- •Bill Gates Nathon Myhrvold Peter Rinearson
- •Foreword
- •1 A revolution begins
- •1968: Bill Gates (Standing) and Paul Allen working at the computer terminal at Lakeside School.
- •1972: Intel’s 8088 microprocessor
- •January 1975 issue of Popular Electronics
- •2 The beginning of the information age
- •1946: A view inside a part of the eniac computer
- •Intel microprocessors have doubled in transister count approximately every eighteen months, in accordance with Moore’s Law.
- •3 Lessons from the computer industry
- •1981: The ibm personal computer
- •1984: Character user interface in an early version of Microsoft Word for dos
- •1995: Graphical user interface in Microsoft Word for Windows
- •1984: The Apple macintosh computer
- •4 Applications and appliances
- •1995: A personal‑computer based interactive media server
- •Prototype of a television set‑top box
- •1995: Multimedia notebook computer by Digital Equipment Corporation
- •Prototype of a wallet pc
- •5 Paths to the highway
- •1995: U.S. Library of Congress home page on the World Wide Web, showing hyperlinks
- •6 The content revolution
- •1995: Screen from Microsoft Encarta electronic multimedia encyclopedia
- •Implications for business
- •8 Friction‑free capitalism
- •9 Education: the best investment
- •1995: World Wide Web home page from Arbor Heights Elementary School
- •1995: World Wide Web home page from the University of Connecticut, featuring archeological resources drawn from many sources
- •10 Plugged in at home
- •Computer rendering of the Gateses’ future home, showing the view from the northwest across Lake Washington
- •Computer rendering of the Gateses’ future home, showing the staircase and formal dining room
- •Prototype of a home control console
- •11 Race for the gold
- •12 Critical issues
- •Afterword
1972: Intel’s 8088 microprocessor
To put it another way, a simple microprocessor in an embedded application, such as an elevator’s controls, is a single instrument, a drum or a horn, in the hands of an amateur: good for basic rhythm or uncomplicated tunes. A powerful microprocessor with programming languages, however, is like an accomplished orchestra. With the right software, or sheet music, it can play anything.
Paul and I wondered what we could program the 8008 to do. He called up Intel to request a manual. We were a little surprised when they actually sent him one. We both dug into it. I had worked out a version of BASIC, which ran on the limited DEC PDP‑8, and was excited at the thought of doing the same for the little Intel chip. But as I studied the 8008’s manual, I realized it was futile to try. The 8008 just wasn’t sophisticated enough, didn’t have enough transistors.
We did, however, figure out a way to use the little chip to power a machine that could analyze the information counted by traffic monitors on city streets. Many municipalities that measured traffic flow did so by stringing a rubber hose over a selected street. When a car crossed the hose, it punched a paper tape inside a metal box at the end of the hose. We saw that we could use the 8008 to process these tapes, to print out graphs and other statistics. We baptized our first company “Traf‑O‑Data.” At the time it sounded like poetry.
I wrote much of the software for the Traf‑O‑Data machine on cross‑state bus trips from Seattle to Pullman, Washington, where Paul was attending college. Our prototype worked well, and we envisioned selling lots of our new machines across the country. We used it to process traffic‑volume tapes for a few customers, but no one actually wanted to buy the machine, at least not from a couple of teenagers.
Despite our disappointment, we still believed our future, even if it was not to be in hardware, might have something to do with microprocessors. After I started at Harvard College in 1973, Paul somehow managed to coax his clunky old Chrysler New Yorker cross‑country from Washington State and took a job in Boston, programming mini‑computers at Honeywell. He drove over to Cambridge a lot so we could continue our long talks about future schemes.
In the spring of 1974, Electronicsmagazine announced Intel’s new 8080 chip–ten times the power of the 8008 inside the Traf‑O‑Data machine. The 8080 was not much larger than the 8008, but it contained 2,700 more transistors. All at once we were looking at the heart of a real computer, and the price was under $200. We attacked the manual. “DEC can’t sell any more PDP‑8s now,” I told Paul. It seemed obvious to us that if a tiny chip could get so much more powerful, the end of big unwieldy machines was coming.
Computer manufacturers, however, didn’t see the microprocessor as a threat. They just couldn’t imagine a puny chip taking on a “real” computer. Not even the scientists at Intel saw its full potential. To them, the 8080 represented nothing more than an improvement in chip technology. In the short term, the computer establishment was right. The 8080 was just another slight advance. But Paul and I looked past the limits of that new chip and saw a different kind of computer that would be perfect for us, and for everyone–personal, affordable, and adaptable. It was absolutely clear to us that because the new chips were so cheap, they soon would be everywhere.
Computer hardware, which had once been scarce, would soon be readily available, and access to computers would no longer be charged for at a high hourly rate. It seemed to us people would find all kinds of new uses for computing if it was cheap. Then, software would be the key to delivering the full potential of these machines. Paul and I speculated that Japanese companies and IBM would likely produce most of the hardware. We believed we could come up with new and innovative software. And why not? The microprocessor would change the structure of the industry. Maybe there was a place for the two of us.
This kind of talk is what college is all about. You have all kinds of new experiences, and dream crazy dreams. We were young and assumed we had all the time in the world. I enrolled for another year at Harvard and kept thinking about how we could get a software company going. One plan was pretty simple. We sent letters from my dorm room to all the big computer companies, offering to write them a version of BASIC for the new Intel chip. We got no takers. By December, we were pretty discouraged. I was planning to fly home to Seattle for the holidays, and Paul was staying in Boston. On an achingly cold Massachusetts morning a few days before I left, Paul and I were hanging out at the Harvard Square newsstand, and Paul picked up the January issue of Popular Electronics. This is the moment I described at the beginning of the Foreword. This gave reality to our dreams about the future.