1) The document discusses the history and founding of Microsoft by Bill Gates and Paul Allen in 1975. They created an interpreter that allowed the Altair 8800 microcomputer to run the popular BASIC programming language, which led to the official founding of Microsoft. 2) In the early 1980s, Microsoft released its first operating systems, Xenix and the influential DOS. DOS was chosen by IBM for its new personal computer, which was a huge success and catapulted Microsoft to industry dominance. 3) Throughout the 1980s, Microsoft continued to innovate and release new operating systems, including Windows as a graphical interface for DOS. This growth led to antitrust investigations into Microsoft's

1. Paul Bechtel
Mrs. Corbett
11/11/11
4th
Senior Project Paper
When computers were first invented it was unthinkable that they would ever come into
widespread use. They were enormous, loud, temperamental, extremely expensive, and on top of
all this, totally unnecessary in the life of a typical person. These issues made it obvious to anyone
paying attention that computers would forever be relegated to the scientific and mathematical
worlds, totally cut off from the mainstream consumer, but, as the technology was slowly
upgraded, people started seeing more and more computers, first in military installations, then in
government buildings, and even in their own offices. As in any new economic field, many
companies began to stake out claims in the rapidly developing computer industry. One of these
early adopters was a programming company that worked with the giant of the time, IBM, to
make one of the first commonly seen desktop computers, this company was called Microsoft,
and its impact on the world of computers has become legendary.
In the beginning, Microsoft was a dream shared by two childhood friends, Bill Gates and
Paul Allen. They had been united by a love of computers and computer programming for many
years, and in 1975, they got a chance to put this passion into effect. They read about a new
computer design coming onto the market known as a microcomputer. After looking at the
device’s specifications and design they realized something, they could improve it. The

2. microcomputer had a massive flaw, it couldn’t read any programs made in the BASIC
programming language, this language was one of the top three most used programming formats
at the time, and if the microcomputer didn’t support it then it could easily fail when released on
the market. Both Gates and Allen were intimately familiar with this style of programming, it was
designed specifically to be usable by new programmers and youths, so they had spent quite a bit
of time working with it. With this knowledge in hand the pair realized that could develop a
program, known as an interpreter, which would allow the microcomputer to run programs in the
BASIC format. Gates quickly made contact with the company that fronted the microcomputer,
MITS, and stated that he could make an interpreter for them. MITS accepted the offer, and when
given a demonstration of the program observed that it worked perfectly with the device it was
running on. MITS agreed to distribute the program and pay them a portion of the profit, with this
sudden victory Gates and Allen saw that they could become players in this burgeoning field, and
on April fourth, 1975 Microsoft was officially founded with Gates as the head. Over the next few
years the pair worked steadily at gaining capital for their fledgling company, they quickly
garnered a reputation for being excellent programmers and cunning businessmen, and in only
two years became an international presence, gaining an office in Japan thanks to a deal with the
Japanese magazine ASCII. In the year 1980 Microsoft began to make its first major appearance
in the computing industry, after five years of testing they released their first two operating
systems, Xenix, a polished version of the system Unix, and their crown jewel, DOS, or, Disk
Operating System. DOS was originally the brainchild of a programming group known as Seattle
Computer Products, a small firm that was ailing at the time, seeing the potential in DOS, it was
quickly purchased by Microsoft and retrofitted to work as the premier operating system for
industry giant IBM’s first personal computer. The computer and its operating system were a

3. smash hit, and many firms began to purchase their software exclusively from Microsoft,
catapulting it to the head of the programming pack. Shortly after their newfound power was
cemented the company lost its second-in-command, Paul Allen, resigned due to the onset of
cancer. Gates marched ahead without his long time partner and continued to oversee Microsoft’s
rise to dominance. In this time, more specifically the year 1984 that the first iteration of the now
famous Microsoft Windows operating system was released, as an add-on to DOS. This gave the
users of DOS a graphical representation of what was happening, rather than just endless lines of
code, thus making programming that much easier to comprehend. Two years later Microsoft
became a publically traded company on the stock market, earning Microsoft billions of dollars
within days. This newfound wealth, coupled with Microsoft’s recent partnership with hardware
giant IBM resulted in an investigation by the U.S. government. The two industry heads were
suspected of combining their power to crush any new market development, a serious crime by
anyone’s standards. Though the investigation failed to bring charges before either of the
corporations it heralded the start of a long chain of federal studies into Microsoft’s business
practices. While the partnership of IBM and Microsoft were battling legal threats they were also
busy innovating their respective computer fields. Microsoft released the fruit of their shared
labor, a state-of-the-art operating system to replace the aging DOS. This new framework, known
as OS/2, was to be installed in computers while they were still being assembled, a process which
IBM greatly hastened, but, unbeknownst to IBM, soon after Microsoft witnessed the successful
launch of the OS/2 software they immediately went to work on something better. Using
knowledge and features gained from their painstaking development of OS/2, Microsoft engineers
were hard at work creating the next big thing, a 32-bit operating system known as Microsoft
Windows NT. This new operating system had many improvements over OS/2, including several

4. groundbreaking methods of handling multiple programs that Microsoft had kept secret from its
partner. Upon hearing word of the new, Microsoft only operating system, IBM immediately
broke its partnership with the software giant.