Bill Gates

The 86-DOS operating system was similar to what operating system?

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. 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. IBM's discussions with Digital Research went poorly, however, 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. 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 and delivered it to IBM as PC DOS for a one-time fee of $50,000.


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  • At 17, Gates formed a venture with Allen called Traf-O-Data to make traffic counters based on the Intel 8008 processor. In 1972, he served as a congressional page in the House of Representatives. He was a National Merit Scholar when he graduated from Lakeside School in 1973. He scored 1590 out of 1600 on the Scholastic Aptitude Tests (SAT) and enrolled at Harvard College in the autumn of 1973. He chose a pre-law major but took mathematics and graduate level computer science courses. While at Harvard, he met fellow student Steve Ballmer. Gates left Harvard after two years while Ballmer stayed and graduated magna cum laude. Years later, Ballmer succeeded Gates as Microsoft's CEO and maintained that position from 2000 until his resignation in 2014.

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  • Gates remained in contact with Paul Allen and joined him at Honeywell during the summer of 1974. In 1975, the MITS Altair 8800 was released based on the Intel 8080 CPU, and Gates and Allen saw the opportunity to start their own computer software company. Gates dropped out of Harvard that same year. His parents were supportive of him after seeing how much he wanted to start his own company. He explained his decision to leave Harvard: "if things hadn't worked out, I could always go back to school. I was officially on leave."

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  • 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. 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. The company moved from Albuquerque to Bellevue, Washington on January 1, 1979.

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  • 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. 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. IBM's discussions with Digital Research went poorly, however, 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. 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 and delivered it to IBM as PC DOS for a one-time fee of $50,000.

    More Info

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