Editing Bill Gates (section)

== Microsoft ==
{{Further|History of Microsoft|Microsoft#History}}

=== BASIC ===
[[File:Altair 8800 Computer.jpg|thumb|MITS [[Altair 8800]] Computer with {{Convert |8|in|mm|adj=on}} floppy disk system whose first programming language was Microsoft's founding product, [[Altair BASIC]]]]
Gates read the January 1975 issue of ''[[Popular Electronics]]'' which demonstrated the [[Altair 8800]], and contacted [[Micro Instrumentation and Telemetry Systems]] (MITS) to inform them that he and others were working on a [[BASIC]] interpreter for the platform.<ref name="keyevents">{{cite web|title=Microsoft Visitor Center Student Information: Key Events in Microsoft History |url=http://download.microsoft.com/download/1/3/0/130dd86a-a196-4700-b577-521c4cf5cec1/key_events_in_microsoft_history.doc |publisher=Microsoft |format=.DOC |access-date=February 18, 2008 |archive-url=https://web.archive.org/web/20080226224212/http://download.microsoft.com/download/1/3/0/130dd86a-a196-4700-b577-521c4cf5cec1/key_events_in_microsoft_history.doc |archive-date=February 26, 2008 |url-status=dead }}</ref> In reality, Gates and Allen did not have an Altair and had not written code for it; they merely wanted to gauge MITS's interest. MITS president [[Ed Roberts (computers)|Ed Roberts]] agreed to meet them for a demonstration, and over the course of a few weeks they developed an Altair [[emulator]] that ran on a minicomputer, and then the BASIC interpreter. The demonstration was held at MITS's offices in [[Albuquerque, New Mexico]]; it was a success and resulted in a deal with MITS to distribute the interpreter as [[Altair BASIC]]. MITS hired Allen,<ref name="thocp1">{{cite web|title=Microsoft history |publisher=The History of Computing Project |url=http://www.thocp.net/companies/microsoft/microsoft_company.htm |access-date=March 31, 2008 |archive-url=https://web.archive.org/web/20080514211138/http://www.thocp.net/companies/microsoft/microsoft_company.htm |archive-date=May 14, 2008 |url-status=dead }}</ref> and Gates took a leave of absence from Harvard to work with him at MITS in November 1975. Allen named their partnership "Micro-Soft", a combination of "microcomputer" and "software", and their first office was in Albuquerque. The first employee Gates and Allen hired was their high school collaborator [[Ric Weiland]].<ref name="thocp1" /> They dropped the hyphen within a year and officially registered the trade name "[[Microsoft]]" with the Secretary of the State of New Mexico on November 26, 1976.<ref name="thocp1" /> Gates never returned to Harvard to complete his studies.

Microsoft's Altair BASIC was popular with computer hobbyists, but Gates discovered that a pre-market copy had leaked out and was being widely copied and distributed. In February 1976, he wrote [[An Open Letter to Hobbyists]] in the MITS newsletter in which he asserted that more than 90% of the users of Microsoft Altair BASIC had not paid Microsoft for it and the Altair "hobby market" was in danger of eliminating the incentive for any professional developers to produce, distribute, and maintain high-quality software.{{Sfn |Manes|1994|p=81}} This letter was unpopular with many computer hobbyists, but Gates persisted in his belief that software developers should be able to demand payment. Microsoft became independent of MITS in late 1976, and it continued to develop programming language software for various systems.<ref name="thocp1" /> The company moved from Albuquerque to [[Bellevue, Washington]] on January 1, 1979.<ref name="keyevents" />

Gates said he personally reviewed and often rewrote every line of code that the company produced in its first five years. As the company grew, he transitioned into a manager role, then an executive.<ref name="waterloo">{{cite speech|url=http://www.microsoft.com/presspass/exec/billg/speeches/2005/10-13Waterloo.aspx |last=Gates |first=William 'Bill' |title=Remarks |date=October 13, 2005 |location=Waterloo, ON |access-date=March 31, 2008 |archive-url=https://web.archive.org/web/20080406130809/http://www.microsoft.com/presspass/exec/billg/speeches/2005/10-13Waterloo.aspx |archive-date=April 6, 2008 |url-status=dead }}</ref>

=== IBM partnership ===
[[IBM]], the leading supplier of computer equipment to commercial enterprises at the time, approached Microsoft in July 1980 concerning software for its upcoming personal computer, the [[IBM PC]],{{r |bunnell1982febmar}} after Gates's mother mentioned Microsoft to [[John Opel]], IBM's then [[CEO]].<ref name=mary-maxwell-gates-obit/> IBM first proposed that Microsoft write the BASIC interpreter. IBM's representatives also mentioned that they needed an operating system, and Gates referred them to [[Digital Research]] (DRI), makers of the widely used [[CP/M]] operating system.<ref>{{cite news|url=https://www.forbes.com/forbes/2002/1223/258_print.html|title=Pioneers Die Broke|work=Forbes|first1=John Steele|last1=Gordon|first2=Michael|last2=Maiello|author-link1=John Steele Gordon|date=December 23, 2002|access-date=March 31, 2008|archive-url=https://web.archive.org/web/20061029221703/http://www.forbes.com/forbes/2002/1223/258_print.html|archive-date=October 29, 2006|url-status=dead}}</ref> IBM's discussions with Digital Research went poorly and they did not reach a licensing agreement. IBM representative Jack Sams mentioned the licensing difficulties during a subsequent meeting with Gates and asked if Microsoft could provide an operating system. A few weeks later, Gates and Allen proposed using [[86-DOS]], an operating system similar to CP/M, that [[Tim Paterson]] of [[Seattle Computer Products]] (SCP) had made for hardware similar to the PC.<ref>{{cite web |url=http://www.patersontech.com/dos/microsoft-micronews.aspx |title=Father of DOS |work=Paterson Technology |access-date=October 13, 2019 |archive-url=https://web.archive.org/web/20190906120441/http://www.patersontech.com/dos/microsoft-micronews.aspx |archive-date=September 6, 2019 |url-status=dead }}</ref> Microsoft made a deal with SCP to be the exclusive licensing agent of 86-DOS, and later the full owner. Microsoft employed Paterson to adapt the operating system for the PC<ref>{{cite web |url=http://www.patersontech.com/dos/softalk.aspx |title=The Roots of DOS |work=Paterson Technology |access-date=October 13, 2019 |archive-url=https://web.archive.org/web/20190906120449/http://www.patersontech.com/dos/softalk.aspx |archive-date=September 6, 2019 |url-status=dead }}</ref> and delivered it to IBM as [[PC DOS]] for a one-time fee of $50,000.{{Sfn | Gates | 1996 | p = 54}}

The contract itself only earned Microsoft a relatively small fee. It was the prestige brought to Microsoft by IBM's adoption of their operating system that would be the origin of Microsoft's transformation from a small business to the leading software company in the world. Gates had not offered to transfer the copyright on the operating system to IBM because he believed that other personal computer makers would clone IBM's PC hardware.{{Sfn | Gates | 1996 | p = 54}} They did, making the IBM-compatible PC, running DOS, a de facto standard. The sales of [[MS-DOS]] (the version of DOS sold to customers other than IBM) made Microsoft a major player in the industry.{{Sfn |Manes|1994|p=193}} The press quickly identified Microsoft as being very influential on the IBM PC. ''[[PC Magazine]]'' asked if Gates was "the man behind the machine?".<ref name="bunnell1982febmar">{{cite news | url = https://books.google.com/books?id=w_OhaFDePS4C&pg=PA16 | title = The Man Behind The Machine? | type = interview | work = [[PC Magazine]] | date = Feb–Mar 1982 | access-date = February 17, 2012 | last = Bunnell | first = David | page = 16 | url-status=live | archive-url = https://web.archive.org/web/20130509162040/http://books.google.com/books?id=w_OhaFDePS4C&lpg=RA2-PA18&pg=PA16 | archive-date = May 9, 2013 }}</ref>

Gates oversaw Microsoft's company restructuring on June 25, 1981, which re-incorporated the company in Washington state and made Gates the president and chairman of the board, with Paul Allen as vice president and vice chairman. In early 1983, Allen left the company after receiving a [[Hodgkin lymphoma]] diagnosis, effectively ending the formal business partnership between Gates and Allen, which had been strained months prior due to a contentious dispute over Microsoft equity.<ref name="keyevents" /><ref name="before microsoft">{{cite magazine |first=Paul |last=Allen |url=https://www.vanityfair.com/news/2011/05/paul-allen-201105 |title=Microsoft's Odd Couple |magazine=[[Vanity Fair (magazine)|Vanity Fair]] |date=May 2011 |access-date=November 11, 2019 |archive-date=January 3, 2020 |archive-url=https://web.archive.org/web/20200103050532/https://www.vanityfair.com/news/2011/05/paul-allen-201105 |url-status=live }}</ref> Later in the decade, Gates repaired his relationship with Allen and together the two donated millions to their childhood school Lakeside.<ref name="leibovich20001231" /> They remained friends until Allen's death in October 2018.<ref name="Gates Mourns Allen">{{Cite news |url=https://fortune.com/2018/10/16/bill-gates-paul-allen-death-microsoft/ |title=Bill Gates Mourns His Microsoft Co-Founder Paul Allen: 'Personal Computing Would Not Have Existed Without Him' |last=Detrick |first=Hallie |date=October 16, 2018 |work=Fortune |access-date=November 11, 2019 |archive-date=November 12, 2019 |archive-url=https://web.archive.org/web/20191112002045/https://fortune.com/2018/10/16/bill-gates-paul-allen-death-microsoft/ |url-status=live }}</ref>

=== Windows ===
Microsoft and Gates launched their first retail version of [[Microsoft Windows]] on November 20, 1985, in an attempt to fend off competition from [[Apple Inc.|Apple]]'s [[classic Mac OS|Macintosh]] [[GUI]], which had captivated consumers with its simplicity and ease of use.<ref name="ahmwbi">{{cite news |last1=Hartmans |first1=Avery |last2=Weinberger |first2=Matt |title=A history of the decades-long feud between Steve Jobs and Bill Gates, whose love-hate relationship spurred the success of Microsoft and Apple |url=https://www.businessinsider.com/the-bill-gates-steve-jobs-feud-frenemies-2016-3 |agency=Business Insider |publisher=Insider Inc. |date=April 1, 2021 |access-date=April 15, 2021 |archive-date=March 10, 2016 |archive-url=https://web.archive.org/web/20160310142721/https://www.businessinsider.com/the-bill-gates-steve-jobs-feud-frenemies-2016-3 |url-status=live }}</ref> In August 1986, the company struck a deal with [[IBM]] to develop a separate operating system called [[OS/2]]. Although the two companies successfully developed the first version of the new system, the partnership deteriorated due to mounting creative differences.<ref>{{cite web |url= http://groklaw.net/pdf/iowa/www.iowaconsumercase.org/011607/0000/PX00738.pdf |archive-url=https://web.archive.org/web/20130812161223/http://groklaw.net/pdf/iowa/www.iowaconsumercase.org/011607/0000/PX00738.pdf |archive-date=August 12, 2013 |url-status=live |title=Challenges and Strategy |work=Groklaw |access-date=November 17, 2011}}</ref> The operating system [[Windows 9x#Windows prior to 95|grew out of DOS]] in an organic fashion over a decade until [[Windows 95]], which hid the DOS prompt by default. [[Windows XP]] was released one year after Gates stepped down as Microsoft CEO.<ref name=cnettop>{{cite web | url=https://www.zdnet.com/article/top-10-things-you-must-know-about-win-xp/ | title=The 10 top things you MUST know about Win XP | publisher=[[CNET Networks]] | work=[[ZDNet]] | date=October 25, 2001 | access-date=July 22, 2008 | first=David | last=Coursey | url-status=live | archive-url=https://web.archive.org/web/20151208055856/http://www.zdnet.com/article/top-10-things-you-must-know-about-win-xp/ | archive-date=December 8, 2015 }}</ref> [[Windows 8.1]] was the last version of the OS released before Gates left the chair of the firm to [[John W. Thompson]] on February 5, 2014.<ref name=chairex>{{Cite web |last1=David |first1=Javier E |title=Nadella named new Microsoft CEO as Gates era ends |url=https://www.nbcnews.com/business/microsoft-names-satya-nadella-ceo-2D12054182 |website=[[NBCNews.com]] |publisher=[[NBCUniversal]] |archive-url=https://web.archive.org/web/20140205010025/https://www.nbcnews.com/business/microsoft-names-satya-nadella-ceo-2D12054182 |archive-date=February 5, 2014 |date=February 5, 2014}}</ref>

=== Management style ===
[[File:Bill Gates - World Economic Forum Annual Meeting Davos 2008.jpg|thumb|right|Gates delivers a speech at the [[World Economic Forum]] in Switzerland, January 2008.|280x280px]]

During Microsoft's early years, Gates was an active software developer, particularly in the company's programming language products, but his primary role in most of the company's history was as a manager and executive. He has not officially been on a development team since working on the [[TRS-80 Model 100]],<ref name="allison1993">{{cite interview | last=Gates | first=Bill | subject-link=Bill Gates | interviewer=David Allison | url=http://americanhistory.si.edu/comphist/gates.htm | title=Bill Gates Interview | work=Transcript of a Video History Interview / Computer History Collection | publisher=National Museum of American History, Smithsonian Institution | access-date=April 10, 2013 | url-status=live | archive-url=https://web.archive.org/web/20130402195548/http://americanhistory.si.edu/comphist/gates.htm | archive-date=April 2, 2013 }}</ref> but he wrote code that shipped with the company's products as late as 1989.<ref name="pdc97">{{cite speech |url=http://www.microsoft.com/presspass/exec/billg/speeches/1997/pdc.aspx |first=Bill |last=Gates |title=Remarks by Bill Gates |location=San Diego |date=September 26, 1997 |access-date=March 31, 2008 |archive-url=https://web.archive.org/web/20080420152409/http://www.microsoft.com/presspass/exec/billg/speeches/1997/pdc.aspx |archive-date=April 20, 2008 |url-status=dead}}</ref> [[Jerry Pournelle]] wrote in 1985 when Gates announced [[Microsoft Excel]]: "Bill Gates likes the program, not because it's going to make him a lot of money (although I'm sure it will do that), but because it's a [[hack (programmer subculture)|neat hack]]."<ref name="pournelle198509">{{cite news | url=https://archive.org/stream/byte-magazine-1985-09/1985_09_BYTE_10-09_Homebrewing#page/n329/mode/2up | title=PCs, Peripherals, Programs, and People | work=[[Byte (magazine)|Byte]] | date=September 1985 | access-date=March 20, 2016 | author=Pournelle, Jerry | page=347}}</ref> During the late 1990s, he was [[Criticism of Microsoft|criticized for his business tactics]], which were considered [[anti-competitive]]. This opinion has been upheld by numerous court rulings.{{Sfnm|1a1=Lesinski|1y=2006|1p=96|2a1=Manes|2y=1994|2p=459}}

In June 2006, Gates announced that he would transition out of his role at Microsoft to dedicate more time to philanthropy. He gradually divided his responsibilities between two successors when he placed [[Ray Ozzie]] in charge of management and [[Craig Mundie]] in charge of long-term product strategy.<ref name="mscorpnews">{{cite news|url=http://www.microsoft.com/presspass/press/2006/jun06/06-15CorpNewsPR.mspx |title=Microsoft Announces Plans for July 2008 Transition for Bill Gates |publisher=Microsoft |date=June 15, 2006 |archive-url=https://web.archive.org/web/20060619230935/http://www.microsoft.com/presspass/press/2006/jun06/06-15CorpNewsPR.mspx |archive-date=June 19, 2006 |url-status=dead }}</ref> The process took two years to fully transfer his duties to Ozzie and Mundie, and was completed on June 27, 2008.<ref>{{cite web|title=Bill Gates {{!}} Development of Information and Knowledge Management|url=https://www.tlu.ee/~sirvir/IKM/Development_of_IKM/bill_gates.html|website=tlu.ee|access-date=January 21, 2016|url-status=live|archive-url=https://web.archive.org/web/20160126074023/http://www.tlu.ee/~sirvir/IKM/Development_of_IKM/bill_gates.html|archive-date=January 26, 2016}}</ref>