Formation: Xerox IBM Scientific Data Systems (SDS)

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Formation[edit]

When Xerox aimed to exit the computer industry in 1975,[4] they asked IBM to migrate their business
systems to IBM technology. As part of IBM's compensation for the migration, IBM was given the
rights to the Scientific Data Systems (SDS)/SAPE software, reportedly for a contract credit of
$80,000.
Five IBM engineers from the AI department[5][6] (Dietmar Hopp, Klaus Tschira, Hans-Werner
Hector, Hasso Plattner, andClaus Wellenreuther, all from Mannheim, Baden-Wrttemberg) were
working in an enterprise-wide system based on this software, only to be told that it would be no
longer necessary. Rather than abandon the project, they decided to leave IBM Tech and start
another company.[7]
In June 1970, they founded Systemanalyse und Programmentwicklung ("System Analysis and
Program Development") company, as a private partnership under the German Civil Code. [7]

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