Steve Ballmer

And you might say, what? Didn't Bill learn his lesson? Why would he ever agree to this?

It's so interesting because what ended up happening that Bill Gates masterminded was once we distribute our operating system through IBM's PC, that's going to become the thing everyone buys. And now in the 16-bit generation, when there are people building programs for computers, not just developers, once those application developers who are writing programs are targeting an operating system...

It's so interesting because what ended up happening that Bill Gates masterminded was once we distribute our operating system through IBM's PC, that's going to become the thing everyone buys. And now in the 16-bit generation, when there are people building programs for computers, not just developers, once those application developers who are writing programs are targeting an operating system...

then that is the operating system that every other OEM, every other computer maker is also going to want and really need. And we're going to be the ones that they have to come to to buy it. And I can't figure out Did IBM miss this fact, or did they know it? Basically, what IBM did was they were the one place where every business needed to go for their computer needs.

then that is the operating system that every other OEM, every other computer maker is also going to want and really need. And we're going to be the ones that they have to come to to buy it. And I can't figure out Did IBM miss this fact, or did they know it? Basically, what IBM did was they were the one place where every business needed to go for their computer needs.

And what they did in this negotiation was they actually handed that over to Microsoft. And they said, we are going to become a commodity, just like every other hardware manufacturer, and you are going to be the point of integration for the whole ecosystem. You're going to be the linchpin that everyone has to target for their applications.

And what they did in this negotiation was they actually handed that over to Microsoft. And they said, we are going to become a commodity, just like every other hardware manufacturer, and you are going to be the point of integration for the whole ecosystem. You're going to be the linchpin that everyone has to target for their applications.

Because then they have the sort of plausible deniability of how could we possibly have a monopoly? We're buying off the shelf.

Because then they have the sort of plausible deniability of how could we possibly have a monopoly? We're buying off the shelf.

Yeah, from a vendor who can sell to anybody else. We have no lock-in.

Yeah, from a vendor who can sell to anybody else. We have no lock-in.

Just like they have in every other line of business they've been in.

Just like they have in every other line of business they've been in.

IBM failed to see the value of software, and they certainly failed to understand what a software platform business model would be. Which makes sense. I mean, why would they? Right. It's almost like their experience... They're the computing company. Yes.

IBM failed to see the value of software, and they certainly failed to understand what a software platform business model would be. Which makes sense. I mean, why would they? Right. It's almost like their experience... They're the computing company. Yes.

Their experience in selling mainframes with everything bundled in was the wrong experience to go off of in understanding the way the future would unfold. And Bill's very modest experience watching the Altair and all these sort of Altair clone type machines, or even if they're not Altair clones, just more microcomputers that need more software, that actually was the useful...

Their experience in selling mainframes with everything bundled in was the wrong experience to go off of in understanding the way the future would unfold. And Bill's very modest experience watching the Altair and all these sort of Altair clone type machines, or even if they're not Altair clones, just more microcomputers that need more software, that actually was the useful...

Yeah, the deal that Bill Gates made with IBM for the IBM PC is the greatest deal in at least computer industry history, if not all business history, full stop.

Yeah, the deal that Bill Gates made with IBM for the IBM PC is the greatest deal in at least computer industry history, if not all business history, full stop.

I mean, truly incredible they pulled it off.