Editing Bill Gates (section)

=== 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>