William Henry “Bill” Gates III (born 28th October 1955) is an American software developer, entrepreneur, and philanthropist who co-founded Microsoft Corporation with Paul Allen in 1975. Through MS-DOS and Windows, Gates helped establish the software foundation that made personal computers accessible to billions of people worldwide, becoming one of the most influential figures in computing history.
Early Life and Programming Fascination
Privileged Beginning
Born in Seattle, Washington, to a prominent family, Gates grew up in an environment that encouraged intellectual achievement:
Family Background:
- William H. Gates Sr.: Prominent attorney and civic leader
- Mary Maxwell Gates: Businesswoman and community volunteer
- Privileged education: Attended exclusive Lakeside School
- Competitive nature: Encouraged to excel in academics and activities
Discovery of Computing
At Lakeside School in 1968, Gates encountered his first computer:
The Computer Terminal:
- ASR-33 Teletype: Connected to mainframe computer via phone line
- Time-sharing system: Students purchased computer time
- Immediate fascination: Gates became obsessed with programming
- Self-taught mastery: Learned BASIC and other programming languages
Early Programming Projects:
- Tic-tac-toe game: First programming achievement
- Computer Centre Corporation: Debugged software in exchange for computer time
- Lakeside Programming Group: Founded with Paul Allen and others
- Payroll system: Created scheduling software for the school
Partnership with Paul Allen
The Dynamic Duo
Gates’ friendship with Paul Allen, two years his senior, became one of computing’s most important partnerships:
Complementary Skills:
- Gates: Business strategy, programming efficiency, competitive drive
- Allen: Hardware expertise, technical vision, broad knowledge
- Shared passion: Both obsessed with computing potential
- Risk-taking: Willing to drop out of school for opportunities
Early Ventures
Before Microsoft, Gates and Allen collaborated on several projects:
Traf-O-Data (1972):
- Traffic analysis: Computer system to process traffic data
- 8008 processor: Built around Intel’s early microprocessor
- Business lesson: Technical success but commercial failure
- Learning experience: Understanding of both hardware and software markets
Founding Microsoft
The Altair Opportunity
In 1975, Popular Electronics featured the Altair 8800 computer on its cover:
The Vision:
- Mass market potential: Saw personal computers becoming widespread
- Software need: Computers needed programming languages
- BASIC interpreter: Decided to create BASIC for the Altair
- Bold contact: Called MITS claiming they had BASIC ready
Creating Altair BASIC
Working intensively, Gates and Allen developed their BASIC interpreter:
Technical Challenge:
- Memory constraints: Had to fit in just 4KB of RAM
- No Altair available: Developed using Harvard’s PDP-10 mainframe
- Emulation: Created Altair simulator to test their code
- Time pressure: Had to deliver working software quickly
Success and Controversy:
- Demonstration: BASIC worked perfectly on first try
- Commercial success: MITS licensed their BASIC
- Piracy problems: Hobbyists copied software freely
- Famous letter: Gates’ “Open Letter to Hobbyists” about software piracy
Establishing Microsoft
In 1975, Gates and Allen officially founded Microsoft:
Company Formation:
- Partnership agreement: 60% Gates, 40% Allen ownership
- Vision statement: “A computer on every desk and in every home”
- Albuquerque location: Moved to be near MITS
- Early employees: Hired school friends and talented programmers
The IBM Partnership
The Crucial Phone Call
In 1980, IBM contacted Microsoft about software for their upcoming personal computer:
The Opportunity:
- Operating system need: IBM needed an OS for their PC
- Time constraints: Tight deadline for PC launch
- Strategic decision: Gates agreed to provide operating system
- Referral path: Initially referred IBM to Digital Research
Acquiring MS-DOS
When Digital Research negotiations stalled, Gates found an alternative:
QDOS Acquisition:
- 86-DOS: Tim Paterson’s operating system for 8086 processors
- Strategic purchase: Bought rights for $50,000
- Modification work: Adapted for IBM PC hardware
- Licensing strategy: Retained rights to license to other manufacturers
The IBM Contract:
- Non-exclusive license: Microsoft could sell DOS to other companies
- Low price: Accepted minimal upfront payment for huge future potential
- Strategic vision: Saw the clone market developing
- Industry transformation: Decision that changed computing history
Building the Software Empire
MS-DOS Dominance
MS-DOS became the foundation of Microsoft’s success:
Market Penetration:
- IBM PC success: DOS came with every IBM PC
- Clone proliferation: Compatible computers used DOS
- Version improvements: Continuous feature enhancements
- Developer ecosystem: Thousands of applications built for DOS
Business Strategy:
- Volume licensing: Low prices to encourage adoption
- OEM partnerships: Pre-installed on most PCs
- Upgrade path: Regular new versions with enhanced features
- Market control: Established Microsoft as platform leader
Windows Revolution
Building on DOS success, Gates pushed graphical interfaces:
Windows Development:
- Interface inspiration: Influenced by Xerox PARC and Apple Lisa
- Windows 1.0 (1985): First graphical shell for DOS
- Slow adoption: Initially unsuccessful compared to DOS
- Windows 3.0 (1990): Breakthrough version achieving mass adoption
Strategic Patience:
- Long-term vision: Believed GUIs were the future
- Continuous improvement: Multiple versions refining the interface
- Application integration: Office suite leveraged Windows features
- Platform dominance: Windows became universal PC standard
Microsoft Office Suite
Gates recognised the importance of applications:
Office Development:
- Word: Word processor competing with WordPerfect
- Excel: Spreadsheet application rivalling Lotus 1-2-3
- PowerPoint: Presentation software
- Integrated suite: Applications working together seamlessly
Market Strategy:
- Bundling advantage: Suite pricing encouraged complete adoption
- File compatibility: Proprietary formats created switching costs
- Regular updates: Continuous feature enhancements
- Platform leverage: Windows integration provided advantages
Business Philosophy and Leadership
Competitive Strategy
Gates became known for aggressive business tactics:
Market Approach:
- Embrace, extend, extinguish: Adopt standards, enhance them, dominate market
- Platform control: Control underlying technology to influence ecosystem
- Volume economics: Scale advantages through mass licensing
- Developer relations: Strong partnerships with software developers
Leadership Style:
- Demanding standards: High expectations for employees and products
- Technical involvement: Deep knowledge of products being developed
- Strategic thinking: Long-term planning and market anticipation
- Competitive intensity: Fierce determination to win in every market
Innovation Philosophy
Gates balanced innovation with business pragmatism:
Development Approach:
- Evolutionary improvement: Incremental enhancements over time
- Customer feedback: Responsive to user needs and market demands
- Platform thinking: Building foundations for other developers
- Risk management: Careful balance of innovation and stability
Antitrust Challenges and Industry Impact
Government Scrutiny
Microsoft’s dominance attracted regulatory attention:
Antitrust Issues:
- Monopoly concerns: Control over PC operating systems
- Browser wars: Internet Explorer bundling with Windows
- Competitive practices: Allegations of anti-competitive behaviour
- Court battles: Lengthy legal proceedings in 1990s and 2000s
Industry Response:
- Settlement agreements: Modified business practices
- Increased competition: Opened opportunities for competitors
- Standards adoption: Greater support for open standards
- Corporate culture: Shift towards collaboration and openness
Transition to Philanthropy
Stepping Back from Microsoft
In the 2000s, Gates gradually reduced his Microsoft involvement:
Leadership Transition:
- CEO departure (2000): Handed operational control to Steve Ballmer
- Chairman role: Maintained strategic oversight
- Chief Software Architect: Focused on technical vision
- Final departure (2020): Left board to focus on philanthropy
The Gates Foundation
With his wife Melinda, Gates established one of the world’s largest foundations:
Philanthropic Focus:
- Global health: Vaccines, disease eradication, healthcare access
- Education reform: Improving educational outcomes worldwide
- Poverty alleviation: Economic development in developing countries
- Climate change: Clean energy and environmental solutions
Approach to Giving:
- Data-driven: Evidence-based approach to philanthropy
- Partnership model: Collaboration with governments and NGOs
- Innovation focus: Supporting breakthrough technologies
- The Giving Pledge: Commitment to give away majority of wealth
Technical Contributions and Legacy
Programming Excellence
Gates was known for exceptional programming abilities:
Coding Skills:
- Efficiency: Optimised code for limited memory environments
- Problem-solving: Creative solutions to technical challenges
- Code reviews: Personally reviewed critical software components
- Technical architecture: Contributed to fundamental design decisions
Software Philosophy:
- User focus: Software should solve real user problems
- Compatibility: Maintaining backward compatibility for users
- Performance: Optimal use of available hardware resources
- Reliability: Software should work consistently
Industry Transformation
Gates’ influence extended far beyond Microsoft:
Computing Standards:
- PC platform: Established IBM PC architecture as standard
- Software industry: Created viable commercial software market
- Developer ecosystem: Enabled thousands of software companies
- Technology adoption: Made computers essential business tools
Business Models:
- Software licensing: Established software as valuable intellectual property
- Platform economics: Network effects and ecosystem development
- Volume production: Mass market approach to technology
- Continuous upgrading: Regular product refreshes and improvements
Relevance to Code Like It’s 198x
While Microsoft systems aren’t featured in our lessons, Gates’ influence on computing history provides important context for understanding software development and the business of technology.
Technical Lessons
- Assembly programming: Early Microsoft products were heavily optimised
- Memory management: Critical skills in resource-constrained environments
- System programming: Understanding how operating systems work
- Platform development: Building foundations for other software
Business Understanding
- Software value: Programming skills can create enormous value
- Market timing: Recognising when technologies will become mainstream
- Platform thinking: Building systems that enable others to create
- Strategic partnerships: Importance of business relationships in technology
Educational Philosophy
- Continuous learning: Technology constantly evolves requiring ongoing education
- Problem-solving: Programming is fundamentally about solving problems
- Practical application: Software should address real-world needs
- Global impact: Technology can solve significant human challenges
Personal Characteristics and Interests
Intellectual Curiosity
Gates is known for voracious learning:
Reading Habits:
- Speed reading: Reportedly reads 50 books per year
- Diverse interests: History, science, biography, business
- Annual retreats: “Think weeks” for deep reading and reflection
- Information synthesis: Connecting ideas across different fields
Problem-Solving Approach:
- Analytical thinking: Breaking complex problems into components
- Data focus: Decision-making based on evidence and metrics
- Systems thinking: Understanding interconnections and dependencies
- Long-term perspective: Planning decades into the future
Personal Life Evolution
Gates’ priorities have evolved significantly:
Family Focus:
- Marriage (1994-2021): Partnership with Melinda French Gates
- Three children: Balanced career with family responsibilities
- Value instillation: Teaching children about responsibility and service
- Privacy protection: Shielding family from excessive media attention
Awards and Recognition
Gates has received numerous honours throughout his career:
Technology Awards:
- National Medal of Technology (1992): Highest U.S. technology honour
- Computer Entrepreneur Award: Recognition for business achievement
- Fellow of Computer History Museum: Lifetime contribution to computing
- Numerous honorary degrees: Recognition from universities worldwide
Humanitarian Recognition:
- Presidential Medal of Freedom (2016): Highest U.S. civilian honour
- Padma Bhushan (2015): India’s third-highest civilian award
- Knight Commander (2005): Honorary knighthood from Queen Elizabeth II
- Time Person of the Year: Multiple recognitions for different achievements
Fun Facts
- Gates scored 1590 out of 1600 on his SATs (before recentering)
- He was arrested in 1977 for driving without a licence and speeding
- His Microsoft employee ID was #2 (Paul Allen was #1)
- Gates memorised all his employees’ licence plates when Microsoft was small
- He can leap over office chairs from a standing position
- His favourite programming language was (and remains) BASIC
- Gates reads approximately 150 pages per hour
- He types over 40 words per minute using just two fingers
- His first computer program was a tic-tac-toe game
- Gates didn’t fly first class until he was worth over $1 billion
- He still personally reviews and responds to emails from students
- His annual letter is read by millions of people worldwide
Modern Legacy and Continuing Influence
Bill Gates transformed from a young programmer into one of history’s most influential technologists and philanthropists. His vision of “a computer on every desk and in every home” largely came true, and his current focus on global challenges demonstrates how technical skills can address humanity’s biggest problems.
Enduring Principles:
- Technology for all: Computing should be accessible to everyone
- Software value: Good programming creates enormous economic value
- Continuous improvement: Always seeking better solutions
- Data-driven decisions: Evidence-based approach to complex problems
Modern Relevance:
- Platform economics: Understanding how technology ecosystems work
- Global connectivity: Software connecting people worldwide
- Educational technology: Using computers to enhance learning
- Solving big problems: Applying technical skills to global challenges
Through Code Like It’s 198x, we can appreciate how Gates’ early programming experience with constrained systems like the Altair 8800 taught him the fundamental principles that enabled Microsoft’s success. His journey from writing BASIC interpreters in 4KB of memory to building the world’s largest software company demonstrates the power of programming skills combined with strategic thinking and relentless execution.