Microsoft releases their first software application, Microsoft Word 1.0. For use with MS-DOS compatible systems, Word was the first word processing software to make extensive use of a computer mouse. Not coincidentally, Microsoft had released a computer mouse for IBM-compatible PCs earlier in the year. A demo version was also included for free with a copy of PC World magazine, marking the first time a floppy disk was included with a magazine.
August 24, 1995
Kicking off one of the largest product launches in technology history, Microsoft releases the highly anticipated Windows 95. More than one million copies will be sold in the first four days of its release.
August 24, 1993
Perhaps the most famous lawsuit in technology history is decided for Microsoft. Apple claimed that Microsoft’s Windows violated their copyrights on the “visual displays” of the Macintosh. The judge in the case ruled that most of the claims were covered by a 1985 licensing agreement. Other claims were not violations of copyright due to the “merger doctrine”, which basically states that ideas can not be copyrighted. This paved the way for Microsoft to develop Windows 95, which imitated the Macintosh even more so than previous versions of Windows.
August 16, 1995
Microsoft introduces Internet Explorer, which at the time was a modified version of Spyglass Mosaic, which Microsoft had licensed. Later when Microsoft began including Internet Explorer for free with Windows, Spyglass sued Microsoft for not paying what they felt were the proper royalties. Microsoft settled for $8 million.
August 11, 2003
The Blaster worm, also known as MSBlast or Lovesan, begins to spread on the Internet, infecting Windows XP and Windows 2000 computers. The primary symptom of the worm was the crashing of the RPC service, which would trigger the computer to shut itself down and reboot as shown in the graphic. Microsoft estimated the number of machines infected between 8 and 16 million. Damage caused by the worm was estimated at $320 million.
August 6, 1997
At the Macworld Expo in Boston, Steve Jobs announces that Apple and Microsoft have signed a five-year alliance. Bill Gates famously makes his seemingly ominous “big brother” appearance on the large presentation screen during the announcement. As part of the deal, Microsoft committed to continuing development of Microsoft Office for Mac over the next five years, Apple would make Internet Explorer the default web browser on the Mac, Apple and Microsoft would collaborate on Java compatibility, and Microsoft invested $150 million in Apple stock. However, the most important part of the arrangement is that both companies would cross-license all existing patents along with any new patents over the next five years, Apple would drop their long-running series of patent-infringement lawsuits against Microsoft, and Microsoft paid an undisclosed amount of money to Apple.
The common assumption in the tech community is that Microsoft’s $150 million investment in Apple saved the company. However, the reality is that with Apple holding $1.2 billion in cash at the time, $150 million was a relatively small sum of money. Some now believe the undisclosed amount of money that Microsoft paid Apple was in fact a secret settlement to the patent-infringment claims. Estimated at anywhere between $500 million to $2 billion, this was the real meat of the “cross-licensing” arrangement. It was likely this much larger undisclosed amount, along with the show of confidence that Apple would be around at least another five years, that gave Apple and Steve Jobs the breathing room needed to reinvent Apple into the most valuable company in the world.
July 27, 1981
About two weeks before IBM begins shipping the first IBM PC, Microsoft buys the full rights to the operating system 86-DOS, formerly known as QDOS (Quick and Dirty Operating System), from Seattle Computer Products for $50,000. Microsoft had previously paid $25,000 to SCP for a non-exclusive license in December 1980 in order to begin porting the operating system to the IBM PC, which used the Intel 8088 processor. Microsoft renamed 86-DOS to MS-DOS and licensed it to IBM as PC-DOS. SCP would later sue Microsoft claiming fraud because Microsoft did not reveal IBM as a licensee. The case was settled in SCP’s favor for 1 million dollars, a fraction of the annual revenue Microsoft was receiving from MS-DOS and PC-DOS.
July 22, 1980
Representatives from an IBM facility in Boca Raton, Florida, where a small group of engineers were secretly developing the IBM PC, meet with Bill Gates and Steve Ballmer of Microsoft to discuss licensing software and an operating system for the still-developing PC. Not having an operating system to offer IBM, Microsoft will eventually buy the rights to QDOS/86-DOS from Seattle Computing Products, which they in-turn license to IBM as PC-DOS, and later license to PC clone makers as MS-DOS. This alliance between IBM and Microsoft forms one of the most dominant platforms in the history of computing, which goes on to crush nearly all other PC platforms in the 80’s and 90’s. Ironically this platform nearly crushes IBM itself as they lost control of the platform to PC clone makers and Microsoft.
June 25, 1981
Founded six years earlier by Bill Gates and Paul Allen, Microsoft officially incorporated as a company. The timing of the incorporation was about 2 months ahead of the release of the IBM PC, which would soon change the fortune of Microsoft and the entire technology industry.
June 18, 1979
In use at the time by over 200,000 computers with the Z80 and 8080 processors, Microsoft BASIC is introduced for the 8086 16-bit microprocessor. By being one of the first to offer a version of the BASIC programming language for a 16-bit processor and making it compatible with their 8-bit versions of BASIC, Microsoft helped move forward 16-bit computing. But perhaps more importantly, by developing for the 8086 processor, they soon formed a relationship with Seattle Computer Products, one of the first companies building computers with an 8086 processor.
As fate would have it, in 1980 Seattle Computer Products was forced to develop an operating system for their computers because a version of the very popular CP/M operating system was delayed for the 8086. It was this 8086 operating system, which SCP called QDOS (for Quick and Dirty Operating System), that Microsoft soon bought the rights for and licensed to IBM for their new PC. And Microsoft thus began their transformation from a simple software development company in the early history of personal computing to one of the most dominant technology companies in history.