You are watching ColdFusion TV. This video is the second episode of a new series based on my book "New Thinking," which is basically the grand history of science and technology from the Industrial Revolution till today. This story is about something I find pretty interesting. It's about Gary Kildall, the man who should have been Bill Gates. It's an absolutely fascinating story, and I think that more people should know about it. The year is 1977, and Apple had just become extremely successful with their first PC, the Apple II. It was the first mass production personal computer that you didn't have to assemble yourself. JB wanted to know why I'm doing better than all the other managers. It's no secret. I have an Apple. Sure there's a big computer three flights down, but it won't test my options, do my charts, or edit my reports like my Apple. Move words, like that, or you can move whole paragraphs around to anywhere you want them. It's amazing. You can use the very same Apple to do a zillion other things. You could say that the Apple is mightier than the pen. Apple: The Personal Computer. PC industry was already worth 1 billion dollars just three years after it had begun. For the first time, computers amplified productivity and human intellect from within the home. IBM, who was in the corporate computer business of selling large mainframes, just saw the dollar signs. This was the opportunity of all opportunities. By 1980, IBM had turned their attention to Apple’s success in the PC market, and realized that they were wrong about the PC. It wasn't just a hobbyist toy anymore. It could actually be useful. The problem for IBM is that they were a huge company. They were bureaucratic and very slow when it came to decisions. It was going to take years for them just to come up with a PC design, so how were they going to compete in a timely manner? The answer came in the form of a secret small team within the company. This small team was assigned the task to create a business-orientated personal computer. When they got to work, the decision was made to use off-the-shelf parts to speed up the design process. Using non-IBM parts was very unusual for the company. With this method, instead of building a computer from scratch, they managed to have a complete product within a year. In 1980, IBM had the PC hardware cobbled together. The only thing needed was software to run on it. What IBM needed was an operating system. An operating system is like a computer's digital traffic cop. It keeps track of how files are stored and how the computer handles hardware such as a mouse, screen, floppy disk drive, and etc. Basically, it's the basis that allows for a modern computer to run. At this point, this is where the story starts heating up. IBM was the biggest tech company of the time, so any PC that they made would have an incredible impact on the world. So what software was going to run on it? This was the battle for one operating system that would rule them all. The stakes are high. Every decision here impacts the rest of all history and herein lies one of the saddest stories in computing history. While building their PC in 1980, IBM approached Microsoft to build the operating system. Before saying a word about the project, IBM asked Bill Gates, who was initially mistaken for the office intern, to sign a nondisclosure agreement. Bill Gates had to keep IBM's plan a secret and he couldn't tell a single soul. When IBM told Gates what they were doing, he remarked that Microsoft didn't have an operating system. The 25-year-old programmer would point IBM in the direction of Gary Kildall. Gary was a meek and mild-mannered man, but despite being unassuming, he had already paved the way for operating systems and personal computers. In 1971, Kildall had made a programming language for Intel's first CPU, the 4004. But he quickly realized that there had to be a way to control how the chip interacted with the rest of the computer system. In 1972, he solved this problem with CP/M, which stands for Control Program for Microcomputers. This was the very first PC operating system. Before CP/M, each computer had to have tailor-made software. Imagine it like this. It would be like having different types of fuel for every single car model in existence. With an operating system like CP/M, a programmer only needed to write software just once, and CP/M would take care of the rest. It was a way to run the very same software on different computers. It just, uh, was a very natural thing to write, and it turns out people had s- a need for an operating system like that. And so, uh, it was a very natural thing. I wrote it for my own use. Despite this, Gary didn't really have much interest in business matters, and was just doing this as a hobby, but his wife, Dorothy, convinced him to start a business and start licensing his creation. The result was a company called Digital Research. By 1979, Digital Research became the industry standard for operating systems. In essence, they were the Microsoft of the late 1970s, and Gary was equivalent to Bill Gates. So IBM had just approached Bill Gates, and asked him if he could make an operating system for their new PC. And Bill Gates pointed them in the direction of Gary. So, keen to waste no time, IBM takes Bill's advice and pays a visit to Gary in Seattle. Bill calls Gary on the phone to give him some warning that someone is coming to visit. Because of the non-disclosure agreement, Gates couldn't reveal exactly who was coming to visit. Bill exclaimed, "Treat them right, they're important guys!" Unfortunately, Gary was a somewhat chilled-out guy and didn't really get the full urgency of what Bill was warning. Perhaps he thought it was just another small company, and not the largest tech company on the planet. Because of this, Gary isn't home when IBM visits. He's out flying one of his private planes on business. IBM ends up talking to Gary's wife, Dorothy, who is now head of operations in Digital Research. The lawyers of IBM begin pushing her to sign a nondisclosure agreement, essentially to say that they were never there. Dorothy wasn't impressed by this, and refused to sign the document. The IBM team had a short temper. After going nowhere with negotiations, they became frustrated and decided to leave Gary's house. A few days later, IBM would approach Bill Gates a second time. Gates, being deterministic and opportunistic in nature, was never going to give Gary a second chance. He saw that IBM had the potential to change the PC market into something entirely different: a new cleaned-up business image instead of the geeky enthusiast image it had. So here comes the clincher. Bill Gates decided to do something pretty sneaky: he told IBM that Microsoft could in fact make an operating system, even though they didn't have one. What Microsoft decided to do was just buy an operating system from a small company down the road for $75,000. This operating system was called the Quick and Dirty Operating System, or QDOS for short. If you think that that's a bit of a weird name, there's a reason for it. The code it used for the software was essentially a ripoff of CP/M, the operating system that Gary had made. So with this ripoff of CP/M, Microsoft now had their hands on a functioning operating system. QDOS would become Microsoft DOS, or MS-DOS for short, and would be packaged with every IBM PC. So if you've ever used MS-DOS, it could be said that you were using the Microsoft Dirty Operating System. However, this name would be officially changed to Microsoft Disk Operating System. And of course, MS-DOS would eventually become Microsoft Windows. The first IBM PC was released in August of 1981. It was predicted to make 250,000 sales, but it was a smash hit, selling two million units in a couple of years. IBM had now overtaken Apple as the world's largest PC manufacturer. With this event, it was now truly ok for the white collar class to get into PCs. It was no longer for hobbyist freaks and enthusiasts. Around this time,/ Gary became the co-host of the show Computer Chronicles, a TV program that followed in detail the progress of personal computers at the time. Gary, we're going to be talking about things like transportables and lap portables but I want to show you this portable over here. This looks like a pretty small computer, but in fact, this is just the keyboard. I can program my things into my computer. In effect, this is the computer. And of course it is now a wrist portable. Now, I don't know whether this does anything very useful or not. In fact, that's my question about this whole subject of portables: Is this another case of technology in search of a purpose? I don't think so, Stuart. It's just a new dimension in technology. We have had faster processors, more memory and so forth, in the past. Now what we're looking for is trying to get all that speed and power into a smaller package. So everything was falling into place for Bill Gates. He was getting set to be the richest man in the world. The Dirty Operating System was one half of the equation, but some smart business sense would complete it. Because the IBM PC was made from off-the-shelf parts, other manufacturers such as Compaq and HP began making their own PC clones with the very same parts. The deal for Microsoft was that MS-DOS would be licensed to IBM by Microsoft for a one-time fee of $50,000, but there was a catch: Microsoft never mentioned to IBM that their deal was non-exclusive. Soon Microsoft was selling MS-DOS to all of IBM's competitors, taking a licensing fee from every computer sold. This licensing deal has been called the greatest deal in history. It made Bill Gates a billionaire. Gary's failure to not be there at the right time is conversely called one of the biggest business failures in history. Once the sales of the IBM PC took off, Gary had realized what he had lost. For a rare moment, he would shed off his kind nature and threatened to sue IBM. In a settlement, IBM agreed to offer CP/M alongside MS-DOS with every PC sold. Gary Kildall was pleased. People could now choose for themselves which software they liked best. Justice had finally been served. There was only just one problem, though. When both software packages were released, MS-DOS sold for $40 and CP/M, $240. This was a complete disaster for almost identical pieces of software. For this reason, Gary's CP/M software would fade into obscurity by the late 1980s. Gary had lost to a clone of his own creation. Sadly, he didn't take it well. He was so crushed by the events that he didn't ever bother suing Microsoft or IBM again. The strain from missing out on the greatest opportunity of many lifetimes would eventually cause Dorothy to divorce Gary. He would also shy away from his show, The Computer Chronicles. The ubiquity of personal computers in the following years meant that Gary would forever be reminded of his failure everywhere he turned. Kildall would slip into a bout of depression and alcoholism. Sadly, in 1994, Gary would die from head injuries in a fistfight at a biker bar. Today, Gary, the man who invented the operating system for personal computers, is only a faint footnote in technology history. So I think that it's important that we keep his contribution to the evolution of computing alive. I can see that it was just a series of unfortunate events for Gary, but if we can take any lessons away from them, it might be, make the most of every opportunity. This was the very first episode of The Computer Chronicles, broadcast back in 1983. When we first launched the series, sitting by my side as co-host was Gary Kildall. But Gary was a lot more than a TV host, Gary, in fact, was one of the most important individuals in the history of personal computing. Gary died last year, leaving a legacy not matched by many in this field. That's the end of that story. It's pretty sad note, but I thought I'd just share it with you cause it's pretty unknown, I think. A lot of people don't know about Gary Kildall and what he did, so. Thanks for watching. This has been Dagogo, you've been watching ColdFusion. Feel free to subscribe if you just stumbled across this channel and I'll catch you again soon for the next video. Cheers guys, have a good one. ColdFusion, it's New Thinking.
This was very disappointing. What killed Gary was the fact that this very bullshit story haunted him for the rest of his life.
Here's a list of discrepancies:
Gary Kildall could never be Bill Gates because of his ethics
Digital Research started out as Intergalactic Digital Research
IBM came to see Microsoft, not because they were looking for an Operating System, but because Microsoft developed the BASIC programming language and assumed that they also had an OS. This is why Bill directed them to Gary at Digital Research
IBM did not go to Seattle to see Gary, they went to DR's office in Pacific Grove, CA
Gary and his wife did meet with IBM, but could not succumb to the Non-Disclosure Agreement, and therefore were unable to proceed any further with negotiations
Gary did go flying that day, but only after IBM left: it was a planned trip for his wife's birthday that day
IBM wanted a package deal with the OS and language, and Microsoft didn't want to lose the IBM business, so they bought Q-DOS from Seattle Computer, Co. because Paul Allen was friends with the owner and aware that he had an OS
Since Microsoft's cash cow was BASIC, they were able to low ball the OS to IBM, which they licensed to them under the name PC-DOS. This was why PC-DOS was cheap and CP/M was expensive
IBM didn't care if Microsoft resold their software, so long as it was under a different name, hence MS-DOS
Pioneer in computer forensics, Andy Johnson-Laird, was who uncovered the CP/M code in PC/MS-DOS, but unfortunately this bullshit story had no antidote
Gary Kildall was a very well respected contributor and ally in the early hobbyist days of personal computing. It is a shame that this blunder-story-of-incompetence still lingers.
He certainly stole all of the contacts.
I think there is a pretty big difference between being able to make a product and make a business. There are lots of lots of great products that end up no where because they lack all the other stuff it takes to get to market and make money. That's why the guy who usually ends up rich isn't the genius product guy, but the guy who figured out how to get that guy, and the money guy, and the sales guy to all work towards the same goal.
I thought the story was that Bill and Paul bought the OS for $50K from someone and they sold/leased to IBM and that Paul was the one to do the work because Bill looked like a young kid.
Either way, thinking that Gary would have done the same deal doesn't hold water. He might have sold it without any lic agreement, he might have signed an outright.
This also overlooks the "Killer App" concept. You need Lotus/Wordperfect, etc... For IBM clones, it was really Apple that made it work because they were so closed up and over priced that people went to IBM because Apple was too expensive.
https://www.youtube.com/watch?v=bLVbSjDq0DE is a good one