Iris Associates
Encyclopedia
Iris Associates was a software development
company founded in Littleton, Massachusetts
on December 7, 1984 by Ray Ozzie
to build the software ultimately known as Lotus Notes
. Tim Halvorsen and Len Kawell
, who joined Iris shortly afterwards in January 1985, met Ray Ozzie years before when all of them were working on the University of Illinois
PLATO system. They are widely regarded as the core team behind the creation of Lotus Notes. Len Kawell was the author of PDP-11 Notes and Vax Notes, which functionally shared similar functionality to Lotus Notes, but pre-dates the graphical interface of the PC.
The company's primary funding came from a contract
ual relationship with Lotus Development Corp., best known at the time for its Lotus 1-2-3
spreadsheet software. Lotus funded development of Iris' product (then code-named simply "Notes") in exchange for a future option to purchase exclusive intellectual property
, marketing
, and sales
rights. After this option was ultimately exercised years later by Lotus, Iris was additionally compensated through royalties
on gross product sales. Lotus Notes was brought to market on Iris' 5th anniversary, December 7, 1989.
The author/publisher contractual relationship between Iris Associates and Lotus Development continued until 1994, when Iris was purchased by Lotus for approximately US$84 million.
Only a year later, in the face of the rapid decline of its desktop business, Lotus itself was purchased by IBM
for approximately US$3.5 billion. Approximately US$3 billion of this price is generally attributed to the purchase of the Notes business.
At the time of the IBM purchase, Lotus reported that Notes had approximately 2.2 million users. In 2004, nearing the 20th anniversary of the founding of Iris Associates, IBM reported that Notes has over 110 million users.
Software development
Software development is the development of a software product...
company founded in Littleton, Massachusetts
Littleton, Massachusetts
Littleton is a town in Middlesex County, Massachusetts, United States. The population was 8,924 at the 2010 census....
on December 7, 1984 by Ray Ozzie
Ray Ozzie
Raymond "Ray" Ozzie is an American software industry entrepreneur who held the positions of Chief Technical Officer and Chief Software Architect at Microsoft between 2005 and 2010...
to build the software ultimately known as Lotus Notes
Lotus Notes
Lotus Notes is the client of a collaborative platform originally created by Lotus Development Corp. in 1989. In 1995 Lotus was acquired by IBM and became known as the Lotus Development division of IBM and is now part of the IBM Software Group...
. Tim Halvorsen and Len Kawell
Len Kawell
Len Kawell is an engineer and entrepreneur who once worked at Digital Equipment Corporation , where he was one of the designers of the VAX/VMS operating system. He also played a key role in the development of the MicroVAX computer, VAX Notes, and VMC Mail...
, who joined Iris shortly afterwards in January 1985, met Ray Ozzie years before when all of them were working on the University of Illinois
University of Illinois at Urbana-Champaign
The University of Illinois at Urbana–Champaign is a large public research-intensive university in the state of Illinois, United States. It is the flagship campus of the University of Illinois system...
PLATO system. They are widely regarded as the core team behind the creation of Lotus Notes. Len Kawell was the author of PDP-11 Notes and Vax Notes, which functionally shared similar functionality to Lotus Notes, but pre-dates the graphical interface of the PC.
The company's primary funding came from a contract
Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
ual relationship with Lotus Development Corp., best known at the time for its Lotus 1-2-3
Lotus 1-2-3
Lotus 1-2-3 is a spreadsheet program from Lotus Software . It was the IBM PC's first "killer application"; its huge popularity in the mid-1980s contributed significantly to the success of the IBM PC in the corporate environment.-Beginnings:...
spreadsheet software. Lotus funded development of Iris' product (then code-named simply "Notes") in exchange for a future option to purchase exclusive intellectual property
Intellectual property
Intellectual property is a term referring to a number of distinct types of creations of the mind for which a set of exclusive rights are recognized—and the corresponding fields of law...
, marketing
Marketing
Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications and business development. It generates the strategy that underlies sales techniques, business communication, and business developments...
, and sales
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
rights. After this option was ultimately exercised years later by Lotus, Iris was additionally compensated through royalties
Royalties
Royalties are usage-based payments made by one party to another for the right to ongoing use of an asset, sometimes an intellectual property...
on gross product sales. Lotus Notes was brought to market on Iris' 5th anniversary, December 7, 1989.
The author/publisher contractual relationship between Iris Associates and Lotus Development continued until 1994, when Iris was purchased by Lotus for approximately US$84 million.
Only a year later, in the face of the rapid decline of its desktop business, Lotus itself was purchased by IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
for approximately US$3.5 billion. Approximately US$3 billion of this price is generally attributed to the purchase of the Notes business.
At the time of the IBM purchase, Lotus reported that Notes had approximately 2.2 million users. In 2004, nearing the 20th anniversary of the founding of Iris Associates, IBM reported that Notes has over 110 million users.