A Brief History of Spreadsheets
Spreadsheets have been used by accountants for hundreds
of years. Computerized or electronic spreadsheets are of much more recent
origin. Information Systems oral history and some published newspaper and
magazine stories celebrate Dan Bricklin as the "father" of the electronic
spreadsheet. In 1978, Harvard Business School student, Daniel Bricklin, came up with the idea
for an interactive visible calculator (see email from Frankston,
4/15/1999a). Bricklin and Bob Frankston then co-invented or co-created
the software program VisiCalc. We can look back and recognize that
VisiCalc was the first "killer" application for personal computers.
 l-r Dan Bricklin and Bob Frankston approx. 1980
What is a spreadsheet?
In the realm of accounting jargon a "spread sheet" or
spreadsheet was and is a large sheet of paper with columns and rows that
organizes data about transactions for a business person to examine. It
spreads or shows all of the costs, income, taxes, and other related data
on a single sheet of paper for a manager to examine when making a
decision.
An electronic spreadsheet organizes information into
software defined columns and rows. The data can then be "added up" by a
formula to give a total or sum. The spreadsheet program summarizes
information from many paper sources in one place and presents the
information in a format to help a decision maker see the financial "big
picture" for the company.
Beginnings and the "Tale of VisiCalc"
In 1961, Professor Richard Mattessich pioneered the
development of computerized speadsheets for use in business accounting.
Some historical information on the computerization of accounting spread
sheets using mainframe computers is discussed on Mattessich's web page "Spreadsheet:
Its First Computerization (1961-1964)". Rene Pardo and Remy Landau
co-invented "LANPAR" LANguage for Programming Arrays at Random in 1969.
This electronic spreadsheet type application was used for budgeting at
Bell Canada, AT&T, Bell operating companies, and General Motors. They
received a US patent (no. 4,398,249) for LANPAR in August 1982 after 12
years of litigation. Mattessich, Pardoe and Landau's work and that of
other developers of spreadsheets on mainframe computers probably had no
influence on Bricklin and Frankston. Therefore, a history of the modern
era of microcomputer-based electronic spreadsheets should begin with the
"Tale of VisiCalc".
The tale of VisiCalc is part myth and part fact for most
of us. The story is that Dan Bricklin was preparing a spread sheet
analysis for a Harvard Business School "case study" report and had two
alternatives: 1) do it by hand or 2) use a clumsy time-sharing mainframe
program. Bricklin thought there must be a better way. He wanted a program
where people could visualize the spreadsheet as they created it. His
metaphor was "an electronic blackboard and electronic chalk in a
classroom."
By the fall of 1978, Bricklin had programmed the first
working prototype of his concept in integer basic. The program helped
users input and manipulate a matrix of five columns and 20 rows. The first
version was not very "powerful" so Bricklin recruited an MIT acquaintance
Bob
Frankston to improve and expand the program. Bricklin calls Frankston
the "co-creator" of the electronic spreadsheet. Frankston created the
production code with faster speed, better arithmetic, and scrolling. He
also expanded the program and "packed the code into a mere 20k of machine
memory, making it both powerful and practical enough to be run on a
microcomputer". For more details check Dan Bricklin's
email from May 12, 1999.
During the fall of 1978, Daniel Fylstra, founding
Associate Editor of Byte Magazine, joined Bricklin and Frankston in
developing VisiCalc. Fylstra was also an MIT/HBS graduate. Fylstra was
"marketing-oriented" and suggested that the product would be viable if it
could run on an Apple micro-computer. Bricklin and Frankston formed
Software Arts Corporation on January 2, 1979. In May 1979, Fylstra and his
firm Personal Software (later renamed VisiCorp) began marketing "VisiCalc"
with a teaser ad in Byte Magazine. The name "VisiCalc" is a compressed
form of the phrase "visible calculator" (see email from Frankston,
4/15/1999b).
VisiCalc became an almost instant success and provided
many business people with an incentive to purchase a personal computer or
an H-P 85 or 87 calculator from Hewlett-Packard (cf., Jim Ho, 1999). About
1 million copies of the spreadsheet program were sold during VisiCalc's
product lifetime. Dan Bricklin has his version of the history of Software
Arts and VisiCalc on the web at www.bricklin.com/history/sai.htm.
Bricklin includes early ads and reviews and pictures of the VisiCalc
packaging and screenshots.
What came after VisiCalc?
The market for electronic spreadsheet software was
growing rapidly in the early 1980s and VisiCalc stakeholders were slow to
respond to the introduction of the IBM PC that used an Intel computer
chip. Beginning in September 1983, legal conflicts between VisiCorp and
Software Arts distracted the VisiCalc developers, Bricklin and Frankston.
During this period, Mitch
Kapor developed Lotus and his spreadsheet program quickly became the
new industry spreadsheet standard.
What is Lotus 1-2-3?
Lotus 1-2-3 made it easier to use spreadsheets and it
added integrated charting, plotting and database capabilities. Lotus 1-2-3
established spreadsheet software as a major data presentation package as
well as a complex calculation tool. Lotus was also the first spreadsheet
vendor to introduce naming cells, cell ranges and spreadsheet macros.
Kapor was the VisiCalc product manager at Personal Software for about six
months in 1980; he also designed and programmed Visiplot/Visitrend which
he sold to Personal Software (VisiCorp)for $1 million. Part of that money
along with funds from venture capitalist Ben Rosen were used to start
Lotus Development Corporation in 1982. Kapor cofounded Lotus Development
Corporation with Jonathan Sachs. Before he cofounded Lotus, Kapor
disclosed and offered Personal Software (VisiCorp) his initial Lotus
program. Supposedly VisiCorp executives declined the offer because Lotus
1-2-3's functionality was "too limited". Lotus 1-2-3 is still one of the
all-time best selling application software packages in the world (see
email from Mitch Kapor,
04/15/1999).
Kapor served as the President and Chief Executive Officer
of Lotus from 1982 to 1986 and as a Director until 1987. In 1983, Lotus’
first year of operations, the company reported revenues of $53 Million and
had a successful public offering. In 1984, Lotus tripled in revenue to
$156 Million. The number of employees at Lotus grew to over a thousand by
1985. This rapid growth led to a shakeout in the spreadsheet segment of
the personal computer software industry.
In 1985, Lotus
Development acquired Software Arts and discontinued the VisiCalc program.
A Lotus spokeperson indicated at that time that "1-2-3 and Symphony are
much better products so Visicalc is no longer necessary."
What about Microsoft Excel and Bill Gates?
The next milestone was the Microsoft Excel spreadsheet. Excel
was originally written for the 512K Apple Macintosh in 1984-1985. Excel
was one of the first spreadsheets to use a graphical interface with pull
down menus and a point and click capability using a mouse pointing device.
The Excel spreadsheet with a graphical user interface was easier for most
people to use than the command line interface of PC-DOS spreadsheet
products. Many people bought Apple Macintoshes so that they could use Bill
Gates' Excel spreadsheet program. There is some controversy about whether
a graphical version of Microsoft Excel was released in a DOS version.
Microsoft documents show the launch of Excel 2.0 for MS-DOS version 3.0 on
10/31/87.
When Microsoft launched the Windows operating system in
1987, Excel was one of the first application products released for it.
When Windows finally gained wide acceptance with Version 3.0 in late 1989
Excel was Microsoft's flagship product. For nearly 3 years, Excel remained
the only Windows spreadsheet program and it has only received competition
from other spreadsheet products since the summer of 1992.
By the late 1980s many companies had introduced
spreadsheet products. Spreadsheet products and the spreadsheet software
industry were maturing. Microsoft and Bill Gates had joined the fray with
the innovative Excel spreadsheet. Lotus had acquired Software Arts and the
rights to VisiCalc. Jim Manzi had become CEO at Lotus in April 1986 and in
July 1986 Mitch Kapor resigned as Chairman of the Board. The spreadsheet
entrepreneurs were moving on ...
Legal Battles
In January of 1987, Lotus Development filed suit against
Paperback Software and separately against Mosaic Software claiming they
had infinged on the Lotus 1-2-3 spreadsheet software. In a related matter,
Software Arts, the developerof the original VisiCalc spreadsheet software
filed a separate action against Lotus claiming that Lotus 1-2-3 was an
infringement of VisiCalc. Briefly, Lotus won the legal battles, but lost
the "market share war" to Microsoft. According to Russo and Nafziger
(1993) "The Court granted Lotus' motion dismissing the Software Arts'
action and confirming that Lotus had acquired all rights, including all
claims, as part of the earlier transaction."
Most people have probably forgotten the Lotus clones,
TWIN and VP Planner. Twin was designed to work like Lotus' 1-2-3 and
advertising proclaimed it "offers you so much more, for so muchless."
Paperback Software published a spreadsheet software product called VP
Planner.
Russo and Nafziger note "Both Mosaic's TWIN and
Paperback's VP Planner had most of the same features, commands, macro
language, syntax, organization and sequence of menus and messages as
Lotus' 1-2-3. Their visual displays were not however identical to 1-2-3 or
to each other. Both TWIN and VPPlanner reorganized and placed their
respective menus, sub-menus, prompts and messages on the bottom of the
screen."
On June 28, 1990, Judge Keeton of the Federal District
Court in Boston upheld the copyright of the Lotus 1-2-3 user interface.
The Court ruled that "[t]his particular expression of a menu structure is
not essential to theelectronic spreadsheet idea, nor does it merge with
the somewhat less abstract idea of a menu structure for an electronic
spreadsheet....the overall structure, the order of commands in each menu
line, the choice of letters, words, or 'symbolic tokens' to represent each
command, the presentation of these symbolic tokens on the screen, the type
of menu system used, and the long prompts -- could be expressed in a great
many if not literally unlimited number of ways." Lotus Dev. Corp. v.
Paperback Software Int'l, 740 F.Supp. 37, 67 (D.Mass. 1990).
What about recent history?
In the late spring of 1995, IBM acquired Lotus
Development and Microsoft Excel is the spreadsheet market leader.
In October 2003, Dan Bricklin is working at Interland,
Inc. at interland.com and he is
maintaining an interesting Web Site at URL http://www.bricklin.com/. Dan has
VisiCalc at his site. Lotus gave him permission to post a working copy of
the 1981 IBM PC version of the VisiCalc spreadsheet program on his web
site. You can download it and run it on a PC using MSDOS in Windows 95 or
98.
Bob Frankston is "pursuing a number of projects ..." at
http://www.frankston.com/.
According to a Red
Herring Profile, Mitch Kapor "gradually traded in his position as an
entrepreneur searching for the next big technology idea for the long-term
advisory role of angel investor". In January, 1999, Mitch Kapor joined
Accel Partners, a venture capital firm based in Palo Alto, California (URL
http://www.accel.com/). Mitch's web
site is Kapor Enterprises, Inc. at http://www.kei.com/.
Currently, Dan Fylstra is president of PC software vendor
Frontline Systems, Inc. at http://www.frontsys.com/. Frontline
Systems Inc. is a developer of spreadsheet solver add-ins for Excel, Lotus
123 and other spreadsheet programs. A solver add-in can be used for both
equation-solving (often called goalseeking) and for constrained
optimization using linear programming, nonlinear programming, and integer
programming methods.
Professor Richard Mattessich is retired and an emeritus
Professor of Commerce and Business Administration at the University of British Columbia (email:
richard.mattessich@commerce.ubc.ca).
References
"VisiCalc '79: Dan Bricklin and Bob Frankston", Creative
Computing, November 1984, vol. 10, p. 122, 124.
"VisiCalc Production Ends", PC Magazine, August 6, 1985, vol. 4,
p. 33.
Bajarin, T. "VisiCorp was PC software industry's training ground."
PC Week, August 13, 1990, v7 n32, p.117.
Browne, Christopher. "Historical Background on Spreadsheets", at URL http://www.ntlug.org/~cbbrowne/spreadsheets.html,
visited March 24, 1998; also checked http://www.hex.net/~cbbrowne/spreadsheets.html
04/12/1999.
Claymon, D. "Profile: Mitch Kapor, The Lotus cofounder goes to bat for
startups", Red Herring Magazine, February 1999, URL www.herring.com/mag/issue63/news-profile.html.
Frankston, R. Email message, 04/15/1999a.
Frankston, R. Email message, 04/15/1999b.
Henderson, T.B., D.F. Cobb, G.B. Cobb. Spreadheet Software from
VisiCalc to 1-2-3. Indianapolis: Que Corp., 1983.
Kapor, M. Email message, 04/15/1999.
Mattessich, Richard. "Spreadsheet: Its First Computerization
(1961-1964)", at URL http://www.j-walk.com/ss/history/spreadsh.htm.
Pardo, R. Email message, 08/20/2004.
Russo, J. and J. Nafziger. "Software 'Look and Feel' Protection in the
1990's", copyright 1993,check URL http://www.computerlaw.com/lookfeel.html.
Spreadsheet
Newsgroup FAQ at URL www.faqs.org/faqs/spreadsheets/faq/.
Key Dates in the history of Microsoft Excel
1985 Excel 1.0 launched.
1986-88 Microsoft releases versions 1.0.6 and 1.5.
10/31/87 Launch of Excel 2.0 for MS-DOS version 3.0
1989 Launch of Excel 2.2 for Macintosh. New version
includesimprovements in the calculation speed by 40% and added flexibility
of different styles within asingle document.
12/9/90 Excel 3.0 is launched. This version includes Workbooks and is
one of the earliest Macintoshapplications to offer Users Publish &
Subscribe functionality.
4/1/92 Microsoft Releases Excel 4.0 for Windows 3.1.
11/1/92 Excel 4.0a for Windows 3.1.
12/14/93 Excel 5.0; This version includes improved Workbooks and
thereplacement for Excel Macro Language with Visual Basic.
7/27/95 Excel 7.0 for Windows 95/NT.
1/15/97 Excel version 8 for Windows.
(based on http://www.lboro.ac.uk/departments/ps/exceldir/excelhist.html
and http://support.microsoft.com)
Some Email messages
From: Jim Ho Subject: Visicalc on HP85 &
87 To: Daniel.Power@uni.edu Organization: DRES Sir, I was
reading your "A Brief History of Spreadsheets" and thought you might want
to include the fact that Visicalc was also available on the HP85 and 87 in
the early 80's.
I found it more useful than the Apple version because it had graph
plotting and statistical analysis in the same package. At the time, the HP
plotter had just appeared so we could produce colour charts on paper or
transparencies for presentation.
The MIS folks were most disturbed because they could see the writing on
the wall. The Honeywell that was just installed for $10 million could not
do what the HP85 was doing for less than $10K! I can still remember the
sad look on the manager's face when I showed him the colour plots. Our
summer students would spend hours watching the plotter perform its stuff.
Those were fun days.
Jim.
************************
This "Brief History of Spreadsheets" was influenced by a number of
comments from Christopher Browne, check http://www.hex.net/~cbbrowne/spreadsheets.html.
Chris noted the "straight facts are quite accurate", but he took issuewith
a few points that he felt represented "editorial opinion" on my part:
>The authors claim that Lotus 123's "A1" referencing system was
"more >intuitive" than the "R1C1" system used by VisiCalc (as well
as various >other spreadsheets notably including Microsoft's
MultiPlan). Neither is >particularly intuitive; "A1" simply happens
to be shorter.
>... comments that Excel never did come out in a DOS
version. >This is somewhat misleading; early versions of Excel were
clearly based >on Microsoft's Multiplan software which came out in a
whole variety of >versions including on DOS. (And used the R1C1
referencing scheme, but >I digress...)
>... states that: The spreadsheet instantly became easier to use
than the >archaic interface of PC-DOS products...
>The text-based user interfaces were hardly "archaic" at the time;
>they were as up to date at the time as anything could be. It is
indeed >fairly convenient to select "blocks" using a mouse; there
were perfectly >good keyboard-based ways for doing this that were
and still >are faster. (Except with Excel, where the keyboard
interface appears to >have been made deliberately arcane, but I
digress...)
I've made some changes Chris. I leave it to the readers to evaluate the
earlier editorial opinions. DJP
How to citePlease cite as:
Power, D. J., "A Brief History of Spreadsheets", DSSResources.COM,
World Wide Web,http://dssresources.com/history/sshistory.html, version
3.6, 08/30/2004. Photo added September 24, 2002. |