Microsoft Volume I
Acquired
2024/04/22
Microsoft Volume I
Microsoft Volume I
Acquired
2024/04/22
This is the story of how a bold vision for software, born in a high school computer lab, grew into one of the most powerful technological and business empires in history. Set against the backdrop of the PC revolution, it traces the rise of Microsoft from a scrappy startup to a dominant global force—driven by foresight, timing, and an unrelenting focus on platform control.
Microsoft’s ascent began with Bill Gates and Paul Allen’s early access to computing at Lakeside School, where they recognized software’s commercial potential. Their creation of a BASIC interpreter for the Altair 8800 led to Microsoft’s founding in 1975. A pivotal moment came when IBM, needing an OS for its PC, turned to Microsoft after failing to secure one from Digital Research. Microsoft acquired QDOS, adapted it into MS-DOS, and licensed it while retaining ownership—enabling licensing to clone makers. The explosive growth of IBM-compatible PCs made DOS a standard. Microsoft then leveraged this dominance to push Windows, overcome Apple’s GUI lawsuit, and bundle Office, capturing the enterprise market. Strategic hires, developer focus, and per-processor licensing cemented control. By 1995, Windows 95’s launch symbolized Microsoft’s triumph: a software-first model that scaled infinitely, outmaneuvered hardware giants, and reshaped computing worldwide.
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IBM's 1968 decision to unbundle software created the software industry
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Bill gets the idea for Microsoft and plans to sell a BASIC interpreter for microprocessors
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Gates and Allen claimed to have a BASIC interpreter for the Altair 8800 before writing any code.
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Bill Gates wrote an open letter to hobbyists condemning software piracy.
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Microsoft won the arbitration in late 1977 and could freely license BASIC
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Half of Microsoft's revenue came from Japan by 1979, a crucial factor in its early success.
1:37:06
1:37:06
Gary Kildall missed the meeting with IBM, costing Digital Research the PC OS deal
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The deal between Bill Gates and IBM for the IBM PC is considered the greatest in the computer industry, if not all business history.
1:58:48
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Microsoft captured value from every PC clone through per-machine DOS licensing.
2:17:43
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MultiPlan failed because it targeted outdated 8-bit systems while Lotus dominated the IBM PC.
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Excel was the first graphical spreadsheet program, built for the Mac to beat Lotus 1-2-3.
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Windows 3.0 was unexpectedly popular and transformed IBM-compatible PCs
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Microsoft became the first software company to pass $1 billion in revenue.
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NT became the foundation of Windows Server and Azure
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Bill Gates owned 49% of Microsoft at IPO due to capital efficiency
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Software is never done—Microsoft's continuous update model gave it an edge over competitors like Apple.
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Software is like magic—it can do anything you imagine.
