Microsoft LO7837

mdarling@warren.med.harvard.edu
Tue, 11 Jun 1996 17:53:48 -0400

Replying to LO7811 --

About Microsoft, Wayne wrote:

>Many successful organizations are so due to a good deal of luck. This is
>not to say that there was no hard work and risk and ingenuity involved.
>Microsoft is a good example of this. There was a lot of hard work and risk
>and ingenuity. They have been very successful (I, as a user of their
>application software am grateful for their efforts). But a good deal of
>luck is in there to; keep in mind that IBM chose them to write their PC
>operating system. They deserved it, indeed but they were lucky that the
>contract was not awarded to one of the many other worthy candidates. From
>this lucky event Microsoft has built considerable presence and momentum.

Wayne, your point about luck is well taken. I don't disagree that
Microsoft has experienced a good deal of luck, but the story you mention
does not illustrate the point. In fact, just the opposite.

For those of you who have not read this story, let me tell it again. IBM
came to Microsoft for its Basic language -- at the time, Microsoft's only
product line. Bill Gates told them that they would also need an operating
system, and that they should go to Digital Research (DRI) to talk about
licensing CP/M -- at the time, the only microcomputer operating system.
(As I remember, UNIX was only implemented on mini-computers at the time.)

IBM came to Pacific Grove to visit DRI. (I happened to be in charge of
marketing communications at the time and was actually in the next room
during this historic event.) The meeting did not turn out well. IBM left
and went back up to Microsoft to ask if they could provide an operating
system. Bill Gates knew of a "garage shop" that was developing a knock-off
of CP/M. Sensing some significance to this opportunity (who knows how much
he realized at the time), he licensed the product from this company and
developed it into MS-DOS.

You could say that our mistake made for a lucky break for Gates, but in
fact, he responded quickly and well to an unanticipated opportunity. My
dwindling stock options aside, I've always respected him for that move.

Marilyn Darling
Signet Consulting Group
(617) 242-7214
mdarling@warren.med.harvard.edu

-- 

mdarling@warren.med.harvard.edu

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