Microsoft was founded 50 years ago through a contractual agreement between Gates and Allen.
In a historic event on July 22, 1975, Bill Gates and Paul Allen signed a deal with Micro Instrumentation and Telemetry Systems (MITS) that marked a turning point in the development of both Microsoft and the broader computer industry.
## The Birth of Microsoft and the Altair 8800
The deal involved Gates and Allen providing a BASIC interpreter for MITS's new Altair 8800 microcomputer, a contender for the first microcomputer or personal computer. At the time, Microsoft was not yet an official partnership, but this partnership was a crucial step in the founding of Microsoft. The company, established on April 4, 1975, initially focused on developing and selling software for personal computers.
The Altair 8800, aimed at hobbyists, lacked useful software, making it inaccessible for many potential users. However, the BASIC interpreter made it functional and user-friendly, catalyzing the personal computing revolution.
## The Power of Software
The success of Altair BASIC demonstrated the importance of software in the computer industry. It showed that software could make hardware more user-friendly and productive, setting the stage for Microsoft's dominance in operating systems with MS-DOS and later Windows.
The deal played a significant role in making BASIC dominate the computer industry for decades to come. The 4K BASIC, co-written by Bill Gates, Paul Allen, and Monte Davidoff, was the first product Microsoft released. With 1 kB of RAM, the Altair 8800 could only toggle 8080 instructions, but with a 4 kB memory board, it could run the 4K BASIC.
## A Cornerstone in Microsoft's Growth
The deal provided Microsoft with its first major revenue stream and recognition in the industry. This helped establish the company as a credible and innovative player. The success with Altair BASIC facilitated Microsoft's growth and expansion into new markets, enabling the company to become a global leader in software development.
The partnership with MITS served as a model for future strategic partnerships that Microsoft would form, such as its agreement with IBM for MS-DOS. The deal gave Bill Gates the clout to pursue his plan of "a computer on every desk and in every home."
## The Impact on the Computer Industry
The Altair 8800 with BASIC interpreter catalyzed the personal computing revolution. It showed that personal computers could be practical tools for more than just hobbyists, bringing computing into homes and businesses. The affordable 80386SX-based descendants created by this revolution provided the fertile soil for Linux, FreeBSD, and their cousins to germinate and grow.
The achievement by Gates and Allen encouraged innovation and competition in the software sector, driving advancements in computer technology as a whole. The deal set Intel on the path to the power and influence that is now waning.
In summary, the deal between Bill Gates, Paul Allen, and MITS was a cornerstone in Microsoft's formation and growth, and it significantly influenced the development of the personal computer industry by demonstrating the power of software in making hardware accessible and productive. The annotated source code of the 4K BASIC is available on GitHub for those interested in delving deeper into this historical milestone.
- The agreement with MITS provided Microsoft with their first significant revenue stream and industry recognition, helping establish the company as a credible and innovative player in the software industry.
- The success of Altair BASIC showcased the dominance of software in the computer industry, setting the stage for Microsoft's dominance in operating systems with MS-DOS and later Windows.
- TheAltair 8800 with the BASIC interpreter catalyzed the personal computing revolution, making personal computers practical tools beyond just hobbyists, influencing the development of computing in homes, businesses, and the overall computer technology industry.
