Transcript Slide 1

seminar:
Teacher
By :

This documentary is about the computer industry and
its growth process. It is about Paul Allen and his friend
bill gates, they were running Microsoft, invented pc
and launched a revolution that changed the way we
live, work and communicate. This industry becoming
the third largest industry in the world, some where
between energy production and illegal drugs.
 It
is amazing that its all happened accidently
because some boys just want to impress their
friends, the nerds formed club to talk about the
new toy, they discuss about their new idea
,problems and present their invention in a club to
impress their friends, one of the first was the
homebrew computer club which met on
Wednesday evenings in a hall rented from Stanford
university in silicon valley.

Nerds started their work in a garage, they were exactly
in right place and right time in silicon valley
(environment), although they knew that they would
lose money, but did not dive it up (risk taking). They
hope and believe that pc would become a big thing
(determination), they started their invention as a hobby
not a business (dollar), they wont be tired and other
people can not stop their dreams, they work very hard
and some times did not realize time passing, some
times they eat in the car. actually writing code was the
primer force that drives their lives so (dedication),

Intel was started 28 years a go by a handful guys after a row with
their old buss (independences), the Intel microprocessor is
widespread from calculator to traffic light, in 1975 an ex-air force
officer ED Robrts launched first pc Altair 8800, just because he
wanted one to play with, he run a calculator company called
MITS. 20 years after that Paul Allen wrote basic language for
Altair. Bill drop university because he was afraid of missing his
chance to dominate the new industry (dedication). Bill & Allen
were leader and created industry so dozens of companies came to
competition (value creation), they transfer the spirit to product so
customers can sense the spirit (), working together was the reason
of their successfulness (team working)
 Apple
is the first mass market pc company, selling
the real package computer was Steve job’s dream,
he was visionary who saw microcomputers as a
business (dream), they asked help from Arthor
Rock a venture capitalist, he had originally funded
Intel. Steve jobs got a million $ when he was 23,
ten million $ when he was 24, over 100 million $
when he was 25, but he did not work for money
(need for achievement).
 IBM
made mainframe computers for large
company not pc. IBM transfer this industry from
hobby to big business (money), this company hired
conservative hard worker straight from school
(human resource). IBM is really more a country
than it is a company because it has its own dress,
culture, bureaucracy and even its own song. IBM
is like Switzerland conservative, a little dull, yet
prosperous, it has committee to make decision.

Gary kildall was a computer Ph.D. run a company
called Intergalactic Digital Research, he had invented
the pc’s first operating systems called cp/m, he wrote it
for his own, he avoided conflict and hate it, he do not
go rushing off the patent but otherwise bill hardly
fought his way up from the gutter, he was a hard
worker, some times he was to busy to take a bath and
change close, because of this characteristics IBM
choose Bill to write the operating system and language
like basic for its new personal computer, but bill gats
did not work on OS so they call Gary but he drop the
ball and Poul Allen had found another operating
system because they were not men to give rivals a
second chance ().

there is a local company called CL Computer Products by a guy
named Tim Patterson and had done an OS. It was kind of CPM,
and a very rudimentary, they fix it up and used it for IBM pc. Tim
Patterson called his OS QDOS the quick and dirty OS ,Microsoft
and IBM called it PC DOS 1.0 ,it was exactly just like CPM with
a few differences ,the prize didn’t go to inventor but to the
exploiter of the invention ,there was still a problem TIM worked
for Seattle Computer Products or SCP, they still owned the rights
to Q dos rights that Microsoft had to have ,for whatever usage
they bought it fifty thousand dollar , it was the deal that made Bill
gates and Paul Allen multi billionaires ,they licensed it to the
world for up to fifty dollars pc, think of it one hundred million PC
running MS DOS software .

Compaq the company set up to compete head –on with
the IBM PC, they decided to manufactured and market
a portable version of the IBM PC using reverse
engineering technique. IBM mad it easy to copy only
one part was IBM’s alone, a vital chip that connected
the hardware with the software called the ROM-BIOS,
this was IBM ‘s own design protected by copy right.
Compaq had to somehow copy the chip without
breaking the law, they spent 1 million for several
month and they built Compaq portable computer, they
set an American business record in their first year of
sales ,111 million dollars .
 The
most obvious winner at first was Intel , maker
of PCs microprocessor chip. And making chops
smaller , quicker and cheaper, IMB was now
facing dozens of rivals like Amstrad, AST and
Dell. All of this new company bought OS from
Microsoft, the middle of 80s was boom time for
bill. From the beginning Microsoft recruited
straight out of college. they choose people who
had no experience of life in other companies.
Young people who just were out of school saw him
as this incredible role model or leader, bill valued
their contributions and spend hours with them .

IBM ‘s glacial pace and high overhead put them at a
disadvantage to the leaner clone market .and IBM lost its
dominant market share. so in a big gamble they stacked
their PC future to new system : anew line of computers with
proprietary closed hardware and their very own operating
system . IBM planed to steal the market from Gates with a
brand new OS called OS/2 , they asked Microsoft to write
the code, why would Microsoft help create what was
intended to be the instrument of their own destruction?
Because Microsoft knew IBM was the source of their
success and they would tolerate almost anything to stay
close to big blue. And to keep DOS competitive . The
relationship between Microsoft and IBM was a culture
clash. With development of OS/2 the strains began to show.
There was a rule in IBM that evaluated programs with an
scale called KLOC, and thy pay based on more KLOC ,and
this was a context of conflict
Gates had been pouring recourses into a new
programme called windows. Pictures rather than words
making the pc easy and intuitive .
 They created windows in parallel. They kept saying to
IBM hey, windows is the way to go, graphical is the
way to go, and we got virtually everyone- else
enthused about windows. IBM made a the single worst
mistake in the history of enterprise on earth which was
the manufacture being the first manufacturer and
distributor of the Microsoft/Intel PC which they
mistakenly called IBM PC .they shared a third of their
market value to Microsoft and Intel by accident, in
1980 IBM was 3000 times of Microsoft, today
Microsoft is worth more.

 Microsoft
is a reflection of its founder bill gates,
bill wanted to win incredible desire to win and to
beat other people. bill gates doesn’t feel secure
about the future ,he feared growing old because ,
you know once you beyond thirty , you don’t have
as many good idea anymore, you are not smart
anymore, and he is going to hire the smartest
people and he is going to surround himself with
all these smart people No one ‘s got guaranteed
position in the high tech business
 It
all started when Xeroxe management had a
sinking feeling that if people started reading
computer screens instead of paper, Xeroxe was in
trouble. So they event Alto computer around 1973,
it was not ever for sale, without it we would not
have Macintosh and windows. It had the first
computer which had graphic and mouse point and
link to other pc by Ethernet, and people could
exactly print what they saw on screen by laser
printer. Stive Jobs use this opportunity, he jots care
about success, he formed a small team to do the
Macintosh, they revolutionize the pc market, and
introduce Mac.