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

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

3. 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

4. University of Utah 4 Video clip

5. 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

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

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

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

9. 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

10. University of Utah 10 10 Licensing BASIC Microsoft gets $3000 up-front Plus about 50% of all revenue from future sales of BASIC

11. University of Utah 11 11 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.

12. University of Utah 12 12 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...”

13. University of Utah 13 13 Hardware trouble MITS memory had issues Competition from clones

14. University of Utah 14 14 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

15. University of Utah 15 15 Piracy trouble Homebrew computer club (1975) Copies made of BASIC paper tape Distributed widely

16. University of Utah 16 16 Open Letter to Hobbyists Bill Gates (1976) Complains about illegal copies of BASIC Published in Altair newsletter Reprinted by many users' groups

17. University of Utah 17 17 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.”

18. University of Utah 18 18 Notice how... The evolution of software -From a non-entity -To a recognized entity -To the driving force behind computing!

19. University of Utah 19 19 Nevertheless... Would Microsoft BASIC have become the de facto standard without piracy? Would Microsoft be where it is today?

20. University of Utah 20 20 Decline of MITS MITS called other hardware vendors “parasites”

21. University of Utah 21 21 Decline of MITS 1977 Other companies (Tandy Radio Shack, Apple, Commodore) want BASIC -MITS refuses

22. University of Utah 22 22 The Unraveling April 1977 Microsoft terminates contract with MITS -for failure to promote BASIC

23. University of Utah 23 23 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

24. University of Utah 24 24 The Unraveling May 1977 Pertec buys out MITS Pertec decides not to license BASIC to any other hardware companies

25. University of Utah 25 25 The Unraveling May 1977 Pertec buys out MITS Pertec decides not to license BASIC to any other hardware companies -smoking gun!

26. University of Utah 26 26 Independence Microsoft goes solo Flood of orders for BASIC -Included with nearly ever home computer And the rest is history!

27. University of Utah 27 27 Essay Outlines Look good Most got full credit Full speed ahead!

28. University of Utah 28 28 “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!)