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Oral History of Martin A. Goetz

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Oral History of Martin A. Goetz Oral History of Martin A. Goetz Interviewed by: Luanne Johnson Recorded: March 28, 1996 Via telephone CHM Reference number: X4579.2008 © 1996 Computer History Museum Table of Contents BACKGROUND PRIOR TO ADR...............................................................................................................................3 INITIAL FOCUS OF ADR ...........................................................................................................................................6 GETTING INTO THE SOFTWARE PRODUCTS BUSINESS...................................................................................8 COMPETING AGAINST BUNDLED SOFTWARE FROM IBM ..............................................................................9 EXPANSION OF ADR IN THE 1970S......................................................................................................................10 ACQUISITION OF DATACOMM/DB ......................................................................................................................11 CHALLENGE OF CREATING A NEW MARKET ..................................................................................................13 INTELLECTUAL PROPERTY PROTECTION ISSUES ..........................................................................................14 EARLY SOFTWARE COMPANIES .........................................................................................................................16 ADDENDUM..............................................................................................................................................................19 Martin A. (Marty) Goetz Conducted by Luanne Johnson Abstract: In this interview, Marty Goetz, one of the founder of ADR (Applied Data Research), discusses his background prior to ADR, the transition of ADR from a professional services company to a software products company, and the challenges of selling software products in an era when IBM bundled software with the price of the hardware. He describes the challenge of selling ADR’s initial products where it was necessary to create a market for products the customers didn’t know they needed and how that changed with the acquisition of Datacomm/DB in the 1970s which put ADR into competition with other vendors selling database management systems. Intellectual property protection issues for software companies and the reason that ADR chose to lease and license their products is also covered. Background Prior to ADR Luanne Johnson: What I’d like to do in this interview is cover some of your background prior to the forming of ADR. Did you have a technical background? Where did you grow up and what kind of schooling did you have and how did you end up in the position to be invited to join this new venture? Marty Goetz: I majored in business statistics and got a B.S. and then a Masters in business administration. I’ve got a B.B.A and an M.B.A, and got out of college in 1953. And worked for a year and a half doing market research for an advertising agency. Johnson: Okay. Goetz: And then went into the computer field in 1954. When I went to ADR, which was 1959, I had had five years of experience, and that five years was basically programming. The first four years were at Sperry Rand, where I worked with customers. They sold a large-scale computer which was the Univac I and then the Univac II and they’d send a bunch of people out to help build the first application, because very often they wouldn’t get paid until they got applications on the air. So that was all sort of bundled. This whole group of people went out, CHM Ref: X4579.2008 © 1996 Computer History Museum Page 3 of 20 and I went to several sites. One was Con Edison in New York. Another was Parke Davis. Another was John Hancock. Another was the Philadelphia Navy Yard. In between working with these customers and helping them design their applications, I started building my own... Early on I somehow had time between assignments and there was a generalized sort program that was being distributed by Sperry Rand. What happened was each of the manufacturers built some basic software. Sort programs, assemblers, report generators, and just gave them out with the hardware. But there was a particularly inefficient sort that they were giving out, and I started building some specialized sorts, specialized in terms of machine. It was a word machine, so I built a four-word sort, a two-word sort, a ten-word sort, and each of them was optimized, as opposed to a generalized sort, and went very fast. So I started building some sorting programs early on. But I also built some programming tools, programming debugging aids for my own use. Those were sort of like field-developed programs at IBM. These were programs developed internally that they started giving out. Johnson: Okay. Goetz: So in my first four years, besides working on applications, I was building some generalized software that got distributed within Sperry Rand. Then I left Sperry Rand, being very frustrated with them, as having good hardware but very poor sales techniques, and starting to lose share to IBM which was coming out with their early computers, the 702 and 704. I went to IBM and went to their systems programming group in New York. I was there for about a year, working on an Autocoder assembler that they were building for the 7070. However, I knew various people at Sperry Rand, and became aware that several people had left Sperry Rand and had formed a company in Princeton, New Jersey, and I had a great desire to be in my own company. I almost went to Computer Sciences that had just formed a couple months before ADR. But they were in California and these people were in Princeton, so I contacted them. I knew some of them, and they welcomed me aboard. There were six other founders, plus myself. I became the seventh founder, and they gave me a founder’s share. It turned out some of these people couldn’t leave [their current jobs] as quickly as I could. I gave IBM two weeks notice and ended up being the first employee of ADR. I was not, per se, a founder but I got a founder’s share. So there were seven of us, all with somewhat different skills but basically all programmers, which is what I was. Johnson: Where did you learn to program? Did you learn that in college as part of your business statistics? CHM Ref: X4579.2008 © 1996 Computer History Museum Page 4 of 20 Goetz: No. At that point, it was not being taught in college. Johnson: I didn’t think so. Goetz: When I stared in 1954, Met Life had gotten a Univac I and was in the process of getting a Univac II. The very large insurance companies, the very, very large banks, the government... I think they sold maybe 30 Univac I’s. They started selling those about 1952, so they were about two years into getting some commercial users. GE was a user of the Univac I, as was the Census Bureau. Sperry Rand was hiring people with basically no experience, but training them for 12 weeks— six weeks of programming and six weeks of learning the internals of the Univac. There were very, very few programmers around. It was a whole bundled environment. Johnson: When you were working at the ad agency, did you answer an advertisement for programmers? What led you to decide that you wanted to become a programmer? Goetz: Well, what happened was I got disillusioned and decided to look for a job. And I guess I answered an ad in the paper. I didn’t want to be in advertising, didn’t really want to be doing statistical work. At the time, I was 24 years old, having gone for a one-year enlistment in the service between high school and college. So I got out of college at 23, and really didn’t know what I wanted, but didn’t think I really wanted to do statistical analysis. This market research was really more media research. So I answered an ad. And they were looking for people with just a college education and they really didn’t know what criteria. In fact, what happened was my brother who was a little older than me was an engineer... I had no feeling for computers. I was aware of the punched card equipment world, but had no concept of a stored program or how computers work. My brother said, “Well, you really are not qualified. You don’t have a math background.” He thought it required people who were mathematicians. As you know, many, many IBM surveys have showed that people with music backgrounds make the best programmers. Johnson: Right, yes. Goetz: So I just sort of fell into it, and went through more training than the average user goes through, because at that point, Cobol wasn’t available. When Cobol came into being, later on, you know, you’d go to two or three weeks of training to be a Cobol programmer and you’d be out building applications. So we went through 12 weeks of formalized training and learned how to program the Univac I. Didn’t really learn how to design applications. You sort of got that more on the job. CHM Ref: X4579.2008 © 1996 Computer History Museum Page 5 of 20 My first job was at Con Edison, but within a year they sold a system to Parke Davis and they shipped me out to be in charge of designing the application with a group of Parke Davis people who they had trained. So at that point they were hiring people, you know, as long as they thought they were bright people. But you really couldn’t hire experienced programmers in 1954, there were no training grounds. There were absolutely none. Most colleges didn’t have computers. If they were large, they may have had punched cards to do their administration. And so I was there for four years, and worked my way up to heading a few installations, sort of becoming a troubleshooter, and getting very disillusioned with Sperry Rand, as being an ineffective marketing company, which proved to be true over the years. So I went to IBM but really having the feeling that I didn’t want to work for a large corporation. Johnson: Were there entrepreneurs in your background, in your family? Did you have role models? Goetz: No.
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