University of Utah 1 Altair 8800 Painful to program Needed a high-level language -BASIC -why?

University of Utah 2 Bill Gates & Paul Allen Students at Harvard Saw Altair article in Popular Electronics Decided to write BASIC for it

University of Utah 3 The Offer Gates tells MITS they have a version of BASIC for the Altair MITS: has other offers -first one to make it work gets the contract

University of Utah 4 Video clip

University of Utah 5 Building BASIC 8 weeks of all-nighters Written on a PDP-10 at Harvard -cross compiler Without a prototype Altair! -Based on specs of 8080

University of Utah 6 Building BASIC Microsoft BASIC -Simplicity of Dartmouth -Efficiency of DEC Fit in 4K of memory!

University of Utah 7 Delivering BASIC Paul Allen flies to MITS HQ Loads the paper tape into an Altair

University of Utah 8 Delivering BASIC Paul Allen flies to MITS HQ Loads the paper tape into an Altair -And it works!

University of Utah 9 Licensing BASIC Contract signed 22 July 1975 MITS: exclusive use of Microsoft BASIC for 10 years -And right to license it to 3 rd parties

University of Utah Licensing BASIC Microsoft gets $3000 up-front Plus about 50% of all revenue from future sales of BASIC

University of Utah Licensing BASIC Microsoft gets $3000 up-front Plus about 50% of all revenue from future sales of BASIC Up to a maximum of $180,000 Bad deal? -Perhaps.

University of Utah Licensing BASIC The escape clause: -“The Company (MITS) agrees to use its best efforts to license, promote, and commercialize the Program (BASIC). The Company's failure to use its best efforts...shall constitute sufficient grounds and reasons to terminate this agreement...”

University of Utah Hardware trouble MITS memory had issues Competition from clones

University of Utah Hardware trouble MITS memory had issues Competition from clones MITS' answer: -Bundle BASIC with MITS memory! $60 for 4K BASIC $75 for 8K BASIC $150 for 'extended' BASIC $500 without memory

University of Utah Piracy trouble Homebrew computer club (1975) Copies made of BASIC paper tape Distributed widely

University of Utah Open Letter to Hobbyists Bill Gates (1976) Complains about illegal copies of BASIC Published in Altair newsletter Reprinted by many users' groups

University of Utah Open Letter to Hobbyists “Is this fair?...Who can afford to do professional work for nothing?...No one besides us has invested a lot of money in hobby software...but there is very little incentive to make this software available to hobbyists.”

University of Utah Notice how... The evolution of software -From a non-entity -To a recognized entity -To the driving force behind computing!

University of Utah Nevertheless... Would Microsoft BASIC have become the de facto standard without piracy? Would Microsoft be where it is today?

University of Utah Decline of MITS MITS called other hardware vendors “parasites”

University of Utah Decline of MITS 1977 Other companies (Tandy Radio Shack, Apple, Commodore) want BASIC -MITS refuses

University of Utah The Unraveling April 1977 Microsoft terminates contract with MITS -for failure to promote BASIC

University of Utah The Unraveling April 1977 Microsoft terminates contract with MITS -for failure to promote BASIC MITS responds with restraining order -forbidding Microsoft to sell BASIC until dispute is settled

University of Utah The Unraveling May 1977 Pertec buys out MITS Pertec decides not to license BASIC to any other hardware companies

University of Utah The Unraveling May 1977 Pertec buys out MITS Pertec decides not to license BASIC to any other hardware companies -smoking gun!

University of Utah Independence Microsoft goes solo Flood of orders for BASIC -Included with nearly ever home computer And the rest is history!

University of Utah Essay Outlines Look good Most got full credit Full speed ahead!

University of Utah “Test Question” On a scrap of paper, write a question that encapsulates one of the points from today's class, and turn it in. (Put your name on it!)