Steve Ballmer

We now finally have a complete story around all of that.

So a couple of interesting technical notes. It was basically all new technology. If you try to look this up, it will tell you Windows 95 was DOS based. It still used DOS in fallback situations for older DOS applications or drivers. But for most of the time, it was no longer true anymore. that Windows was just an operating environment on top of the DOS operating system.

So a couple of interesting technical notes. It was basically all new technology. If you try to look this up, it will tell you Windows 95 was DOS based. It still used DOS in fallback situations for older DOS applications or drivers. But for most of the time, it was no longer true anymore. that Windows was just an operating environment on top of the DOS operating system.

Windows had now become a true 32-bit operating system of its own. Windows did all the heavy lifting. It had its own file system. It accomplished a lot of the sort of user experience magic and speed that it was praised for by rewriting a lot of this from scratch. So this was kind of the beginning of Windows as its own OS.

Windows had now become a true 32-bit operating system of its own. Windows did all the heavy lifting. It had its own file system. It accomplished a lot of the sort of user experience magic and speed that it was praised for by rewriting a lot of this from scratch. So this was kind of the beginning of Windows as its own OS.

And you can see that actually change in the marketing messages that change from operating environment to operating system. So, David, that brings us to the end of our chapter one. We've got plenty of analysis here to do, but my God, what a first 20 years for the company.

And you can see that actually change in the marketing messages that change from operating environment to operating system. So, David, that brings us to the end of our chapter one. We've got plenty of analysis here to do, but my God, what a first 20 years for the company.

Well, yeah, living in Seattle is quite helpful.

Well, yeah, living in Seattle is quite helpful.

Right, and there's all this stuff we miss. Like, I didn't mention Microsoft Research. Microsoft Research was a lot of people and a lot of money. Right.

Right, and there's all this stuff we miss. Like, I didn't mention Microsoft Research. Microsoft Research was a lot of people and a lot of money. Right.

Actually, the start of research is interesting. I'll say this real quick. In 91, Nathan Myhrvold started Microsoft Research, and the logic is fascinating. Basically... Everything Microsoft had done until that point was taking things from mainframes and minicomputers and adapting those tasks, those jobs to be done for personal computers.

Actually, the start of research is interesting. I'll say this real quick. In 91, Nathan Myhrvold started Microsoft Research, and the logic is fascinating. Basically... Everything Microsoft had done until that point was taking things from mainframes and minicomputers and adapting those tasks, those jobs to be done for personal computers.

And at some point, they kind of looked around and said, all right, well, we did it. All the personal and business applications can now be run on personal computers. So we have to come up with uses for future technologies in order to continue to drive the ecosystem forward. There's no more low-hanging fruit.

And at some point, they kind of looked around and said, all right, well, we did it. All the personal and business applications can now be run on personal computers. So we have to come up with uses for future technologies in order to continue to drive the ecosystem forward. There's no more low-hanging fruit.

And I thought that was an interesting thesis of why to spin up a research division at that point in history.

And I thought that was an interesting thesis of why to spin up a research division at that point in history.

Okay, great. So, playbook. The big interesting one that I want to start with, and it actually involves a chapter from the story that we just sort of glossed over, is capital efficiency allows founders to control their own destinies in a way that you just don't get when you're selling off huge chunks of the company in order to accomplish your mission.

Okay, great. So, playbook. The big interesting one that I want to start with, and it actually involves a chapter from the story that we just sort of glossed over, is capital efficiency allows founders to control their own destinies in a way that you just don't get when you're selling off huge chunks of the company in order to accomplish your mission.

Let's just talk through the cap table over time and how the company went public. So we talked about the partnership being 64% Gates, 36% Paul Allen. 1980, Steve Ballbar comes in and gets 8.5%, 8.75%, something like that percent of the company. So dilutes Gates and Allen down. Then in 1981, just a year later, they take the VC investment for 5% of the company from TVI.