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The development of SAS began in 1966 after North Carolina State University re-hired Anthony Barr[15] to program his analysis of variance and regression software so that it would run on IBM System/360 computers.[16] The project was funded by the National Institutes of Health.[17] and was originally intended to analyze agricultural data[12][18] to improve crop yields.[19] Barr was joined by student James Goodnight, who developed the software's statistical routines, and the two became project leaders.[15][16][20] In 1968, Barr and Goodnight integrated new multiple regression and analysis of variance routines.[21][22] In 1972, after issuing the first release of SAS, the project lost its funding.[17] According to Goodnight, this was because NIH only wanted to fund projects with medical applications.[23] Goodnight continued teaching at the university for a salary of $1 and access to mainframe computers for use with the project,[17] until it was funded by the University Statisticians of the Southern Experiment Stations the following year.[16][23] John Sall joined the project in 1973 and contributed to the software's econometrics, time series, and matrix algebra. Another early participant, Caroll G. Perkins, contributed to SAS' early programming. Jolayne W. Service and Jane T. Helwig created SAS' first documentation.[21]

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