Microsoft

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This is the story about Bill Gates and the evolution of Microsoft Corporation. It details how he turned Microsoft into the largest software company in the world. How did this Harvard dropout become the youngest self-made billionaire in history?


The Young Bill Gates


It is impossible to write about the history of Microsoft without mentioning the name of Bill Gates, the founder and leader of Microsoft Corporation. Bill Gates was born William Henry Gates III on October 8, 155. Raised in Seattle, Washington, in a family with a rich history in business, politics, and community service, he led a comfortable upper middle class life. In elementary school, Bill Gates excelled, especially in the subjects of math and science. In 168, his parents enrolled him in The Lakeside Prep School, where the atmosphere was intellectual enough to stimulate him.


Discovering a love for computers


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Attending Lakeside was a pivotal to his future because it was there that he discovered computers. At that time, computers were too large and expensive for the school to purchase one of its own so the school had a fundraiser and bought computer time from various corporations. Bill Gates, his friend Paul Allen and a few other students quickly took to computing. In fact, they began to skip classes, turning in their homework late, and using up all of the school’s computer time rather quickly. Since one of the chief programmers of Computer Center Corporation had a child enrolled in the school, a deal was made to provide computer time to Lakeside’s students.





They started to hack Computer Center’s system, and altered and crashed valuable files until they were banned from the computer. Soon, however, Bill and his friends were actually hired by the computer company to find bugs and explore weaknesses in the system, which kept causing the computers to crash. Instead of paying the boys for their services, they were given unlimited computer time. The boys used their time eating, drinking, and breathing computers. They studied manuals, explored the system, and hounded the employees with questions until they had formed a base of knowledge that would eventually lead to the formation of Microsoft.


Financially plagued Computer Center Corporation went out of business in 170, and the boys had to find alternate sources for computer time. They eventually found some computers they could use at the University of Washington where Paul Allen’s dad worked. The group was hired by Information Sciences Inc. to write a payroll program. This time besides being given free computer time, they also earned royalties for each copy of their program that Information Sciences sold. Each subsequent project helped Gates hone his skills and learn more about programming.


Off to College


In the fall of 17, Gates left for Harvard University. Having no idea what he wanted to study, he enrolled as a pre-law student, but spent most of his time programming in the campus computer center. He spent many nights in front of a computer and many days sleeping in class. Paul Allen remained in close contact discussing ideas for future projects and the possibility of starting a business together. Allen moved to Boston and in the summer both got jobs at Honeywell. Paul constantly suggested that Gates quit school and open a business together. Gates was reluctant to drop out but that would soon change.


Microsoft is Born


In the December of 174, Paul Allen was browsing for magazines and saw a picture of the Altair 8080 computer on the cover of Popular Electronics. Inside was an article about this computer, which was advertised as the world’s first minicomputer kit. The author of the article proclaimed, “The era of the computer in every home-a favorite topic among science fiction writers-has arrived!” (Manes & Andrews, 1, p.6). They both realized that this could be the beginning of a home computer revolution and that software was going to be needed for these machines. Gates was able to arrange a meeting at Micro Instrumentation and Telemetry Systems, the manufacturer of Altair, by telling them that he had a program written for their machine. Once the appointment was scheduled, Gates and Allen stayed up nights working feverishly to write the program they promised they had. Since they did not have an Altair or the chip that ran the computer, Allen worked on a way to simulate one using the schools computers while Gates wrote the computer code. This was all risky because when it came time to demonstrate the software at the meeting with Micro Instrumentation and Telemetry Systems, it would be the very first time it would run on the actual machine and if Gates’ code or Allen’s simulation was faulty, the demonstration would have failed. Fortunately, it worked perfectly and everyone was impressed. Their program was sold and they began to see that selling software could be a viable business. Within a year, Gates dropped out of Harvard and Microsoft was born.


Market Domination


The beginning was rocky for Microsoft until they were able to license MS-DOS, the Microsoft Disc Operating System to IBM for their personal computer (PC).





Since IBM largely underestimated the market for PC’s, they signed a contract that allowed Microsoft to sell MS-DOS to any other PC manufacturer. When the PC market took off, Microsoft’s lucrative future was assured. “By the end of 18, Microsoft had made more than 10 million from sales of MS-DOS alone” (Wallace & Erickson, 1, p.4). However, Gates’ vision of the future was incompatible with IBM’s. IBM wanted to continue to dominate the corporate market with high priced computers using their proprietary software while Gates saw a future in cheaper computers, widely distributed and working to a common standard enabling anybody to use any program on any computer. IBM decided to develop its own much-improved operating system, called OS/, which could give them dominance over their competitors and eliminate the need for MS-DOS. Gates collaborated with IBM to develop OS/ but knew in order to take control of his companies future, Microsoft would have to invent something even better.


Microsoft Windows


In 186, the company went public, and Gates became a 1-year old billionaire. The next year, the first version of Windows was introduced, and by 1, a million copies per month were being sold. Windows introduced the graphical user interface (GUI), a popular feature of the Apple Macintosh computer, to the PC world. With its icons and pull-down menus, it gave users an easy to understand environment and was immediately popular. This gave Microsoft a huge opportunity to write and sell a completely new line of applications designed for Windows. In time, Microsoft’s sales and staff grew with their profits and stock price. Many employees became millionaires and Bill Gates became the world’s richest man.





Conclusion


Today, Bill Gates’ vision of a computer on every desk and in every home is almost a reality. Microsoft products dominate every type of software in use from operating systems to word processing and spread sheets to the future of computing, the Internet.





References


Manes, S. & Andrews, P. (1). Gates How Microsoft’s Mogul Reinvented an


Industry and Made Himself the Richest Man in America. New York, N.Y. Touchtone.


Wallace, J. & Erickson, J. (1). Hard Drive Bill Gates and the Making of the Microsoft


Empire. United States John Wiley 7 Sons, Inc.








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