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Bill Gates Remembers 1979
Hugh Pickens writes "Last week Gizmodo had a special celebration of 1979, the last year before a digital tsunami hit, that put Bill Gates in a nostalgic mood this week. Bill chimed in with his own memories of that seminal year when everything changed. 'In 1979, Microsoft had 13 employees, most of whom appear in that famous picture that provides indisputable proof that your average computer geek from the late 1970s was not exactly on the cutting edge of fashion,' wrote Gates. 'By the end of the year we'd doubled in size to 28 employees. Even though we were doing pretty well, I was still kind of terrified by the rapid pace of hiring and worried that the bottom could fall out at any time.' What made Gates feel a little more confident was that he began to sense that BASIC was on the verge of becoming the standard language for microcomputers. 'By the middle of 1979, BASIC was running on more than 200,000 Z-80 and 8080 machines and we were just releasing a new version for the 8086 16-bit microprocessor. As the numbers grew, we were starting to think beyond programming languages, too, and about the possibility of creating applications that would have real mass appeal to consumers.' Gates remembers that in 1979 there were only 100 different software products that had more than $100 M in annual sales and all of them were for mainframes. 'In April, the 8080 version of BASIC became the first software product built to run on microprocessors to win an ICP Million Dollar Award. Today, I would be surprised if the number of million-dollar applications isn't in the millions itself' writes Gates. 'More important, of course, is the fact that more than a billion people around the world use computers and digital technology as an integral part of their day-to-day lives. That's something that really started to take shape in 1979.'"
By William Henry Gates III
February 3, 1976
An Open Letter to Hobbyists
To me, the most critical thing in the hobby market right now is the lack of good software courses, books and software itself. Without good software and an owner who understands programming, a hobby computer is wasted. Will quality software be written for the hobby market?
Almost a year ago, Paul Allen and myself, expecting the hobby market to expand, hired Monte Davidoff and developed Altair BASIC. Though the initial work took only two months, the three of us have spent most of the last year documenting, improving and adding features to BASIC. Now we have 4K, 8K, EXTENDED, ROM and DISK BASIC. The value of the computer time we have used exceeds $40,000.
The feedback we have gotten from the hundreds of people who say they are using BASIC has all been positive. Two surprising things are apparent, however, 1) Most of these "users" never bought BASIC (less than 10% of all Altair owners have bought BASIC), and 2) The amount of royalties we have received from sales to hobbyists makes the time spent on Altair BASIC worth less than $2 an hour.
Why is this? As the majority of hobbyists must be aware, most of you steal your software. Hardware must be paid for, but software is something to share. Who cares if the people who worked on it get paid?
Is this fair? One thing you don't do by stealing software is get back at MITS for some problem you may have had. MITS doesn't make money selling software. The royalty paid to us, the manual, the tape and the overhead make it a break-even operation. One thing you do do is prevent good software from being written. Who can afford to do professional work for nothing? What hobbyist can put 3-man years into programming, finding all bugs, documenting his product and distribute for free? The fact is, no one besides us has invested a lot of money in hobby software. We have written 6800 BASIC, and are writing 8080 APL and 6800 APL, but there is very little incentive to make this software available to hobbyists. Most directly, the thing you do is theft.
What about the guys who re-sell Altair BASIC, aren't they making money on hobby software? Yes, but those who have been reported to us may lose in the end. They are the ones who give hobbyists a bad name, and should be kicked out of any club meeting they show up at.
I would appreciate letters from any one who wants to pay up, or has a suggestion or comment. Just write to me at 1180 Alvarado SE, #114, Albuquerque, New Mexico, 87108. Nothing would please me more than being able to hire ten programmers and deluge the hobby market with good software.
Bill Gates
General Partner, Micro-Soft