WEBVTT - Send in the Clones: The IBM PC Story

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<v Speaker 1>Get in tech with technology with tech Stuff from how

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<v Speaker 1>stuff works dot com. Hey there, and welcome to tech Stuff.

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<v Speaker 1>I'm your host, Jonathan Strickland. I'm an executive producer at

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<v Speaker 1>how Stuff Works and I love all things tech. And

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<v Speaker 1>in the last few episodes, I've covered the early days

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<v Speaker 1>of personal computers now. I started with an episode dedicated

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<v Speaker 1>to computer systems that were unable to establish a permanent

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<v Speaker 1>foothold in the market, so ones that kind of rose up,

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<v Speaker 1>and they were some of them were really really popular

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<v Speaker 1>in the early days, but they weren't able to become

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<v Speaker 1>a defining personal computer and they are no longer around today.

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<v Speaker 1>You can't go out and buy a brand new one.

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<v Speaker 1>You could buy emulators, you can buy recreations of them.

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<v Speaker 1>You could probably find some of them on eBay, but

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<v Speaker 1>you're not going to go and buy like a two

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<v Speaker 1>thousand eighteen version of those machines anymore. Then I did

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<v Speaker 1>a couple of episodes aka to how Apple managed to

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<v Speaker 1>avoid that same fate. Obviously you can go out and

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<v Speaker 1>buy an Apple computer. They're called Max now. But today

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<v Speaker 1>we're going to turn our attention to IBM and its

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<v Speaker 1>role in defining the modern PC. Because when we say PC,

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<v Speaker 1>most of us mean a Windows based machine. People tend

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<v Speaker 1>to call the two different types of computers out there,

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<v Speaker 1>the two broad different types of computers out there, MAX

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<v Speaker 1>or PCs, and when they say PC, they generally mean

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<v Speaker 1>something that's running Windows. Now, that's obviously an over generalization.

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<v Speaker 1>There are other operating systems out there. I've talked about

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<v Speaker 1>that before. Their Unix, there's Linux distributions, there's all sorts

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<v Speaker 1>of stuff. But for the average person, it comes down

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<v Speaker 1>to a MAC or PC. So how did IBM end

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<v Speaker 1>up defining what a PC is? And why isn't IBM

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<v Speaker 1>still in that market? Well, before I dive in, I

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<v Speaker 1>have to say that while I have used a ton

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<v Speaker 1>of sources to put this show together, there was one

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<v Speaker 1>that was more valuable than any of the others, and

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<v Speaker 1>that was a series of articles, two articles actually written

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<v Speaker 1>by Jimmy Maher for Ours Technica, and it's called the

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<v Speaker 1>Complete History of the IBM PC, and it's fantastic. I

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<v Speaker 1>highly recommend you read those articles to get a better

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<v Speaker 1>idea about what was going on at this time. Now,

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<v Speaker 1>IBM was a true powerhouse, a multibillion dollar company well

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<v Speaker 1>before the PC era, and it behooves us to do

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<v Speaker 1>a quick dive into IBMS history. I've done full episodes

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<v Speaker 1>about the history of IBM. It is a long and

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<v Speaker 1>complicated history. It's fascinating as well. I'm gonna give you

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<v Speaker 1>sort of the cliffs notes version for this particular episode.

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<v Speaker 1>So IBM traces its history back to the Computer Tabulating

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<v Speaker 1>Record Company, which was founded in nineteen eleven, but even

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<v Speaker 1>that doesn't really get back to the beginning of IBM. Sure,

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<v Speaker 1>the Peuter Tabulating Record Company would eventually become IBM, but

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<v Speaker 1>that company, that being Computer Tabulating Record Company, which will

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<v Speaker 1>just call CTR, that gets way too to complicated. Otherwise,

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<v Speaker 1>that was actually an amalgamation of other companies. It was

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<v Speaker 1>a sort of a merger of three to four companies,

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<v Speaker 1>depending upon how you look at it. So that includes

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<v Speaker 1>the International Time Recording Company, the Computing Scale Company, and

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<v Speaker 1>the Tabulating Machine Company, as well as the Bundy Manufacturing Company.

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<v Speaker 1>And I'll get into why that gets a little complicated

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<v Speaker 1>in just a second. So those companies, in turn have

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<v Speaker 1>been around in one form or another since the late

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<v Speaker 1>nineteenth century. So if you're really picky, you can say

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<v Speaker 1>that IBM kind of traces its history back to before

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<v Speaker 1>the turn of the twentieth century. The International Time Recording

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<v Speaker 1>Company started off as the Bundy Manufacturing Company in the

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<v Speaker 1>eighteen eighties in New York, and that was named after

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<v Speaker 1>its founder, Willard L. Bundy, who invented and patented mechanical

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<v Speaker 1>time recorders. Now technically, the manufacturing aspect of the Bundy

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<v Speaker 1>Manufacturing Company remained sort of separate from everything else and

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<v Speaker 1>was lumped in with this general merger that would form

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<v Speaker 1>the predecessor to IBM. The Computer Scale Company launched in

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<v Speaker 1>eight when two businessmen in Ohio had the notion to

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<v Speaker 1>purchase some patents that were related to the computing scale

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<v Speaker 1>technology that was brand new at the time, and they

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<v Speaker 1>created an enterprise out of it. The Tabulating Machine Company

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<v Speaker 1>was originally known as the hollow Earth Electric Tabulating System,

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<v Speaker 1>named after Herman Hollowrath, its founder. In eighteen ninety six,

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<v Speaker 1>Hollowrath formed the Tabulating Machine Company. His business really centered

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<v Speaker 1>on punched card systems and readers, so not really computers,

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<v Speaker 1>but tabulating devices that used punch cards to tabulate stuff.

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<v Speaker 1>He had actually used that in an effort to streamline

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<v Speaker 1>the process of going through the results from the US

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<v Speaker 1>Census in eighteen nine at that stage, you had a

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<v Speaker 1>population that was getting so big that figuring out what

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<v Speaker 1>all the different results were took an enormous amount of

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<v Speaker 1>time and a lot of hard work doing it all

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<v Speaker 1>by hand. So he had come up with this more

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<v Speaker 1>or less automated approach using punch cards and a machine

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<v Speaker 1>capable of quickly reading those punch cards. Together, those companies

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<v Speaker 1>merged into a new one in nineteen eleven through this

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<v Speaker 1>stock amalgamation process. But that does not magically mean that

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<v Speaker 1>everything will work smoothly, as I'm sure some of you

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<v Speaker 1>have experienced firsthand if you've ever been through a merger,

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<v Speaker 1>if you've worked for a company that has merged or

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<v Speaker 1>acquired another company. Charles Randlet Flint was the guy who

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<v Speaker 1>had headed these efforts. He was the man behind this

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<v Speaker 1>stock amalgamation process emerging all the companies, and he realized

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<v Speaker 1>that this massive beast he had created was a bit

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<v Speaker 1>beyond his own abilities to lead. It had more than

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<v Speaker 1>a thousand employees, and of course it had very diverse

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<v Speaker 1>business processes across us the various businesses. The chairman for

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<v Speaker 1>the new company was a guy named George Winthrop Fairchild.

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<v Speaker 1>But Fairchild was also a congressman and so he was

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<v Speaker 1>largely absent from the operations of the company. They needed

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<v Speaker 1>to find somebody else. Eventually, a businessman named Thomas J. Watson,

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<v Speaker 1>whose last name would go on to become the name

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<v Speaker 1>of IBM s artificially intelligent application platform. Watson stepped up

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<v Speaker 1>to Flint and said, Hey, I would like to get

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<v Speaker 1>a job running a business. I feel like I really

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<v Speaker 1>could do some great things. Watson had at that time

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<v Speaker 1>whether a pretty rough storm due to being accused, tried,

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<v Speaker 1>and initially convicted of unfair business practices essentially anti trust laws. Now,

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<v Speaker 1>he would never end up serving out a prison sentence.

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<v Speaker 1>The court would eventually overturn this conviction, but his reputation

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<v Speaker 1>among the public despite this legal issue, was extremely strong.

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<v Speaker 1>Was known as someone who was very supportive in the community.

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<v Speaker 1>So while he had cutthroat business uh strategies and and instincts,

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<v Speaker 1>he was also someone who would give back to the

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<v Speaker 1>communities he belonged to. Flint would end up naming Watson

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<v Speaker 1>the general manager for CTR, and a little less than

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<v Speaker 1>a year later, when all the trial business was resolved,

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<v Speaker 1>the board would name him the president of CTR. Now

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<v Speaker 1>CTR would remain the name of the company until nineteen

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<v Speaker 1>twenty four, when Watson would officially give it a new

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<v Speaker 1>moniker International Business Machines or IBM. Throughout its history, it

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<v Speaker 1>would primarily focus on business to business operations, so, in

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<v Speaker 1>other words, IBM would make the machines that other businesses

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<v Speaker 1>depended upon to get work done for their customers. IBM

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<v Speaker 1>was not in the business of creating stuff for the

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<v Speaker 1>average consumer. So when IBM was working on something, it

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<v Speaker 1>wasn't for people like you and me. It was for

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<v Speaker 1>big companies so that they could do the businesses that

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<v Speaker 1>you know, whatever it was that they did, and so

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<v Speaker 1>they might have a forward facing uh side to them

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<v Speaker 1>where they would have contact with customers, but IBM didn't.

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<v Speaker 1>Their customers were other companies. IBM grew larger and more

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<v Speaker 1>powerful and became a leading name in business machines, and

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<v Speaker 1>it all started with mechanical devices, but eventually transition to

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<v Speaker 1>electronic and then microchip technologies. In the nineteen forties, IBM

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<v Speaker 1>would partner with Harvard University to build the company's first computer,

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<v Speaker 1>although most people refer to it as Harvard's first computer,

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<v Speaker 1>known as the Mark one or the Automated Sequence Controlled Calculator.

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<v Speaker 1>This was an enormous electro mechanical computer. So in other words,

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<v Speaker 1>I had electric parts, electronic parts rather and mechanical parts.

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<v Speaker 1>And it played a very important role with several war

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<v Speaker 1>related calculations in the nineteen forties, including some designed by

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<v Speaker 1>John von Neumann as part of the Manhattan Project. That's

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<v Speaker 1>the project that developed the atomic bomb. It had seven

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<v Speaker 1>hundred sixty five thousand components and more than one hundred

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<v Speaker 1>miles of wire and cable. So obviously this was not

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<v Speaker 1>a home computer, although I guess if you were desperate

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<v Speaker 1>you could maybe cut a hole in it and make

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<v Speaker 1>it a home but still not quite the same thing

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<v Speaker 1>as what we mean when we say home computer. In

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<v Speaker 1>ninety two, Thomas J. Watson Jr. Would become the president

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<v Speaker 1>of IBM and thus began the golden age of the company.

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<v Speaker 1>The engineers IBM did groundbreaking work, including creating the first

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<v Speaker 1>commercial hard disk drive. By the nineteen sixties, IBM was

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<v Speaker 1>a leader in producing massive computers for businesses to help

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<v Speaker 1>them manage their data, and at this point, no one

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<v Speaker 1>would dream of owning their own home computer. Even after

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<v Speaker 1>the invention of the transistor, these machines were still pretty

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<v Speaker 1>darn massive, and they would take up an entire a

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<v Speaker 1>room of your house. In the early nineteen seventies, as

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<v Speaker 1>the first computer hobbyists were experimenting with building their own

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<v Speaker 1>basic computing machines for home use, IBM began to create

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<v Speaker 1>a platform that would evolve into their own personal computer

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<v Speaker 1>line of machines. A decade later, and IBM manager named

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<v Speaker 1>Paul Friedel invented this platform, and it was called the

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<v Speaker 1>Special Computer a p L Machine Portable or SCAMP. A

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<v Speaker 1>PO by the way, stands for a programming language real

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<v Speaker 1>descriptive there that was actually designed by Kenneth e Iverson

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<v Speaker 1>back in the nineteen sixties. SCAMP was a research project

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<v Speaker 1>meant to create a single user computer. Now, computers in

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<v Speaker 1>those days were generally meant for multiple users. This was

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<v Speaker 1>the main frame approach. You would have a centralized, very

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<v Speaker 1>powerful mainframe computer, and you would have one or more

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<v Speaker 1>terminals connected to that mainframe. Typically you would have more

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<v Speaker 1>than one, and these terminals acted as a point of

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<v Speaker 1>communication between the users and the computers processing units, which

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<v Speaker 1>weren't really microchips at this point. They were typically large

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<v Speaker 1>circuit boards. These computers used a strategy called time sharing,

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<v Speaker 1>which gave the illusion that everyone was working on this

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<v Speaker 1>mainframe simultaneously, but in actuality the computer would switch from

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<v Speaker 1>one terminal to another to run processes, but it would

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<v Speaker 1>do so at a rate that was fast enough to

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<v Speaker 1>at least give the implication that everyone was working on

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<v Speaker 1>the same machine simultaneously rather than sequentially. SCAMP was a

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<v Speaker 1>departure from this model. Two IBM laboratories in Silicon Valley,

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<v Speaker 1>the IBM Scientific Center and the Advanced Systems Development Lab,

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<v Speaker 1>were top secret and given an open sandbox to play

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<v Speaker 1>in to develop new technologies that could potentially be commercially useful. So,

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<v Speaker 1>in other words, the engineers at these centers didn't have

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<v Speaker 1>to worry about improving existing systems or making the next

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<v Speaker 1>big computer that IBM was going to sell. They could

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<v Speaker 1>instead think further out and experiment with different concepts that

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<v Speaker 1>had no real place in the market at that time

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<v Speaker 1>but could potentially be valuable later on. And SCAMP grew

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<v Speaker 1>out of that environment. In nineteen two, Dr Paul Friedl,

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<v Speaker 1>who was a manager at the Scientific Center, wanted to

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<v Speaker 1>build a personal portable IBM computer, meaning a single use

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<v Speaker 1>computer that you can move from place to place. Dr

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<v Speaker 1>Friedel made a plan to build SCAMP within six months

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<v Speaker 1>and then have it ready to demonstrate to IBM executives.

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<v Speaker 1>The executives, when presented with the idea, said wouldn't that

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<v Speaker 1>be something, which became scamps motto. Another IBM employee named

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<v Speaker 1>Joe George headed up the hardware team to build SCAMP.

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<v Speaker 1>With six months to start and finish and demo a project,

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<v Speaker 1>the team was under the gun to prove their concept

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<v Speaker 1>was tenable, so they didn't really have much of a choice.

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<v Speaker 1>They decided to go with many off the shelf components

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<v Speaker 1>because there just wasn't time to develop everything in house

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<v Speaker 1>from scratch. The whole point was to demonstrate if the

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<v Speaker 1>concept was possible after all, not to create a product

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<v Speaker 1>that would ever see the light of day outside of IBM.

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<v Speaker 1>Six months after those initial discussions, the team actually did

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<v Speaker 1>have something to show off to IBM executives. The SCAMP

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<v Speaker 1>was in a case that resembled a briefcase, had a keyboard,

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<v Speaker 1>it had a CRT display, and used a cassette tape

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<v Speaker 1>drive for media storage. So, in other words, this machine

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<v Speaker 1>in nineteen seventy three was already taking a form factor

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<v Speaker 1>that wouldn't be seen in the hobbyist world. For another

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<v Speaker 1>couple of years. The team gave multiple demonstrations of the

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<v Speaker 1>SCAMP concept at IBM and received a lot of interest.

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<v Speaker 1>At the final demonstration, the one that was going to

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<v Speaker 1>decide the fate of pursuing a single user computer strategy,

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<v Speaker 1>it happened here in my hometown of Atlanta, Georgia, at

0:14:04.280 --> 0:14:07.880
<v Speaker 1>the Marriott Downtown. Dr Friedel even tells a great story

0:14:07.920 --> 0:14:11.080
<v Speaker 1>about this, how he showed up late to the demonstration

0:14:11.320 --> 0:14:13.600
<v Speaker 1>because he got lost on the highway because, as he

0:14:13.640 --> 0:14:16.400
<v Speaker 1>said in the video, there are just too many roads

0:14:16.400 --> 0:14:21.520
<v Speaker 1>in Atlanta called Peach Tree, which is absolutely true. Despite

0:14:21.520 --> 0:14:25.120
<v Speaker 1>his late arrival, the demonstration went really well. Dr Freedle

0:14:25.120 --> 0:14:28.280
<v Speaker 1>showed off SCAMP to the IBM president, who at that

0:14:28.320 --> 0:14:32.080
<v Speaker 1>time was John Opele. The demo went off without any glitches.

0:14:32.120 --> 0:14:35.040
<v Speaker 1>They didn't have any hardware failures or software hang ups,

0:14:35.200 --> 0:14:38.840
<v Speaker 1>nothing like that. Following the demonstration was a presentation about

0:14:38.840 --> 0:14:41.680
<v Speaker 1>how much money it would cost to fund the project.

0:14:42.200 --> 0:14:44.640
<v Speaker 1>Opal was so impressed he said, if it was up

0:14:44.680 --> 0:14:47.200
<v Speaker 1>to me, I'd go four and a half million dollars

0:14:47.240 --> 0:14:50.080
<v Speaker 1>over the budget you're asking for. And that was enough

0:14:50.080 --> 0:14:53.200
<v Speaker 1>for Dr Freedle to secure a commitment to move forward.

0:14:53.560 --> 0:14:56.280
<v Speaker 1>SCAMP would become the starting point of the path that

0:14:56.320 --> 0:14:59.880
<v Speaker 1>would eventually lead to the IBM fIF fifty a k a.

0:15:00.120 --> 0:15:04.800
<v Speaker 1>The IBM Personal Computer. SCAMP, by the way, would eventually

0:15:04.920 --> 0:15:08.760
<v Speaker 1>emerge from the depths of IBM's secret laboratories. It became

0:15:08.840 --> 0:15:12.800
<v Speaker 1>part of a Smithsonian exhibit on information technology and went

0:15:12.840 --> 0:15:17.160
<v Speaker 1>on display to the public. But we're not quite at

0:15:17.160 --> 0:15:20.760
<v Speaker 1>the IBM PC era yet. IBM had a couple of

0:15:20.800 --> 0:15:24.440
<v Speaker 1>other computers in the one hundred line that would precede

0:15:24.480 --> 0:15:27.840
<v Speaker 1>the first personal computer from the company, and the first

0:15:27.840 --> 0:15:32.880
<v Speaker 1>of those, the actual IBMFT, was quite the beast. IBM

0:15:32.920 --> 0:15:37.000
<v Speaker 1>started selling this descendant of the Scamp in nineteen five,

0:15:37.160 --> 0:15:40.240
<v Speaker 1>a year before Apple would debut, and around the same

0:15:40.280 --> 0:15:42.880
<v Speaker 1>time the hobbyists were getting their hands on the Altaire

0:15:43.280 --> 0:15:45.800
<v Speaker 1>eight hundred. I've got a lot more to say about

0:15:45.840 --> 0:15:49.040
<v Speaker 1>the IBM in just a second, but first let's take

0:15:49.080 --> 0:15:59.920
<v Speaker 1>a quick break to thank our sponsor. The IBM was

0:16:00.080 --> 0:16:03.640
<v Speaker 1>not a computer built for the home user, but rather

0:16:03.760 --> 0:16:08.800
<v Speaker 1>for engineers and mathematicians. It was called a portable computer,

0:16:09.040 --> 0:16:11.800
<v Speaker 1>but you really probably wouldn't want to lug it around

0:16:11.800 --> 0:16:17.840
<v Speaker 1>because it weighed about fifty five pounds, or wasn't just

0:16:18.040 --> 0:16:21.840
<v Speaker 1>bulky it was a little peculiar. Rather than relying on

0:16:21.880 --> 0:16:27.520
<v Speaker 1>a microprocessor to act as CPU, spread processor duties across

0:16:27.560 --> 0:16:31.640
<v Speaker 1>an entire circuit board using an IBM developed technology called

0:16:31.840 --> 0:16:35.960
<v Speaker 1>palm p a l M. It had sixteen kilobytes of

0:16:36.080 --> 0:16:38.720
<v Speaker 1>RAM at its base model, and it used a tape

0:16:38.800 --> 0:16:42.160
<v Speaker 1>drive for storing media and loading programs. It had a

0:16:42.200 --> 0:16:45.280
<v Speaker 1>five inch computer screen and a keyboard, and it would

0:16:45.280 --> 0:16:50.440
<v Speaker 1>set you back about ten thousand dollars. Like I said,

0:16:50.480 --> 0:16:53.160
<v Speaker 1>these were not intended as computers for the home. This

0:16:53.280 --> 0:16:57.640
<v Speaker 1>was for people who were doing scientific research or engineering,

0:16:58.160 --> 0:17:01.080
<v Speaker 1>so it was not some thing that you're going to

0:17:01.280 --> 0:17:04.119
<v Speaker 1>play games on. It just didn't follow the main frame

0:17:04.280 --> 0:17:08.200
<v Speaker 1>terminal form factor that you had seen in previous computers

0:17:08.240 --> 0:17:11.720
<v Speaker 1>from IBM. So this was a very specific use computer.

0:17:12.000 --> 0:17:15.600
<v Speaker 1>The idea being scientists in the field or mathematicians who

0:17:15.640 --> 0:17:18.240
<v Speaker 1>needed to have a computer that they could potentially bring

0:17:18.280 --> 0:17:21.000
<v Speaker 1>to another location and not just have in a big

0:17:21.040 --> 0:17:26.040
<v Speaker 1>research laboratory. IBM would refine their design in two updates.

0:17:26.320 --> 0:17:30.080
<v Speaker 1>There was the IBM fifty one ten and the IBM

0:17:30.080 --> 0:17:34.439
<v Speaker 1>fifty one twenty. These were general office computers, so no

0:17:34.520 --> 0:17:38.240
<v Speaker 1>longer scientific research machines, but office machines. They were marketed

0:17:38.480 --> 0:17:41.159
<v Speaker 1>as being the machines the company would invest in in

0:17:41.240 --> 0:17:44.480
<v Speaker 1>order to do stuff like accounting, or data management or

0:17:44.520 --> 0:17:49.240
<v Speaker 1>word processing. IBM announced the fifty one ten in nineteen

0:17:49.400 --> 0:17:53.960
<v Speaker 1>seventy eight, and it could support more peripherals than could

0:17:54.200 --> 0:17:57.160
<v Speaker 1>the one that came out before it, including a peripheral

0:17:57.200 --> 0:18:00.960
<v Speaker 1>called the IBM fifty one fourteen would was an external

0:18:01.160 --> 0:18:05.480
<v Speaker 1>dual eight inch floppy drive, so floppy disk drive that

0:18:05.600 --> 0:18:08.680
<v Speaker 1>could take eight inch floppy disks. You might not remember

0:18:08.680 --> 0:18:11.080
<v Speaker 1>that there were such things. They weren't really used in

0:18:11.160 --> 0:18:14.520
<v Speaker 1>personal computers. They were used in these business machines, and

0:18:14.800 --> 0:18:17.160
<v Speaker 1>by the time the personal computer floppy discs came around,

0:18:17.160 --> 0:18:19.800
<v Speaker 1>they were more frequently the five and a quarter size

0:18:20.000 --> 0:18:22.080
<v Speaker 1>and then later on three and a half inch size.

0:18:22.359 --> 0:18:26.360
<v Speaker 1>The entry level fifty one ten, which supported the Basic

0:18:26.480 --> 0:18:31.000
<v Speaker 1>programming language only and had sixteen kilobytes of RAM, would

0:18:31.040 --> 0:18:35.159
<v Speaker 1>cost eight thousand, four hundred seventy five dollars. But if

0:18:35.200 --> 0:18:38.320
<v Speaker 1>you wanted a top of the line sixty four kilobyte

0:18:38.320 --> 0:18:41.119
<v Speaker 1>machine capable of running both Basic and the a p

0:18:41.440 --> 0:18:45.440
<v Speaker 1>L programming language, that would set you back fifteen thousand,

0:18:45.520 --> 0:18:49.280
<v Speaker 1>seven hundred twenty five dollars. The computer had an all

0:18:49.320 --> 0:18:52.920
<v Speaker 1>in one form factor. The keyboard and display were all

0:18:53.040 --> 0:18:56.520
<v Speaker 1>part of the case. The display screen was still five

0:18:56.560 --> 0:18:59.520
<v Speaker 1>inches and it was monochromatic, and it still relied on

0:18:59.600 --> 0:19:06.560
<v Speaker 1>the processor, that circuit board processor that had twenty followed

0:19:06.600 --> 0:19:09.520
<v Speaker 1>in the winter of Night, and it was another all

0:19:09.560 --> 0:19:12.760
<v Speaker 1>in one machine with a keyboard and monitor all part

0:19:12.800 --> 0:19:15.600
<v Speaker 1>of the same case. It also shipped with two floppy

0:19:15.640 --> 0:19:19.400
<v Speaker 1>disk drives standard they accepted those eight inch floppy disks

0:19:19.480 --> 0:19:22.679
<v Speaker 1>I talked about a second ago. The display, however, was larger.

0:19:22.800 --> 0:19:26.800
<v Speaker 1>It measured nine inches, and the components in the twenty

0:19:26.880 --> 0:19:34.159
<v Speaker 1>made the heavy heaviest desktop computer ever was a massive heavyweight.

0:19:34.359 --> 0:19:39.000
<v Speaker 1>It weighed a hundred and five pounds or forty eight ms.

0:19:39.480 --> 0:19:43.200
<v Speaker 1>The full computer system included not just the computer, which

0:19:43.280 --> 0:19:47.440
<v Speaker 1>was technically a fifteen Model three, but also an external

0:19:47.480 --> 0:19:51.119
<v Speaker 1>diskette unit and a dot Matrix printer. So the price

0:19:51.200 --> 0:19:54.080
<v Speaker 1>range for that computer system, because keep in minds more

0:19:54.080 --> 0:19:57.639
<v Speaker 1>than just that one computer started at nine thousand, three

0:19:58.119 --> 0:20:01.040
<v Speaker 1>forty dollars, and if you wanted to completely tricked out,

0:20:01.080 --> 0:20:04.600
<v Speaker 1>it would go all the way up to twenty three thousand,

0:20:04.920 --> 0:20:09.840
<v Speaker 1>nine hundred ninety bucks for that computer system. Yikes. Now

0:20:09.880 --> 0:20:13.000
<v Speaker 1>that line of computers at least a name would continue

0:20:13.080 --> 0:20:16.359
<v Speaker 1>to the fifty one fifty PC which was released in

0:20:17.800 --> 0:20:20.840
<v Speaker 1>But before that, there's another computer from IBM that I

0:20:20.880 --> 0:20:24.400
<v Speaker 1>need to mention, and it was not part of the line,

0:20:24.760 --> 0:20:28.439
<v Speaker 1>but was an important step toward the personal computer. And

0:20:28.520 --> 0:20:32.040
<v Speaker 1>this was the System slash twenty three Data Master or

0:20:32.160 --> 0:20:35.040
<v Speaker 1>just data Master for short, and I think that's an

0:20:35.040 --> 0:20:38.280
<v Speaker 1>awesome name for a computer. The Data Master was the

0:20:38.320 --> 0:20:43.560
<v Speaker 1>first desktop computer designed by IBM to feature a microprocessor

0:20:43.880 --> 0:20:47.480
<v Speaker 1>instead of that circuit board with the Palm processor that

0:20:47.520 --> 0:20:51.120
<v Speaker 1>IBM had been using. The Data Master had an Intel

0:20:51.240 --> 0:20:55.240
<v Speaker 1>eight eighty five as its central processing unit. Like the

0:20:55.320 --> 0:20:58.320
<v Speaker 1>fifty one twenty, it was heavy. It weighed ninety five

0:20:58.359 --> 0:21:01.760
<v Speaker 1>pounds or forty three kilo rams. Now, despite the fact

0:21:01.840 --> 0:21:03.960
<v Speaker 1>that it weighed so much and that it was meant

0:21:04.000 --> 0:21:07.119
<v Speaker 1>for an office environment, the fact it had a micro

0:21:07.280 --> 0:21:11.120
<v Speaker 1>processor and it meant that technically speaking, it fell into

0:21:11.160 --> 0:21:15.240
<v Speaker 1>the category of micro computer. While IBM announced the Data

0:21:15.280 --> 0:21:19.439
<v Speaker 1>Master in nineteen seventy eight, the computer didn't debut until July.

0:21:21.200 --> 0:21:25.680
<v Speaker 1>IBM would announce the PC just a month later, which

0:21:25.960 --> 0:21:28.800
<v Speaker 1>sort of resulted in folks forgetting about the Data Master.

0:21:29.320 --> 0:21:33.040
<v Speaker 1>Between the Data Master's announcement and when it launched, something

0:21:33.080 --> 0:21:36.439
<v Speaker 1>else interesting happened. IBM got a little visit from a

0:21:36.440 --> 0:21:41.400
<v Speaker 1>company called Atari. At this stage, Atari had already launched

0:21:41.440 --> 0:21:45.439
<v Speaker 1>the VCS game system that's essentially they hundred, and it

0:21:45.480 --> 0:21:48.680
<v Speaker 1>had also launched the Atari four hundred and Atari eight

0:21:48.760 --> 0:21:51.840
<v Speaker 1>hundred computer systems. You can listen to the computers that

0:21:51.920 --> 0:21:55.560
<v Speaker 1>time forgot to learn more about those. Anyway. Atari made

0:21:55.560 --> 0:21:58.280
<v Speaker 1>a move to suggest that it could design a computer

0:21:58.560 --> 0:22:02.359
<v Speaker 1>for the home market on behalf of IBM, saying, hey,

0:22:02.440 --> 0:22:05.080
<v Speaker 1>you guys are really in there when it comes to

0:22:05.520 --> 0:22:09.520
<v Speaker 1>businesses and research facilities and and government installations and all

0:22:09.520 --> 0:22:11.400
<v Speaker 1>that kind of stuff. If you want to get into

0:22:11.400 --> 0:22:14.320
<v Speaker 1>the home higher us, we can totally build that computer

0:22:14.359 --> 0:22:16.960
<v Speaker 1>for you, guys. The chairman of IBM at that time

0:22:17.240 --> 0:22:20.280
<v Speaker 1>was a guy named Frank Carey, and he relaid the

0:22:20.359 --> 0:22:23.920
<v Speaker 1>offer to a fellow named Bill Low that was ibm

0:22:24.000 --> 0:22:27.199
<v Speaker 1>s director of Entry Systems. Low took it to a

0:22:27.240 --> 0:22:31.920
<v Speaker 1>management committee and collectively they decided that this proposal from

0:22:31.920 --> 0:22:36.560
<v Speaker 1>Atari was bonkers. I might be paraphrasing a little bit,

0:22:36.760 --> 0:22:39.600
<v Speaker 1>but the management team also knew that the chairman was

0:22:39.720 --> 0:22:42.919
<v Speaker 1>really interested in this idea, so they told Low he

0:22:42.960 --> 0:22:45.600
<v Speaker 1>should go form a team, come up with a proposal

0:22:45.680 --> 0:22:50.040
<v Speaker 1>for an IBM personal computer that did not involve Atari

0:22:50.280 --> 0:22:53.240
<v Speaker 1>at all, and then submit that to the committee within

0:22:53.400 --> 0:22:56.600
<v Speaker 1>a month. So Low went out and formed a team

0:22:56.600 --> 0:22:59.280
<v Speaker 1>out of about a dozen or so engineers to work

0:22:59.280 --> 0:23:02.760
<v Speaker 1>on this project. He also contacted Bill Gates and Steve

0:23:02.800 --> 0:23:06.560
<v Speaker 1>Bamber of Microsoft to discuss their collaboration and a hypothetical

0:23:06.600 --> 0:23:09.840
<v Speaker 1>personal computer. This was a big deal for Microsoft, which

0:23:09.880 --> 0:23:13.359
<v Speaker 1>was already a successful company but stood to receive substantial

0:23:13.400 --> 0:23:16.719
<v Speaker 1>benefits if IBM were to partner with them. Here was

0:23:16.760 --> 0:23:21.119
<v Speaker 1>this corporate giant leader in the industry, something that had

0:23:21.119 --> 0:23:25.240
<v Speaker 1>been around for essentially a century if you trace the

0:23:25.320 --> 0:23:28.720
<v Speaker 1>history back to the predecessor companies at any rate, and

0:23:28.760 --> 0:23:32.320
<v Speaker 1>they were reaching out to what was effectively a startup

0:23:32.440 --> 0:23:36.320
<v Speaker 1>software company that wasn't even a decade old yet. Bill

0:23:36.320 --> 0:23:39.000
<v Speaker 1>Gates met with a guy named Jack Sam's who was

0:23:39.040 --> 0:23:43.000
<v Speaker 1>IBM's head of software development, and together they talked about

0:23:43.080 --> 0:23:46.199
<v Speaker 1>the PC market. Sam's was really interested in that Gates

0:23:46.200 --> 0:23:49.520
<v Speaker 1>had his finger on the pulse of that market, and

0:23:49.600 --> 0:23:52.159
<v Speaker 1>he talked about the trends that were emerging in this

0:23:52.359 --> 0:23:56.520
<v Speaker 1>still very young Field. Sam's reported back to Low and

0:23:56.600 --> 0:23:58.439
<v Speaker 1>the rest of the team, and they put together a

0:23:58.480 --> 0:24:03.680
<v Speaker 1>proposal for I b M personal computers. The proposal identified

0:24:03.880 --> 0:24:08.560
<v Speaker 1>Intel as the best source for microchip processors. At the time,

0:24:08.840 --> 0:24:13.200
<v Speaker 1>most personal computers were depending upon one of two major chips.

0:24:13.680 --> 0:24:17.080
<v Speaker 1>There was the six zero two from Most Technologies, which

0:24:17.160 --> 0:24:20.560
<v Speaker 1>was owned by Commodore, or the Z eight from Zylog.

0:24:21.080 --> 0:24:23.959
<v Speaker 1>But these chips were already starting to brush up against

0:24:23.960 --> 0:24:27.639
<v Speaker 1>their technical limitations, and IBM wanted a system that would

0:24:27.640 --> 0:24:31.120
<v Speaker 1>not immediately be too underpowered to run the latest software.

0:24:31.119 --> 0:24:33.640
<v Speaker 1>They wanted to future proof a little bit, so they

0:24:33.680 --> 0:24:38.040
<v Speaker 1>went with the Intel eight chip as the CPU. This

0:24:38.119 --> 0:24:40.919
<v Speaker 1>was more expensive, but it was also more powerful than

0:24:40.960 --> 0:24:44.040
<v Speaker 1>the other microchips available in the market. The team also

0:24:44.080 --> 0:24:47.479
<v Speaker 1>opted to go for a modular approach with the fifty

0:24:47.560 --> 0:24:51.000
<v Speaker 1>one fifty. By modular approach, some people would call this

0:24:51.119 --> 0:24:55.199
<v Speaker 1>an open architecture. The computer they created started as a

0:24:55.280 --> 0:24:59.520
<v Speaker 1>foundation upon which the customer could build the machine he

0:24:59.840 --> 0:25:04.679
<v Speaker 1>or she needed, using essentially interchangeable components. So a lot

0:25:04.720 --> 0:25:07.320
<v Speaker 1>of computers that were on the market, what you saw

0:25:07.440 --> 0:25:09.960
<v Speaker 1>was what you got. They might have some expansion slots

0:25:10.000 --> 0:25:12.840
<v Speaker 1>and you could perhaps put some additional cards in those

0:25:12.880 --> 0:25:17.280
<v Speaker 1>expansion slots, but generally speaking, you couldn't really swap out

0:25:17.320 --> 0:25:20.679
<v Speaker 1>components easily. IBM wanted to go a different way. They

0:25:20.720 --> 0:25:24.359
<v Speaker 1>wanted to have a sort of a bare foundation upon

0:25:24.440 --> 0:25:27.880
<v Speaker 1>which you could build whatever computer you wanted. Uh. This

0:25:27.960 --> 0:25:31.600
<v Speaker 1>was a really radical notion, and it meant that the

0:25:31.640 --> 0:25:35.760
<v Speaker 1>customer could end up buying a computer graphics card that

0:25:35.760 --> 0:25:38.600
<v Speaker 1>would support color graphics, or maybe they wanted to save

0:25:38.640 --> 0:25:40.720
<v Speaker 1>some money or have a higher resolution so they go

0:25:40.760 --> 0:25:44.679
<v Speaker 1>with a monochromatic video card. They would have the option

0:25:44.760 --> 0:25:47.800
<v Speaker 1>to do that with IBMS approach, they weren't forced down

0:25:47.800 --> 0:25:50.159
<v Speaker 1>one path or the other. The same was true for

0:25:50.200 --> 0:25:53.159
<v Speaker 1>how much RAM the computer would have, the type and

0:25:53.280 --> 0:25:56.480
<v Speaker 1>number of storage drives attached to it, and more. This

0:25:56.600 --> 0:25:59.720
<v Speaker 1>proposal got the official approval, and then the team was

0:25:59.800 --> 0:26:02.639
<v Speaker 1>hit by a very tough deadline. They were told to

0:26:02.680 --> 0:26:06.080
<v Speaker 1>get a product ready for the market within a year.

0:26:06.560 --> 0:26:10.200
<v Speaker 1>The team sourced many of these parts from other companies.

0:26:10.600 --> 0:26:13.840
<v Speaker 1>Now that sped up their process considerably. If they had

0:26:13.840 --> 0:26:17.720
<v Speaker 1>tried to develop all the different components within IBM, they

0:26:17.800 --> 0:26:20.840
<v Speaker 1>never would have made that year deadline. They were also

0:26:20.880 --> 0:26:24.280
<v Speaker 1>given a ton of autonomy as a Business Group. IBM

0:26:24.320 --> 0:26:29.720
<v Speaker 1>had recently instituted this new strategy called independent business Units,

0:26:29.720 --> 0:26:33.199
<v Speaker 1>in which teams within such units could operate almost like

0:26:33.240 --> 0:26:36.399
<v Speaker 1>they were a separate startup company, and IBM was kind

0:26:36.440 --> 0:26:40.520
<v Speaker 1>of acting like a venture capital funding source, like they

0:26:40.520 --> 0:26:44.160
<v Speaker 1>were actually providing the money for this unit to get

0:26:44.240 --> 0:26:47.640
<v Speaker 1>work done, but the unit itself would be very much

0:26:47.640 --> 0:26:51.040
<v Speaker 1>autonomous in the decisions that would make The project got

0:26:51.040 --> 0:26:54.840
<v Speaker 1>a code name called Project Chess, and the personal computer's

0:26:54.880 --> 0:26:58.439
<v Speaker 1>code name became the Acorn, which had no relation to

0:26:58.480 --> 0:27:01.480
<v Speaker 1>the actual personal computer on the market that also was

0:27:01.520 --> 0:27:04.280
<v Speaker 1>called Acorn. One thing that stades a challenge to the

0:27:04.320 --> 0:27:08.280
<v Speaker 1>team was the matter of which programming languages and operating

0:27:08.280 --> 0:27:12.399
<v Speaker 1>systems should this machine support. Now Sam's, the head of

0:27:12.480 --> 0:27:17.120
<v Speaker 1>software development, knew he wanted support for Basic and Microsoft

0:27:17.200 --> 0:27:20.560
<v Speaker 1>was the most well known and reliable name in various

0:27:20.680 --> 0:27:24.240
<v Speaker 1>flavors of Basic. It wasn't that Microsoft was the only

0:27:24.760 --> 0:27:28.560
<v Speaker 1>purveyor of Basic, but they were the go to. So

0:27:28.640 --> 0:27:31.280
<v Speaker 1>Sam's went back to meet with Bill Gates and talk

0:27:31.400 --> 0:27:35.679
<v Speaker 1>about working with IBM on this project and essentially officially

0:27:35.720 --> 0:27:38.240
<v Speaker 1>saying we're going to make an IBM personal computer, which

0:27:38.240 --> 0:27:40.640
<v Speaker 1>was no big surprise at that point, everyone at Microsoft

0:27:40.640 --> 0:27:43.720
<v Speaker 1>had figured this out. They had also all been made

0:27:43.760 --> 0:27:47.000
<v Speaker 1>to sign various nondisclosure agreements so they couldn't talk about it,

0:27:47.480 --> 0:27:51.480
<v Speaker 1>but it was a big deal for Microsoft. And then

0:27:51.560 --> 0:27:54.560
<v Speaker 1>Sam said he was also interested in the disc operating

0:27:54.600 --> 0:27:59.240
<v Speaker 1>System or DOSS known as CP slash M because it

0:27:59.320 --> 0:28:03.720
<v Speaker 1>supported a lot business oriented software. So remember I mentioned

0:28:03.760 --> 0:28:07.920
<v Speaker 1>there were two different major microprocessors and personal computers at

0:28:07.920 --> 0:28:10.480
<v Speaker 1>that point, there were six five O two processors and

0:28:10.640 --> 0:28:16.399
<v Speaker 1>Z A D processors. CPM disc operating system was compatible

0:28:16.440 --> 0:28:19.080
<v Speaker 1>with the z A D processor, but not the six

0:28:19.160 --> 0:28:23.880
<v Speaker 1>five O two and also not the eight from Intel.

0:28:24.480 --> 0:28:28.160
<v Speaker 1>But it did already have a great deal of business

0:28:28.200 --> 0:28:31.720
<v Speaker 1>software that had been programmed for that operating system. So

0:28:32.000 --> 0:28:34.359
<v Speaker 1>there were a lot of different companies out there that

0:28:34.520 --> 0:28:38.120
<v Speaker 1>depended on those various software packages. They needed a computer

0:28:38.200 --> 0:28:41.920
<v Speaker 1>that could run that, so IBM definitely wanted to make

0:28:41.960 --> 0:28:44.680
<v Speaker 1>sure that their computer was going to be compatible with

0:28:44.720 --> 0:28:47.560
<v Speaker 1>that kind of software. They wanted to have that that

0:28:47.760 --> 0:28:50.480
<v Speaker 1>foundation there so that it would be easier to sell

0:28:50.520 --> 0:28:56.360
<v Speaker 1>these computers to potential customers. Sam's thought originally that Microsoft

0:28:56.480 --> 0:29:01.120
<v Speaker 1>owned CP slash M because Microsoft had shipped copies of

0:29:01.160 --> 0:29:04.520
<v Speaker 1>that operating system along with a hardware chip one of

0:29:04.560 --> 0:29:08.680
<v Speaker 1>the few pieces of hardware that Microsoft actually was involved with,

0:29:09.120 --> 0:29:11.960
<v Speaker 1>and that was called the soft card. The soft card

0:29:12.040 --> 0:29:15.520
<v Speaker 1>was designed for the Apple Too. The soft card had

0:29:15.600 --> 0:29:18.719
<v Speaker 1>a z A D CPU on it that was compatible

0:29:18.760 --> 0:29:22.960
<v Speaker 1>with that disc operating system CP slash M. Now, again,

0:29:23.040 --> 0:29:28.080
<v Speaker 1>Apple's microprocessor was a six five oh two from most technologies,

0:29:28.120 --> 0:29:31.720
<v Speaker 1>it was not compatible with this version of DOSS. But

0:29:32.360 --> 0:29:35.120
<v Speaker 1>if you were to slot in a soft card into

0:29:35.200 --> 0:29:39.200
<v Speaker 1>an Apple to expansion slot, then you could boot into

0:29:39.440 --> 0:29:42.720
<v Speaker 1>the machine using the z A D CPU instead of

0:29:42.760 --> 0:29:45.800
<v Speaker 1>the Apple's normal CPU, and then you could run this

0:29:45.920 --> 0:29:48.840
<v Speaker 1>version of DOSS just fine. And that meant that the

0:29:48.880 --> 0:29:51.840
<v Speaker 1>Apple Too would become a really powerful computer because not

0:29:51.880 --> 0:29:54.480
<v Speaker 1>only could you run it for all the applications that

0:29:54.520 --> 0:29:57.600
<v Speaker 1>were designed specifically for the Apple, which involved a lot

0:29:57.640 --> 0:30:01.120
<v Speaker 1>of educational software and games, you could then boot it

0:30:01.160 --> 0:30:04.120
<v Speaker 1>into this other form and then you could run business

0:30:04.120 --> 0:30:07.360
<v Speaker 1>software on it. It made the Apple to really, really attractive,

0:30:07.360 --> 0:30:09.920
<v Speaker 1>and that's one of the reasons why it maintained its

0:30:09.920 --> 0:30:12.840
<v Speaker 1>position in the market for so long, even though it

0:30:12.880 --> 0:30:18.080
<v Speaker 1>was running on an increasingly aging microprocessor. Well, IBM one

0:30:18.160 --> 0:30:22.280
<v Speaker 1>of this too, but they couldn't just run CP slash

0:30:22.480 --> 0:30:25.800
<v Speaker 1>M DOSS on their machines. They needed to be able

0:30:26.000 --> 0:30:29.280
<v Speaker 1>to get a version of this DOSS that would be

0:30:30.080 --> 0:30:35.080
<v Speaker 1>compatible with the microprocessor they were using, the eight from Intel.

0:30:35.320 --> 0:30:38.080
<v Speaker 1>But then they found out that Microsoft didn't own this

0:30:38.760 --> 0:30:41.240
<v Speaker 1>operating system at all. They had actually been licensing the

0:30:41.280 --> 0:30:46.080
<v Speaker 1>operating system from another company called Digital Research. At first,

0:30:46.120 --> 0:30:49.120
<v Speaker 1>IBM tried to work out a deal with Digital Research

0:30:49.360 --> 0:30:52.840
<v Speaker 1>to license the operating system for IBM s personal computer,

0:30:53.520 --> 0:30:57.600
<v Speaker 1>but there were various breakdowns in negotiations, and exactly what

0:30:57.800 --> 0:31:01.280
<v Speaker 1>happened is not entirely clear because the various parties that

0:31:01.320 --> 0:31:06.920
<v Speaker 1>were involved have conflicting accounts, like wildly conflicting accounts of

0:31:06.960 --> 0:31:11.440
<v Speaker 1>what actually happened. In the end, IBM left Digital Research

0:31:11.520 --> 0:31:14.640
<v Speaker 1>without an agreement in place to have that cpf CP

0:31:14.800 --> 0:31:18.960
<v Speaker 1>slash M DOSS running on their machines, and Sam's was

0:31:19.080 --> 0:31:22.520
<v Speaker 1>desperate to find an alternative. Now, IBM was not the

0:31:22.560 --> 0:31:26.160
<v Speaker 1>only party interested in creating a disc operating system that

0:31:26.240 --> 0:31:30.480
<v Speaker 1>was compatible with this Intel eight eight chip. There's another

0:31:30.480 --> 0:31:35.400
<v Speaker 1>guy named Tom Paterson of Seattle Computer Products. He had

0:31:35.440 --> 0:31:38.680
<v Speaker 1>the same problem. He wanted to create a version of

0:31:38.720 --> 0:31:42.320
<v Speaker 1>this DISC operating system that would work on an Intel

0:31:42.560 --> 0:31:47.360
<v Speaker 1>eight or eight eight six based computer. The company you

0:31:47.440 --> 0:31:51.840
<v Speaker 1>worked for, Seattle Computer Products, was a frequent collaborator with Microsoft.

0:31:52.040 --> 0:31:54.920
<v Speaker 1>So Paterson goes to work on creating this disc operating

0:31:54.960 --> 0:31:59.040
<v Speaker 1>system that would run on Intel chips. And he took

0:31:59.080 --> 0:32:03.080
<v Speaker 1>the reference man ULL for the CP slash M version

0:32:03.120 --> 0:32:08.320
<v Speaker 1>of DOSS, and then he reverse engineered DOSS for these

0:32:08.360 --> 0:32:12.320
<v Speaker 1>other microchips. He said, well, here's what this version of

0:32:12.360 --> 0:32:15.040
<v Speaker 1>DOSS does. How can I do that for this other

0:32:15.120 --> 0:32:20.360
<v Speaker 1>type of microprocessor. He called his build q DOSS that

0:32:20.400 --> 0:32:25.280
<v Speaker 1>stood for a Quick and Dirty operating system. Peterson actually

0:32:25.280 --> 0:32:27.840
<v Speaker 1>would reach out to Bill Gates. He had no idea

0:32:28.320 --> 0:32:30.800
<v Speaker 1>that Gates have been talking to IBM at all. He

0:32:30.840 --> 0:32:33.760
<v Speaker 1>didn't know that IBM was interested in making a personal computer.

0:32:34.320 --> 0:32:36.920
<v Speaker 1>He just wanted to talk to Gates about this new

0:32:36.960 --> 0:32:40.080
<v Speaker 1>operating system he had built in the hopes that Microsoft

0:32:40.200 --> 0:32:43.360
<v Speaker 1>might show interest in developing software for the operating system,

0:32:43.440 --> 0:32:46.200
<v Speaker 1>so that way it would create a demand for this

0:32:46.320 --> 0:32:48.680
<v Speaker 1>version of the OS, and then he would be able

0:32:48.720 --> 0:32:51.480
<v Speaker 1>to sell this version of the OS to other companies.

0:32:52.360 --> 0:32:56.040
<v Speaker 1>Gates saw q DOSS as the solution for ibm s woes,

0:32:56.760 --> 0:32:59.920
<v Speaker 1>but he didn't let Peterson know about it. He report

0:33:00.160 --> 0:33:03.239
<v Speaker 1>it ly contacted Sam's over at IBM and asked him

0:33:03.280 --> 0:33:06.880
<v Speaker 1>if Big Blue that's the nickname for IBM, wanted to

0:33:06.920 --> 0:33:11.360
<v Speaker 1>purchase this operating system for themselves or if Microsoft should

0:33:11.360 --> 0:33:14.240
<v Speaker 1>look into it. And Sam's made a call that would

0:33:14.320 --> 0:33:16.760
<v Speaker 1>end up being both the beginning and the end of

0:33:16.840 --> 0:33:21.280
<v Speaker 1>IBMS foray into personal computing. He said, you guys take

0:33:21.320 --> 0:33:27.920
<v Speaker 1>care of it. Whoof In retrospect, this, paired with the

0:33:28.000 --> 0:33:31.400
<v Speaker 1>decision to go with off the shelf components, is the

0:33:31.480 --> 0:33:36.520
<v Speaker 1>reason why IBM is not still in the personal computer market.

0:33:37.720 --> 0:33:40.640
<v Speaker 1>If IBM had bought the operating system, this story would

0:33:40.680 --> 0:33:45.960
<v Speaker 1>be incredibly different. Instead, Microsoft ultimately would get it. Now

0:33:46.080 --> 0:33:48.640
<v Speaker 1>explain why this ended up creating the PC world we

0:33:48.720 --> 0:33:52.760
<v Speaker 1>have now and just a little bit, but ultimately Microsoft

0:33:52.840 --> 0:33:56.400
<v Speaker 1>would be responsible for delivering an operating system and support

0:33:56.600 --> 0:34:01.800
<v Speaker 1>for four programming languages for this ran new IBM personal computer,

0:34:01.840 --> 0:34:06.720
<v Speaker 1>and now those languages were Basic, Cobal for Tran, and Pascal.

0:34:07.280 --> 0:34:10.680
<v Speaker 1>They also promised to make software for this new computer

0:34:10.760 --> 0:34:13.840
<v Speaker 1>system and give it a bit of a library upon launch,

0:34:14.080 --> 0:34:17.719
<v Speaker 1>since a home computer is ultimately only as useful as

0:34:17.719 --> 0:34:22.000
<v Speaker 1>the software it has at its disposal. In return, IBM

0:34:22.040 --> 0:34:25.720
<v Speaker 1>would pay a licensing fee to Microsoft, giving a portion

0:34:25.880 --> 0:34:29.480
<v Speaker 1>of each sale to Microsoft as a royalty. The two

0:34:29.480 --> 0:34:32.880
<v Speaker 1>companies made their partnerships formal by signing a contract on

0:34:32.960 --> 0:34:37.120
<v Speaker 1>November six. By this time, people like Low and Sam's

0:34:37.120 --> 0:34:41.359
<v Speaker 1>have been moved to other projects inside IBM, and there

0:34:41.440 --> 0:34:43.880
<v Speaker 1>was a new leader of Project Chess who was brought

0:34:43.920 --> 0:34:46.359
<v Speaker 1>on at this stage. This is one of those other

0:34:46.400 --> 0:34:49.839
<v Speaker 1>issues that IBM had at times where it was such

0:34:49.880 --> 0:34:52.800
<v Speaker 1>a big company and there were so many different things

0:34:52.840 --> 0:34:56.719
<v Speaker 1>going on that often people would get shuffled around. And

0:34:57.080 --> 0:34:59.600
<v Speaker 1>sometimes that was great. Sometimes it was exactly what a

0:34:59.600 --> 0:35:02.040
<v Speaker 1>project needed in order to get a boost of energy

0:35:02.080 --> 0:35:06.160
<v Speaker 1>and keep going. In other cases it created a moment

0:35:06.160 --> 0:35:08.759
<v Speaker 1>of chaos where everyone had to figure out what they

0:35:08.760 --> 0:35:11.279
<v Speaker 1>were doing and where they were going, and how their

0:35:11.280 --> 0:35:13.600
<v Speaker 1>actions were going to affect the overall projects. So it

0:35:13.640 --> 0:35:17.399
<v Speaker 1>was very complicated. Meanwhile, Gates was working on a deal

0:35:17.600 --> 0:35:20.719
<v Speaker 1>that would end up benefiting Microsoft at the expense of

0:35:20.760 --> 0:35:25.160
<v Speaker 1>both IBM and s c. P. Peterson still did not

0:35:25.360 --> 0:35:28.279
<v Speaker 1>know that Gates was talking to IBM at all, or

0:35:28.280 --> 0:35:31.200
<v Speaker 1>that IBM was interested in q Doss. He had continued

0:35:31.239 --> 0:35:34.239
<v Speaker 1>to work on the operating system himself independently, and he

0:35:34.280 --> 0:35:37.319
<v Speaker 1>had refined it, and he also renamed it. It was

0:35:37.360 --> 0:35:39.680
<v Speaker 1>no longer the Quick and Dirty operating system. It was

0:35:39.719 --> 0:35:43.720
<v Speaker 1>the eighty six DOSS, named after the eight eight six

0:35:43.800 --> 0:35:47.440
<v Speaker 1>Intel chip with which the operating system was compatible. It

0:35:47.560 --> 0:35:52.040
<v Speaker 1>was also compatible with because they were built on similar architectures.

0:35:52.760 --> 0:35:57.680
<v Speaker 1>Microsoft proposed a deal with SCP. Microsoft would go out

0:35:57.719 --> 0:36:02.800
<v Speaker 1>and get clients for the eight six DOS operating system

0:36:02.840 --> 0:36:07.120
<v Speaker 1>and they would pay SCP a ten thousand dollar licensing

0:36:07.160 --> 0:36:11.880
<v Speaker 1>fee per agreement, or fifteen thousand dollars if the agreement

0:36:11.920 --> 0:36:15.719
<v Speaker 1>included the source code for eight six DOSS. Microsoft also

0:36:15.800 --> 0:36:20.160
<v Speaker 1>made a ten thousand dollar investment in SCP, so SEP agreed.

0:36:20.440 --> 0:36:23.840
<v Speaker 1>They did not know that Microsoft had only one license

0:36:24.080 --> 0:36:27.920
<v Speaker 1>in mind, and that was IBM. SCP thought that Microsoft

0:36:27.960 --> 0:36:31.200
<v Speaker 1>had lined up a whole bunch of different clients and

0:36:31.239 --> 0:36:33.719
<v Speaker 1>then they were just gonna see license fee after a

0:36:33.760 --> 0:36:37.120
<v Speaker 1>license fee roll in. But Microsoft really just had one.

0:36:37.400 --> 0:36:41.239
<v Speaker 1>So for twenty five thousand dollars, Microsoft got access to

0:36:41.280 --> 0:36:46.640
<v Speaker 1>the operating system that IBM desperately wanted. Eventually, Microsoft would

0:36:46.719 --> 0:36:50.680
<v Speaker 1>hire Peterson away from SCP, and at that point when

0:36:50.760 --> 0:36:53.319
<v Speaker 1>he moved over to Microsoft, he was finally let in

0:36:53.400 --> 0:36:56.360
<v Speaker 1>on the secret that IBM was the big client. He

0:36:56.480 --> 0:36:59.120
<v Speaker 1>also began to edit eighty six DOSS according to some

0:36:59.239 --> 0:37:02.239
<v Speaker 1>changes that I b M wanted in the operating system

0:37:02.320 --> 0:37:05.640
<v Speaker 1>to make it closer to the CP slash M DISC

0:37:05.760 --> 0:37:08.320
<v Speaker 1>operating system that they had wanted in the first place,

0:37:08.719 --> 0:37:11.960
<v Speaker 1>which Peterson was not crazy about. He did not like

0:37:12.120 --> 0:37:15.759
<v Speaker 1>the idea of making his product even more like a

0:37:15.800 --> 0:37:19.160
<v Speaker 1>thing that some people would accuse him of stealing. Later,

0:37:20.040 --> 0:37:23.640
<v Speaker 1>a magazine called info World published an article in June

0:37:23.719 --> 0:37:27.440
<v Speaker 1>night one, a couple of months before IBM made the

0:37:27.440 --> 0:37:31.280
<v Speaker 1>big announcement about this personal computer, and they they leaked

0:37:31.280 --> 0:37:35.120
<v Speaker 1>the project. Someone had clearly talked to a person over

0:37:35.120 --> 0:37:38.080
<v Speaker 1>an info World and in the piece the author said

0:37:38.120 --> 0:37:40.720
<v Speaker 1>that IBM planned to show off the PC in July,

0:37:41.800 --> 0:37:45.200
<v Speaker 1>which turned out to be wrong. IBM wasn't ready until August,

0:37:45.800 --> 0:37:49.680
<v Speaker 1>but the data Master did come out in July one,

0:37:49.719 --> 0:37:52.720
<v Speaker 1>and that caused a bit of confusion because people thought, oh,

0:37:52.840 --> 0:37:55.240
<v Speaker 1>this must have been the computer. The info World mentioned

0:37:55.400 --> 0:37:57.600
<v Speaker 1>it wasn't, but it was in some ways similar to

0:37:57.640 --> 0:38:00.400
<v Speaker 1>the IBM PC, and that it was the first of

0:38:00.440 --> 0:38:04.840
<v Speaker 1>IBMS micro computers to actually have a micro processor on it. Meanwhile,

0:38:05.320 --> 0:38:09.560
<v Speaker 1>back at SCP, that company was reeling. They were facing

0:38:09.640 --> 0:38:12.680
<v Speaker 1>hard times. They were only getting They had only received

0:38:12.719 --> 0:38:16.080
<v Speaker 1>ten thousand or twenty dollars total from Microsoft for the

0:38:16.160 --> 0:38:20.120
<v Speaker 1>licensing fees. They The string of fees they had expected

0:38:20.160 --> 0:38:24.720
<v Speaker 1>to collect didn't happen. Also, Paterson had left the company,

0:38:24.800 --> 0:38:29.920
<v Speaker 1>so they're head software developer was gone. The hardware they

0:38:29.920 --> 0:38:32.360
<v Speaker 1>were making was not in demand, so they were really

0:38:32.480 --> 0:38:35.960
<v Speaker 1>having a hard time. Gates made an offer that the

0:38:36.000 --> 0:38:41.239
<v Speaker 1>company could not refuse, which was Microsoft would purchase the

0:38:41.360 --> 0:38:46.600
<v Speaker 1>eight six DOSS operating system outright for fifty thou dollars

0:38:46.680 --> 0:38:52.880
<v Speaker 1>and then grant SCP and exclusive license for the operating system.

0:38:53.120 --> 0:38:55.759
<v Speaker 1>SCP was in no real position to negotiate, and they

0:38:55.800 --> 0:39:00.000
<v Speaker 1>agreed to this deal, which essentially flipped things between Microsoft

0:39:00.000 --> 0:39:04.799
<v Speaker 1>an SCP. Microsoft became the sole owner of eight six DOSS,

0:39:04.920 --> 0:39:10.360
<v Speaker 1>which the company quickly rebranded and called MS DOSS. So

0:39:10.400 --> 0:39:13.560
<v Speaker 1>if you've ever heard of an MS DOS machine, technically

0:39:13.600 --> 0:39:15.880
<v Speaker 1>that was a machine that was running an operating system

0:39:15.920 --> 0:39:18.560
<v Speaker 1>that had been developed by a totally different company that

0:39:18.680 --> 0:39:22.560
<v Speaker 1>was just tightly coupled with Microsoft. Now I have more

0:39:22.600 --> 0:39:25.759
<v Speaker 1>to say about the IBM PC and how that led

0:39:25.760 --> 0:39:28.840
<v Speaker 1>into the IBM compatible and clone era in just a minute.

0:39:28.880 --> 0:39:32.240
<v Speaker 1>But first let's take another quick break to thank our sponsor.

0:39:39.400 --> 0:39:42.280
<v Speaker 1>As the IBM PC got closer to an official release,

0:39:42.440 --> 0:39:47.680
<v Speaker 1>Digital Research set, hang on that MS DOS operating system

0:39:47.719 --> 0:39:52.120
<v Speaker 1>you've got there looks an awful lot like r CP

0:39:52.360 --> 0:39:56.520
<v Speaker 1>slash M operating system. So there was even the possibility

0:39:56.520 --> 0:39:59.680
<v Speaker 1>of legal action coming up. Digital Research was looking at

0:39:59.680 --> 0:40:03.719
<v Speaker 1>the post ability of suing Um, Microsoft and IBM. Now

0:40:03.760 --> 0:40:07.359
<v Speaker 1>IBM was able to soothe the company by stating that

0:40:08.360 --> 0:40:11.280
<v Speaker 1>they were still interested in licensing a version of CP

0:40:11.480 --> 0:40:16.560
<v Speaker 1>slash M that was compatible with the micro processor and said, hey, hey,

0:40:17.000 --> 0:40:18.960
<v Speaker 1>if you just make a version of the thing you

0:40:19.040 --> 0:40:22.359
<v Speaker 1>make that works on the computers we're making, we will

0:40:22.440 --> 0:40:26.759
<v Speaker 1>totally pay you. And Digital Research was reassured and said

0:40:26.840 --> 0:40:29.719
<v Speaker 1>it would do that, it would deliver upon that request,

0:40:30.320 --> 0:40:34.279
<v Speaker 1>and this would make the IBM PC have four potential

0:40:34.360 --> 0:40:37.960
<v Speaker 1>operating systems, which is pretty crazy. The basic model of

0:40:38.000 --> 0:40:42.319
<v Speaker 1>the IBM PC, as it was finally announced in August one,

0:40:42.520 --> 0:40:46.640
<v Speaker 1>cost one thousand, five hundred sixty five dollars That included

0:40:46.680 --> 0:40:50.080
<v Speaker 1>a machine with sixteen kilobytes of RAM and a floppy drive,

0:40:50.480 --> 0:40:53.760
<v Speaker 1>and it would run basic hosted in the computers read

0:40:53.840 --> 0:40:56.919
<v Speaker 1>only memory or ROM. Now, if you kick it out

0:40:57.120 --> 0:41:00.480
<v Speaker 1>an IBM fifty one fifty two its full potential, it

0:41:00.520 --> 0:41:04.080
<v Speaker 1>would cost closer to six thousand dollars. This is pretty

0:41:04.120 --> 0:41:07.400
<v Speaker 1>much how PCs shake out today. You typically have a

0:41:07.440 --> 0:41:10.359
<v Speaker 1>spectrum of options you can choose from, starting with the

0:41:10.560 --> 0:41:14.720
<v Speaker 1>entry level and working up to LEAT status. On launch,

0:41:14.880 --> 0:41:17.759
<v Speaker 1>you could opt to have MS DOSS or u c

0:41:18.080 --> 0:41:21.600
<v Speaker 1>SD Pascal loaded onto your machine for an extra fee.

0:41:22.000 --> 0:41:25.919
<v Speaker 1>That CP slash M operating system from Digital Research would

0:41:26.000 --> 0:41:29.440
<v Speaker 1>lag behind for six more months before it was finally

0:41:29.480 --> 0:41:32.120
<v Speaker 1>available for the platform, and when it did become available,

0:41:32.320 --> 0:41:35.920
<v Speaker 1>IBM was offering it for the princely sum of two

0:41:36.040 --> 0:41:39.600
<v Speaker 1>hundred forty dollars. That would lead Digital Research to say, hey,

0:41:39.640 --> 0:41:41.600
<v Speaker 1>you were pricing us out of the market because MS

0:41:41.719 --> 0:41:45.120
<v Speaker 1>dos cost like forty bucks. You probaced us at two

0:41:45.160 --> 0:41:48.239
<v Speaker 1>hundred forty, so you were specifically doing it so that

0:41:48.280 --> 0:41:51.799
<v Speaker 1>people wouldn't buy our stuff, but they would buy MS DOSS.

0:41:51.800 --> 0:41:55.480
<v Speaker 1>IBM said, no, that wasn't why we we set the

0:41:55.480 --> 0:41:58.720
<v Speaker 1>price at that level. Your licensing fees were so high

0:41:59.080 --> 0:42:01.440
<v Speaker 1>that that was the level we had to charge if

0:42:01.480 --> 0:42:03.920
<v Speaker 1>we wanted to make any sort of profit, and this

0:42:04.040 --> 0:42:07.920
<v Speaker 1>argument went back and forth. It never really got nice.

0:42:08.080 --> 0:42:11.600
<v Speaker 1>It was pretty acrimonious. The market would play out in

0:42:11.640 --> 0:42:14.400
<v Speaker 1>such a way that MS DOS would eventually become the

0:42:14.520 --> 0:42:19.560
<v Speaker 1>clear front runner of those four operating systems. Moreover, Microsoft,

0:42:19.640 --> 0:42:23.560
<v Speaker 1>because of its ownership of ms DOSS, could license out

0:42:23.560 --> 0:42:28.080
<v Speaker 1>that operating system to other computer manufacturers, not just IBM.

0:42:28.120 --> 0:42:31.120
<v Speaker 1>Not all of those computers would have software or hardware

0:42:31.200 --> 0:42:34.080
<v Speaker 1>compatibility with IBM machines, So that makes things a little

0:42:34.120 --> 0:42:37.800
<v Speaker 1>more confusing. So you had IBM compatibles and IBM clones,

0:42:37.840 --> 0:42:40.840
<v Speaker 1>but you also had other computers that were running ms DOS,

0:42:40.840 --> 0:42:45.640
<v Speaker 1>but we're not technically compatible with IBM machines. And IBM

0:42:45.680 --> 0:42:49.359
<v Speaker 1>had relied so heavily on off the shelf components that

0:42:49.400 --> 0:42:53.680
<v Speaker 1>minute was possible to recreate, at least from a hardware perspective,

0:42:54.040 --> 0:42:57.200
<v Speaker 1>the IBM personal Computer. You could go out if you

0:42:57.200 --> 0:43:01.880
<v Speaker 1>were a manufacturer, and you could get the AI pieces,

0:43:01.960 --> 0:43:04.120
<v Speaker 1>the same components that IBM was using because they were

0:43:04.160 --> 0:43:07.160
<v Speaker 1>using so many off the shelf components, and you could

0:43:07.160 --> 0:43:09.960
<v Speaker 1>build your own version of what the IBM PC was.

0:43:10.280 --> 0:43:13.120
<v Speaker 1>There was one thing that IBM had going for it

0:43:13.560 --> 0:43:17.440
<v Speaker 1>that was proprietary and that was the basic Input output

0:43:17.520 --> 0:43:21.160
<v Speaker 1>system or BIOS. This is sort of the the base

0:43:21.280 --> 0:43:26.480
<v Speaker 1>level where the various input and output components of your

0:43:26.520 --> 0:43:31.600
<v Speaker 1>computer communicate with the computer's processor, so things like you know,

0:43:31.680 --> 0:43:34.279
<v Speaker 1>all the basic stuff. Every way you put information into

0:43:34.320 --> 0:43:37.040
<v Speaker 1>the computer, in every way the computer sends information back

0:43:37.080 --> 0:43:40.759
<v Speaker 1>to you, it passes through this layer. And IBM had

0:43:40.800 --> 0:43:43.520
<v Speaker 1>its own BIOS, so that was one thing that differentiated

0:43:43.560 --> 0:43:46.560
<v Speaker 1>it from all other competitors on the market, and that

0:43:46.600 --> 0:43:51.640
<v Speaker 1>was proprietary. However, numerous companies decided they wanted to try

0:43:51.760 --> 0:43:55.320
<v Speaker 1>and create a clone of IBM PCs, so they started

0:43:55.360 --> 0:43:58.879
<v Speaker 1>to reverse engineer the BIOS in order to create their

0:43:58.960 --> 0:44:02.920
<v Speaker 1>own computers would run similar to the IBM pc US.

0:44:03.000 --> 0:44:06.919
<v Speaker 1>Courts in general have ruled that reverse engineering is not

0:44:07.040 --> 0:44:12.120
<v Speaker 1>the same thing as copying. Copying involves getting access to

0:44:12.360 --> 0:44:16.480
<v Speaker 1>the source code of something and then line by line

0:44:17.040 --> 0:44:19.600
<v Speaker 1>copying it down so that you have your own version.

0:44:19.840 --> 0:44:24.680
<v Speaker 1>That's illegal. That's considered intellectual property theft. You're you're violating copyright.

0:44:25.320 --> 0:44:29.360
<v Speaker 1>But if you see a program and you see what

0:44:29.440 --> 0:44:32.440
<v Speaker 1>the program is doing, like you see what the output is,

0:44:32.920 --> 0:44:35.759
<v Speaker 1>and then you try to create your own software that

0:44:35.880 --> 0:44:38.680
<v Speaker 1>does the same thing, like you put the same input

0:44:38.719 --> 0:44:42.239
<v Speaker 1>in and you get the same output back. If you

0:44:42.320 --> 0:44:46.439
<v Speaker 1>do that on your own without copying the original, then

0:44:46.480 --> 0:44:48.760
<v Speaker 1>you could say, well, yeah, I get the same result,

0:44:49.040 --> 0:44:51.520
<v Speaker 1>but I did it my way. I didn't I didn't

0:44:51.560 --> 0:44:54.080
<v Speaker 1>copy anyone else, and u S courts in general have

0:44:54.160 --> 0:44:57.160
<v Speaker 1>said that's legitte. If you reverse engineer what someone else

0:44:57.200 --> 0:44:59.640
<v Speaker 1>has done and you're not copying them, like you didn't

0:44:59.680 --> 0:45:02.520
<v Speaker 1>actually go in and look at how the nuts and

0:45:02.560 --> 0:45:07.280
<v Speaker 1>bolts work, then that that can stand in the market.

0:45:07.520 --> 0:45:11.120
<v Speaker 1>That doesn't count as copying. Computers like the Commodore sixty

0:45:11.120 --> 0:45:13.719
<v Speaker 1>four and the TRS e D we're aging out of

0:45:13.719 --> 0:45:16.400
<v Speaker 1>the market at this stage. The rise of the IBM

0:45:16.440 --> 0:45:20.800
<v Speaker 1>PC and Microsoft's ability to create software for the platform

0:45:20.840 --> 0:45:24.719
<v Speaker 1>made the IBM PC a much more powerful competitor. They

0:45:24.800 --> 0:45:27.759
<v Speaker 1>just the fact that they were having software that was

0:45:27.880 --> 0:45:31.360
<v Speaker 1>appealing not just to the home user but two businesses

0:45:31.800 --> 0:45:36.040
<v Speaker 1>made it a really attractive computer platform. Computers like the

0:45:36.120 --> 0:45:39.359
<v Speaker 1>Tandy two thousand, which could run ms DOSS, were not

0:45:39.480 --> 0:45:43.120
<v Speaker 1>fully compatible with IBM PCs and really could only run

0:45:43.160 --> 0:45:46.360
<v Speaker 1>a subset of the same programs that IBM machines could,

0:45:46.719 --> 0:45:49.799
<v Speaker 1>and that was largely due to micro process or architecture,

0:45:50.120 --> 0:45:54.759
<v Speaker 1>so IBM had decided to go with the eight. Now

0:45:54.800 --> 0:45:59.000
<v Speaker 1>that that had some limitations to it, other companies decided, hey,

0:45:59.040 --> 0:46:03.239
<v Speaker 1>we can compete with I b M by using faster microprocessors,

0:46:03.800 --> 0:46:06.960
<v Speaker 1>and those will be able to support more RAM than

0:46:07.000 --> 0:46:10.840
<v Speaker 1>IBM S machines can, and therefore we can make computers

0:46:10.840 --> 0:46:14.520
<v Speaker 1>that have better specs than IBM does. The problem was

0:46:15.760 --> 0:46:20.520
<v Speaker 1>the operating system MS DOSS was compatible with those less

0:46:20.560 --> 0:46:25.080
<v Speaker 1>powerful chips, but not necessarily compatible with more powerful chips,

0:46:25.200 --> 0:46:26.719
<v Speaker 1>or at least not to the level where you could

0:46:26.800 --> 0:46:29.480
<v Speaker 1>run all the different types of software. So yes, you

0:46:29.480 --> 0:46:32.759
<v Speaker 1>would technically have a computer that was more powerful than

0:46:32.840 --> 0:46:37.000
<v Speaker 1>the IBM PC, but you would have fewer examples of

0:46:37.000 --> 0:46:40.080
<v Speaker 1>software that you could actually run on that computer, so

0:46:40.160 --> 0:46:43.920
<v Speaker 1>it's utility was not as great as the IBM PC.

0:46:44.320 --> 0:46:47.600
<v Speaker 1>In this way, IBM was able to set the standard

0:46:47.880 --> 0:46:52.400
<v Speaker 1>for what a PC was. Uh As IBM went that way,

0:46:52.520 --> 0:46:57.880
<v Speaker 1>so did Microsoft with their MS DOSS revisions, and IBM

0:46:57.960 --> 0:47:01.479
<v Speaker 1>set the pace. So for a while that was the case.

0:47:01.520 --> 0:47:04.120
<v Speaker 1>It was that IBM was the de facto standard, and

0:47:04.160 --> 0:47:07.360
<v Speaker 1>other companies would try and make computers that met that standard.

0:47:07.760 --> 0:47:11.759
<v Speaker 1>But we're less expensive or had some other differentiator that

0:47:11.800 --> 0:47:15.560
<v Speaker 1>would make them more attractive than IBM's official machines. It

0:47:15.600 --> 0:47:18.360
<v Speaker 1>didn't help that IBM made a couple of mistakes along

0:47:18.360 --> 0:47:21.680
<v Speaker 1>the way, where there were a couple of personal computers

0:47:21.719 --> 0:47:25.040
<v Speaker 1>that ended up getting really bad reviews. But a lot

0:47:25.040 --> 0:47:28.280
<v Speaker 1>of IBM machines were really good machines. They were also

0:47:28.719 --> 0:47:33.200
<v Speaker 1>fairly expensive machines, but they again, that was the company

0:47:33.200 --> 0:47:35.399
<v Speaker 1>that got to set the tone and everyone else had

0:47:35.400 --> 0:47:38.239
<v Speaker 1>to sort of play along. Tandy was not one of

0:47:38.280 --> 0:47:43.960
<v Speaker 1>those companies. Tandy was creating computers that were technically superior

0:47:44.200 --> 0:47:46.919
<v Speaker 1>in many ways to the IBM machines at the time,

0:47:46.960 --> 0:47:49.600
<v Speaker 1>but again they suffered for it by not being able

0:47:49.640 --> 0:47:52.040
<v Speaker 1>to run as much of the software, so it ended

0:47:52.120 --> 0:47:54.840
<v Speaker 1>up not helping Tandy in the long run, and they

0:47:54.880 --> 0:47:57.560
<v Speaker 1>would eventually get out of that game. Still, more and

0:47:57.600 --> 0:48:00.759
<v Speaker 1>more manufacturers began to create computers that followed ibm s lead,

0:48:01.080 --> 0:48:04.759
<v Speaker 1>and that created a full industry of IBM clones or

0:48:04.920 --> 0:48:08.359
<v Speaker 1>compatible So if you've ever heard the term IBM compatible,

0:48:08.680 --> 0:48:10.960
<v Speaker 1>what that meant was it was made by a company

0:48:11.000 --> 0:48:15.359
<v Speaker 1>that was not IBM, but using similar hardware and software

0:48:15.600 --> 0:48:19.359
<v Speaker 1>and bios that would allow it to run the same

0:48:19.400 --> 0:48:23.160
<v Speaker 1>software that would run on an IBM machine. And because

0:48:23.200 --> 0:48:25.799
<v Speaker 1>IBM had used all these off the shelf pieces, and

0:48:25.880 --> 0:48:29.520
<v Speaker 1>because people could reverse engineer the bios, and because MS

0:48:29.600 --> 0:48:33.439
<v Speaker 1>DOSS could license or Microsoft rather it could license ms

0:48:33.480 --> 0:48:36.560
<v Speaker 1>DOS to any company it wanted to. Because IBM to

0:48:36.680 --> 0:48:41.120
<v Speaker 1>not own the operating system, it meant that IBM had

0:48:41.239 --> 0:48:45.319
<v Speaker 1>managed to create its own competitors in the marketplace. This

0:48:45.440 --> 0:48:47.600
<v Speaker 1>was great for the end consumer. If you were someone

0:48:47.640 --> 0:48:49.839
<v Speaker 1>who was shopping around for a computer, it was great

0:48:49.880 --> 0:48:52.080
<v Speaker 1>because there were a lot of different opportunities out there

0:48:52.560 --> 0:48:58.000
<v Speaker 1>that had really affordable machines that could run similar programs

0:48:58.000 --> 0:49:01.840
<v Speaker 1>to IBM s. But it was not so great for IBM.

0:49:01.880 --> 0:49:05.640
<v Speaker 1>If they had maintained ownership of the operating system, it

0:49:05.640 --> 0:49:08.719
<v Speaker 1>would have been an entirely different story. IBM would have

0:49:08.760 --> 0:49:11.480
<v Speaker 1>not just set the tone, they would be the dominant

0:49:11.520 --> 0:49:15.600
<v Speaker 1>factor in personal computers because they'd be the only game

0:49:15.600 --> 0:49:18.200
<v Speaker 1>in town that could actually use that operating system. Someone

0:49:18.200 --> 0:49:19.640
<v Speaker 1>else would have had to have come up with a

0:49:19.680 --> 0:49:23.399
<v Speaker 1>different operating system that was at least as good, if

0:49:23.440 --> 0:49:26.160
<v Speaker 1>not superior, to MS DOST in order to have made

0:49:26.200 --> 0:49:30.520
<v Speaker 1>that a more competitive space. But IBM didn't have that.

0:49:31.120 --> 0:49:33.959
<v Speaker 1>Microsoft had it, and of course, for Microsoft, it made

0:49:34.000 --> 0:49:37.919
<v Speaker 1>way more sense to license out MS DOSS to any

0:49:37.960 --> 0:49:41.000
<v Speaker 1>company that was capable of running it, because that you

0:49:41.200 --> 0:49:44.640
<v Speaker 1>could just make money from multiple customers. So Microsoft was

0:49:44.719 --> 0:49:48.399
<v Speaker 1>making out like a bandit compared to IBM. IBM would

0:49:48.440 --> 0:49:51.120
<v Speaker 1>end up staying in the PC market for several years,

0:49:51.120 --> 0:49:53.480
<v Speaker 1>but their choices meant that it was tough to create

0:49:53.520 --> 0:49:56.800
<v Speaker 1>products that had good profit margins and good enough sales

0:49:57.200 --> 0:50:01.239
<v Speaker 1>to justify that that industry, And in two thousand five,

0:50:01.760 --> 0:50:05.120
<v Speaker 1>IBM ultimately decided that it had had enough and it's

0:50:05.160 --> 0:50:09.320
<v Speaker 1>sold off its PC businesses to Lenovo for a cool

0:50:09.480 --> 0:50:14.320
<v Speaker 1>one point seven five billion dollars. And at that point

0:50:14.480 --> 0:50:19.480
<v Speaker 1>IBM said I'm out. But the architecture they had created,

0:50:19.719 --> 0:50:24.000
<v Speaker 1>the MS DOWS and then later on Windows operating system platforms,

0:50:24.320 --> 0:50:29.880
<v Speaker 1>had defined what PCs were, and to this day, most

0:50:29.880 --> 0:50:33.759
<v Speaker 1>computers you find out there follow that modular architecture that

0:50:33.840 --> 0:50:36.920
<v Speaker 1>IBM set up, where you can mix and match pieces

0:50:36.920 --> 0:50:38.800
<v Speaker 1>even to the point where you can build your own machine.

0:50:38.840 --> 0:50:41.640
<v Speaker 1>You can buy all the individual components and build your

0:50:41.640 --> 0:50:43.759
<v Speaker 1>own computer, and then you just have to get the

0:50:43.760 --> 0:50:48.760
<v Speaker 1>operating system, which means typically that you're getting like Microsoft Windows.

0:50:49.239 --> 0:50:51.600
<v Speaker 1>You could go with a different operating system if you

0:50:51.600 --> 0:50:54.400
<v Speaker 1>wanted to, but you probably wouldn't refer to that machine

0:50:54.440 --> 0:50:58.000
<v Speaker 1>as a PC, because again, we typically use PC as

0:50:58.040 --> 0:51:01.520
<v Speaker 1>shorthand for a Windows based machine, or if you're talking

0:51:01.520 --> 0:51:04.400
<v Speaker 1>about the old ones and MS DOSS based machine. And

0:51:04.480 --> 0:51:07.160
<v Speaker 1>that's it. I have finally come to the end of this,

0:51:07.560 --> 0:51:11.040
<v Speaker 1>this long journey talking about the early days of personal

0:51:11.040 --> 0:51:14.360
<v Speaker 1>computers and why it looks the way it does today.

0:51:14.480 --> 0:51:17.239
<v Speaker 1>Why it is that you have the Windows machines on

0:51:17.239 --> 0:51:20.440
<v Speaker 1>one side, the Macintosh machines or the Max on the

0:51:20.480 --> 0:51:23.920
<v Speaker 1>other side, and not a whole lot of other stuff

0:51:23.960 --> 0:51:27.600
<v Speaker 1>in the middle. Again, you have your Linux distros and

0:51:27.719 --> 0:51:30.920
<v Speaker 1>some other operating systems that are out there, but your

0:51:30.960 --> 0:51:35.880
<v Speaker 1>two big players are mac and uh, the Windows based machines.

0:51:36.480 --> 0:51:39.280
<v Speaker 1>And that's this is the reason why. It's because IBM

0:51:39.360 --> 0:51:43.440
<v Speaker 1>had to find this standard in N one, and other

0:51:43.560 --> 0:51:46.439
<v Speaker 1>companies were able to follow along with that standard and

0:51:47.239 --> 0:51:50.400
<v Speaker 1>slowly chip away at IBM to the point where the

0:51:50.719 --> 0:51:53.000
<v Speaker 1>massive company said, you know, it just doesn't make sense

0:51:53.040 --> 0:51:55.040
<v Speaker 1>for us to be in this market anymore. We can't

0:51:55.040 --> 0:51:58.520
<v Speaker 1>really compete at a level that is truly profitable, so

0:51:58.600 --> 0:52:01.120
<v Speaker 1>let's get out, and they did. I hope you guys

0:52:01.160 --> 0:52:04.000
<v Speaker 1>enjoyed this series of episodes, and our next episode, we'll

0:52:04.040 --> 0:52:06.440
<v Speaker 1>be talking about something totally different. I'm gonna follow up

0:52:07.040 --> 0:52:10.320
<v Speaker 1>on a company that I did a series of episodes

0:52:10.320 --> 0:52:11.960
<v Speaker 1>about in the past, but it's been a couple of

0:52:12.000 --> 0:52:14.399
<v Speaker 1>years since I've talked about them, so we're gonna catch

0:52:14.440 --> 0:52:16.719
<v Speaker 1>up and find out what Nintendo has been up to

0:52:16.840 --> 0:52:19.359
<v Speaker 1>since two thousand sixteen. So tune in for that one.

0:52:19.640 --> 0:52:22.200
<v Speaker 1>If you have suggestions for future episodes of tech Stuff,

0:52:22.280 --> 0:52:24.600
<v Speaker 1>send me a message. You can send it to my

0:52:24.680 --> 0:52:27.120
<v Speaker 1>email address for the show that is tech Stuff at

0:52:27.120 --> 0:52:29.560
<v Speaker 1>how stuff Works dot com, or drop me a line

0:52:29.640 --> 0:52:31.879
<v Speaker 1>on Twitter or Facebook. The handle for both of those

0:52:31.960 --> 0:52:34.759
<v Speaker 1>is tech Stuff hs W. Don't forget to follow us

0:52:34.800 --> 0:52:37.800
<v Speaker 1>on Instagram, and of course you can watch me record

0:52:37.840 --> 0:52:41.279
<v Speaker 1>shows live on twitch dot tv slash tech Stuff. Jump

0:52:41.320 --> 0:52:43.520
<v Speaker 1>in there, join the chat room. I look forward to

0:52:43.520 --> 0:52:46.680
<v Speaker 1>seeing you and I'll talk to you again really soon.

0:52:52.280 --> 0:52:54.719
<v Speaker 1>For more on this and thousands of other topics. Is

0:52:54.719 --> 0:53:01.480
<v Speaker 1>that how stuff Works dot com, wh whe