Microsoft
started out in 1975 with two men, Paul Allen and Bill Gates,
in charge. The two of them programed BASIC, the first
launguage written for a personal computer. During the same
year the first retail computer store opened in West L.A. and
the first issue of BYTE magazine was published. So far things
are going Microsoft's way. Together, Paul and Bill licensed
BASIC to MITS (Micro Instrumentation and Telmetry Systems).
In March of '75, Paul Allen joined MITS as the Director of
Software, and BASIC ran at the Altar system for the first
time.Later, in April, BASIC 2.0 becomes available to the
public and ships in both 4K and 8K models, then Microsoft
signs a contract with Mits. The first time
"Microsoft" was officially used was in a news letter
written by BillGates. This letter was written for Paul Allen
in 1976.
1976. Over the rest of 1976, Bill Gates wrote "An Open
Letter to Hobbyists" published in an issue of Computer
Notes. This letter raised issue of software piracy and how it
was keeping "good software from being writen."
Later, Paul Allen resigned from MITS and joined Microsoft
full-time, and this was when the name "Microsoft"
was registered to the Office of the Secretary of the State of
New Mexico. Microsoft formed it's official partnership between
Paul Allen and Bill Gates.
Microsoft next went on to produce FORTRAN, it's second largest
product.
1978. Durring 1978, Microsoft shipped its third product,
COBOL-80, and establishes its first sales office in Japan and
appoints it the sales agent for the Far East. Also, last but
not least, Microsoft's sales exceed 1 million by late 78.
1979, this is when Microsoft created the 8080 BASIC. This
program won the ICP Million Dallor Award. This was aukward
because normally this award went to software created for
mainframes, not microcomputer software. Next, Microsoft came
out with the 16-bit version of BASIC, called 8086 BASIC. This
event marked the widespread use of the 16 prossesor. And
finally this year, Microsoft expanded to Europe.
1980, this is when Microsoft created the Z-80 SoftCard. This
card plugged into the Apple II computer and allowed people to
run 8080 programs with miner adjustments. Next, Microsoft
anownst the XENIX Operating System. This was a portable OS for
the 16-bit prossesor. It was interactive, supported
multi-tasking, and could support multiple users. This ran on
the Intel 8086, the Zilog Z8000, the Motorola M68000, and the
DEC PDP-11 computers. Microsoft adapted all of its software to
run on this OS.
1981. This is the year when Microsoft became privately owned,
with Bill Gates as the president and Chaiman, and Paul Allen
as Vice President. This is when Microsoft was refered to as
Microsoft, Inc.This was a big year for microsoft, for they
were asked by IBM to make MS-DOS to be used on there soon
coming Personal Computer.
1982. Microsoft created its logo, packaging desing, and
product support. Microsoft also made the Microsoft Local Area
Network.
1983. Paul Allen resigned during this year, and Microsoft also
made its first verson of the microsoft mouse. The Microsoft
mouse was made to work on the IBM PC, and any other compatable
computer running MS-DOS. After Paul resigned Microsoft hired
Jon Shirley as the Chief Operating Officer. Microsoft Word, as
we have all heard of, was first anounst during this
year.Microsoft advertised this product in a way no one has
ever done before. They bound a demo disk of MS-Word into the
cover of every PC World Magazine.
Also, another very popular product was created this year, it
was called Microsoft Windows. This program ran off of MS-DOS
and provided a graphical interface for users with the added
ability to transfer data to and from programs.
1984. Microsoft desided to make software for the stedily
growing population of Macintosh users. Programs such as BASIC
and Word were converted for the Mac. Microsoft Press
introduced its first two titles, "The Apple Machintosh
Book", and the "Exploring the IBM PCjr Home
Computer" at the West coast computer faire. The
"Hardware and Peripherals" division was also created
in 1984.
A big step for Microsoft in 1984 was that IBM chose MS-DOS and
XENIX for IBM's new generation personal computers, the PC
AT's. IBM at the time was one of the biggest compeditors in
the PC market, so Microsoft resived grreat attention from the
market when IBM chose Microsoft to create its operating
systems.
1985. This is Microsoft's tenth anniversary, with an estiamted
total sale of the year at 140 million. The company at this
time has 00 employees with many different product
lines.Product lines like Operating systems, Programing
launguages, buisness software, hardware, and computer books.
The next big step Microsoft took was the begining of the sales
of Windows. Windows basically extends the features of MS-DOS
and gives you a graphical interface. After the sales of
Windows, Microsoft went public at $21 per share, and rising to
$28 dallors by the end of the day. Microsoft ended the year
with 1,442 employees.
1987. Microsoft combined all of the costumer services into
one, large, more eficient service. Microsoft announst its OS/2
operating system and Windows 2.0.Windows 2.0 was downward
compatable and had compatibility with the OS/2 operating
system. Bookshelf was Microsoft's first CD-ROM application.
This was one of the first programs to take advantage of the
CD-ROM technology for PC users. The last event of this year
was that Microsoft anounst Microsoft Excel for Windows, a
powerful spread sheet program.
1988. Microsoft moved into a larger manufacturing plant, but
that was about all.
1989. Microsoft created a Multimedia division, devoted to
making multimedia products for consumers. Later in the year
Microsoft Office shipped on CR-ROM. Finally, Jon Shirly
retired from Microsoft.
1990. Microsoft made a Russan verson of MS-DOS (or MS-DOSski).
Later, the ever popular Windows 3.0 was anounced. Windows 3.0
must have been a success because Microsoft exceeded 1 billion
in sales on its 15th anaversary (1.18 billion to be exact).
Later Microsoft ran a Windows marketing campaign.
1991. The first thing to happen in this year was that
Microsoft revealed Excel 3.0. This program was available for
both Windows 3.0 and the Mac. Microsoft made its first
trackball, a mouse that attaches to the side of a laptop that
moves with the touch of the thumb.
Later, Microsoft came out with there new ballpoint mouse (I
have one, it's great!). They spent two and a half years of
developoement on this mouse, and it shows, have you ever seen
a broken Microsoft mouse?
Another great product Microsoft made was Visual BASIC. This
was first anounst in '91 and it was a great product! Visual
BASIC combined visual design tools with an easy to learn all
purpose programing launguage with an .EXE compiler in the
package.
1992. Microsoft got ready to launch a Windows Campagn, with TV
adds to show users the benifits of the Windows work area.
Microsoft and Fox Software merged just when Windows became
available in all parts of the world. In the merge of Fox and
Microsoft, the deal was that Microsoft recived all unbought
Fox Software stock, and Fox gained 1.36 million shares of
Microsoft's stock. Now, Microsoft had a stock split that was
approved for a 3 for 2 split. So, for every 2 stocks held, a
person recived another. In other words, Lots of money!
One of my favorite happanings of this year was the relice of
Windows NT. This was only the BETA, but it surely led to a
great product. Along with NT, MS Access Database was also
realesed. Microsoft sure makes a LOT of software!
1993. The first word becomes 10 years old today. The first
version was one for DOS send out 1983, and for the Mac in '84.
At the tenth aniversary there were 10 million users of word
world wide.
Encarta '93 ships, as it was, and is, a great multi-media
encyclopedia. Just in time, with Encarta, the very
contravesial DOS 6.0 came out. There 3 major version jumps for
MS-DOS and this was just one of them. The first was 3.0 to
4.0, then there was 4 to 5.0 and now there is 5 to 6.0. This
was a big issue, because many people had only used 5.0 and had
never upgraded, but now many of them were. As with any upgrade
there is going to be a little trouble, and some people got
down on Microsoft, but a lot of those problems would have
occured anyway.
Microsoft totalled a number of 25 millioin users of Windows,
way to go Microsoft! As with this, they relesed the Microsoft
Mouse 2.0 with a very comforatable shape for both left and
right handed users. Included with the mouse was Performance
enhancing software (a mouse even HAD performance??) that made
sure that the mouse was compatable with MS-DOS and Windows.
Alas! Microsoft ships Windows NT, a great and honorable OS.
Windows NT is a true 32bit OS that is also supports many
platforms, like risk, and Intel.
Apple charged Microsoft and Hewlett-Packard with a lawsuit of
copywrite laws about Windows 2.03 and 3.0 and the HP NewWave.
Apple lost in this court battle for the court judged in
Microsoft's favor. Go Microsoft!
1994. The first new product announst in '94 was Microsoft
Plus, a support product designed to increase user's
satisfaction of Microsoft products. Also, Microsoft came out
with Windows 3.11 for work groups which turned out to be a
best seller in the PC market (even I have it). The funny part
was that the closest compeditor to Windows 3.11 for Work
Groups was Windows 3.1 (belive me, they are different
products).
I love this one, 9/8/94 was when Windows 95 was first anounst.
This rose a lot of disscution. And even caught me in it.
Microsoft had a great advertising sceme that attracted a large
audience around the world. Windows 95 was first advertised,
with the nick-name "chicago", as a fully intergraded
OS replacing Windows 3.11, WFW 3.11, and MS-DOS.
11/14/94 was when Microsoft first started useing the
"Where do you want to go today?" add. Don't you
remember that? Microsoft Spent nearly 100 million for a global
camagn add to gain a larger audience, even with non-technical
people (unlike me).
Our freind Wal-Mart started to premote Microsoft products, boy
what nice people. Wal-Mart sold the "Microsoft
Tower" a bundle of 46 software titles with a Microsoft
Mouse included. (how did I miss out on this?). Our freind
Wal-Mart sold these items in the area of highest attraction,
and a Microsoft product was consitered an "Impulse"
item.
1995. Just last year
Microsoft had a total number of 17,801 employees, Wow!
This is a big one! Microsoft anounst that Windows 95 was
finally available after many delays and hold-backs. None the
less, Microsoft had, and has a great experiene with Win 95 as
it hits record sales, and Microsoft Plus joined Win95 in there
journey to the top of the sales list.
I like this one, Microsoft SideWinder was announst on 9/18/95.
This was a breath taking digital-optical joystick opted for
Windows 95 and MS-DOS that was desinged to enhance the gamers
play in all sorts of joystick supporting games. The first
Major supporter of the games was Activision's MechWarrior 2, a
really fun, realist, and "in your face" combat
simulator.
As a conclution, I have to say that Microsoft has had a very
impressive timeline, and Microsoft, I am sure, wil be around
for a much longer time. If you do not like Microsoft you may
not have things go your way for the next several years, so you
might as well give in (hey, like Star Wars!) and enjoy there
wonderful products. I am very impressed with Microsoft's
hardware products as well, they never break (unless you want
them to) and they out perform any other hardware product in
the same field. So, if you have a toss-up over a Microsoft
product and a diferent brand product, go for the Microsoft
product, they never break. Don't be worried if you think
Microsoft is only a software company, they aren't, they make
the best of whatever they do!
IBM was incorporated in the
state of New York on June 15, 1911 as the
Computing-Tabulating-Recording Company. But its origins can be
traced back to 1890, during the height of the Industrial
Revolution, when the United States was experiencing waves of
immigration. The U.S. Census Bureau knew its traditional
methods of counting would not be adequate for measuring the
population, so it sponsored a contest to find a more efficient
means of tabulating census data.
The winner was Herman
Hollerith, a German immigrant and Census Bureau statistician,
whose Punch Card Tabulating Machine used an electric current
to sense holes in punch cards and keep a running total of
data. Capitalizing on his success, Hollerith formed the
Tabulating Machine Co. in 1896.
In 1911, Charles R. Flint, a
noted trust organizer, engineered the merger of Hollerith's
company with two others, Computing Scale Co. of America and
International Time Recording Co. The combined
Computing-Tabulating-Recording Co., or C-T-R, manufactured and
sold machinery ranging from commercial scales and industrial
time recorders to meat and cheese slicers and, of course,
tabulators and punch cards. Based in New York City, the
company had 1,300 employees and offices and plants in Endicott
and Binghamton, N.Y.; Dayton, Ohio; Detroit, Mich.;
Washington, D.C., and Toronto, Canada.
When the diversified
businesses of C-T-R proved difficult to manage, Flint turned
for help to the former No. 2 executive at the National Cash
Register Co., Thomas J. Watson. In 1914, Watson, age 40,
joined the company as general manager.
The son of Scottish
immigrants, Watson had been a top salesman at NCR, but left
after clashing with its autocratic leader, John Henry
Patterson. However, Watson did adopt some of Patterson's more
effective business tactics: generous sales incentives, an
insistence on well-groomed, dark-suited salesmen and an
evangelical fervor for instilling company pride and loyalty in
every worker. Watson boosted company spirit with employee
sports teams, family outings and a company band. He preached a
positive outlook, and his favorite slogan, "THINK,"
became a mantra for C-T-R's employees.
Watson also stressed the
importance of the customer, a lasting IBM tenet. He understood
that the success of the client translated into the success of
his company, a belief that, years later, manifested itself in
the popular adage, "Nobody was ever fired for buying from
IBM."
Within 11 months of joining
C-T-R, Watson became its president. The company focused on
providing large-scale, custom-built tabulating solutions for
businesses, leaving the market for small office products to
others. During Watson's first four years, revenues doubled to
$2 million. He also expanded the company's operations to
Europe, South America, Asia and Australia. In 1924, to reflect
C-T-R's growing worldwide presence, its name was changed to
International Business Machines Corp., or IBM.
During the Great Depression
of the 1930s, IBM managed to grow while the rest of the U.S.
economy floundered. Watson took care of his employees. IBM was
among the first corporations to provide group life insurance
(1934), survivor benefits (1935) and paid vacations (1936).
While most businesses had shut down, Watson kept his workers
busy producing new machines even while demand was slack.
Thanks to the resulting large inventory of equipment, IBM was
ready when the Social Security Act of 1935 brought the company
a landmark government contract to maintain employment records
for 26 million people. It was called "the biggest
accounting operation of all time," and it went so well
that orders from other U.S. government departments quickly
followed.
The Social Security deal was
secured even while IBM was at odds with another branch of the
federal government. The Justice Department filed an antitrust
case against IBM and Remington-Rand in 1932, alleging that the
two companies, which controlled virtually the entire market
for punch card machines, were illegally requiring customers to
buy their punch cards. The case went to the Supreme Court,
which ruled in favor of the Justice Department in 1936.
In subsequent years, IBM's
size and success would inspire numerous antitrust actions. A
1952 suit by the Justice Department, settled four years later,
forced IBM to sell its tabulating machines -- at the time, IBM
offered them only through leases -- in order to establish a
competing, used-machine market. Another federal antitrust suit
dragged on for thirteen years until the Justice Department
concluded it was "without merit" and dropped it in
1982. IBM's competitors filed 20 antitrust actions during the
1970s. None succeeded.
1939-1963: Era of
innovation
When World War II began, all
IBM facilities were placed at the disposal of the U.S.
government. IBM's product line expanded to include bombsights,
rifles and engine parts -- in all, more than three dozen major
ordnance items. Watson set a nominal one-percent profit on
those products and used the money to establish a fund for
widows and orphans of IBM war casualties.
The war years also marked
IBM's first steps toward computing. The Automatic Sequence
Controlled Calculator, also called the Mark I, was completed
in 1944 after six years of development with Harvard
University. It was the first machine that could execute long
computations automatically. Over 50 feet long, 8 feet high,
and weighing almost 5 tons, the Mark I took less than a second
to solve an addition problem, but about six seconds for
multiplication and twice as long for division -- far slower
than any pocket calculator today.
In 1952, the company
introduced the IBM 701, its first large computer based on the
vacuum tube. The tubes were quicker, smaller, and more easily
replaceable than the electromechanical switches in the Mark I.
The 701 executed 17,000 instructions per second and was used
primarily for government and research work. But vacuum tubes
rapidly moved computers into business applications such as
billing, payroll and inventory control.
By 1959, transistors were
replacing vacuum tubes. The IBM 7090, one of the first fully
transistorized mainframes, could perform 229,000 calculations
per second. The Air Force used the 7090 to run its Ballistic
Missile Early Warning System. In 1964, American Airlines'
SABRE reservations system used two 7090 mainframes to link
sales desks in 65 cities.
IBM led data processing in a
new direction with the 1957 delivery of the IBM 305 Random
Access Method of Accounting and Control (RAMAC), the first
computer disk storage system. Such machines became the
industry's basic storage medium for transaction processing. In
less than a second, the RAMAC's "random access" arm
could retrieve data stored on any of 50 spinning disks. At an
IBM exhibit at the 1958 World's Fair in Brussels, the RAMAC
answered world history questions in ten languages.
Also in 1957, IBM introduced
FORTRAN (FORmula TRANslation), a computer language based on
algebra, grammar and syntax rules. It became the most widely
used computer language for technical work.
A new generation of IBM
leadership oversaw this period of rapid technology change.
After nearly four decades as IBM's chief executive, Thomas
Watson passed the title of president on to his son, Thomas
Watson Jr., in 1952. (Another family member, Tom Jr.'s younger
brother Arthur K. Watson, built the World Trade Corporation --
IBM's foreign operations -- into such a dominating force that
it had installed 90 percent of the computers in Europe by the
1960s.)
Born the year his father was
hired by C-T-R in 1914, Tom Watson Jr. had been heir apparent
since joining IBM in 1937 as a salesman. After a five-year
interruption, during which he served as a pilot in the U.S.
Army Air Corps, Watson Jr. rejoined the company in 1946, and
was named a vice president six months later. He became chief
executive officer just six weeks before his father's death on
June 19, 1956 at age 82.
Just as his father saw the
company's future in tabulators rather than scales and meat
slicers, Tom Watson Jr. foresaw the role computers would play
in business, and he pushed IBM to meet the challenge. He led
the company's transformation from a medium-sized maker of
tabulating equipment and typewriters to an industrial giant.
During his stewardship, revenue grew from $900 million to $8
billion, and the number of employees rose from 72,500 to
270,000.
1964-1980: A new family
On April 7, 1964, IBM
introduced the System/360, the first large "family"
of computers to use interchangeable software and peripheral
equipment. Rather than purchase a new system when the need and
budget grew, customers now could simply upgrade parts of their
hardware. It was a bold departure from the monolithic,
one-size-fits-all mainframe. Fortune magazine dubbed it
"IBM's $5 billion gamble."
System/360 offered a choice
of five processors and 19 combinations of power, speed and
memory. A user could operate the same magnetic tape and disk
products as another user with a processor 100 times more
powerful. System/360 also offered dramatic performance gains,
thanks to Solid Logic Technology (SLT) -- half-inch ceramic
modules containing circuitry far denser, faster and more
reliable than earlier transistors.
Under Tom Watson Jr., there
also were innovations in marketing. In 1969, IBM changed the
way it sold technology. Rather than offer hardware, services
and software exclusively in packages, marketers
"unbundled" the components and offered them for sale
individually. Unbundling gave birth to the multibillion-dollar
software and services industries. Today, IBM is the world
leader in both industries.
The 1970s saw the end of more
than a half-century of Watson family leadership. Tom Watson
Jr. stepped down as CEO in 1971. After an interim period of
leadership by T. Vincent Learson, Frank T. Cary took over the
company in 1973. Watson served as U.S. ambassador to the
Soviet Union from 1979 to 1981 and remained a member of IBM's
board of directors until 1984. He died in 1993 at the age of
79.
During Cary's tenure, the
computer industry expanded and wove its way into everyday
life. The floppy disk, introduced in 1971, became the standard
for storing personal computer data. When people shopped for
groceries, IBM's supermarket checkout station, introduced in
1973, used glass prisms, lenses and a laser to read product
prices. Also in 1973, bank customers began making withdrawals,
transfers and other account inquiries via the IBM 3614
Consumer Transaction Facility, an early form of today's
Automatic Teller Machines.
1981-1992: The PC era
John R. Opel's appointment as
CEO in 1981 coincided with the beginning of a new era of
computing. Thanks to the birth of the IBM Personal Computer,
or PC, the IBM brand began to enter homes, small businesses
and schools.
Though not a spectacular
machine by technological standards, the IBM PC brought
together all of the most desirable features of a computer into
one small machine. It offered 16 kilobytes of memory
(expandable to 256 kilobytes), one or two floppy disk drives
and an optional color monitor.
When designing the PC, IBM
for the first time contracted the production of its components
to outside companies. The processor chip came from Intel, and
the operating system, called DOS (Disk Operating System), came
from a 32-person company called Microsoft.
John F. Akers became CEO in
1985 and focused on streamlining operations and redeploying
resources. IBM's typewriter, keyboard, and printer business --
the division that created the popular "Selectric"
typewriter with its floating "golf ball" type
element in the 1960s -- was sold to the investment firm of
Clayton, Dubilier & Rice Inc. and became an independent
company, Lexmark Inc.
During Akers' tenure, IBM's
significant investment in research produced four Nobel Prize
winners in physics, achieved breakthroughs in mathematics,
memory storage and telecommunications, and made great strides
in expanding computing capabilities. The IBM token-ring local
area network, introduced in 1985, permitted personal computer
users to exchange information and share printers and files
within a building or complex. With the further development of
the computer, IBM laid a foundation for network computing and
numerous other applications.
Despite these advances, this
was a period when IBM struggled. During the 1980s and early
1990s, IBM was thrown into turmoil by back-to-back
revolutions. The PC revolution placed computers directly in
the hands of millions of people. And then, the client/server
revolution sought to link all of those PCs (the
"clients") with larger computers that labored in the
background (the "servers" that served data and
applications to client machines). Both revolutions transformed
the way customers viewed, used and bought technology. And both
fundamentally rocked IBM.
Businesses' purchasing
decisions were put in the hands of individuals and departments
-- not the places where IBM had long-standing customer
relationships. Piece-part technologies took precedence over
integrated solutions. The focus was on the desktop and
personal productivity, not on business applications across the
enterprise.
By 1993, the company's annual
net losses reached a record $8 billion. Cost management and
streamlining became a chief concern. And IBM considered
splitting its divisions into separate independent businesses.
1993-present: A new IBM
Louis V. Gerstner Jr. arrived
as IBM's chairman and CEO on April 1, 1993. For the first time
in the company's history IBM had found a leader from outside
its ranks. Gerstner had been chairman and CEO of RJR Nabisco
for four years, and had previously spent 11 years as a top
executive at American Express.
Gerstner brought with him a
customer-oriented sensibility and the strategic-thinking
expertise that he had honed through years as a management
consultant at McKinsey & Co. Soon after he arrived, he had
to take dramatic action to stabilize the company. These steps
included rebuilding IBM's product line, continuing to shrink
the workforce and making significant cost reductions.
Despite mounting pressure to
split IBM into separate, independent companies, Gerstner
decided to keep the company together. He recognized that one
of IBM's enduring strengths was its ability to provide
integrated solutions for customers -- someone to represent
more than piece parts or components. Splitting the company
would have destroyed a unique IBM advantage.
With the rise of the Internet
and network computing the company experienced another dramatic
shift in the industry. But this time IBM was better prepared.
All the hard work IBM had done to catch up in the
client/server field served the company well in the network
computing era. Once again, customers were focused on
integrated business solutions -- a key IBM strength that
combined the company's expertise in solutions, services,
products and technologies.
In the fall of 1995,
delivering the keynote address at the COMDEX computer industry
trade show in Las Vegas, Gerstner articulated IBM's new vision
-- that network computing would drive the next phase of
industry growth and would be the company's overarching
strategy.
That year, IBM acquired Lotus
Development Corp., and the next year acquired Tivoli Systems
Inc. Services became the fastest growing segment of the
company, with growth at more than 20 percent per year. From
1993 to 1996, the market value of the company increased by
more than $50 billion.
In May 1997, IBM dramatically
demonstrated computing's potential with Deep Blue, a 32-node
IBM RS/6000 SP computer programmed to play chess on a world
class level. In a six-game match in New York, Deep Blue
defeated World Chess Champion Garry Kasparov. It was the first
time a computer had beaten a top-ranked chess player in
tournament play, and it ignited a public debate on how close
computers could come to approximating human intelligence. The
scientists behind Deep Blue, however, preferred to stress more
practical concerns. Deep Blue's calculating power - it could
assess 200 million chess moves per second -- had a wide range
of applications in fields calling for the systematic
exploration of a vast number of variables, among them
forecasting weather, modeling financial data and developing
new drug therapies.
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