The real victor was Microsoft, which built an empire on the back of a shadily acquired MS-DOS.
Read the whole story
Read the whole story
Eh. I agree with you that the way Microsoft originally acquired 86-DOS was shady (claiming they had licensees to buy it and offering to pay SCP $10k for each license sold). But that's not the nail that sealed 86-DOS's coffin.
The big screw up is when Rod Brock started shopping 86-DOS around. Not only did he entertain Microsoft as a client, he agreed to turn over complete ownership to them and himself settle for an exclusive license. Remember, originally this is the way he wanted to license to the prospective customer in the first place. He had no intent of surrendering complete control and accepting only a license in return. Yet, for a measly $50k he did.
Fool me once, shame on you, fool me twice, shame on me. Obviously Rod Brock didn't have all the information available, but Microsoft already deceived him once. $50k is a lot when your business isn't doing well, especially in the early 80s... but come on. He should have known better after the first deception.
The article mentions how this was common in the era, how computer programmers didn't know how to be businessmen. Fine. There's a difference between not being proficient in business and intentionally doing business with a company you know deceived you in the past.
I hope ars follows up with stories about some of MS's nefarious deeds that followed the
introduction of the IBM PC to undermine competitor applications running on MSDOS.
The whole IBM vs MS war over OS/2 and Windows is a great story arc to continue the
adventure.
DR started out as "Intergalactic Digital Research", as I recall.Why does the author drop "Research" from Digital Research's name in many places (including in the original article)? It actually bothers me and is incorrect. Digital Equipment Corporation, aka DEC aka Digital (a trademark), was a completely different company purchased by Compaq in 1998.Novell finally bought Digital in 1991, allowing Kildall to retire a millionaire.
Even the Wikipedia article has a "Not to be confused with Digital Research" prologue.
Ironic that Digital Research came out with DR-DOS many years later (as Windows was coming into vogue).
I'm not an expert on common law but I do believe that parties' expectations don't count for much when dealing with contracts and contract breach. What I can tell you is that in continental European legal systems that mental reservation could come back to kick Bill Gates in the butt.
....
I wonder if Patterson still works at Microsoft... don't know the exact details but my understanding is Bill squared the deal when he hired him with options worth north of a million. Unfortunately I don't think Patterson held on to them for very long. Bill Gates is very competitive but wronging Patterson is obviously not part of his morals.
Great articles. One observation that I've had for at least the 30 subsequent years after the IBM PC was that no matter how powerful the PC's got, the cold boot times stayed annoyingly similar.
Things are different now with sleep functions and SSD's, but I do miss the slow memory check of the early PC's. I started each day with seeing something successful happen.
If one is going to condemn QDOS for being a rip-off of CP/M, then something else must be considered.
A smoking gun by the name of PIP (Peripheral Interchange Program).
Before there was CP/M, there was OS/8, and I've been told there was also an operating system for the PDP-11 to which CP/M was very similar indeed.
I think the stupidity from IBM came from MCA and OS/2--both being horrible executions of relatively good ideas, and their losses were gains for Compaq/Dell/Third-parties (hardware) and Microsoft (software).
I think the stupidity from IBM came from MCA and OS/2--both being horrible executions of relatively good ideas, and their losses were gains for Compaq/Dell/Third-parties (hardware) and Microsoft (software).
I'll agree that the Micro Channel Architecture was really mis-handled - not being backward compatible with the PC XT and AT bus architecture.
But OS/2 was really, really nice - once Microsoft got out of the picture after screwing IBM by developing NT "on the sly".
Once OS/2 Warp shipped with built-in IP networking and the next gen GUI, it was really, really sweet. Fully 32-bit, it also included a working Windows 16-bit subsystem which could run most Windows apps natively. And the HPFS file system included most all the nice features that would later be included in NT's NTFS...
Second, remember that the province of QDOS has been called into questions in terms of whether any lines were crossed relative to protected information from CP/M. The developer may have had more reservations about that issue than we see here decades later, and that may have played into the deal that was made.
Why does the author drop "Research" from Digital Research's name in many places (including in the original article)? It actually bothers me and is incorrect. Digital Equipment Corporation, aka DEC aka Digital (a trademark), was a completely different company purchased by Compaq in 1998.Novell finally bought Digital in 1991, allowing Kildall to retire a millionaire.
Even the Wikipedia article has a "Not to be confused with Digital Research" prologue.
Ironic that Digital Research came out with DR-DOS many years later (as Windows was coming into vogue).
Awesome read.
Now I can see where Halt and Catch Fire comes from....
So how exactly was it shady? The guy had a product but couldn't figure out what to do with it. Gates saw an opportunity and made it into something. If Steve Jobs had done the same everyone would be saying what a great mind he had.
I'm sure I'm missing out a LOT of things. Which is why I put a disclaimer right there on my post saying it was just a scenario to show how the deal *could* be construed as less-than-honest.I'm not an expert on common law but I do believe that parties' expectations don't count for much when dealing with contracts and contract breach. What I can tell you is that in continental European legal systems that mental reservation could come back to kick Bill Gates in the butt.
....
I think you're missing just a couple of things:
First, the QDOS developer may have fallen into the "rose colored glasses" pitfall. Gates could say, with perfect honesty, "we see this taking off, and would not be surprised to see 500,000 machines sold in the first year." Gates would be referring to a SINGLE customer (IBM) and thus only a single license payment, but the developer would see that through rose tinted lenses as potentially more.
Second, remember that the province of QDOS has been called into questions in terms of whether any lines were crossed relative to protected information from CP/M. The developer may have had more reservations about that issue than we see here decades later, and that may have played into the deal that was made.
One thing I know, is that the case books are filled with all sorts of interesting lawsuits over tech licensing from the early age of computers. If there was some sort of fraud or other "legally actionable" shady behavior that could be proven, the sheer amount of money involved suggests it WOULD have been litigated. The fact it wasn't suggests maybe it was just a "bad deal."* Which goes back to my post in this thread about the time Microsoft itself made a "bad deal" of the same sort relative to the Basic used in Commodore computers.
*Edited to add: ESPECIALLY since MS and the DOS developer wound up in litigation later anyway.
I'm sure I'm missing out a LOT of things. Which is why I put a disclaimer right there on my post saying it was just a scenario to show how the deal *could* be construed as less-than-honest:I'm not an expert on common law but I do believe that parties' expectations don't count for much when dealing with contracts and contract breach. What I can tell you is that in continental European legal systems that mental reservation could come back to kick Bill Gates in the butt.
....
I think you're missing just a couple of things:
First, the QDOS developer may have fallen into the "rose colored glasses" pitfall. Gates could say, with perfect honesty, "we see this taking off, and would not be surprised to see 500,000 machines sold in the first year." Gates would be referring to a SINGLE customer (IBM) and thus only a single license payment, but the developer would see that through rose tinted lenses as potentially more.
Second, remember that the province of QDOS has been called into questions in terms of whether any lines were crossed relative to protected information from CP/M. The developer may have had more reservations about that issue than we see here decades later, and that may have played into the deal that was made.
One thing I know, is that the case books are filled with all sorts of interesting lawsuits over tech licensing from the early age of computers. If there was some sort of fraud or other "legally actionable" shady behavior that could be proven, the sheer amount of money involved suggests it WOULD have been litigated. The fact it wasn't suggests maybe it was just a "bad deal."* Which goes back to my post in this thread about the time Microsoft itself made a "bad deal" of the same sort relative to the Basic used in Commodore computers.
*Edited to add: ESPECIALLY since MS and the DOS developer wound up in litigation later anyway.
This is just to explain why the deal might be seen as shady, but note that I don't have all the details, and the parties came to an agreement in the end anyway, so that point is kind of moot.
Eh. I agree with you that the way Microsoft originally acquired 86-DOS was shady (claiming they had licensees to buy it and offering to pay SCP $10k for each license sold). But that's not the nail that sealed 86-DOS's coffin.
The big screw up is when Rod Brock started shopping 86-DOS around. Not only did he entertain Microsoft as a client, he agreed to turn over complete ownership to them and himself settle for an exclusive license. Remember, originally this is the way he wanted to license to the prospective customer in the first place. He had no intent of surrendering complete control and accepting only a license in return. Yet, for a measly $50k he did.
Fool me once, shame on you, fool me twice, shame on me. Obviously Rod Brock didn't have all the information available, but Microsoft already deceived him once. $50k is a lot when your business isn't doing well, especially in the early 80s... but come on. He should have known better after the first deception.
The article mentions how this was common in the era, how computer programmers didn't know how to be businessmen. Fine. There's a difference between not being proficient in business and intentionally doing business with a company you know deceived you in the past.
Right. If Bill Gates is willing to give you $50,000? You *know* it's worth a lot more. But to leverage that, you have to be in a position where $50k isn't going to save your business. You just have to be capitalized well enough to laugh in his face at the table, and say "Come back when there is another digit in the offer."
Nothing wrong with doing business with somebody who has screwed you before..happens all the time in business. But after the first screwing? You simply *have* to be smart enough to screw back.
This is the concluding part of the surprisingly interesting history of the IBM PC.
An excellent read, thanks.
On the horizon, there are new architectures that might give us persistent RAM. You won't need a disk anymore - disk and RAM will be combined. That will require a major change in how operating systems and programs handle the hardware.
Are you referring to nonsense like "DOS ain't done till Lotus doesn't run"?I hope ars follows up with stories about some of MS's nefarious deeds that followed the
introduction of the IBM PC to undermine competitor applications running on MSDOS.
The whole IBM vs MS war over OS/2 and Windows is a great story arc to continue the
adventure.
The funny thing is Gates is doing a lot a truly good things these days. Perhaps enough
to rehabilitate his name for posterity.
Ars is just republishing this. For more great articles like this, just go directly to the source, The Digital Antiquarian:Articles like this make me so happy. More like this, please.
This is the concluding part of the surprisingly interesting history of the IBM PC.
I hope this is an erroneous statement. There should absolutely be a Part 3 about the BIOS and its successful reverse-engineering.
If IBM had been successful in keeping fully-compatible PCs out of the market, there's no telling how drastically different the industry would be today. Maybe IBM would have been able to leverage ownership of the BIOS into widespread adoption of the Micro Channel bus, and thus slowly moved all of the PC's systems into proprietary status. Without the windfalls of an exploding PC market, it's possible that both Microsoft and Intel would have had far less success and exerted far less influence. Which might have opened some doors for Steve Jobs and Company...
A world where Phoenix doesn't reverse-engineer the BIOS could be a world where Apple is the dominant name in home computing, while IBM is the higher-priced boutique product. Both use Motorola CPUs, but perpetual outsider Intel keeps trying to make inroads...
Brock signed the deal.
Headline:
The real victor was Microsoft, which built an empire on the back of a shadily acquired MS-DOS.
Story Details:
Brock was uncertain, but he really did need the money, and he didn't know what to do with 86-DOS himself anyway…
He signed the agreement, making Microsoft the sole owner of 86-DOS—or, as it was immediately renamed, MS-DOS.
Brock signed. Blaming Gates/Microsoft for making a smart decision is hilariously ludicrous.
Great read. I got my first experiences with PCs when I was around 5-6 years old in the late 1980s. My dad was using it to write his thesis and it came with some games preinstalled.
I have a question to somebody who was around a little earlier, or just knows their PC history better: The article seems to refer to DOS (which I know as an operating system) on equal terms with BASIC and Pascal (which I know as programming languages). Why is that? Was the distinction somehow more blurry in the early days of personal computing?