The Central Intelligence Agency had commissioned the project to build a commercial database management system for IBM mainframe computers and code-named it Oracle. Software Development Laboratories took the Oracle name in 1982. After completion of the project, Ellison, Miner, Oates, and Scott had a vision of developing and distributing their database software as a profitable business opportunity.
From 1982 to 1986, Oracle had achieved 100% growth. On March 15th, 1986, Oracle went public, one day after Microsoft’s initial public offering. From 1986 to 1989, revenues skyrocketed from $55 million to $584 million, making it one of the largest independent software companies in the world, employing over 4,000 people in 24 countries. The Oracle Corporation’s objective of becoming a profitable database software company had been achieved. Market and industry growth continued until the third quarter of 1990. Oracle suffered a $15 million dollar loss on $240 million in revenues.
Between 1988 and 1991, operating margins had plummeted from 23 to 3 percent.
