first product of Lotus had the awkward name of Lotus 1-2-3. The unusual
name is because the product was not only a powerful spreadsheet but also had
graphics capabilities and could be used as a database (i.e., it was three products in
one). This product was released on January 26, 1983. The “Lotus” part of the name
refers to a meditation posture called the “Lotus position.” (Mitch Kapor used to
teach transcendental meditation, although the Lotus position is common in many
Eastern religions that use meditation.)
The timing for Lotus was perfect. The IBM personal computer had come out
in 1981 and was about to become one of the best-selling technical products in his-
tory. Spreadsheets had just come out and were about to enable almost anyone to
have sophisticated mathematical and statistical power at their fingertips.
As a result of this synergy, Lotus expanded far beyond the original marketing
plan. In fact, Lotus was briefly the largest independent software vendor in the
world.
Lotus brought out other products such as Jazz and Symphony (continuing a
policy of eclectic names). These were only marginally successful. They had me-
diocre reviews and did not sell well. However, the Lotus Notes email package did
well and would later be a reason why IBM acquired Lotus in 1995.
Lotus was also a pioneer in “look and feel” copyright lawsuits that tried to ex-
pand copyright law into new directions. (The section about Borland in this chapter
cites the most interesting look and feel case, which was highly unusual in that the
U.S. Supreme Court had a four-to-four tied decision, which means that the argu-
ments on both sides could not be decided.)
The success of Lotus Notes led to another unusual business situation. IBM
made a hostile acquisition offer in 1995 for $60 a share at a time when Lotus stock
was selling for $32 per share. After some wrangling back and forth, IBM acquired
Lotus for a cost of $54.50 per share, or about $3.5 billion.
Lotus personnel were apprehensive about being part of IBM due to their rather
famous corporate culture and also to their very superior benefits program. Among
the benefits offered by Lotus to employees were a day-care center, same-sex part-
ner insurance benefits, and quite a few others that were not common in the 1980s.
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