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'Perhaps IBM were more accurate concerning the real costs of development and delivery?'IBM was a very well managed large US multinational private sector company and the biggest in the field of IT.I have no doubt the bid was totally realistic if not appealing to the NHS.Anyone in the company putting in a bid below cost would have soon been out on their ear.Plenty of other fish to fry !On the other hand we are all aware of the close involvement of the Japanese government with its technology companies and the shadowy environment of Japanese business.Loss leader or as you state -'Could Fujitsu have put in a low quote knowing the customer was not very clear on requirements and contract variations could be used later to escalate the price'?And of course the NHS was probably a bit of a push over.I think the ARPAnet project was one carried out by a small group of US universities but which used IBM software and hardware plus its general IT expertise.Note the involvement of some of the 'seven dwarfs' most if not all no longer in existence.'University of California, Los Angeles (UCLA), where Kleinrock had established a Network Measurement Center (NMC), with an SDS Sigma 7 being the first computer attached to it;The Augmentation Research Center at Stanford Research Institute (now SRI International), where Douglas Engelbart had created the new NLS system, an early hypertext system, and would run the Network Information Center (NIC), with the SDS 940 that ran NLS, named "Genie", being the first host attached;University of California, Santa Barbara (UCSB), with the Culler-Fried Interactive Mathematics Center's IBM 360/75, running OS/MVT being the machine attached;The University of Utah School of Computing, where Ivan Sutherland had moved, running a DEC PDP-10 operating on TENEX.I recall its aim was that the networking of computer systems, particularly defence related,  would be essential to keep the show on the road if the Russians invaded ! 'The Advanced Research Projects Agency Network (ARPANET) was the first wide-area packet-switched network with distributed control and one of the first computer networks to implement the TCP/IP protocol suite. Both technologies became the technical foundation of the Internet. The ARPANET was established by the Advanced Research Projects Agency (now DARPA) of the United States Department of Defense'.Good example of government supporting new private sector technical initiatives.Arpanet was the basis of course of the Internet we know today !

John Hawkes ● 43d