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Speaker 1: Get in touch with technology with tech Stuff from Stuff

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Speaker 1: dot Com. Everyone, and welcome to tech Stuff. I'm Jonathan Strickland,

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Speaker 1: and and we're going to do another one of our

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Speaker 1: episodes where we start to focus on a company. This

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Speaker 1: will be at least a two partner because the company

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Speaker 1: has been around well since the mid seventies, so they're

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Speaker 1: kind of important. Yeah, it made some big contributions to

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Speaker 1: the world of tech as it turns out. We're talking

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Speaker 1: of course about Microsoft and UM. To really look at

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Speaker 1: the origins of Microsoft, we're gonna go back quite a bit,

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Speaker 1: back to nineteen fifty five when on October a certain

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Speaker 1: Bill Gates was born to a wealthy family in Washington, UM.

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Speaker 1: He came from a not so humble background. He actually

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Speaker 1: was born into a very well to do family, UM,

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Speaker 1: and that gave him certain advantages. He was able to

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Speaker 1: take advantage of a pretty pretty interesting education. He went

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Speaker 1: to Lakeside, which was a private school, and that's where

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Speaker 1: he met Paul Allen, who would also be become important

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Speaker 1: to this company. Yea Paul Allen who was two years

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Speaker 1: older than Bill Gates. So it was interesting that these

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Speaker 1: two struck up a friendship. They were separated by a

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Speaker 1: couple of years in age and in grade, but both

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Speaker 1: of them became fascinated with a machine at the school.

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Speaker 1: It's a teletype machine. And you may, oh, my, Drew,

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Speaker 1: geese have forgotten what these machines are like. Things changing,

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Speaker 1: so scory and everyone quick to forget. But teletype machine. Yeah. Essentially,

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Speaker 1: it was using telephone lines and you could send information

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Speaker 1: across and it would type out the information. And they

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Speaker 1: began to um kind of figure out ways of playing

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Speaker 1: with it and learning how it worked and manipulating it. Supposedly,

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Speaker 1: according to Wire, the pair exhausted the school's annual budget

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Speaker 1: for time on this computer within a matter of weeks,

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Speaker 1: and they soon started to um work with a with

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Speaker 1: a local computer contract center to um find software bugs

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Speaker 1: in exchange for extra time on the computers. Interesting, so

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Speaker 1: they like the computers so much that they would work

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Speaker 1: in orders for them to be able to continue to them.

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Speaker 1: In nineteen seventy two, according to the BBC, Gates used

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Speaker 1: the teletype machine to manipulate school schedules for a purpose

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Speaker 1: that I find incredibly creepy. It was to to try

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Speaker 1: to find the get the right girls a k a.

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Speaker 1: The girls that he thought were kind of pretty into

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Speaker 1: his classes with him. Yeah. Essentially, you know, he was

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Speaker 1: just anyone who had who was wanting certain classes. He

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Speaker 1: wanted to make sure that that the right mix of

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Speaker 1: people were in the classes. He was in the right

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Speaker 1: makes of people, being all the cute girls social engineer. Yeah,

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Speaker 1: little creepy, little creepy. However, in ninety three, he yeah,

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Speaker 1: he graduated, graduated, began to attend Harvard, and that's where

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Speaker 1: he met someone else who would become really important in

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Speaker 1: the Microsoft story, Mr Steve Balmer. They lived down the

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Speaker 1: hall from each other in the same dormitory. Right, So

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Speaker 1: then we move over into nineteen seventy four, moving right along,

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Speaker 1: and uh, that's when the magazine Popular Electronics published its

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Speaker 1: article about the Altair hundred. It was called the world's

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Speaker 1: first micro computer kit to rival commercial models. Um, and

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Speaker 1: yeah it was. It was talking about the Altaire and

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Speaker 1: Intel's U four zeroes Ero four chip. And yeah, this

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Speaker 1: was this was the dawning of the personal computer age.

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Speaker 1: The Altair was, of course a kit that you could

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Speaker 1: order and then build your own computer. Now, this was

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Speaker 1: incredibly early on, so micro computers at this point were

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Speaker 1: pretty primitive and there there wasn't a whole lot of

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Speaker 1: software that you can run on them, because, uh, up

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Speaker 1: until this point, computers were really pretty much only in

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Speaker 1: research facilities, in in large companies that needed databases. They weren't. Again,

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Speaker 1: you kind of had to rent time on them if

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Speaker 1: you're going to really use them on a personal level,

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Speaker 1: all right, and there wasn't much to do on a

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Speaker 1: personal level. I mean, these were really machines meant to

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Speaker 1: do calculations. There just weren't. I mean, it was not

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Speaker 1: like it's not like there's a lot of word processing

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Speaker 1: software even let alone games. Although of course anytime you

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Speaker 1: have a machine and you've got people and they are

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Speaker 1: smart and they are board, they will make games. Are

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Speaker 1: They're small things that are easy, too easy to program.

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Speaker 1: So right, So but the al tear comes out, and uh,

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Speaker 1: the company that made the al Tear mits m I

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Speaker 1: t S, invited readers to submit programming languages for the computer.

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Speaker 1: Now in early nine as in like the day or

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Speaker 1: two days after this this issue had hit the supposedly, um,

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Speaker 1: I think Paul Allen came like came like running down

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Speaker 1: the hall and was like, well check this out. Yeah,

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Speaker 1: he had he had the copy of the magazine, and

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Speaker 1: he said, let's do this, let's build a computer language

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Speaker 1: for the al tear, and we can we can be

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Speaker 1: the ones to to make history. And they, from at

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Speaker 1: least one account, the account that I read in the BBC,

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Speaker 1: they apparently told myths that they in fact had the

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Speaker 1: programming language before they had you know, built it. But not.

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Speaker 1: It's not to say that they didn't have the skills.

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Speaker 1: They certainly did. They just they just didn't have the

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Speaker 1: work done yet. But they pretty much committed themselves to it.

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Speaker 1: And then over the course of several hours, maybe a

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Speaker 1: couple of days, they built their computer language, which was

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Speaker 1: a variant of the Basic computer language, which has been

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Speaker 1: invented in the sixties, but this was the first one

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Speaker 1: for this particular chip set. Yes, they had actually been

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Speaker 1: playing with Basic way back in high school together, right,

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Speaker 1: So now they created a simulator of the al tear

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Speaker 1: on another machine, the deck PDP ten they had one.

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Speaker 1: They ended up creating an emulator for the al tear

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Speaker 1: so that they could actually test this programming language because

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Speaker 1: otherwise they have no way of knowing if it would

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Speaker 1: work or not. They didn't have access to an al tear,

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Speaker 1: so uh. They then submit this programming language to MITS

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Speaker 1: and uh, and it's met with some approval, so much

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Speaker 1: so that Paul Allen was made the VP and director

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Speaker 1: of software for the company. So I would say that

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Speaker 1: that was a rousing success. Yeah, yeah and uh. Also Bill,

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Speaker 1: Bill Gates and Paul Allen both moved to UM to

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Speaker 1: its headquarters in Albuquerque. Ye Albuquerque, which just makes me

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Speaker 1: think of weird all Yankovic. But anyway, or bugs Bunny

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Speaker 1: should have taken that left in Albuquerque. But so on.

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Speaker 1: On November twenty nine, Bill Gates sends a letter to

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Speaker 1: Paul Allen, and the letter contains a certain name in it.

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Speaker 1: It is micro dash Soft, which is the earliest known

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Speaker 1: written reference of the company name. Although they had been

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Speaker 1: talking about this for a while beforehand, according to most interviews,

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Speaker 1: but this was the first time, the first the earliest

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Speaker 1: written reference anyone has found. They had also tossed around

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Speaker 1: something like Gates and Allen, Inc. Or something like that.

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Speaker 1: Exciting stuff, you know. So they came up with this idea,

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Speaker 1: and by the end of the year, the partnership that

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Speaker 1: would eventually become Microsoft had earned sixteen thousand and five

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Speaker 1: dollars in revenue and had a grand total of three employees. Uh.

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Speaker 1: When you get to the next year nine, this is

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Speaker 1: a huge year in personal computers, a huge year that

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Speaker 1: people probably at the time could not have predicted would

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Speaker 1: turn out to be so instrumental in shaping what the

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Speaker 1: future of personal computing would be. This is the same

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Speaker 1: year that two other individuals, uh some some rather prankster

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Speaker 1: ish types, the Steve Steve Jobs and Steve West. They

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Speaker 1: they had decided to uh work together to build their

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Speaker 1: own personal computer. Now keep in mind, Gates and Allen

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Speaker 1: aren't building computers. They're building not not even not even

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Speaker 1: operating systems, right, not even Yeah, this is this is

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Speaker 1: before personal computers really had what we would call an

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Speaker 1: operating system. This is when you would put a uh

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Speaker 1: some you would hook it up to some form of media,

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Speaker 1: and then you would use a a ligne command to

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Speaker 1: run a program. But that's about it. There's it's it's

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Speaker 1: not so advanced as to call it an operating system.

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Speaker 1: So Steve Jobs and Steve Wozniak are designing their own computer,

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Speaker 1: which the first one was called the Apple One, which

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Speaker 1: didn't you know, they only made a few hundred of them,

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Speaker 1: as I recall, and the original price was six hundred

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Speaker 1: sixty six dollars and sixty six cents for the Apple one.

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Speaker 1: But they were they got to meet with Bill Gates

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Speaker 1: and Paul Allen. In fact, uh uh they were chatting

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Speaker 1: early at the Palo Alto Homebrew Computer Club about the

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Speaker 1: possibility of using programming languages. So and even at the

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Speaker 1: earliest days, Microsoft and Apple had a relationship. It wasn't

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Speaker 1: a formal relationship by that point, but they knew each other.

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Speaker 1: You know, people knew one another in these communities that

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Speaker 1: this homebrew club was. That was a big organization. I mean,

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Speaker 1: maybe not big, but but certainly a lot of people

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Speaker 1: who had become key players in the industry over the years.

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Speaker 1: Uh started out started out there, and for for a

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Speaker 1: large part it was it was hobbyists at the time,

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Speaker 1: but uh folks, folks like h like like Steve and

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Speaker 1: Bill where um much more business minded, I think than

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Speaker 1: than most other kids hanging out. Yeah. Yeah, they definitely

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Speaker 1: had a bigger picture in mind than just hey, this

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Speaker 1: is this is this is really this is a really

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Speaker 1: cool device. I want to see what else I can

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Speaker 1: do with it. Some some people were more than content

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Speaker 1: to just keep it a hobby, but others were seeing

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Speaker 1: the potential for this to be a game changer to

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Speaker 1: be in its own industry. Well. In March of ninet,

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Speaker 1: Bill Gates delivered the opening address at the first annual

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Speaker 1: World I'll Tear Computer Convention, which as far as I know,

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Speaker 1: is no longer happening. I've never been. Don't think that

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Speaker 1: I would wonder what it would look like if you

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Speaker 1: were to attend a World Altare computer convention in Paul

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Speaker 1: Allen resigned from midst that year in my ts that

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Speaker 1: year to work full time on the Microsoft project, and

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Speaker 1: on November twenty six, nineteen seventy six, Allen and Gates

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Speaker 1: trademarked the term Microsoft. They had since lost the hyphen. Yeah,

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Speaker 1: now it's just Microsoft, no hyphen, just one word. That's same.

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Speaker 1: Around that same time, Bill Gates officially drops out of Harvard.

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Speaker 1: He had been uh, he took a break for a

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Speaker 1: little while, then he went back, and at this point

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Speaker 1: he had decided that he wanted to concentrate Microsoft um.

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Speaker 1: Gates also writes an open letter to hobbyists where he

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Speaker 1: addresses the issue of software piracy. Now keep in mind,

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Speaker 1: this is the earliest days of personal computing, and already

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Speaker 1: there was this this interesting, interesting dichotomy. Okay, you had

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Speaker 1: people who wanted to have software freely available, which would

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Speaker 1: then encourage more people to get into the hobby and

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Speaker 1: more innovation. And then you had the people who are

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Speaker 1: developing software who are saying, in order for me, don't

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Speaker 1: let us make money, then we can't continue making cool

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Speaker 1: stuff for you to play with. So yeah, there's no

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Speaker 1: incentive for me to put in work if I'm not

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Speaker 1: getting any reward from it. I mean, I love this

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Speaker 1: as much as you guys do, but a guy has

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Speaker 1: got to eat. I dropped out of Harvard, so uh

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Speaker 1: so he wrote this open letter to to address these

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Speaker 1: problems of software piracy, which is it's kind of funny

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Speaker 1: because when you think about it, you know, we were

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Speaker 1: more than three decades later, and we still have the

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Speaker 1: same issues. It's now just on a larger scale scale.

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Speaker 1: Exactly that next year nine, Bill Gates becomes the president

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Speaker 1: and Paul Allen the vice president of Microsoft is now

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Speaker 1: an official company and before they were considered to be

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Speaker 1: general partners in this, and this was the first time

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Speaker 1: that that they delineated their their responsibilities within the come

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Speaker 1: right and Gates at this point owned more of Microsoft

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Speaker 1: than Alan. Actually that's true all the way through the history.

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Speaker 1: So Gates had a greater part of the ownership of

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Speaker 1: the company, and they begin with a license deal to Apple.

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Speaker 1: They were the ones who provided the Apple version of Basic,

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Speaker 1: called Microsoft apple Soft Basic. So that's interesting to me

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Speaker 1: too that the programming language for the Apple two computer

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Speaker 1: was in fact developed by Microsoft, because a lot of

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Speaker 1: people think then Microsoft and Apple have always had a

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Speaker 1: very contentious, yea acrimonious relationship, like they were constantly butting heads,

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Speaker 1: and that's not really true. In fact, there were a

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Speaker 1: lot of times throughout for a long time they were

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Speaker 1: they were really trying to help each other out. Yeah,

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Speaker 1: they were working together because when you think about it,

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Speaker 1: they're in two they were in two different businesses. Okay,

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Speaker 1: So you had Apple that was developing all of their

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Speaker 1: own hardware and software and Microsoft was just software. So

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Speaker 1: it wasn't like they were wret competition with one another.

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Speaker 1: Especially in those early days. They were all looking at

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Speaker 1: a burgeoning industry and saying, how can we make this grow? Yeah,

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Speaker 1: and everyone was trying to make money. By working together,

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Speaker 1: you can make more money yea. Um speaking about money. Uh.

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Speaker 1: In eight uh, Microsoft sales of Basic eighty eight alone

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Speaker 1: exceeded one million dollars, so incredible. The company itself has

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Speaker 1: been around essentially two years. Depending upon how you wanted

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Speaker 1: to find the actual company, you could say as many

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Speaker 1: as three, but it really that that first year it

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Speaker 1: was really a partnership and not an official company at all.

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Speaker 1: So they've already hit one million in revenue and sales.

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Speaker 1: This is this is phenomenal. They also developed a programming

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Speaker 1: language for another early personal computer that has there are

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Speaker 1: people who love this machine. One of the Commodore is right, yep,

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Speaker 1: the Commodore Personal Electronic Transactor or PET, the Commodore PET.

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Speaker 1: So yeah, they developed the basic programming language for that

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Speaker 1: as well. The next year, nineteen seventy nine, that's when

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Speaker 1: they made their big move literally from from Albuquerque back

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Speaker 1: up to Washington State. Yep. Now they weren't they weren't

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Speaker 1: in their current headquarters yet. That's they hadn't quite moved

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Speaker 1: that far. They went into Bellevue, which was actually not

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Speaker 1: very far from where Paul Allen and Bill Gates grew up,

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Speaker 1: and they formed the consumer Products division of Microsoft. This

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Speaker 1: was an idea to development market retail products and to

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Speaker 1: provide support for customers, and they actually started to develop

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Speaker 1: their own in house game. All right, Microsoft Adventure came

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Speaker 1: out of that. Yeah, people who remember Adventure remember it fondly.

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Speaker 1: It was I mean, by any measure of today's standards,

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Speaker 1: it's an incredibly primitive game. But at the time it

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Speaker 1: was one of those things that people just fell in

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Speaker 1: love with, but that they they invested in this, they

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Speaker 1: tried to develop it, and ultimately they decided that it

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Speaker 1: wasn't really performing up to their expectations, so they eventually

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Speaker 1: folded it back into the overall company. Right right, During

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Speaker 1: that year, they grew from thirteen to twenty eight employees.

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Speaker 1: So then and Basic was was doing really well. It

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Speaker 1: was kind of on the verge of becoming the standard

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Speaker 1: language for for micro computers. Right. I think it's funny

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Speaker 1: thirteen to twenty eight employees. You could say within that

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Speaker 1: year they more than double size from thirteen to eight. Uh,

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Speaker 1: humble beginnings. Now, if you move up to the next year,

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Speaker 1: to nineteen eighty, that's when Bill Gates makes a very

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Speaker 1: famous hire. He hires his old buddy from Harvard, Steve Balmer,

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Speaker 1: and Steve Balmber becomes Microsoft's first business manager. Steve Balmer

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Speaker 1: was the salesman. He was the guy who was known

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Speaker 1: as he He just he understands the sales aspect. He

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Speaker 1: could build these relationships between different companies. He can develop

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Speaker 1: them because you know, most of Microsoft's business was really

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Speaker 1: in partnering with their companies, not so much uh directing

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Speaker 1: business directly at the consumer, right right, Yes, since as

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Speaker 1: we said, they were just creating software at the time.

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Speaker 1: It was you know, all convincing other people to uh yeah,

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Speaker 1: let them develop programming languages for their platforms. Things like

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Speaker 1: you know, the stuff that you would see that Microsoft

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Speaker 1: had a hand in. Where that was the stuff that

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Speaker 1: would come when you bought the computer you were buying,

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Speaker 1: Like when you bought an Apple too and you started

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Speaker 1: programming stuff, you were using the Microsoft programming language. But

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Speaker 1: it wasn't like you bought a computer and then you

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Speaker 1: ran out to grab the Microsoft copy of whatever software

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Speaker 1: it was. It was all packaged together. So the business

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Speaker 1: relationships were key in those early years with Microsoft. Yeah. Um,

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Speaker 1: speaking of those business relationships, in July, they entered an

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Speaker 1: agreement for the upcoming IBM PC. The code name of

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Speaker 1: this project was Chess. Yeah. IBM has a history with

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Speaker 1: Chess uh, they would actually at this point it would

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Speaker 1: be a future with chess because IBM Suh IBM would

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Speaker 1: famously u show that a computer chess champion could defeat

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Speaker 1: the human grand chess champion. But at any rate, Yes,

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Speaker 1: this this this code name project was for the developing

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Speaker 1: software and operating system information for an upcoming personal computer

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Speaker 1: developed by IBM and and and again Microsoft at the

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Speaker 1: time was not was not creating operating systems. This was

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Speaker 1: really kind of one of the first that was out there. Um,

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Speaker 1: they a Gates and Bomber wound up buying something called

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Speaker 1: QUDS Quick and Dirty operating System for about fifty grand, right,

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Speaker 1: and they wound up a repackaging it or recoding recoding.

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Speaker 1: They essentially used that as think of it as using

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Speaker 1: that as the foundation to build their own operating system

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Speaker 1: on top of So we don't mean to say that

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Speaker 1: they just took They just weren't bought one thing and

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Speaker 1: then repackaged it and then sold it. They definitely did.

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Speaker 1: Microsoft did change that, but that was the basis of

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Speaker 1: that operating system. Just as you would say that there

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Speaker 1: are lots of different Linux distributions out there that take

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Speaker 1: the basic Linux and then create something on top of

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Speaker 1: it that makes it makes it more usable for a

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Speaker 1: certain part of the audience, right right, But they renamed

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Speaker 1: it disc operating System and licensed it to IBM for

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Speaker 1: eight grand um, which which sounds like a small amount,

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Speaker 1: and it was even at the time a relatively small amount,

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Speaker 1: but um. But they also had an agreement to earn

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Speaker 1: on top of any any PC sales that the system

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Speaker 1: went on too. In addition to that, they were even

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Speaker 1: more savvy because they retained the licensing rights so that

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Speaker 1: they could license that same operating system to other manufacturers. Now,

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Speaker 1: for those who aren't aware, when the IBM compatible computers

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Speaker 1: started coming out, that these were machines that were built

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Speaker 1: by other companies besides IBM that could run the same

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Speaker 1: sort of software because they were using a very similar

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Speaker 1: or identical chip set to the IBM PC. So that

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Speaker 1: meant that Microsoft, because they retained this licensing agreement that

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Speaker 1: they could license other manufacturers, could provide the operating system.

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Speaker 1: So that meant that suddenly you had all these different

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Speaker 1: machines from different manufacturers that could do essentially the same

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Speaker 1: thing as the IBM PC, but because they were offered

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Speaker 1: by someone else and they were using perhaps different materials,

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Speaker 1: sometimes the price would be significantly lower. This is what

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Speaker 1: would eventually one of the factors I should say that

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Speaker 1: would eventually lead IBM to pull out of the consumer

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Speaker 1: PC market, because once this train got set in motion,

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Speaker 1: it really was hard to derail it. It meant that

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Speaker 1: IBM had to compete essentially against itself. They had invented

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Speaker 1: the approach that they wanted to take, and then everyone

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Speaker 1: else could just copy it. Um Apple, by the way,

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Speaker 1: had a very similar situation for a while after Steve

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Speaker 1: Jobs was politely asked to leave or he left on

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Speaker 1: his own, depending upon whom you ask uh, and then

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Speaker 1: Apple did a very similar thing where they actually licensed

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Speaker 1: out the Apple designed to other manufacturers. When Jobs came back,

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Speaker 1: he put a stop to that. Technically, I think it

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Speaker 1: had already kind of stopped before he came back, but

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Speaker 1: he definitely um So anyway, this was one of those

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Speaker 1: things where it was a great move for Microsoft. Maybe

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Speaker 1: not such a great move for IBM PC, but it

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Speaker 1: meant that Microsoft had guaranteed yet more revenue down the

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Speaker 1: line by licensing this operating system to other manufacturers. They

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Speaker 1: also started to develop their own hardware in the form

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Speaker 1: of special microprocessors, circuit boards that could allow the computer

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Speaker 1: computers that have are based around one particular design to

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Speaker 1: run programs that were built for other types of computers. So,

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Speaker 1: in other words, it's kind of like an emulator. So

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Speaker 1: you know, like if you had an Apple To computer

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Speaker 1: and I had an IBM computer and I had this

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Speaker 1: program I wanted you to be able to use, you

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Speaker 1: couldn't use it on your Apple TO. The architecture is

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Speaker 1: totally different. It just wouldn't work. So what Microsoft was

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Speaker 1: starting to do was build up microchips or or actually

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Speaker 1: circuit boards that you could insert into a computer, put

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Speaker 1: it in one of the computer's expansion slots. Yeah, and so, uh,

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Speaker 1: it wasn't like it was a magic pill that would

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Speaker 1: work on every computer. They had only a few specific

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Speaker 1: ones that would allow one type of computer to run

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Speaker 1: one type of other software. So, but it was an

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Speaker 1: interesting move that they were getting into hardware. This was

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Speaker 1: their first time of really doing that. Otherwise they were

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Speaker 1: just concentrating on code. Now. Um, then that's when we

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Speaker 1: actually get launch of ms DOS Microsoft disc Operating System. Uh,

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Speaker 1: and that's introduced on the IBM PC. UM and that's

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Speaker 1: also when Microsoft got a visit from a certain Mr.

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Speaker 1: Steve Jobs, and he Steve Jobs, arrived at Microsoft to

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Speaker 1: give them an early look at what would be the

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Speaker 1: Macintosh computer. This is one The Macintosh computer does not

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Speaker 1: come out until nineteen four, so this is several years

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Speaker 1: in advance of the debut of this computer. And it

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Speaker 1: just shows really that the development cycle for these kinds

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Speaker 1: of devices can take several years sure, and also just

384
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Speaker 1: shows the strength of the relationship at that stage in

385
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Speaker 1: the game. But you know, it's you know, being being

386
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Speaker 1: willing to show something that secretive at that point, and uh,

387
00:22:18,760 --> 00:22:21,719
Speaker 1: it was. It was kind of fun I think, um uh.

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Speaker 1: People were referring it to it as a wonderful machine

389
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Speaker 1: and eventually there would be a funny little acronym about that.

390
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Speaker 1: But I'll get to that in a little bit later.

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Speaker 1: So that same year Microsoft incorporated, but was still a

392
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Speaker 1: privately held company. They did not have an initial public

393
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Speaker 1: offering yet, and Gates was became the president and chairman

394
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Speaker 1: and Alan became the executive vice president. And by the

395
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Speaker 1: end of the year, the revenues hit sixteen million dollars

396
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Speaker 1: and they had a hundred and twenty eight employees. Yeah,

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Speaker 1: that's that's a great number for a computer programmer, A

398
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Speaker 1: hundred twenty eight, because it's falling into the pattern there.

399
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Speaker 1: Um In the Microsoft developed something internally called the Microsoft

400
00:23:03,760 --> 00:23:08,480
Speaker 1: Local Area Network or MILAN, and that was to connect

401
00:23:08,520 --> 00:23:11,639
Speaker 1: all their in house development computers together. So this was

402
00:23:11,760 --> 00:23:15,800
Speaker 1: essentially a very early computer network that Microsoft was using.

403
00:23:15,920 --> 00:23:18,920
Speaker 1: There had been other computer networks before this one, obviously,

404
00:23:18,960 --> 00:23:22,000
Speaker 1: I mean our ponnet existed at this time, and that

405
00:23:22,080 --> 00:23:24,639
Speaker 1: was a network of networks that was the predecessor to

406
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Speaker 1: the Internet. But this is an early implementation of computer networks.

407
00:23:30,280 --> 00:23:32,880
Speaker 1: And uh and at that time, a man named James

408
00:23:32,960 --> 00:23:36,920
Speaker 1: Town became the president and CEO of Microsoft. Bill Bill

409
00:23:36,960 --> 00:23:39,639
Speaker 1: Gates hired him to kind of take over the operational

410
00:23:39,720 --> 00:23:42,800
Speaker 1: duties exactly. Yeah. And this is something that we would

411
00:23:42,800 --> 00:23:46,720
Speaker 1: see throughout Microsoft's history as well, is that Bill Gates

412
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Speaker 1: really wanted to concentrate on developing business, to develop actual product.

413
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Speaker 1: And as he became more and more of a personality

414
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Speaker 1: um within I mean not just within the company, but

415
00:23:57,800 --> 00:24:01,280
Speaker 1: but in terms of of marketing power, you know that

416
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Speaker 1: the day to day stuff has never really interested him

417
00:24:04,320 --> 00:24:06,439
Speaker 1: I think as much as right, and and it just

418
00:24:06,480 --> 00:24:08,960
Speaker 1: meant that it took away time from the stuff you

419
00:24:09,119 --> 00:24:12,040
Speaker 1: really like to do, like to work on projects and

420
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Speaker 1: to uh to lead teams to develop new products. So,

421
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Speaker 1: I mean, we understand why he was why he was

422
00:24:20,160 --> 00:24:22,240
Speaker 1: doing this, but it was kind of an interesting move

423
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Speaker 1: that he he hires someone else from outside the company

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Speaker 1: to become the president CEOO right right. That was also

425
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Speaker 1: the year that work on Windows originally began under the

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00:24:31,920 --> 00:24:35,880
Speaker 1: code name Interface Manager. Yeah. So, uh, that might also

427
00:24:35,920 --> 00:24:38,960
Speaker 1: surprise you because everyone remembers that when the Macintosh debut

428
00:24:39,040 --> 00:24:43,120
Speaker 1: in four that that the graphics user interface was such

429
00:24:43,119 --> 00:24:47,560
Speaker 1: a huge leap from the old days. Now, granted again

430
00:24:47,720 --> 00:24:51,000
Speaker 1: again they had seen that this early, these early prototypes

431
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Speaker 1: of the mac and also remember that the graphics user

432
00:24:55,040 --> 00:24:57,760
Speaker 1: interface wasn't that new. As it turns out, Xerox had

433
00:24:57,800 --> 00:25:01,400
Speaker 1: been working on that for several years. Precisely to the

434
00:25:01,480 --> 00:25:07,400
Speaker 1: average computer or the potential computer customer, it was revolutionary.

435
00:25:07,480 --> 00:25:12,720
Speaker 1: So two comes and goes, we get up to three.

436
00:25:12,840 --> 00:25:16,360
Speaker 1: That's when they actually announced that they're working on the

437
00:25:16,440 --> 00:25:20,399
Speaker 1: graphics user interface. Uh. At that same year, Paul Allen

438
00:25:20,760 --> 00:25:24,960
Speaker 1: is diagnosed with Hodgkins disease, so he ends up stepping

439
00:25:25,040 --> 00:25:30,040
Speaker 1: back from working full time at Microsoft. Simultaneously, Jamestown resigned

440
00:25:30,080 --> 00:25:33,960
Speaker 1: as the CEO. Yeah, and uh, and so a new

441
00:25:34,040 --> 00:25:37,520
Speaker 1: president and CEO comes on for Microsoft. His name is

442
00:25:37,720 --> 00:25:41,000
Speaker 1: John Shirley, and he came from the Tandy Corporation. I

443
00:25:41,040 --> 00:25:44,680
Speaker 1: remember Tandy Computers me too. I I read that and

444
00:25:44,720 --> 00:25:47,720
Speaker 1: I was like, Tandy, It's been so long since I've

445
00:25:47,720 --> 00:25:51,479
Speaker 1: seen that name that it was kind of brought back memories. Um.

446
00:25:51,560 --> 00:25:54,679
Speaker 1: And that's when Bill Gates became the He was essentially

447
00:25:54,720 --> 00:25:56,880
Speaker 1: the chairman of the board and the and and an

448
00:25:56,960 --> 00:26:01,240
Speaker 1: executive vice president, which is an interesting common nation. And uh.

449
00:26:01,480 --> 00:26:04,480
Speaker 1: And that's the same year that Microsoft word for MS

450
00:26:04,560 --> 00:26:08,000
Speaker 1: DOS one point oh launched. So we get our first

451
00:26:08,119 --> 00:26:16,480
Speaker 1: example of Microsoft's land breaking amazing word processor that I

452
00:26:16,520 --> 00:26:19,240
Speaker 1: could not stand for the longest time, which is what

453
00:26:19,320 --> 00:26:21,320
Speaker 1: I'm looking at my show notes on right now. Now.

454
00:26:21,520 --> 00:26:23,560
Speaker 1: I love it. Well, I mean not not not for

455
00:26:23,760 --> 00:26:26,760
Speaker 1: MS DOS one point, you know. No, we we've actually

456
00:26:26,880 --> 00:26:30,320
Speaker 1: upgraded from MS DOS one point. In the office. We

457
00:26:30,400 --> 00:26:33,080
Speaker 1: now are on Windows three point one. Uh. That's a

458
00:26:33,200 --> 00:26:37,040
Speaker 1: that's a joke. We get that next year around around

459
00:26:37,640 --> 00:26:39,720
Speaker 1: three By the way, they were just lots of software

460
00:26:39,720 --> 00:26:42,360
Speaker 1: agreements going on with Apple. Um, they were they were

461
00:26:42,359 --> 00:26:45,800
Speaker 1: both kind of just just really continuing that relationship and

462
00:26:45,840 --> 00:26:49,760
Speaker 1: helping each other out, which again is funny considering the

463
00:26:49,760 --> 00:26:53,000
Speaker 1: way the Night four iconic commercial comes into play. Well.

464
00:26:53,080 --> 00:26:55,840
Speaker 1: Also in n three the company hit fifty million dollars

465
00:26:55,840 --> 00:27:01,639
Speaker 1: in revenues employees at that point, phenomenal growth within the company.

466
00:27:01,840 --> 00:27:04,600
Speaker 1: That's when the Macintosh launches, and of course the famous

467
00:27:04,640 --> 00:27:09,160
Speaker 1: commercial was very much UM trying to to get that

468
00:27:09,359 --> 00:27:14,439
Speaker 1: Orwellian feeling, the idea of Uh, the IBM computer is

469
00:27:15,000 --> 00:27:19,359
Speaker 1: very very uniform and design and there's no personality there

470
00:27:19,359 --> 00:27:22,520
Speaker 1: and it's supposed to strip away anything that's fun or that.

471
00:27:22,600 --> 00:27:25,680
Speaker 1: The Macintosh was this creative powerhouse that yeah, and it's

472
00:27:25,720 --> 00:27:30,000
Speaker 1: for the individual who has exactly it's supposed to be.

473
00:27:30,040 --> 00:27:35,040
Speaker 1: For the rainbow connection, the lovers, the dreamers and me. Uh,

474
00:27:35,080 --> 00:27:37,879
Speaker 1: this was not necessarily a shot across the bow at Microsoft.

475
00:27:37,920 --> 00:27:41,719
Speaker 1: This was a shot at IBM. Again, one of those

476
00:27:41,720 --> 00:27:43,920
Speaker 1: things where we think back and like, but didn't Apple

477
00:27:44,000 --> 00:27:46,560
Speaker 1: hate Microsoft because of that? You know, think about that commercial.

478
00:27:46,720 --> 00:27:49,040
Speaker 1: That commercial was really aimed at the way IBM was

479
00:27:49,080 --> 00:27:53,560
Speaker 1: doing business, not at or the way IBM was was portrayed.

480
00:27:53,880 --> 00:27:55,800
Speaker 1: You know that, and that this is that's a business

481
00:27:55,800 --> 00:27:58,640
Speaker 1: computer that's where business you know, this is something that's

482
00:27:58,680 --> 00:28:01,919
Speaker 1: for the creative individual. Um. So it really wasn't a

483
00:28:01,920 --> 00:28:06,320
Speaker 1: shot at Microsoft. Uh. And then that's you know, Microsoft

484
00:28:06,359 --> 00:28:09,160
Speaker 1: actually ended up taking a big role in developing software

485
00:28:09,280 --> 00:28:12,480
Speaker 1: for the Macintosh program. A lot of those early programs

486
00:28:12,520 --> 00:28:18,679
Speaker 1: on the Mac came from Microsoft. And the program that

487
00:28:18,720 --> 00:28:22,760
Speaker 1: Microsoft engaged in for developing software for the Macintosh was

488
00:28:22,800 --> 00:28:25,680
Speaker 1: called sand This is that cute acronym. I was talking

489
00:28:25,720 --> 00:28:30,200
Speaker 1: about Steve's amazing new device. Yeah. So, I mean everyone

490
00:28:30,240 --> 00:28:33,280
Speaker 1: at Microsoft thought that Steve jobs and and the work

491
00:28:33,320 --> 00:28:36,080
Speaker 1: that he was doing over an Apple was pretty cool. Yeah.

492
00:28:36,560 --> 00:28:41,080
Speaker 1: So yeah. One of the software projects was Microsoft Excel,

493
00:28:41,760 --> 00:28:44,440
Speaker 1: which was the spreadsheet program that later would come to

494
00:28:44,480 --> 00:28:48,240
Speaker 1: the PC. It actually hit the Mac first, or the Macintosh,

495
00:28:48,280 --> 00:28:49,840
Speaker 1: I should say it shouldn't call it a Mac because

496
00:28:49,880 --> 00:28:53,240
Speaker 1: it's different type of computer, right right. They started actually

497
00:28:53,280 --> 00:28:56,080
Speaker 1: all the way back in two m in on an

498
00:28:56,080 --> 00:28:59,440
Speaker 1: agreement with Apple to create that spreadsheet program that would

499
00:28:59,440 --> 00:29:03,600
Speaker 1: become Excel eventually business graphics and also a database structure.

500
00:29:03,760 --> 00:29:06,640
Speaker 1: So the relationships tight right now. And uh and and

501
00:29:06,720 --> 00:29:09,200
Speaker 1: they were not allowed that they the terms of the

502
00:29:09,200 --> 00:29:12,320
Speaker 1: agreement where to um reserve it for Apple for a

503
00:29:12,440 --> 00:29:15,520
Speaker 1: year before Microsoft could use it themselves. All right, So

504
00:29:15,560 --> 00:29:18,960
Speaker 1: we're picking back up and we're in nine now, that's

505
00:29:19,000 --> 00:29:24,240
Speaker 1: the year that Microsoft Windows ships on Nove So this is, uh,

506
00:29:24,280 --> 00:29:27,800
Speaker 1: this is really a graphical extension of MS DOSS. It's

507
00:29:27,880 --> 00:29:32,120
Speaker 1: not really a full graphics user interface operating system in

508
00:29:32,200 --> 00:29:35,520
Speaker 1: its own right. It's more like something that gets kind

509
00:29:35,520 --> 00:29:39,120
Speaker 1: of piggybacked onto the MS DOSS operating system. So it's

510
00:29:39,160 --> 00:29:42,120
Speaker 1: a little different from the future versions of Windows. Really,

511
00:29:42,120 --> 00:29:44,440
Speaker 1: you have to get to two Windows three point one

512
00:29:44,520 --> 00:29:47,520
Speaker 1: before we start seeing a Windows operating system that looks

513
00:29:47,560 --> 00:29:50,880
Speaker 1: familiar to someone who who uses it today, right, right.

514
00:29:50,920 --> 00:29:53,959
Speaker 1: This was a very very basic first attempt there, but

515
00:29:54,120 --> 00:29:57,040
Speaker 1: it was successful and the company revenues hit about a

516
00:29:57,120 --> 00:30:01,600
Speaker 1: hundred and forty million dollars. They had up to uh,

517
00:30:01,640 --> 00:30:05,280
Speaker 1: what was en employees, so just under a thousand. At

518
00:30:05,280 --> 00:30:07,840
Speaker 1: this point, Bill Gates was becoming a very public figure

519
00:30:07,840 --> 00:30:09,880
Speaker 1: at the time. He was he was being shown on

520
00:30:09,920 --> 00:30:13,240
Speaker 1: the cover of all kinds of magazines, UM and uh

521
00:30:13,480 --> 00:30:17,120
Speaker 1: marketing campaigns, calling calling Microsoft, you know, like trying to

522
00:30:17,120 --> 00:30:20,840
Speaker 1: be the IBM of software and getting getting the concept

523
00:30:20,880 --> 00:30:22,920
Speaker 1: of a computer on every desk and in every home

524
00:30:23,320 --> 00:30:25,680
Speaker 1: we're starting to come out. Yeah, it's funny too, because

525
00:30:25,960 --> 00:30:29,040
Speaker 1: if you start looking back at some of the predictions

526
00:30:29,080 --> 00:30:31,760
Speaker 1: that people, even people like Bill Gates had about how

527
00:30:31,840 --> 00:30:35,240
Speaker 1: many computers would be in the home within X number

528
00:30:35,240 --> 00:30:38,720
Speaker 1: of years, the amazing thing was their predictions at the

529
00:30:38,800 --> 00:30:42,280
Speaker 1: time seemed as ambitious. Everyone was thinking, that is just

530
00:30:42,760 --> 00:30:45,720
Speaker 1: it's insane, who would who would need that? And then

531
00:30:45,840 --> 00:30:47,800
Speaker 1: ten years down the road, you'd realize that they were

532
00:30:47,840 --> 00:30:51,920
Speaker 1: being incredibly conservative. That you know, people weren't taking into

533
00:30:52,000 --> 00:30:55,760
Speaker 1: account things like Moore's law, which states that not only

534
00:30:55,840 --> 00:30:59,000
Speaker 1: are computers getting more powerful over time because we're able

535
00:30:59,080 --> 00:31:02,560
Speaker 1: to fit more dis elements upon one square inch of silicon,

536
00:31:03,080 --> 00:31:06,280
Speaker 1: but also that the price goes down because the manufacturing

537
00:31:06,320 --> 00:31:09,880
Speaker 1: processes get more efficient and we end up learning better

538
00:31:09,920 --> 00:31:13,440
Speaker 1: ways to build computers. So with prices going down and

539
00:31:13,480 --> 00:31:16,600
Speaker 1: the complexity coming down because people are figuring out better

540
00:31:16,600 --> 00:31:19,720
Speaker 1: ways of designing operating systems, it was pretty natural for

541
00:31:19,760 --> 00:31:22,000
Speaker 1: people to want to adopt computers. I mean, a lot

542
00:31:22,040 --> 00:31:24,480
Speaker 1: of these were things that people kind of wanted, but

543
00:31:24,560 --> 00:31:27,040
Speaker 1: they were a little intimidated by, especially in the early days,

544
00:31:27,040 --> 00:31:29,720
Speaker 1: because they didn't have that hobbyist mentality. Sure, sure, and

545
00:31:29,720 --> 00:31:32,560
Speaker 1: so it wasn't until these uh the these these gooey systems,

546
00:31:32,600 --> 00:31:37,720
Speaker 1: they have system graphic interface, I have no problem with.

547
00:31:38,400 --> 00:31:39,880
Speaker 1: So with with all of this money that they were

548
00:31:39,920 --> 00:31:42,960
Speaker 1: making and with this this kind of outrageous number of employees,

549
00:31:43,000 --> 00:31:47,560
Speaker 1: they relocated to Redmond, which was just outside Seattle, and

550
00:31:47,600 --> 00:31:50,920
Speaker 1: this is in fact where Microsoft makes its headquarters today.

551
00:31:51,600 --> 00:31:55,360
Speaker 1: They do, of course have corporate locations in other parts

552
00:31:55,360 --> 00:31:58,480
Speaker 1: of the world, but that's their home bases. And red

553
00:31:58,560 --> 00:32:01,320
Speaker 1: from from did not mentioned that we had moved on

554
00:32:03,360 --> 00:32:06,600
Speaker 1: time waits for no man or Microsoft marches on. Yes

555
00:32:06,640 --> 00:32:10,000
Speaker 1: it does. And uh so. Microsoft then also that year

556
00:32:10,040 --> 00:32:12,920
Speaker 1: held its initial public offering, the I p O. Now, this,

557
00:32:12,960 --> 00:32:16,000
Speaker 1: of course is when a private company becomes a publicly

558
00:32:16,080 --> 00:32:20,640
Speaker 1: traded company, and so ownership is then spread out through shares.

559
00:32:20,880 --> 00:32:23,080
Speaker 1: You can buy shares in the company and that represents

560
00:32:23,080 --> 00:32:26,440
Speaker 1: a certain percentage of ownership of that company. It opened

561
00:32:26,480 --> 00:32:29,320
Speaker 1: at one dollar per share and by the end of

562
00:32:29,320 --> 00:32:32,000
Speaker 1: that day the stock price was at twenty eight dollars

563
00:32:32,000 --> 00:32:35,240
Speaker 1: per share, So it showed a high level of confidence

564
00:32:35,400 --> 00:32:37,280
Speaker 1: in the company and not bad at all. And they

565
00:32:37,360 --> 00:32:40,520
Speaker 1: raised about sixty one million dollars, which at the time

566
00:32:41,200 --> 00:32:44,280
Speaker 1: was the most money any tech company had raised in

567
00:32:44,320 --> 00:32:47,480
Speaker 1: an I p O. Uh. Since then, of course, that

568
00:32:47,480 --> 00:32:50,520
Speaker 1: that's changed when even when you factor in things like inflation,

569
00:32:50,600 --> 00:32:52,640
Speaker 1: it's still not hasn't held up. But at the time

570
00:32:52,680 --> 00:32:57,120
Speaker 1: it was incredibly impressive. Now, that year they also introduced

571
00:32:57,200 --> 00:33:02,160
Speaker 1: Microsoft Works, which had based sick word processing, spreadsheet database,

572
00:33:02,160 --> 00:33:05,080
Speaker 1: and other functions all kind of wrapped up together, and

573
00:33:05,120 --> 00:33:11,920
Speaker 1: they held the first International Conference on CD ROM technology. Yeah, yeah,

574
00:33:11,960 --> 00:33:14,000
Speaker 1: I mean, you know, I'm pretty sure that I still

575
00:33:14,080 --> 00:33:16,520
Speaker 1: had five and a quarter inch floppies on my Yeah,

576
00:33:17,200 --> 00:33:19,680
Speaker 1: that a three and a half inch disk drive to

577
00:33:19,760 --> 00:33:24,360
Speaker 1: me was the future, let alone a c D. Now,

578
00:33:24,400 --> 00:33:26,440
Speaker 1: of course, what we're talking about here is that a

579
00:33:26,480 --> 00:33:29,840
Speaker 1: lot of the if you aren't familiar with the computers

580
00:33:29,880 --> 00:33:32,240
Speaker 1: from back in the eighties all the way up into

581
00:33:32,240 --> 00:33:36,640
Speaker 1: the early nineties, they used magnetic storage media like discs,

582
00:33:36,920 --> 00:33:39,800
Speaker 1: discs that had uh, these these little they were called

583
00:33:39,800 --> 00:33:42,720
Speaker 1: floppy disks, not necessarily because they were floppy, but that

584
00:33:42,920 --> 00:33:45,160
Speaker 1: was to differentiate from the hard disk that you would

585
00:33:45,160 --> 00:33:47,960
Speaker 1: have part as integrated part of a computer, right right,

586
00:33:48,040 --> 00:33:49,800
Speaker 1: and and and part part of the floppy disks was

587
00:33:49,840 --> 00:33:51,960
Speaker 1: in fact a I mean, the disc itself would usually

588
00:33:52,000 --> 00:33:56,160
Speaker 1: be rigid for um safety purposes. But the film, but

589
00:33:56,240 --> 00:33:58,920
Speaker 1: the film inside was it was a film, a magnetic film, right,

590
00:33:59,040 --> 00:34:02,720
Speaker 1: and so they they the original ones, well, original ones

591
00:34:02,800 --> 00:34:06,479
Speaker 1: came up in like seven inch seven points something inches,

592
00:34:06,640 --> 00:34:09,719
Speaker 1: but approximately as big as my civic, but five and

593
00:34:09,719 --> 00:34:12,000
Speaker 1: a quarter was the standard by the time I was

594
00:34:12,080 --> 00:34:14,520
Speaker 1: getting into computers. That was what the Apple two used,

595
00:34:14,800 --> 00:34:17,440
Speaker 1: and then three and a half inch discs. It's funny

596
00:34:17,480 --> 00:34:19,279
Speaker 1: because as the size of the disc went down, the

597
00:34:19,320 --> 00:34:22,680
Speaker 1: capacity and that was one of those things that as

598
00:34:22,719 --> 00:34:25,920
Speaker 1: a kid before I understood anything about computers, just confused

599
00:34:25,920 --> 00:34:27,840
Speaker 1: the heck out of me, Like, how is it that

600
00:34:27,920 --> 00:34:30,040
Speaker 1: this can hold more chapters of my dad's book than

601
00:34:30,120 --> 00:34:34,080
Speaker 1: this one? Doesn't matter, let's erase it, um, because I

602
00:34:34,120 --> 00:34:36,759
Speaker 1: have saves I want to make. Uh. Well, the CD,

603
00:34:36,880 --> 00:34:38,480
Speaker 1: of course, was going to blow all of that all

604
00:34:38,520 --> 00:34:41,120
Speaker 1: the water. The optical drive had the capacity to hold

605
00:34:41,160 --> 00:34:44,040
Speaker 1: way more information and access it much more quickly than

606
00:34:44,120 --> 00:34:46,520
Speaker 1: magnetic did, but not for a good few years. Yeah,

607
00:34:46,520 --> 00:34:49,000
Speaker 1: And this was an early early discussion where Microsoft could

608
00:34:49,040 --> 00:34:50,919
Speaker 1: see that the writing was on the wall and that

609
00:34:50,920 --> 00:34:52,759
Speaker 1: that was going to be an important technology and they

610
00:34:52,760 --> 00:34:56,600
Speaker 1: wanted to get on the forefront of that. Un a

611
00:34:56,719 --> 00:35:00,600
Speaker 1: new marketing manager joins Microsoft, and she would become very

612
00:35:00,640 --> 00:35:04,560
Speaker 1: important in the life of the co founder of the company. Right,

613
00:35:04,600 --> 00:35:07,640
Speaker 1: this is this is Melinda French um and uh, Melinda

614
00:35:07,680 --> 00:35:09,960
Speaker 1: French and Bill Gates and first met at a Microsoft

615
00:35:09,960 --> 00:35:13,439
Speaker 1: press conference event in Manhattan that year and she began

616
00:35:13,480 --> 00:35:15,719
Speaker 1: to work for the company and uh, and we can

617
00:35:16,200 --> 00:35:19,320
Speaker 1: I'm imagining that the little hearts appeared over their heads.

618
00:35:19,400 --> 00:35:24,080
Speaker 1: Shortly thereafter m Microsoft launched Windows two point oh that year,

619
00:35:24,640 --> 00:35:27,359
Speaker 1: and we're still not quite to the level where it's

620
00:35:27,360 --> 00:35:29,759
Speaker 1: a version of Windows that most of us would recognize.

621
00:35:30,239 --> 00:35:33,719
Speaker 1: And they also announced that they would release Windows or

622
00:35:33,800 --> 00:35:36,640
Speaker 1: Microsoft Excel for Windows, so now we would get Excel.

623
00:35:37,200 --> 00:35:39,960
Speaker 1: It would no longer be exclusive to the Macintosh computer.

624
00:35:40,040 --> 00:35:42,919
Speaker 1: It would now also come to any PC that could

625
00:35:43,000 --> 00:35:48,000
Speaker 1: run Windows. And they also bought a company called Forethought Incorporated,

626
00:35:48,160 --> 00:35:54,239
Speaker 1: which developed a presentation software called power Point, so that

627
00:35:54,400 --> 00:35:56,520
Speaker 1: the if you've ever seen a power point presentation, you

628
00:35:56,560 --> 00:35:59,600
Speaker 1: know it's it's designed so that you create slides which

629
00:35:59,640 --> 00:36:02,480
Speaker 1: you can use their print as sheets of paper. You

630
00:36:02,520 --> 00:36:05,080
Speaker 1: could in the old days, print them as slides and

631
00:36:05,120 --> 00:36:07,840
Speaker 1: put them in a slide projector because I used to

632
00:36:07,880 --> 00:36:12,080
Speaker 1: do that I'm old, or you just use them on

633
00:36:12,080 --> 00:36:15,200
Speaker 1: your computer and you project them digitally for you know,

634
00:36:15,640 --> 00:36:19,200
Speaker 1: one of those typical presentations, usually standing up on a

635
00:36:19,320 --> 00:36:21,799
Speaker 1: stage and you have a lectern there and a little

636
00:36:21,840 --> 00:36:23,680
Speaker 1: clicker in your hand, and I've done this way too

637
00:36:23,680 --> 00:36:27,399
Speaker 1: many times. By the way, power Point they actually bought

638
00:36:27,440 --> 00:36:30,080
Speaker 1: the company that developed it, and they saw this as

639
00:36:30,080 --> 00:36:33,279
Speaker 1: an opportunity to kind of bring power Point into the

640
00:36:33,360 --> 00:36:36,759
Speaker 1: suite of productivity software that they had been developing in

641
00:36:36,880 --> 00:36:39,719
Speaker 1: house since their early days. So all that word processing

642
00:36:39,719 --> 00:36:42,000
Speaker 1: and spreadsheet they were saying, you know, this is a

643
00:36:42,040 --> 00:36:44,759
Speaker 1: good business for us to be in. It's it's more

644
00:36:44,880 --> 00:36:47,319
Speaker 1: and more offices in the United States and around the

645
00:36:47,360 --> 00:36:51,880
Speaker 1: world are starting to incorporate computers into their everyday experiences.

646
00:36:52,280 --> 00:36:54,640
Speaker 1: And if we're the ones who are creating the software

647
00:36:54,680 --> 00:36:56,600
Speaker 1: that allows them to get business done, we will do

648
00:36:56,920 --> 00:36:59,640
Speaker 1: crazy amounts of business. And it turned out to be really,

649
00:36:59,680 --> 00:37:05,040
Speaker 1: really true. Um, so they were jumping ahead on that one,

650
00:37:05,120 --> 00:37:09,719
Speaker 1: and they also became that they turned Forethought Incorporated from

651
00:37:10,080 --> 00:37:13,760
Speaker 1: an acquired company into a full division within Microsoft called

652
00:37:13,840 --> 00:37:19,440
Speaker 1: the Graphics Business Unit. That's also when they launched Microsoft Bookshelf,

653
00:37:19,480 --> 00:37:22,440
Speaker 1: which was a cd ROM, which again very early for

654
00:37:22,480 --> 00:37:26,320
Speaker 1: cd ROMs, and the cd ROM had ten reference works

655
00:37:26,360 --> 00:37:29,360
Speaker 1: on the disk, and this was the first real general

656
00:37:29,400 --> 00:37:32,960
Speaker 1: purpose application on cd ROM for PC users. Not that

657
00:37:33,000 --> 00:37:35,279
Speaker 1: many people could really take advantage of it at this time,

658
00:37:35,880 --> 00:37:39,000
Speaker 1: you know, just like any new technology. When CD ROMs

659
00:37:39,040 --> 00:37:41,400
Speaker 1: first hit the scene, it was expensive and it was

660
00:37:41,440 --> 00:37:44,200
Speaker 1: hard to find. I remember that it took me quite

661
00:37:44,200 --> 00:37:46,399
Speaker 1: a while just to get a CD player, much less

662
00:37:46,400 --> 00:37:50,120
Speaker 1: a CD ROM for my computer. So this is definitely

663
00:37:50,120 --> 00:37:52,200
Speaker 1: early days for that. But again, they wanted to be

664
00:37:52,280 --> 00:37:56,759
Speaker 1: on that bleeding edge of this technology. That next year,

665
00:37:58,719 --> 00:38:01,719
Speaker 1: that's when that little love Eve relationship between Apple and

666
00:38:01,760 --> 00:38:04,120
Speaker 1: Microsoft turns a little set work. Yeah, that was when

667
00:38:04,120 --> 00:38:07,359
Speaker 1: Apple filed a lawsuit against Microsoft. Um, they were they

668
00:38:07,360 --> 00:38:10,680
Speaker 1: were basically saying that Windows looked and felt too much

669
00:38:10,960 --> 00:38:14,640
Speaker 1: like um, like Apple's own graphics Centerface. Yeah, and which

670
00:38:14,719 --> 00:38:18,640
Speaker 1: which really kind of Apple had soared stolen from Xerox. Yeah.

671
00:38:18,880 --> 00:38:21,400
Speaker 1: That that that Xerox alto PC that we were talking about,

672
00:38:21,480 --> 00:38:24,680
Speaker 1: um small Talk being the graphics Centerface operating system that

673
00:38:24,719 --> 00:38:26,680
Speaker 1: they were using. Any time. A lot of people credit

674
00:38:26,760 --> 00:38:30,960
Speaker 1: the Macintosh for inventing the graphics user interface and the mouse,

675
00:38:31,000 --> 00:38:34,399
Speaker 1: which both of those actually came out of work at

676
00:38:34,640 --> 00:38:39,800
Speaker 1: Xerox and other research laboratories. But McIntosh was the first computer,

677
00:38:39,920 --> 00:38:42,160
Speaker 1: the personal computer to make it popular. Yeah, it was

678
00:38:42,200 --> 00:38:45,640
Speaker 1: the first commercially successful computer that used it. They really

679
00:38:45,640 --> 00:38:47,760
Speaker 1: designed it well. So I mean not to take anything

680
00:38:47,800 --> 00:38:50,440
Speaker 1: away from Apple, because they were able to make something

681
00:38:50,840 --> 00:38:55,600
Speaker 1: that appealed to consumers. Uh. Now they're saying that that

682
00:38:55,840 --> 00:38:58,920
Speaker 1: Microsoft essentially was copying them, and you know, pointing out, Hey,

683
00:38:58,960 --> 00:39:00,799
Speaker 1: Steve Jobs came over and showed you what we were

684
00:39:00,840 --> 00:39:02,279
Speaker 1: working on, and then you suddenly come up with a

685
00:39:02,320 --> 00:39:07,239
Speaker 1: graphics user interface. What's going on? Except they were doing

686
00:39:07,239 --> 00:39:09,960
Speaker 1: it in legally. So it probably wasn't as flippant as that.

687
00:39:10,960 --> 00:39:15,680
Speaker 1: The lawsuit would last six years and eventually the court

688
00:39:15,719 --> 00:39:19,239
Speaker 1: would rule against Apple and say that Microsoft did not

689
00:39:19,680 --> 00:39:23,600
Speaker 1: there wasn't enough evidence that Microsoft had actually copied Apple's approach,

690
00:39:24,160 --> 00:39:27,879
Speaker 1: and so this this would eventually turn out to be

691
00:39:28,040 --> 00:39:30,040
Speaker 1: a fruitless effort on the part of Apple. And it

692
00:39:30,080 --> 00:39:33,600
Speaker 1: was not the only time that Apple and Microsoft would clash, obviously,

693
00:39:33,760 --> 00:39:38,680
Speaker 1: certainly not. Also, Microsoft became the world's largest PC software

694
00:39:38,719 --> 00:39:42,319
Speaker 1: company based on sales, so they were doing pretty good. Yeah,

695
00:39:42,320 --> 00:39:48,439
Speaker 1: they were not not too shabby. Business is booming. In nine,

696
00:39:48,520 --> 00:39:52,640
Speaker 1: they released Microsoft Office one point oh, both on standard

697
00:39:52,640 --> 00:39:57,160
Speaker 1: discs and on CD rum. Uh so Microsoft Office at

698
00:39:57,160 --> 00:39:59,480
Speaker 1: one point oh. This again is the beginning of the

699
00:39:59,480 --> 00:40:02,640
Speaker 1: productive any software suite that many of us are familiar with.

700
00:40:03,320 --> 00:40:09,200
Speaker 1: I've been using some version of Microsoft Office for what year?

701
00:40:09,239 --> 00:40:16,279
Speaker 1: Is it? Probably fifteen years now? Um? Maybe maybe more

702
00:40:16,360 --> 00:40:18,440
Speaker 1: than that. Actually, way longer than that now that I

703
00:40:18,480 --> 00:40:22,160
Speaker 1: think about it. But it was one lotus for a

704
00:40:22,160 --> 00:40:25,080
Speaker 1: long time. Did I use word perfect as my word

705
00:40:25,120 --> 00:40:30,200
Speaker 1: processing program of choice for ages on purpose? Well, I

706
00:40:30,239 --> 00:40:33,200
Speaker 1: preferred it. I knew that you if you wanted to

707
00:40:33,200 --> 00:40:37,000
Speaker 1: bowl the word, you hit F eight. Um. And and

708
00:40:37,080 --> 00:40:42,239
Speaker 1: so anyway, this the suite would become incredibly important to Microsoft.

709
00:40:42,280 --> 00:40:45,000
Speaker 1: It becomes one of their flagship products. If you think

710
00:40:45,040 --> 00:40:48,680
Speaker 1: about Microsoft as far as the software side, their flagship products,

711
00:40:48,719 --> 00:40:52,279
Speaker 1: I would argue are Windows and Office. Those are the

712
00:40:52,280 --> 00:40:55,960
Speaker 1: two big ones. Lots of other stuff obviously, but those

713
00:40:56,000 --> 00:40:57,719
Speaker 1: are the two I think that are kind of the

714
00:40:57,800 --> 00:41:01,480
Speaker 1: cornerstone for what Microsoft's offtware is all about. Absolutely. And

715
00:41:01,480 --> 00:41:04,440
Speaker 1: also this was this was one of their big moves

716
00:41:04,480 --> 00:41:09,080
Speaker 1: in in in bundling software products together, which would become

717
00:41:09,239 --> 00:41:13,120
Speaker 1: very important and kind of legally contentious Yes later on

718
00:41:13,280 --> 00:41:18,680
Speaker 1: Yes nineteen, Microsoft then ships Windows three point oh. So

719
00:41:18,840 --> 00:41:21,560
Speaker 1: here's the version of Windows that starts to look more

720
00:41:21,680 --> 00:41:24,719
Speaker 1: like the stuff that we're used to. And within two

721
00:41:24,760 --> 00:41:27,880
Speaker 1: weeks of launching Windows three point oh, the company has

722
00:41:27,920 --> 00:41:30,959
Speaker 1: sold a hundred thousand copies. Now, that probably doesn't sound

723
00:41:30,960 --> 00:41:32,560
Speaker 1: like a lot to you, but keep in mind this

724
00:41:32,560 --> 00:41:37,120
Speaker 1: is before computer adoption has really grown that large. Not

725
00:41:37,280 --> 00:41:41,040
Speaker 1: everyone has an IBM compatible computer, uh, and those who

726
00:41:41,080 --> 00:41:44,840
Speaker 1: do not everyone has an IBM compatible computer capable of

727
00:41:44,920 --> 00:41:47,600
Speaker 1: running Windows three point oh. This was one of those

728
00:41:47,640 --> 00:41:52,240
Speaker 1: things that I found, uh initially off putting by graphics

729
00:41:52,320 --> 00:41:56,160
Speaker 1: user interfaces. I was. I was brought up learning DOSS,

730
00:41:56,160 --> 00:41:58,560
Speaker 1: so I used DOSS all the time. I did not

731
00:41:58,680 --> 00:42:01,120
Speaker 1: like the idea of a graphics user interface, not because

732
00:42:01,160 --> 00:42:03,880
Speaker 1: I thought that this was going to be, you know,

733
00:42:03,960 --> 00:42:07,000
Speaker 1: dumbing down my experience, but rather that I thought, why

734
00:42:07,080 --> 00:42:09,560
Speaker 1: would I want to dedicate so many of my computer's

735
00:42:09,600 --> 00:42:13,280
Speaker 1: resources to running an operating system when I'm perfectly capable

736
00:42:13,280 --> 00:42:15,239
Speaker 1: of doing this on my own. Yeah, I just want

737
00:42:15,280 --> 00:42:17,399
Speaker 1: to be able to play my games. But then more

738
00:42:17,440 --> 00:42:21,400
Speaker 1: and more of my games became Windows games, not DOSS games,

739
00:42:21,440 --> 00:42:24,400
Speaker 1: and eventually I was forced to become one of the

740
00:42:24,480 --> 00:42:29,480
Speaker 1: herd of sheep. Now, I say that all mostly in jest.

741
00:42:29,600 --> 00:42:32,040
Speaker 1: At the time, I was very bitter about it. These days,

742
00:42:32,120 --> 00:42:33,359
Speaker 1: I mean, if you were to put me in front

743
00:42:33,400 --> 00:42:38,239
Speaker 1: of a DOS computer now, I'd be lost. Ye. Not

744
00:42:38,280 --> 00:42:41,360
Speaker 1: that I was ever particularly found in DOSS. I I

745
00:42:41,440 --> 00:42:43,360
Speaker 1: never I never really used it myself. I would just

746
00:42:43,840 --> 00:42:45,839
Speaker 1: you would. All you would hear from me, Lauren, from

747
00:42:45,840 --> 00:42:50,520
Speaker 1: my desk is where's the start button? Yeah, that's kind

748
00:42:50,560 --> 00:42:52,600
Speaker 1: of the only thing I would be able to say

749
00:42:52,760 --> 00:42:56,279
Speaker 1: over and over and cry. I'd cry too. Um, But

750
00:42:56,480 --> 00:43:01,120
Speaker 1: at any rate, three point oh launches sell hoppies. Only

751
00:43:01,200 --> 00:43:05,800
Speaker 1: fifteen of households back in even had a computer according

752
00:43:05,840 --> 00:43:09,960
Speaker 1: to the Bureau of Labor Statistics, so not that many

753
00:43:10,000 --> 00:43:12,160
Speaker 1: people have computers, so a hundred thousand copies is a

754
00:43:12,200 --> 00:43:15,759
Speaker 1: significant number. Microsoft decides at that point that they will

755
00:43:15,760 --> 00:43:20,920
Speaker 1: focus exclusively on developing Windows, rather than supporting both Windows

756
00:43:21,000 --> 00:43:25,080
Speaker 1: and further versions of DOSS also known as OS two. Now,

757
00:43:25,120 --> 00:43:28,440
Speaker 1: this is not great news for IBM. They were not

758
00:43:28,520 --> 00:43:30,960
Speaker 1: terribly happy with this. But Microsoft said, you know, we

759
00:43:31,040 --> 00:43:32,799
Speaker 1: see where the future is. The future is going to

760
00:43:32,840 --> 00:43:35,880
Speaker 1: be in this graphic user interface. UM. As more and

761
00:43:35,920 --> 00:43:38,399
Speaker 1: more people adopt these computers, they're going to want something

762
00:43:38,440 --> 00:43:42,200
Speaker 1: that's that's more accessible than a blinking cursor where they

763
00:43:42,200 --> 00:43:44,479
Speaker 1: have to figure out what code they need to type

764
00:43:44,480 --> 00:43:47,680
Speaker 1: in in order to get stuff done. So they said,

765
00:43:47,800 --> 00:43:49,760
Speaker 1: this is what we're gonna do. We're gonna just completely

766
00:43:49,760 --> 00:43:52,920
Speaker 1: focus on developing the Windows opbring system. That same year,

767
00:43:53,000 --> 00:43:56,200
Speaker 1: John Shirley retired as president and CEO and he was

768
00:43:56,239 --> 00:44:01,759
Speaker 1: replaced by Michael R. Hollman. For Yeah, which is interesting, right,

769
00:44:01,800 --> 00:44:04,880
Speaker 1: I mean you're going from Tandy, which was another you

770
00:44:04,920 --> 00:44:06,920
Speaker 1: know that was at least within the industry, to Boeing,

771
00:44:06,960 --> 00:44:09,759
Speaker 1: which you could argue was you know, related to but

772
00:44:09,920 --> 00:44:13,160
Speaker 1: outside the industry of computers. However, of course, keeping in

773
00:44:13,239 --> 00:44:15,720
Speaker 1: mind this is for the person who's doing the administrative,

774
00:44:15,760 --> 00:44:19,400
Speaker 1: the the corporate oversight of the day to day workings

775
00:44:19,440 --> 00:44:24,120
Speaker 1: of a company, not actually talking about share. Yeah, so

776
00:44:24,480 --> 00:44:27,399
Speaker 1: keeping that in mind, it makes more sense. Um. Now

777
00:44:27,440 --> 00:44:31,560
Speaker 1: at that point, uh, it had been fifteen years since

778
00:44:31,600 --> 00:44:35,279
Speaker 1: the company had been founded, So fifteen years after the

779
00:44:35,320 --> 00:44:38,840
Speaker 1: founding of the company, they were in a pretty secure

780
00:44:38,920 --> 00:44:41,680
Speaker 1: place financially. They had had a very successful I p

781
00:44:41,800 --> 00:44:46,160
Speaker 1: O and revenue was at a staggering one point one

782
00:44:46,200 --> 00:44:50,040
Speaker 1: eight billion dollars. They were the first software company to

783
00:44:50,440 --> 00:44:53,879
Speaker 1: get over a billion dollars in revenue a year. This

784
00:44:54,000 --> 00:44:57,200
Speaker 1: was also the year that the FTC, the Federal Trade Commission,

785
00:44:57,400 --> 00:45:02,680
Speaker 1: began kind of poking into um some antitrust kind of

786
00:45:02,920 --> 00:45:05,759
Speaker 1: kind of issues, right, So they didn't they didn't launch

787
00:45:05,760 --> 00:45:09,320
Speaker 1: an official investigation yet. I just thought, Hey, that sounds

788
00:45:09,400 --> 00:45:12,600
Speaker 1: kind of like Microsoft might be muscling out some competition,

789
00:45:12,760 --> 00:45:15,840
Speaker 1: Like you were saying, Lauren, this idea of bundling software.

790
00:45:16,160 --> 00:45:18,719
Speaker 1: I mean, it makes sense from someone who wants to

791
00:45:18,760 --> 00:45:22,200
Speaker 1: have a lot of uh utility in their software and

792
00:45:22,239 --> 00:45:26,279
Speaker 1: have cross utility, right, and especially if you've already I'm

793
00:45:26,600 --> 00:45:29,240
Speaker 1: like many of the programs and the Microsoft Office Suite,

794
00:45:29,360 --> 00:45:31,879
Speaker 1: a lot of the base coding is is the same

795
00:45:32,360 --> 00:45:34,040
Speaker 1: UM and and it's and it's built up, you know,

796
00:45:34,120 --> 00:45:36,520
Speaker 1: just in different ways. Well, especially when you get later

797
00:45:36,600 --> 00:45:39,000
Speaker 1: on into office where you want to do something like

798
00:45:39,120 --> 00:45:42,040
Speaker 1: embed a chart that you create an Excel into a

799
00:45:42,080 --> 00:45:45,320
Speaker 1: power Point spreadsheet, but you don't want to just copy

800
00:45:45,360 --> 00:45:48,439
Speaker 1: and paste a picture and you want it to be functional, yeah,

801
00:45:48,520 --> 00:45:50,439
Speaker 1: kind of like a living chart. So that way, let's

802
00:45:50,480 --> 00:45:52,960
Speaker 1: say that as it gets closer to your time to

803
00:45:53,080 --> 00:45:58,520
Speaker 1: present whatever the presentation is, that your numbers get updated. Well,

804
00:45:58,520 --> 00:46:01,800
Speaker 1: instead of having to go in and UH and copy

805
00:46:01,920 --> 00:46:03,880
Speaker 1: that picture again and then paste it back into a

806
00:46:03,880 --> 00:46:07,920
Speaker 1: new version of the presentation. If if your systems are connected,

807
00:46:08,280 --> 00:46:10,120
Speaker 1: then what you can do is go into the Excel

808
00:46:10,200 --> 00:46:13,239
Speaker 1: sheet where you generated the image in the first place

809
00:46:13,320 --> 00:46:16,520
Speaker 1: and change the numbers there and it updates. Right. Yeah,

810
00:46:16,560 --> 00:46:18,719
Speaker 1: so now great, that is later on. That's not the

811
00:46:18,719 --> 00:46:21,879
Speaker 1: earliest version of Microsoft Office. Yeah. And and in these

812
00:46:21,960 --> 00:46:24,480
Speaker 1: days that the FTC was really looking at, UM, the

813
00:46:24,480 --> 00:46:27,239
Speaker 1: relationship that IBM and Microsoft had and UH and the

814
00:46:27,280 --> 00:46:31,440
Speaker 1: way that DOS was being propagated across all IBM computers

815
00:46:31,440 --> 00:46:33,279
Speaker 1: at the time. Right, It's it's one of these things

816
00:46:33,280 --> 00:46:37,920
Speaker 1: where they start wondering if there's maybe some anti competitive

817
00:46:37,960 --> 00:46:43,160
Speaker 1: practices being put in place, so that would become a

818
00:46:43,320 --> 00:46:48,200
Speaker 1: more important part of Microsoft's history. Shortly thereafter, UH in

819
00:46:48,320 --> 00:46:52,640
Speaker 1: ninety two, that's when Forbes proclaims that Bill Gates is

820
00:46:52,680 --> 00:46:55,799
Speaker 1: the richest man in America for the first time, at

821
00:46:55,840 --> 00:46:59,520
Speaker 1: six point three billion dollars in net worth. UH. Bill

822
00:46:59,560 --> 00:47:02,360
Speaker 1: Gates would end up being richest man in America several

823
00:47:02,480 --> 00:47:07,520
Speaker 1: times UM over the next several years and uh, it

824
00:47:07,560 --> 00:47:10,239
Speaker 1: would flip flop back and forth between other people, and

825
00:47:10,280 --> 00:47:12,799
Speaker 1: eventually he becomes the richest man in the world a

826
00:47:12,840 --> 00:47:18,080
Speaker 1: couple of times too, so pretty phenomenal. Mike Hallman at

827
00:47:18,080 --> 00:47:21,759
Speaker 1: that point leaves Microsoft. Uh you know, remember he had

828
00:47:21,800 --> 00:47:25,360
Speaker 1: just joined as the president back in two he leaves.

829
00:47:26,200 --> 00:47:29,319
Speaker 1: So at that point the company does something interesting. Rather

830
00:47:29,360 --> 00:47:32,680
Speaker 1: than a point a new president, they created what they

831
00:47:32,719 --> 00:47:36,480
Speaker 1: called the Office of the President, which was held by

832
00:47:36,960 --> 00:47:40,480
Speaker 1: three executives. Three executives would be the people manning the

833
00:47:40,560 --> 00:47:42,520
Speaker 1: Office of the President. So it's almost like a triumbrit.

834
00:47:43,080 --> 00:47:47,960
Speaker 1: It's a tribunal. Uh you have what brutus? Uh you

835
00:47:48,000 --> 00:47:52,040
Speaker 1: have uh? Uh no, no, it was so the officer

836
00:47:52,080 --> 00:47:53,719
Speaker 1: of the President was held by three executives. In those

837
00:47:53,760 --> 00:47:57,480
Speaker 1: first three were Steve Balmer, so, uh he had stuck

838
00:47:57,480 --> 00:47:59,239
Speaker 1: with the company all this time and now was the

839
00:47:59,280 --> 00:48:02,960
Speaker 1: worldwide state else in support guy, and that's the part

840
00:48:03,000 --> 00:48:06,480
Speaker 1: that he oversaw. As part of the Office of the President.

841
00:48:06,920 --> 00:48:10,880
Speaker 1: You also had Frank Goddet, who oversaw worldwide operations of

842
00:48:10,920 --> 00:48:15,040
Speaker 1: the company, and Mike Maples who saw oversaw the worldwide

843
00:48:15,040 --> 00:48:18,480
Speaker 1: products for the company. All three of them, as the

844
00:48:18,520 --> 00:48:21,600
Speaker 1: Office of the President reported directly to Bill Gates and

845
00:48:21,680 --> 00:48:25,920
Speaker 1: that same year Microsoft's stock split. And a stock split

846
00:48:26,120 --> 00:48:29,320
Speaker 1: is when the value of a company keeps on growing

847
00:48:29,360 --> 00:48:33,560
Speaker 1: but they want to be able to have It's it's

848
00:48:33,600 --> 00:48:35,200
Speaker 1: kind of complicated, but the idea is that you have

849
00:48:35,520 --> 00:48:37,600
Speaker 1: when you first have the the I p O. You

850
00:48:37,640 --> 00:48:40,400
Speaker 1: have a certain amount of stock, certain number of shares

851
00:48:40,480 --> 00:48:43,160
Speaker 1: that are available, right, and each share is worth a

852
00:48:43,160 --> 00:48:45,480
Speaker 1: certain amount. And when you multiply those two numbers together

853
00:48:45,520 --> 00:48:48,600
Speaker 1: the number of shares times the value of the share,

854
00:48:48,680 --> 00:48:51,520
Speaker 1: that kind of gives you a valuation of the company. Uh.

855
00:48:51,560 --> 00:48:54,640
Speaker 1: If a company's value continues to increase, you may consider

856
00:48:54,719 --> 00:48:57,160
Speaker 1: splitting up that stock so that instead of the stock

857
00:48:57,200 --> 00:49:02,640
Speaker 1: being incredibly expensive, you have decrease the value of individual stocks. However,

858
00:49:02,920 --> 00:49:06,480
Speaker 1: in order to compensate your shareholders, you give them more stock,

859
00:49:07,520 --> 00:49:09,520
Speaker 1: So it could be this would be the first in

860
00:49:09,560 --> 00:49:12,879
Speaker 1: a series of several splits. So essentially, what it means

861
00:49:12,920 --> 00:49:15,400
Speaker 1: is it allows the company to increase in value without

862
00:49:15,520 --> 00:49:18,080
Speaker 1: stock price getting so high that no one wants to

863
00:49:18,160 --> 00:49:23,560
Speaker 1: buy or sell it. Uh, I'm drastically oversimplifying. So all

864
00:49:23,560 --> 00:49:26,360
Speaker 1: of my my business majors out there who are screaming

865
00:49:26,360 --> 00:49:30,719
Speaker 1: at me, maya culpa. But and for those of you

866
00:49:30,760 --> 00:49:35,919
Speaker 1: who aren't the liberal arts majors, I'm sorry. Uh So anyway, Um,

867
00:49:35,960 --> 00:49:38,640
Speaker 1: the stock split showed that this was a company that

868
00:49:38,719 --> 00:49:41,279
Speaker 1: was going to continue to grow in value, or at

869
00:49:41,320 --> 00:49:43,160
Speaker 1: least that was the that was the hope, as it

870
00:49:43,200 --> 00:49:46,760
Speaker 1: turns out, hope that was well placed. And Bill Gates

871
00:49:46,800 --> 00:49:49,680
Speaker 1: that year received an award from the President of the

872
00:49:49,719 --> 00:49:53,120
Speaker 1: United States, George Bush Yes, the first George Bush Yes,

873
00:49:53,560 --> 00:49:56,000
Speaker 1: and that award was the National Medal of Technology for

874
00:49:56,120 --> 00:50:00,680
Speaker 1: Technological Achievement in Technology and Tech. I may added a

875
00:50:00,680 --> 00:50:05,040
Speaker 1: couple of there there were two technologies in the metal

876
00:50:05,080 --> 00:50:07,680
Speaker 1: of Technology for technological Achievement, which I think is already

877
00:50:07,680 --> 00:50:12,400
Speaker 1: so uh you know, it's it's self referential. Uh. In

878
00:50:12,520 --> 00:50:16,479
Speaker 1: n three, they released the Windows in T platform, which

879
00:50:16,480 --> 00:50:20,759
Speaker 1: was an enterprise software. Enterprise of course means companies. When

880
00:50:20,800 --> 00:50:23,120
Speaker 1: you talk about enterprise software, you're talking about software is

881
00:50:23,200 --> 00:50:28,520
Speaker 1: specifically designed for other corporations as opposed to individuals. So

882
00:50:28,600 --> 00:50:30,360
Speaker 1: that's what Windows in T was, and it's kind of

883
00:50:30,360 --> 00:50:34,400
Speaker 1: a client server solution. Um. And then at that that

884
00:50:34,480 --> 00:50:40,360
Speaker 1: same year, IBM saw Microsoft overtake it in corporate value.

885
00:50:40,640 --> 00:50:45,680
Speaker 1: So the company Microsoft becomes more valuable from a sheer

886
00:50:45,760 --> 00:50:51,320
Speaker 1: numbers perspective than IBM. That's amazing. The the huge company

887
00:50:51,360 --> 00:50:54,560
Speaker 1: for which Microsoft got its most of its early revenue

888
00:50:54,600 --> 00:50:56,720
Speaker 1: apart from you know, the early early days with Apple,

889
00:50:57,800 --> 00:51:01,640
Speaker 1: is now worth less than the actual software company. That's

890
00:51:01,680 --> 00:51:06,000
Speaker 1: pretty phenomenal. That was that was on the slightly less

891
00:51:06,040 --> 00:51:09,759
Speaker 1: awesome route. The investigation that the FTC had sort of

892
00:51:09,760 --> 00:51:12,879
Speaker 1: begun got passed over to the Department of Justice, which

893
00:51:13,000 --> 00:51:16,000
Speaker 1: basically meant that it was getting it was getting serious. Yeah,

894
00:51:16,080 --> 00:51:18,439
Speaker 1: now now it's gone from I wonder if those people

895
00:51:18,480 --> 00:51:20,760
Speaker 1: are up to no good to those people are probably

896
00:51:20,800 --> 00:51:22,799
Speaker 1: up to no good, and we're going to look into

897
00:51:22,840 --> 00:51:26,440
Speaker 1: it much more seriously. This would not be the only

898
00:51:26,520 --> 00:51:28,640
Speaker 1: time that Microsoft would deal with these sort of things.

899
00:51:28,640 --> 00:51:30,520
Speaker 1: One of the one of the issues you get when

900
00:51:30,560 --> 00:51:34,360
Speaker 1: you get really, really successful in your industry is sometimes

901
00:51:35,080 --> 00:51:39,680
Speaker 1: you might, through your certain practices, discourage other people from

902
00:51:39,800 --> 00:51:43,279
Speaker 1: entering that industry, whether you mean to or not. That

903
00:51:43,320 --> 00:51:46,640
Speaker 1: can be seen as anti competitive, and that can get

904
00:51:46,680 --> 00:51:50,399
Speaker 1: the government governments from around the world really on your case.

905
00:51:50,440 --> 00:51:52,360
Speaker 1: Because again the United States, we're talking about the U

906
00:51:52,440 --> 00:51:55,440
Speaker 1: S specifically here, but they are not the only entity

907
00:51:55,560 --> 00:51:57,680
Speaker 1: that has looked into fire. We will get into that

908
00:51:57,719 --> 00:52:00,440
Speaker 1: a little bit more later on. That's the same year.

909
00:52:00,480 --> 00:52:05,919
Speaker 1: Also three is when company introduced Microsoft in Carter. It's

910
00:52:05,960 --> 00:52:09,560
Speaker 1: a multimedia encyclopedia on CD. Did you ever see the

911
00:52:09,600 --> 00:52:12,799
Speaker 1: Incarda I owned in CARTERA I owned in Carta as well.

912
00:52:13,080 --> 00:52:15,600
Speaker 1: I remember everyone owning card I think there anyone I

913
00:52:15,600 --> 00:52:18,440
Speaker 1: think you were required to own in Carta like there

914
00:52:18,480 --> 00:52:21,360
Speaker 1: were there were a couple. If you owned a computer

915
00:52:21,719 --> 00:52:26,000
Speaker 1: that was running Windows, you are essentially required to own

916
00:52:26,040 --> 00:52:29,560
Speaker 1: in CARTERA and possibly four hundred and seventy three A

917
00:52:29,719 --> 00:52:33,399
Speaker 1: O L discs. I had approximately that many. So yeah,

918
00:52:33,719 --> 00:52:35,200
Speaker 1: I just get sent in the mail all the time.

919
00:52:35,239 --> 00:52:37,200
Speaker 1: I used to make costumes out of them. It was great.

920
00:52:37,960 --> 00:52:39,440
Speaker 1: But it seems, I mean in Carda seems like the

921
00:52:39,440 --> 00:52:41,239
Speaker 1: incredible future to me. That was That was one of

922
00:52:41,239 --> 00:52:44,160
Speaker 1: those early things that I remember, I mean not not

923
00:52:44,280 --> 00:52:46,440
Speaker 1: you know, one of those original things that I remember

924
00:52:46,440 --> 00:52:49,799
Speaker 1: thinking like, like, these computer things are really here and

925
00:52:49,840 --> 00:52:52,680
Speaker 1: they're really doing something interesting. Yeah. That keep in mind

926
00:52:52,680 --> 00:52:56,759
Speaker 1: in Carter this is before we as Plebeian people have

927
00:52:56,880 --> 00:53:01,360
Speaker 1: access to the Internet. We didn't have Wikipedia. There was

928
00:53:01,400 --> 00:53:04,080
Speaker 1: no Worldwide Web at this point, so or at least

929
00:53:04,239 --> 00:53:07,960
Speaker 1: roll by web was so young in n that hardly

930
00:53:07,960 --> 00:53:10,799
Speaker 1: anyone knew about it. Technically, there was a worldwide web

931
00:53:10,840 --> 00:53:14,120
Speaker 1: because Tim berners Lee had actually invented the first web page,

932
00:53:14,120 --> 00:53:19,279
Speaker 1: but everyone had a O L discs And yeah, I

933
00:53:19,280 --> 00:53:21,480
Speaker 1: can remember. I think the first time I saw a

934
00:53:21,560 --> 00:53:25,480
Speaker 1: web page was maybe maybe late ninety three or early

935
00:53:25,560 --> 00:53:28,680
Speaker 1: ninety four. It was when I was in college dating

936
00:53:28,680 --> 00:53:31,760
Speaker 1: myself here. I was in college, and I remember seeing

937
00:53:31,960 --> 00:53:36,960
Speaker 1: someone navigating using something called a web browser to navigate

938
00:53:37,000 --> 00:53:39,120
Speaker 1: a web page, and I took a look at and

939
00:53:39,120 --> 00:53:40,879
Speaker 1: it took a really long time for it to load up,

940
00:53:40,920 --> 00:53:44,680
Speaker 1: and it was pretty primitive graphics, and I thought, I'll

941
00:53:44,680 --> 00:53:47,799
Speaker 1: never take off and I'll just use my tail knit program.

942
00:53:48,600 --> 00:53:51,319
Speaker 1: Speaking of dating yourself, people who were dating at the time,

943
00:53:51,640 --> 00:53:58,960
Speaker 1: I got interesting segue. Bill and Melinda got married. Yep,

944
00:53:59,280 --> 00:54:03,680
Speaker 1: that was there was obviously a very important time for

945
00:54:03,680 --> 00:54:08,400
Speaker 1: for the two of them, and they have created together

946
00:54:08,520 --> 00:54:13,240
Speaker 1: not only an amazing family but also a phenomenal philanthropic

947
00:54:13,400 --> 00:54:17,320
Speaker 1: organization that we'll talk about in our next episode. Before

948
00:54:17,440 --> 00:54:19,040
Speaker 1: we get to that, however, I did want to mention

949
00:54:19,080 --> 00:54:22,960
Speaker 1: that was the year that Microsoft agreed to a federal

950
00:54:23,040 --> 00:54:26,720
Speaker 1: consent decree, which was the outcome of this entire FTC

951
00:54:27,200 --> 00:54:33,000
Speaker 1: Department of Justice investigation at the time. And what they

952
00:54:33,040 --> 00:54:37,239
Speaker 1: were doing was they had been uh entering into these

953
00:54:37,280 --> 00:54:40,880
Speaker 1: license agreements in which in which PC makers had been

954
00:54:40,920 --> 00:54:45,240
Speaker 1: agreeing to pay a licensing fee for DOSS with each

955
00:54:45,600 --> 00:54:48,600
Speaker 1: model of a computer ship, even if that particular computer

956
00:54:48,640 --> 00:54:54,839
Speaker 1: did not contain UM interesting. So that was and and

957
00:54:54,840 --> 00:54:57,640
Speaker 1: and the federal government was like that, that's not cool, guys,

958
00:54:57,640 --> 00:55:00,840
Speaker 1: could you knock that off? So so, so so that was

959
00:55:00,920 --> 00:55:02,719
Speaker 1: and and that was kind of the first thing. And

960
00:55:02,760 --> 00:55:06,680
Speaker 1: this would come back in a minute, um, well, more

961
00:55:06,760 --> 00:55:09,319
Speaker 1: like in several days, because we're going to take a

962
00:55:09,360 --> 00:55:11,560
Speaker 1: break here, ladies and gentlemen. This is gonna be the

963
00:55:11,640 --> 00:55:14,520
Speaker 1: end of part one of the Microsoft story because we

964
00:55:14,600 --> 00:55:16,560
Speaker 1: have so much more to say and we don't want

965
00:55:16,600 --> 00:55:19,160
Speaker 1: to have a two and a half hour long episode

966
00:55:19,200 --> 00:55:21,680
Speaker 1: about it. So we're gonna take a quick break here

967
00:55:21,880 --> 00:55:25,319
Speaker 1: for us and slightly longer one for you. And uh,

968
00:55:25,400 --> 00:55:27,880
Speaker 1: if you guys have any suggestions for things that we

969
00:55:27,880 --> 00:55:30,080
Speaker 1: should cover on future episodes of Tech Stuff, whether it's

970
00:55:30,080 --> 00:55:35,319
Speaker 1: a company, a type of technology, type of software, personality

971
00:55:35,400 --> 00:55:37,560
Speaker 1: in tech, or you just want to hear us take

972
00:55:37,680 --> 00:55:41,160
Speaker 1: yet another film and deconstruct it in our eyes of

973
00:55:41,200 --> 00:55:43,960
Speaker 1: tech and science. Let us know. Write us. Our email

974
00:55:43,960 --> 00:55:47,279
Speaker 1: address is tech stuff at Discovery dot com, or get

975
00:55:47,280 --> 00:55:48,960
Speaker 1: in touch with us on Twitter or Facebook. You can

976
00:55:49,000 --> 00:55:51,960
Speaker 1: find us there with the handle tech stuff. Hs W

977
00:55:52,160 --> 00:55:54,560
Speaker 1: and Lauren and I will talk to you again really soon.

978
00:55:58,320 --> 00:56:00,759
Speaker 1: For more on this and thousands of other topic is

979
00:56:00,800 --> 00:56:09,920
Speaker 1: it how stuff works dot com