Lecture Notes: The Story of Microsoft

Introduction

• Microsoft as a ubiquitous company in technology.
• Started by teenagers with humble beginnings.

Early Days

• 1968, Lakeside School, Seattle
  • Four teenagers interested in computers: Kent Evans, Rick Weiland, Paul Allen, and Bill Gates.
  • Used the Teletype Model 33 computers for programming.
  • Exploited system bugs to avoid $40/hr computer rental fees.
  • Eventually caught and banned.
  • Formed "Lakeside Programmers Club" to fix bugs and earn money.

Formation of Microsoft

• 1975, TrafoData
  • Bill Gates and Paul Allen create TrafoData for traffic data processing.
  • Gates went to Harvard, Allen to Washington State University.
• Inspired by the Altair 8800 in Popular Electronics Magazine.
  • Created a BASIC interpreter for it, leading to the first Microsoft product.
  • Microsoft (Microcomputer Software) founded.

Growth and Success

• 1980s
  • Revenue reached nearly $30 million.
  • Partnership with IBM, led to MS-DOS.
  • Dominance of MS-DOS with IBM and other companies.
  • Paul Allen diagnosed with Hodgkin's lymphoma and left the company.
  • Development of Word, Excel, and Windows.
• 1986
  • IPO: Microsoft valued at $350 million.
  • Acquisition of Forethought (PowerPoint).
  • Launch of Microsoft Works, precursor to Microsoft Office.
• 1987
  • Bill Gates becomes the youngest self-made billionaire.
• 1995
  • Launch of Windows 95, pivotal in modern OS development.
  • Extensive marketing campaign.

Diversification and Competition

• 1996
  • Launched MSNBC, Internet Explorer, invested in DreamWorks.
  • Made Microsoft products available on Apple computers.
  • Created MSN and Expedia.
• Late 1990s-2000s
  • Faced legal challenges for monopoly practices.
  • Shift in leadership to Steve Ballmer and expansion into Xbox, Windows XP, .NET.
  • Missed mobile phone market with Windows Mobile.
  • iPhone's emergence in 2007 by Apple disrupted Microsoft's OS dominance.

Modern Era

• 2010s
  • Under CEO Satya Nadella, focus on cloud computing with Azure.
  • Acquisitions: Mojang (Minecraft), GitHub, LinkedIn.
  • Reclaimed the title of most valuable company in 2019.

Legacy and Conclusion

• Paul Allen's contributions and later ventures.
• Microsoft's ongoing influence and diverse business ventures.
• Originated from a high school computer club.
• Encouragement to support the channel and venture into game development.