Upon their release in the early 1980s, Microsoft Excel and Lotus 1-2-3 offered similar products measured for both quality and efficiency. Each of them was associated with different systems which in turn determined their place in the market for the next two decades. It looks like we may be embarking on another turn of events with the availability of free web-hosted applications such as Google Docs & Spreadsheets and Zoho Office.
Lotus wasn’t the only spreadsheet program in the early 1980s, but it was the most efficient. Upon its launch in 1983, Lotus was an innovator in the use of consumer television advertising. Things looked great for Lotus for a number of years due to its speed and similarity to the VisiCalc model, including the A1 letter and number cells and slash menu structure. It was virtually bug free and overcame the slower DOS screen input/output functions. In addition to being a spreadsheet, it also featured graphs/integral charts and database operations. Hence his name 1-2-3 which refers to his three main abilities.
The data was arranged in each rectangle defined within the order of the data in one or two columns in the rectangular area. You could also wrap text within a certain range in paragraphs allowing it to act like a primitive word processor. It contained easy-to-use features such as keyboard-controlled pop-up menus and one-key commands. Lotus’s most notable user-friendly feature was a context-sensitive help menu accessed with the F1 key.
Version 2.0 introduced macros and plugins. This resulted in third-party vendors being able to sell macro packages and plug-ins ranging from full-fledged word processors to dedicated financial spreadsheets. Version 2.0 contained macros with syntax and commands, as well as string variable expressions that were similar in complexity to an advanced BASIC interpreter. In subsequent versions, Lotus 1-2-3 also supported multiple worksheets. Lotus also created a version of 1-2-3 for the HP 200LX, a laptop released by Hewlett-Packard.
Excel was first offered for Mac in 1985 and then for Windows in 1987. Compared to Lotus, the introduction of Excel offered full number crunching capabilities plus drop down menus and WYSIWYG formatting. These two features made Excel much easier to use. By 1988, Excel outsold 1-2-3 and began to cement its place as the leading developer of PC software. Microsoft proved to be an ambitious competitor by keeping a valuable product and releasing new versions about every two years. Excel has also kept up with its Mac releases. The current version for Windows is Excel 12 or Microsoft Office Excel 2007. The current version for Mac OS X is Microsoft Excel 2008.
Looking back, it seems that in 1982, when Microsoft offered its spreadsheet program called Multiplan, it was popular with CP/M systems, but MS-DOS systems favored Lotus 1-2-3. MS-DOS clearly prevailed as the most prevalent system, thus Lotus 1-2-3 as the most prevalent spreadsheet program. In the late 1980s, Microsoft created Excel, a new spreadsheet for its Windows graphical interface. Lotus focused on IBM OS/2. Windows usage skyrocketed with Windows 3.0, but Lotus had already lost its lead. Excel becomes the industry leader in spreadsheet software [http://www.thesoftwarespot.com]. IBM continues to sell 1-2-3 as part of the Lotus SmartSuite office suite.
Trends are changing again with the availability of free web-hosted applications such as Google Docs & Spreadsheets and Zoho Office. However, this will surely present a challenge for Excel to maintain its prestigious position; it will not be a clear comparison as online applications are a different product. They do not mimic Excel and 1-2-3 but rather extend them. They use the power of web collaboration, instant feedback, mashups, live data, and context lookups. However, it will be interesting to see future maneuvers from Microsoft!
