Triumph of the Nerds 3

The Missed Opportunity: Xerox PARC and Steve Jobs

• In 1971/72, computers were rare and the idea of having one on every desk seemed revolutionary.
• The researchers at PARC envisioned a world-changing personal computing revolution, but Xerox management in New York failed to understand and support their vision.
• The management at Xerox did not grasp the revolutionary technologies developed at PARC, leading to a disconnect between the researchers and the company's leadership.
• Steve Jobs, driven by a vision of changing the world, recognized the potential of the graphical user interface during a visit to Xerox PARC in 1979.
• Jobs was so captivated by the graphical user interface that he failed to appreciate other groundbreaking technologies demonstrated at PARC.
• Upon his return to Apple, Jobs demanded that his programming team receive a demo of the Smalltalk System from Xerox PARC.
• The Apple programmers were inspired by the demonstration of the graphical user interface and the user-friendly design of the Alto machine.
• Despite Xerox's innovative technologies, Jobs criticized the company for not realizing the potential of the computer industry, claiming that they "grabbed defeat from the greatest victory."
• Steve Jobs co-founded Apple Computer in 1976 and played a pivotal role in the success of the Apple II, one of the first popular personal computers.
• Colleagues and contemporaries admired Jobs for his charisma, high standards, and relentless pursuit of greatness in the personal computing industry.
• The missed opportunity at Xerox PARC to capitalize on their revolutionary technologies cost the company a potential dominant position in the computer industry.
• Steve Jobs' visit to Xerox PARC and his subsequent implementation of the graphical user interface at Apple played a significant role in shaping the future of personal computing.

The Journey of Windows 95 and the Birth of the Graphical User Interface

• Windows 95 is described as making PCs more aesthetically pleasing and user-friendly, targeting a broader audience.
• Despite Windows 95's innovation, many of its ideas were actually conceived twenty years prior.
• The development of Windows 95 involved significant risks, unwavering commitment, setbacks, and the strategic outmaneuvering of competitors and allies.
• Microsoft's success did not solely stem from innovation but also from a ruthless ability to exploit opportunities.
• The adoption of the graphical user interface (GUI) on PCs was a decade-long battle, ultimately solidifying Bill Gates' dominance and wealth.
• The origins of the GUI can be traced back to Xerox's Palo Alto Research Center (PARC) in 1971, where researchers aimed to revolutionize office work.
• PARC's environment fostered intellectual freedom and encouraged challenging conventional wisdom, leading to groundbreaking innovations.
• The Xerox Alto computer, developed around 1973, is often considered the first personal computer and served as a precursor to modern computing systems.
• The Alto computer featured a friendly and intuitive GUI, a mouse for navigation, and was connected through ethernet, representing a revolutionary leap in technology.
• Many PARC researchers went on to found their own companies, capitalizing on their ideas and pioneering groundbreaking technologies.
• One notable invention that emerged from PARC was ethernet, which has since been widely adopted, impacting the lives of 50 million people.
• The early PARC researchers played a pivotal role in shaping the future of personal computing, envisioning a world with a computer on every desk.

Microsoft's Battle for Dominance in the PC World

• Development of Windows involved years of effort and numerous versions to compete with the Mac
• Apple sued Microsoft for allegedly copying the look and feel of their graphical user interface (GUI)
• The legal battle between Apple and Microsoft lasted for about six years
• Windows 3, launched in 1990, marked the turning point in the GUI wars, outselling the Mac
• Microsoft's strategy of joining leading hardware companies and dominating the market with its software paid off
• The industry was ultimately measured by the most open system adopted by other companies, favoring Microsoft's strategy
• Steve Jobs criticized Microsoft for lacking taste and original ideas in their products
• Split energy and works due to collaboration with IBM caused delays in Windows development
• Windows 95, launched in 1995, combined the PC's operating system and graphical interface into one package, with a $300 million promotional campaign
• Bill Gates became the richest man in the world due to the success of Microsoft and Windows
• Despite past victories, Gates faced bigger battles ahead in the PC world
• Microsoft's fortune was built on setting the industry standard for PC operating systems

The Future of PCs and the Internet

• PCs are now being linked into a worldwide network, the information superhighway, transforming them into mailboxes, telephones, and televisions.
• Digital convergence is expected to provide on-demand access to information, books, art, and movies through evolved PCs.
• The Internet is rapidly changing, with no industry standard yet established, creating uncertainty even for industry leaders like Bill Gates.
• Bill Gates is making new alliances, such as investing in Steven Spielberg's new movie studio, Dreamworks, and entering into cable TV with broadcaster NBC.
• Bill Gates' new rivals, like Larry Ellison of Oracle, are not traditional nerds but successful business leaders who hope the Internet will diminish the relevance of PCs and Microsoft.
• Larry Ellison believes that the PC will be replaced by a cheap "information appliance" that accesses information and computing via the Internet, making the PC obsolete.
• Larry Ellison dislikes the PC and envisions a future where information flows across the wire, eliminating the need for physical products like CDs and cardboard boxes.
• The consensus among industry leaders like Larry Ellison and Bill Gates is that the future is wired, whether or not the PC survives.
• Steve Jobs, who sold all his Apple stock in disgust when he was fired, has made another fortune from his stake in a movie animation studio and believes in the positive impact of the Macintosh.
• Apple, once a Fortune 500 company, is now a fading force in the PC marketplace, while IBM, which created the mass market for the PC, no longer sets industry standards.
• Ed Roberts, who built the Altair, the first PC, turned his back on computing and returned to medicine, showcasing the unpredictable nature of the PC revolution.
• Society takes around 30 years to adopt new technology into daily life, and so far, the PC has had 20 years, leaving uncertainty about what comes next.