science & techWikipedia1975 · Albuquerque, New Mexico, USA

Microsoft was founded in 1975 after Gates and Allen wrote a BASIC interpreter for the Altair

the gist

Bill Gates and Paul Allen founded Microsoft on 4 April 1975, after the January 1975 issue of Popular Electronics featured the Altair 8800 microcomputer. Allen realised the machine could run a BASIC interpreter, and Gates told the maker, MITS, that he had one ready. They wrote a simulator and the interpreter, then demonstrated it in Albuquerque in March 1975, and MITS agreed to sell it as Altair BASIC. Allen suggested the name Micro-Soft, short for microcomputer software. In 1980 IBM hired the company to provide an operating system, and Microsoft's MS-DOS became the foundation of its dominance as IBM PC compatibles spread.

how it works

A BASIC interpreter translates a simple programming language into instructions a computer can run, so people can write programs without learning machine code. Selling one interpreter to many machines made the software more valuable than any single hardware sale.

so what

Microsoft's early success came from owning the software that many different hardware makers needed, not from building computers. That model shaped the modern software industry and explains how a small company became central to the personal computer boom.

the bigger pattern

Platform companies often win by controlling software that others depend on, as Microsoft did with DOS and later Windows. The same logic drove later platforms such as app stores.

fun fact

The company's name was suggested by Paul Allen as a shortening of micro-computer software.

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