Software Arts

Software Arts
Country	United States of America
Founded	1979
Defunct	1985
Acquired by	Lotus Development Corp.

History

Software Arts, Inc. was a groundbreaking software company co-founded in 1979 by Dan Bricklin and Bob Frankston to develop and market VisiCalc, the world’s first electronic spreadsheet. Though short-lived, the company played a transformative role in launching the personal computing era and catalyzing the software industry as we know it.

Origins: A Revolutionary Idea at Harvard Business School

The idea that led to Software Arts began in 1978 when Dan Bricklin, then an MBA student at Harvard Business School, conceived of a “magic blackboard” — a dynamic grid of numbers that would automatically recalculate as data changed. Frustrated by the repetitive task of updating financial models manually, Bricklin envisioned a tool that could automate this process on a personal computer.

To turn this idea into a working product, Bricklin turned to his friend and former MIT classmate Bob Frankston, a talented systems programmer. Together, they developed the program that became VisiCalc (short for “Visible Calculator”) for the Apple II, one of the earliest popular personal computers.

Founding of Software Arts and Partnership with Personal Software

In January 1979, Bricklin and Frankston formally established Software Arts, Inc. in Massachusetts to develop and enhance VisiCalc. While Software Arts focused on product development, they partnered with Personal Software, Inc. (later renamed VisiCorp) for distribution and marketing.

This division of labor proved initially effective: when VisiCalc launched in October 1979, it was an instant success. Users could now create complex financial models and see the results update automatically— a revolutionary leap in productivity. The program was elegant, compact, and accessible, fitting onto a single floppy disk and running smoothly on an Apple II.

The First Killer App

VisiCalc is widely considered the first “killer app”— a software product so compelling that people would buy hardware just to run it. Business professionals, accountants, and analysts flocked to the Apple II to use VisiCalc, and it helped fuel a dramatic rise in the adoption of personal computers in the early 1980s.

Between 1979 and 1983, Software Arts continued to refine VisiCalc and port it to other platforms, including the Atari 800, IBM PC, and Commodore PET. They also worked on advanced versions such as VisiCalc Advanced Version (VAV), but faced increasing complexity in maintaining versions across different systems.

Tensions and Trouble with VisiCorp

Despite VisiCalc’s commercial success, the relationship between Software Arts and VisiCorp became increasingly strained. Disagreements arose over marketing, revenue sharing, and control of the product’s future. VisiCorp, seeing the growing importance of the spreadsheet market, began developing its own rival product, VisiOn, which further soured relations.

These internal conflicts, combined with a rapidly evolving market, left Software Arts vulnerable to competition. In 1983, Lotus 1-2-3 launched for the IBM PC. It was faster, more powerful, and offered integrated charting and database functions— features that VisiCalc lacked. Lotus quickly overtook VisiCalc as the market leader.

Decline and Acquisition

By 1984, VisiCalc’s market dominance had collapsed. Software Arts, weakened by internal disputes and slow to innovate beyond its original vision, was unable to recover. In May 1985, Software Arts was sold to Lotus Development Corporation, the very company that had eclipsed its flagship product.

After the acquisition, Software Arts ceased to exist as an independent entity. Dan Bricklin and Bob Frankston both moved on to other ventures— Bricklin founded Software Garden, while Frankston worked for Lotus and later became a noted technology thinker and advocate.

Legacy

Though short-lived, Software Arts left an enduring legacy. It created one of the most important software applications in history and played a critical role in the emergence of the software industry as a driving force in the personal computing revolution. The success of VisiCalc proved that software could drive hardware sales, paving the way for companies like Microsoft, Lotus, and others.

In recognition of their contributions, Bricklin and Frankston were later inducted as Fellows of the Computer History Museum. Today, Software Arts is remembered not just for creating VisiCalc, but for helping to define what software could mean in a world of personal computing.

Software Arts

Contents

History

Origins: A Revolutionary Idea at Harvard Business School

Founding of Software Arts and Partnership with Personal Software

The First Killer App

Tensions and Trouble with VisiCorp

Decline and Acquisition

Legacy

Logos

People

Titles

References