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Triumph of the Nerds Part 2
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Triumph of the Nerds Part 2

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Questions and Answers

Who invented the Altair personal computer?

  • Bill Gates
  • Ed Roberts (correct)
  • Steve Wozniak
  • Steve Jobs

    • Who proposed an open architecture for IBM's personal computer?

  • Bill Gates
  • Bill Lowe (correct)
  • Gary Kildall
  • Steve Jobs

    • What was unconventional about IBM's decision to create a personal computer?

  • Seeking an operating system
  • Hiring external consultants
  • Using off-the-shelf components (correct)
  • Building it in a year

    • Who were the two contenders for providing the operating system for IBM's PC?

    <p>Gary Kildall and Bill Gates</p> Signup and view all the answers

    Which operating system had Gary Kildall invented for the PC?

    <p>CP/M</p> Signup and view all the answers

    Which company was the largest supplier of computer languages in the late 1970s and early 1980s in the PC industry?

    <p>Microsoft</p> Signup and view all the answers

    What was the nature of Gary Kildall, as described in the documentary?

    <p>Non-confrontational and uninterested in business strategies</p> Signup and view all the answers

    What kind of environment was Bill Gates raised in?

    <p>A competitive environment where winning was rewarded and losing was penalized</p> Signup and view all the answers

    Who was the founder of Digital Research?

    <p>Gary Kildall</p> Signup and view all the answers

    What did IBM mistakenly believe about Microsoft during their first meeting?

    <p>Microsoft had an operating system</p> Signup and view all the answers

    What did the failure of Digital Research to secure the deal with IBM allow Microsoft to do?

    <p>Step in and secure the deal with IBM</p> Signup and view all the answers

    What became the foundation for Microsoft's success in the PC industry?

    <p>MS-DOS</p> Signup and view all the answers

    What did the failure of Digital Research allow Microsoft to do?

    <p>Establish itself as a dominant player in the PC industry</p> Signup and view all the answers

    What was the main focus of IBM's business before they decided to enter the personal computer market?

    <p>Mainframe computers for large companies</p> Signup and view all the answers

    What was the dress code like for employees at IBM?

    <p>Strict, requiring white shirts and formal attire</p> Signup and view all the answers

    What did IBM's safety net and bureaucracy lead to?

    <p>Difficulty in making decisions</p> Signup and view all the answers

    What was the concern at IBM regarding personal computers in the early 1980s?

    <p>Losing the hearts and minds of users to other personal computer brands</p> Signup and view all the answers

    Who played a crucial role in IBM's decision to develop their own personal computer?

    <p>Bill Lowe, who ran a small lab in Boca Raton Florida</p> Signup and view all the answers

    What was the perception of the IBM PC industry if they had waited another year before taking action?

    <p>It would be too big for IBM to take on</p> Signup and view all the answers

    What was the main reason for IBM's loss of market share?

    <p>Slow pace and high overhead</p> Signup and view all the answers

    What did IBM emphasize as a measure of success, leading to a clash with Microsoft's approach?

    <p>K-LOCs (thousand lines of code)</p> Signup and view all the answers

    What did Microsoft prioritize over OS/2 during a retreat, leading to a divergence in their visions?

    <p>Windows</p> Signup and view all the answers

    What led to the disintegration of the partnership between IBM and Microsoft?

    <p>IBM's refusal to agree to a deal allowing Microsoft to profit from the Windows 3.0 launch</p> Signup and view all the answers

    What did Microsoft pour resources into developing to compete with OS/2?

    <p>Windows</p> Signup and view all the answers

    What did IBM plan to develop to compete with Microsoft, despite asking Microsoft to write the code?

    <p>OS/2</p> Signup and view all the answers

    What did IBM's entry into the personal computer market signify?

    <p>A shift from focusing on mainframe computers to catering to the demand for personal computers</p> Signup and view all the answers

    What did the creation of the IBM personal computer represent?

    <p>A pivotal moment in the history of computing and a shift in IBM's focus</p> Signup and view all the answers

    What was the initial perception of personal computers in the corporate world?

    <p>A hobbyist's activity with no business relevance</p> Signup and view all the answers

    How were the young employees at Microsoft perceived in relation to Bill Gates?

    <p>They saw him as an incredible role model and leader, almost a guru</p> Signup and view all the answers

    What was the perception of the culture at Microsoft in comparison to other companies?

    <p>It was easier to create a new culture with fresh graduates than with employees from other companies and cultures</p> Signup and view all the answers

    What did Larry Ellison believe was the single worst mistake made by IBM?

    <p>Manufacturing and distributing the Microsoft/Intel PC</p> Signup and view all the answers

    What did the famous TV commercial in 1984 by Apple aim at?

    <p>IBM</p> Signup and view all the answers

    What did Bill Gates emphasize as the reason for his company's success?

    <p>Constantly staying on top of technological advancements</p> Signup and view all the answers

    What did Bill Gates fear about aging and how did he plan to address it?

    <p>Losing creativity and intelligence, hiring smart people</p> Signup and view all the answers

    What did the Boca Raton, Florida birthplace of IBM's PC become a casualty of?

    <p>Diminishing market share</p> Signup and view all the answers

    What did Larry Ellison compare IBM's mistake to?

    <p>A $100 billion mistake</p> Signup and view all the answers

    What did the TV commercial in 1984 by Apple aim to create?

    <p>A perception of IBM as Big Brother</p> Signup and view all the answers

    What did the success of Microsoft's Windows software system lead to?

    <p>Decline in IBM's PC market share</p> Signup and view all the answers

    What did the commercial marking the launch of the Macintosh miss?

    <p>The real threat, which was Microsoft</p> Signup and view all the answers

    What did the commercial marking the launch of the Macintosh miss?

    <p>The real threat, which was Microsoft</p> Signup and view all the answers

    What was the working environment like at Microsoft, as described in the text?

    <p>Highly informal and collaborative</p> Signup and view all the answers

    What was the primary reason for IBM's decision to enter the personal computer market?

    <p>Fear of losing market share to competitors like Apple</p> Signup and view all the answers

    What was the initial response of big businesses to personal computers?

    <p>They had no interest, associating computers with large mainframes</p> Signup and view all the answers

    What was IBM's mainframe market dominance attributed to?

    <p>Leadership of Tom Watson and his son</p> Signup and view all the answers

    What was the impact of IBM's decision-making process on product development?

    <p>Products took a long time to develop due to thorough decision-making</p> Signup and view all the answers

    What technique did Compaq use to create a portable version of the IBM PC?

    <p>Reverse engineering</p> Signup and view all the answers

    What made it easy for other manufacturers to copy the IBM PC?

    <p>The availability of off-the-shelf microprocessors and other parts</p> Signup and view all the answers

    What was the only part of the IBM PC that was exclusively owned by IBM?

    <p>The ROM BIOS</p> Signup and view all the answers

    What was the main prediction made by the teenage entrepreneur Bill Gates regarding personal computers?

    <p>A PC on every desk and in every home, running Microsoft software</p> Signup and view all the answers

    What was the reason for Compaq's instant success in the PC industry?

    <p>Low overhead costs</p> Signup and view all the answers

    What strategy did Compaq employ to avoid legal issues when reverse-engineering IBM's ROM BIOS?

    <p>Utilizing 'virgin' engineers in a clean room</p> Signup and view all the answers

    What impact did the rise of PC clones have on the PC industry?

    <p>It revolutionized the industry, challenging IBM's dominance and changing market dynamics</p> Signup and view all the answers

    Study Notes

    The Battle for the IBM PC Operating System

    • In 1980, IBM was in need of an operating system for its new personal computer and approached both Gary Kildall, creator of CPM, and Bill Gates, maker of BASIC.
    • Bill Gates and Steve Ballmer recognized the significance of IBM's visit and quickly arranged a meeting with IBM, understanding the potential impact on the future of computing.
    • During the meeting, IBM mistakenly believed that Microsoft had an operating system, assuming they could license CPM from them, but Microsoft clarified that they were not in that business.
    • Subsequently, IBM visited Gary Kildall's Digital Research headquarters, where a series of misunderstandings and legal issues led to a failed collaboration, leaving IBM unimpressed.
    • Digital Research's failure to seize the opportunity allowed Microsoft to step in and secure the deal with IBM, leading to the creation of MS-DOS, which became the foundation for Microsoft's success in the PC industry.
    • Bill Gates recognized the significance of the situation and the potential impact on their business, emphasizing the need to secure the deal with IBM to avoid losing the language business.
    • The missed opportunity by Digital Research was seen as a critical mistake, which allowed Microsoft to capitalize on the situation and secure a pivotal deal with IBM.
    • Bill Gates and Steve Ballmer's quick thinking and business acumen led to the development of MS-DOS, which became the dominant operating system for IBM's personal computer and laid the foundation for Microsoft's future success.
    • The series of events surrounding the battle for the IBM PC operating system highlighted the importance of seizing opportunities and making strategic business decisions.
    • The failure of Digital Research to secure the deal with IBM allowed Microsoft to establish itself as a dominant player in the PC industry, ultimately shaping the future of computing.
    • The significance of IBM's visit and the subsequent deal with Microsoft underscored the pivotal role of the operating system in the success of personal computers and the tech industry as a whole.
    • The events surrounding the battle for the IBM PC operating system highlighted the critical role of strategic decision-making, timing, and seizing opportunities in the development of the PC industry.

    IBM's Journey into Personal Computing

    • Big businesses initially had no interest in personal computers, associating computers with large mainframes costing hundreds of thousands of dollars.
    • IBM, under the leadership of Tom Watson and his son, dominated the mainframe market, but they were not involved in personal computers.
    • IBM had a strict corporate culture with a strong emphasis on loyalty, dress code, and conservative work ethic.
    • IBM was compared to a country due to its size and bureaucratic structure, with hundreds of thousands of employees and a complex decision-making process.
    • The company culture was so conservative that employees were required to wear white shirts and adhere to a strict dress code.
    • IBM's decision-making process was so thorough that it could take nine months to ship an empty box due to the focus on preserving quality.
    • In the late 1970s, IBM noticed the rise of personal computer companies like Apple and decided to enter the personal computer market.
    • IBM faced a crisis as personal computers gained popularity, and they needed to act quickly to compete in the rapidly growing industry.
    • Bill Lowe, leading IBM's PC development team, proposed a plan to develop a personal computer in a year, challenging the typical lengthy process at IBM.
    • IBM's decision to enter the personal computer market was driven by the fear of losing the hearts and minds of consumers to competitors like Apple.
    • IBM's foray into personal computing marked a significant shift in the company's focus, moving from mainframe computers to the burgeoning personal computer industry.
    • The company's move into personal computing highlighted the necessity of adapting to changing technological landscapes and consumer preferences to remain competitive.

    The Birth of PC Clones and the Battle with IBM

    • IBM's ROM-BIOS was their proprietary design, protected by copyright, hindering Compaq from copying it.
    • Compaq engineers reverse-engineered the ROM BIOS, creating a detailed specification to mimic its behavior exactly.
    • Claude Stern, a Silicon Valley attorney, advised Compaq to use "virgin" engineers in a clean room to avoid legal issues.
    • Compaq spent $1 million and several months with 15 senior programmers to reverse engineer the ROM BIOS.
    • Compaq's portable computer boasted 100% IBM compatibility, leading to instant success with 47,000 PCs sold in the first year.
    • Compaq's first-year sales set a record at $111 million, positioning them as a major player in the PC industry.
    • Intel benefited from the success of PC clones, selling a large number of microprocessor chips to clonemakers.
    • The PC industry was characterized by decreasing prices and increasing functionality, challenging traditional industry norms.
    • Many rivals, including AST, Northgate, and Dell, emerged to challenge IBM's dominance in the PC market.
    • The ease of building IBM-compatible PCs led to a proliferation of clone manufacturers, taking market share from IBM.
    • Compaq's success was attributed to low overhead costs and high-density recorder technology, allowing them to make a profit.
    • The rise of PC clones, such as Compaq, revolutionized the PC industry, challenging IBM's dominance and changing market dynamics.

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    Test your knowledge of the pivotal battle for the IBM PC operating system with this quiz. Learn about the strategic decisions, missed opportunities, and business acumen that shaped the future of computing and the tech industry as a whole.

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