Bill Gates a Story of Success
Bill Gates a Story of Success
Bill Gates: One of the Riches and Successful Man of the 21st Century
Step by Step progression of Bill Gates
1 Bill’s Gates and his idea
2 His ﬁrst software program me at the age of thirteen
3 Intel chip and Bill Gates‘work
4 Research on BASIC and establishment of Microsoft
5 Founding the Altair 8800
6 Introducing MS-DOS
7 Microsoft and IBM agreement
8 launching of Windows software
9 Law suit against Microsoft
10 Future of Bill Gates
Bill Gates, co founder of the Microsoft Corporation, holds 30.7 Percent of its stock making him one of the richest people in the world. He was the marketing and sales strategist behind many of Microsoft’s software deals. Their software became the industry standard in the early 1980s and has just increased in distribution as the company has grown, so much that the Federal government is suggesting that Microsoft has violated Sherman and Clayton antitrust acts. Bill Gates‘ ﬁrst interest in computers began at Lakeside, a private school in Seattle that Gates attended. There he wrote his ﬁrst software program when he was thirteen years old. It was for playing tic-cat-toe. It was at Lakeside that Gates met Paul Allen, who later became cofounder with Gates of Microsoft. There they became friends and began to mess around with the computer. Back in the sixties and early seventies computer time was expensive.
This is what drove him to the commercial side of the software business.- Gates, Allen and a few others from Lakeside got entry-level software programming jobs. One of Gates early programs that he likes to brag about was written at this time. It was a program that scheduled classes for students. In 1972 Intel released their ﬁrst microprocessor chip: the 8008. Gates attempted to write a version of BASIC (Beginners All-purpose Symbolic Instruction Code) for the new Intel chip, but the chip did not contain enough transistors to handle it. Gates and Allen found a way to use the 8008 and started Tram-O-Data, a computer traffic analysis company It worked well however, marketing their new machine proved to be impossible. No one actually wanted to buy the machine, at least not from a couple teenagers. Gates and Allen had more less successful endeavors in starting a software company. In 1974 Intel announced their new chip: the 8080.
The two college students sent off letters to all the big computer companies, offering to write them a version of BASIC for the new Intel chip. They got no takers. While at Harvard, the cool thing to do was to slack off on classes for most of the semester and try and see how well the student could do at the end. Steve Ballmer and Gates took a tough graduate-level economics course together – Economics 2010. They did not do anything for the class all semester, and studied and got A’s. During one of these slack off periods, Gates and Allen found a very small computer: the Altair 8800 “(‘Altair‘ was a destination in a Star Trek epics-de). It had a few switches and lights on the front that you could get to blink, but that was about all. This new chip had great potential, but there was no way to program it. After five weeks of not going to classes, not eating or sleeping regularly, their version of BASIC was written – and the world’s ﬁrst microcomputer software company was born. In time we named it “Microsoft”. Gates left Harvard on leave in 1975.
Microsoft’s big economic break came in 1980 when IBM – the computer industry leader – asked Gates to develop an operating system for its new personal computer. IBM usually did not use external help in software design or hardware manufacture, but they wanted to release the ﬁrst personal computer in less than a year. IBM had elected to build its PC mainly from off-the-shelf components available to anyone. This made a platform that was fundamentally open, which made it easy to copy. IBM bought the microprocessors from Intel and licensed the operating system from Microsoft. Microsoft bought some work from another company in Seattle and hired its top engineer, Tim Paterson.
The system became known as the Microsoft Disk Operating System, or MS-DOS. ‘ Now because of the licensing agreement between IBM and Microsoft, IBM had no control over Microsoft’s distribution of its MS-DOS to other companies who wanted to clone the IBM machine. This decision by IBM is still under great debate. Many industry analysts argue that IBM should have waited for their own software developers to develop an operating system or that IBM should have purchased MS-DOS from Microsoft. However, from a more broad economic picture of IBM’s decision, it may have just tumid out for the good of Microsoft, IBM and the average computer user. Microsoft’s goal was not to, make money directly from IBM, but to profit from licensing MS-DOS to computer companies that wanted to offer machines more or less compatible with the IBM PC. By allowing Microsoft to sell MS-DOS to other companies, this made lBM’s PC the industry “de facto” standard. With other companies scrambling to compete with IBM, Microsoft licensed MS-DOS to these companies and filled one of Microsoft’s goals: “to create the standard for the industry”. Compaq Computer of Houston launched [the ﬁrst] clone in 1982 and attained FORTUNE 500 status a scant four years later. Hundreds of companies followed. MS-DOS dominated the market much like VHS beat out Bemata and how early TV sales boomed. The more people bought the product, the more companies produced it and with the television, the more sets were sold, the more programming was available. This was a main reason why Apple’s Macintosh only controlled 9% of the market. The PC story would be far different if Apple had licensed its operating system software to other computer makers early on. In effect, they had a monopoly on their own system and software.
Their lack of competition kept prices up and software selection down. Apple has just recently licensed some Macintosh operating systems to other companies. Microsoft has thrived on the ability to foresee and understand the computer needs of the average user. After Microsoft made their name with MS-DOS, they started work on a graphical based operating system much like Apple’s Macintosh computer. They called it Windows. Windows swept the market. By 1993 it was selling over 1 million copies a month and Microsoft operating systems ran nearly 90 percent of the world’s PC s. Microsoft had well achieved their goal of creating the standard for the industry. However, .,because Microsoft enjoys a near monopoly, beginning in June of 1990, the US Federal Trade Commission, which shares antitrust jurisdiction with the Department of Justice, took the first crack, quietly opening an inquiry.
Many other software companies have “cheered the government and offered a deluge of help. One of the big complaints of computer manufacturers is that they “must agree to pay software royalties…for every computer they ship, regardless of whether the computer is sold with any Microsoft software.” It is “an all or nothing deal”. Steve Jobs, cofounder of Apple and founder of Next, calls Microsoft the “‘small orifice’ through which every other company must squeeze if it wants to participate in the PC market”. After two years of investigation, commissioners were deadlocked on whether to ﬁle an antitrust complaint.
However, antitrust chief Anne Bingaman continued the process with a high-proﬁle investigation. After collecting information, conducting interviews, and talking _to Gates, Microsoft signed an agreement that would require Microsoft to make minor changes in the way it licenses DOS and Windows to computer manufacturers. Federal District Court Judge Stanley Sporkin rejected the Proposed statement. Bingaman continued the case. She hired SamMiller a trial lawyer from San Francisco law ﬁrm of Morrison & Forester. Miller was to head up litigation against Microsoft. Right now Bill Gates is building a multimillion dollar water front home outside of Seattle, equipped with all the technological luxuries that a few years ago only science action writers could dream up, for he and his wife, Melinda French. He has a 2.5 million dollar book deal that is selling now. What is in Gates future? He loves his work at Microsoft and Continues to stay involved with running the company. He has gotten with Craig McCaw and announced plans to launch a 9 billion dollar satellite- Communications. He is also working with Sega, Time Warner and TCI just to name a few. As for his monopolistic image in computer circles,only time will tell.