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In 1982, Ron Gruner, Craig Mundie, and Rich McAndrew founded Alliant Computer Systems to build parallel supercomputers. Their goal was to build a machine that used multiprocessing to achieve better performance than the fastest single-CPU machines, but in a way that was transparent to developers. In 1985, after 3 years of work, they d done it, and for the next several years Alliant was one of the leading players in the turbulent parallel computer industry. But the company lost its way; Gruner left in 1991 after disagreement about the company s direction; and a year later Alliant filed for bankruptcy. Looking for something to do next, Gruner started a new company at the opposite end of the spectrum: a web-based service business. His experience as CEO of Alliant had taught him the importance of investor relations. In 1992, he founded Shareholder.com with the goal of using technology to automate the process. Shareholder.com pioneered a new, broader approach toward investor relations. Shareholder.com grew steadily, and in February 2006 was acquired by NASDAQ.

Gruner: I ve really had three jobs in my life, starting with Data General in 1969. I moved up from Oklahoma to Massachusetts to work for Data General, which got a lot of visibility in the late 60s, even though it was a very small company. I started as their 43rd employee and saw them grow to over 15,000 when I left in 1982. My background was in computer design. My first half at Data General, I was an engineer doing most of the work myself, and then in the second half I was managing most of the time. Data General was a very entrepreneurial almost Darwinian kind of environment. Ed de Castro and the other founders would try hard to hire the best, most aggressive people they could find, and then let those people go off and oftentimes compete on their own.

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The book The Soul of a New Machine characterizes that environment fairly well It talks about two competing teams the Eagle Team and the Fountainhead Team how they competed internally, and how the Eagle Team eventually won out because they got to market sooner I was the head of the Fountainhead project Spending 13 years there was a really good background for me to understand a truly entrepreneurial kind of environment I left Data General in the spring of 82 and, with two other cofounders, Craig Mundie and Rich McAndrew, I started Alliant Computer Systems Our mission was to build very high-performance computer systems that provided a growth path from Digital s Vax line of machines, which were topping out at half a million dollars Our machines provided anywhere from four to ten times the performance of Digital s largest Vax, for maybe 50 percent more, using parallel processing technology.

J Murphy: No, no she can barely turn her computer on Smolin: OK, but she knew what the application needed to do So you had sort of a one engineer and one architect J Murphy: Right Smolin: So you did all the programming Both of you J Murphy: Yes Smolin: How long would you say it took for you how many hours to do the first one for her to the point where she was up and running and more or less happy J Murphy: I would guess the database one was about 40 hours, maybe Smolin: And then how much more time did you put in to convert it into a marketable product J Murphy: That was huge And you wouldn t think it would be, but that was huge It probably, with both of our programs .

But because this was a very complex technology obviously all hardware-based; back in those days everything was proprietary hardware we had to raise a lot of money We took the traditional approach of going out and raising venture capital We knew, even then, having watched how Data General financed itself, that you wanted to generate two things when you re looking for money One is a sense of exclusivity, saying, This is a very special kind of deal and not everybody is going to get into it And secondly, a sense of urgency, so you can get people to make a decision A former boss of mine, Carl Carmen at Data General, knew the VC community pretty well We brought him in, and another partner of his, Jesse Aweida, who was the founder of Storage Technology Corporation.

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