IT & Network Infrastructure : IBM at 100: Big Blue`s Top Divestitures and Spinoffs
Software giant SAP was born out of IBM in 1972. SAP was founded by five former IBM engineers, and initially was called System Analyse und Programmentwicklung ("System Analysis and Program Development"). The engineers were Dietmar Hopp, Klaus Tschira, Hans-Werner Hector, Hasso Plattner and Claus Wellenreuther. As Xerox exited from the computer industry, Xerox hired IBM to migrate its business systems to IBM technology. Part of IBM's compensation for the migration was Xeroxs DS/SAPE software, reportedly for a contract credit of $80,000. The SAPE software was given by IBM to the founding SAP members in exchange for about 8 percent of founding SAP stock.
In 1984, IBM spun off Prodigy Communications, formerly a joint venture with Sears, Roebuck and Co. Prodigy was an online service that offered subscribers access to a broad range of networked services, including news, weather, shopping, bulletin boards, games, polls, expert columns, banking, stocks and travel. By 1990, it was the second-largest online service provider, with 465,000 subscribers, trailing only CompuServe's 600,000.
IBM in 1985 sold Satellite Business Systems to MCI Communications. Satellite, abbreviated as SBS, was a company founded by IBM, Aetna and Comsat