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In computer news this week  5/5/2005

 

 

An excerpt from The History of the Microcomputer Revolution - Part 11 - IBM's Secret

IBM had been watching the emerging PC marketplace. By 1980 the company had made a couple feeble attempts at their own PC products. One was the IBM 5100 computer which was a big desktop with a tiny 3”screen, and the Datamaster - another future failure. IBM also had entertained the notion of buying the game company Atari and its early PC line.

IBM's chairman at the time decided to take a different approach, and gathered a group of the company's renegade successful managers - wild ducks in IBM-speak - to start a secret project code named Manhattan. Its mission was to explore building a PC that the market really wanted, and to try to end the embarrassment of the world's largest computer company being beaten out by long haired California kids and unknown tiny startup companies, and to build it in a non-IBM company way.

 

The IBM team approached Microsoft under pretense of doing a market survey, requesting Microsoft to sign a non-disclosure agreement which would enable IBM to disavow the meeting ever happened - and asked Bill Gates for his opinions on what a PC should have and do. Gates had no problem with IBM's secrecy, and had many opinions as to what a PC should be like.

His ideas included using the new Intel 8086 16 bit processor for better performance, and desiring the computer to have better graphics and several other features not found in the current generation of PC's. IBM soon returned with the admission that they were interested in building their own PC and were considering using many of Gates' ideas.

 

They asked if Microsoft would be able to write a special version of Basic for this PC project - and Microsoft readily agreed. This new generation PC would need an operating system, so naturally Gates told IBM to contact  his friend Gary Kildall at Digital Research - who had written CP/M.

Herein lies one of the most interesting stories of the microcomputer revolution, but briefly IBM never met with Killdall, and  returned to Microsoft still looking for an operating system.

 

Wanting desperately to be part of this new project, Microsoft committed to writing the operating system also - although they had never written one before.

. Microsoft soon realized that they knew nothing about writing an operating system and began to panic, but someone remembered talking to a Seattle hardware hacker named Tim Patterson who worked for a local company named Seattle Computer Products. He had written his own operating system for the 8086-based processor  and he had named it QDOS - for quick and dirty operating system.

 

Microsoft ended up buying this operating system in  what many have called the deal of the century for a mere $ 50K, and we all know what  impact IBM's new PC had on the world.

 

Microsoft also introduced the concept of licensing  their software, as opposed to selling it outright, which enabled them to become the world’s largest software company.

For Raw Bytes, this is Frank Delaney

 

 

“Frank Delaney’s “History of the Microcomputer Revolution” was written back in 1995, which was the 20th anniversary of the PC.” And is available on his website, www.mtamicro.com  2005 now marks the 30th anniversary.

 

 

 

For Raw Bytes

This is Frank Delaney

(C) 2005 MTA Micro Technology Associates

http://www.mtamicro.com/kpbx.html

PO Box 31522 Spokane, Wa 99223-1522

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mailto:frank@mtamicro.com