William Henry Gates III (born October 28, 1955 in Seattle, Washington) is an American entrepreneur and the co-founder, chairman, former chief software architect, and former CEO of Microsoft, the world's largest software company. Forbes magazine's list of The World's Billionaires has ranked him as the richest person in the world for the last thirteen consecutive years, and recent estimates put his net worth near $56 billion. When family wealth is considered, his family ranks second behind the Walton family.
Gates is one of the best-known entrepreneurs of the personal computer revolution. Although he is widely respected by people who see his wealth as a product of intelligence and foresight his business tactics have often been criticized as unethical or anti-competitive, and have, in some instances, been ruled as such in court Since amassing his fortune, Gates has pursued a number of philanthropic endeavors, donating large amounts of money to various charitable organizations and scientific research programs through the Bill & Melinda Gates Foundation, established in 2000
Gates excelled in elementary school, particularly in mathematics and the sciences. At thirteen he enrolled in the Lakeside School, Seattle's most exclusive preparatory school where tuition in 1967 was $5,000 (Harvard tuition that year was $1,760). When he was in the eighth grade, the school mothers used proceeds from a rummage sale to buy Lakeside an ASR-33 teletype terminal and a block of computer time on a General Electric computer. Gates took an interest in programming the GE system in BASIC and was excused from math classes to pursue his interest. After the Mothers Club donation was exhausted he and other students sought time on other systems, including DEC PDP minicomputers. One of these systems was a PDP-10 belonging to Computer Center Corporation, which banned the Lakeside students for the summer after it caught them exploiting bugs in the operating system to obtain free computer time.
At the end of the ban, the Lakeside students (Gates, Paul Allen, Ric Weiland, and Kent Evans) offered to find bugs in CCC's software in exchange for free computer time. Rather than use the system via teletype, Gates went to CCC's offices and studied source code for various programs that ran on the system, not only in BASIC but FORTRAN, LISP and machine language as well. The arrangement with CCC continued until 1970, when it went out of business. The following year Information Sciences Inc. hired the Lakeside students to write a payroll program in COBOL, providing them not only computer time but royalties as well. At age 14, Gates also formed a venture with Allen, called Traf-O-Data, to make traffic counters based on the Intel 8008 processor. That first year he made $20,000, however when his age was found out they lost a lot of business.
In 1980 IBM approached Microsoft to make the BASIC interpreter for its upcoming personal computer, the IBM PC. When IBM's representatives mentioned that they needed an operating system, Gates referred them to Digital Research (DRI), makers of the widely used CP/M operating system. IBM's discussions with Digital Research went poorly, and they did not reach a licensing agreement. IBM representative Jack Sams mentioned the licensing difficulties during a subsequent meeting with Gates and told him to get an acceptable operating system. A few weeks later Gates proposed using 86-DOS (QDOS), an operating system similar to CP/M that Seattle Computer Products had made for hardware similar to the PC. Microsoft made a deal with SCP to become the exclusive licensing agent, and later the full owner, of 86-DOS, but did not mention that IBM was a potential customer. After adapting the operating system for the PC, Microsoft delivered it to IBM as PC-DOS in exchange for a one-time fee. Gates never understood why DRI had walked away from the deal, and in later years he claimed that DRI founder Gary Kildall capriciously "went flying" during an IBM appointment, a characterization that Kildall and other DRI employees would deny.
As several companies reverse-engineered the IBM architecture and developed clones Microsoft was quick to license DOS to other manufacturers, calling it MS-DOS (for Microsoft Disk Operating System). By marketing MS-DOS aggressively to manufacturers of IBM-PC clones, Microsoft went from a small player to one of the major software vendors in the home computer industry. Microsoft continued to develop operating systems as well as software applications
In the early 1980s Microsoft introduced its own version of the graphical user interface (GUI), based on ideas pioneered by the Xerox corporation, and further developed by Apple. Microsoft released "Windows" as an addition and alternative to their DOS command line, and to compete with other systems on the market that employed a GUI. By the early 1990s, Windows had pushed other DOS-based GUIs like GEM and GEOS out of the market. The release of Windows 3.0 in 1990 was a tremendous success, selling around 10 million copies in the first two years and cementing Microsoft's dominance in operating systems sales.
By continuing to ensure, by various means, that most computers came with Microsoft software pre-installed, the Microsoft corporation eventually became the largest software company in the world, earning Gates enough money that Forbes Magazine named him the wealthiest person in the world for several years Gates served as the CEO of the company until 2000, when Steve Ballmer took the position. Microsoft has thousands of patents, and Gates has nine patents to his name
Since Microsoft's founding in 1975 and as of 2006, Gates has had primary responsibility for Microsoft's product strategy. He has aggressively broadened the company's range of products, and wherever Microsoft has achieved a dominant position he has vigorously defended it. Many decisions that have led to antitrust litigation over Microsoft's business practices have had Gates' approval. In the 1998 United States v. Microsoft case, Gates gave deposition testimony that several journalists characterized as evasive. He argued with examiner David Boies over the definitions of words such as: compete, concerned, ask, and we. BusinessWeek reported:
Early rounds of his deposition show him offering obfuscatory answers and saying 'I don't recall' so many times that even the presiding judge had to chuckle. Worse, many of the technology chief's denials and pleas of ignorance were directly refuted by prosecutors with snippets of e-mail Gates both sent and received.
Gates later said that he had simply resisted attempts by Boies to mischaracterize his words and actions. As to his demeanor during the deposition, he said "Whatever that penalty is should be levied against me: rudeness to Boies in the first degree." Despite Gates' denials, the judge ruled that Microsoft had committed monopolization and tying, blocking competition, in violation of the Sherman Act.
Gates meets regularly with Microsoft's senior managers and program managers. By all accounts he can be extremely confrontational during these meetings, particularly when he believes that managers have not thought out their business strategy or have placed the company's future at risk. He has been described shouting at length at employees before letting them continue, with such remarks as "That's the stupidest thing I've ever heard!" and "Why don't you just give up your options and join the Peace Corps?" However, he often backs down when the targets of his outbursts respond frankly and directly. When he is not impressed with the technical hurdles managers claim to be facing, he sometimes quips, "Do you want me to do it over the weekend?" Gates' role at Microsoft for most of its history has been primarily a management and executive role. However, he was an active software developer in the early years, particularly on the company's programming language products. (See also: DONKEY.BAS) He has not officially been on a development team since working on the TRS-80 Model 100 line, but he wrote code as late as 1989 that shipped in the company's products. On June 15 ,2006
Gates announced that he would transition out of his day-to-day role over the next two years to dedicate more time to philanthropy. He divided his responsibilities between two successors, placing Ray Ozzie in charge of day-to-day management and Craig Mundie in charge of long-term product strategy.One of his last initiatives before announcing his departure was the creation of a robotics software group at Microsoft.
