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worked at Data General decided, We re going to start our own company . . .
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Gruner: Two of us left Data General at the same time. The third founder had
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left Data General a few years before that, but we had stayed in contact.
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Livingston: You said you spent about 4 months putting together a business plan. What kind of things were you doing in that 4 months Were you doing any programming to test any ideas Gruner: No. Livingston: It seems like a long time, by today s standards, I guess. Gruner: Well, it may be by today s standards, but we worked 7 days a week,
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10 hours a day. We spent a huge amount of time at the MIT library doing research on parallel processing. What we wanted to do was to find a technology that would allow us to use parallel processing to run existing programs. That was critical. Let s say, an existing Fortran program from 5 years before: take that, recompile it, and then have it run faster. There were a lot of people doing development in that area academically. We felt the University of Illinois had the best approach. So we then contacted Dr. David Kuck, the lead professor called him up out of the blue, explained who
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Ron Gruner 437
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we were, and invited ourselves up to visit him. Then we began to get a feel for how concrete this technology was. So part of that 4 months was building highlevel models to test whether or not this could take existing programs and run them in parallel. Another part of the time was doing all the competitive analysis in terms of who the companies were in the marketplace and where they might be going. We had pretty good contacts with the industry, as well as startups. And then, being engineers, we probably overengineered the business plan to give it extremely detailed financials. At that time, it was just at the point when the personal computer and the spreadsheet had come out. The first time I saw a spreadsheet, I thought it was like a miracle. People take it for granted now, but you type a few numbers in the top left of the spreadsheet, and everything else changes automatically. This is incredible! This is like giving us a microscope we can study a company with. So we said, We can educate ourselves about the financial aspects of a company by building a P&L, a cash flow, and a balance sheet, and making sure they all tie together correctly changing things and see how that affects the company. At the same time, over those 4 or 5 months, we were networking with people that we could bring on board as our initial core development team.
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Livingston: What were some of the first things you did once you got the
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$5 million
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Gruner: The first thing we did was hire the first four key people: two very strong software people and two very strong hardware people. They were the architects, along with the founders ourselves, of the computer system. We wanted to keep expenses as low as possible, so we were initially in a small office in a shopping center in Acton, Massachusetts. And we began hiring people to design and build the product. We spent 2 years doing that. We wanted to be very selective in how we hired people. We had a process we called chemistry, mechanics, and religion. Once again, we wanted to build a sense of exclusivity, but also filter people very carefully. It typically consisted of at least three interviews. Chemistry was first. We would bring the person in; we would interview the person on a personal level, and it had to go both ways. Is he or she the right kind of person for us Does he or she have the right kind of work ethic, background, all those kinds of things. The next step was mechanics. There, we would talk about the specifics of the job. Here s the job we have in mind for you. We cannot, by the way, tell you what we re doing. We can t tell you what our strategy is or what the project is, but your piece of it is going to be roughly this. At the conclusion, we would give them a written offer, including compensation, and say, Here s your high-level job description, and, if you feel, after having spent this much time with us, that you would like to join us, you sign the offer letter; and then we will then tell you what the project is. That was religion. After they had accepted, we brought them in and told them what the project was about: it s basically taking parallel processing, which nobody was doing at the time, and commercializing it. Everybody got really excited about that.
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