Subj : The IBM deal that sparked Microsofts rise to prominence
To   : All
From : TechnologyDaily
Date : Thu Nov 06 2025 12:15:07

The IBM deal that sparked Microsofts rise to prominence

Date:
Thu, 06 Nov 2025 12:02:00 +0000

Description:
Microsoft's landmark deal to deliver an operating system for IBM changed the 
face of tech.

FULL STORY
======================================================================IBM 
needed an operating system, Microsoft answered the call Shrewd dealing on 
Microsoft's part set it up for success The deal laid the groundwork for 
Microsoft to dominate the OS market 

Seeking an operating system for its first personal computer, IBM was looking 
for suitors - and in 1980 Microsoft stepped in with an offer that changed the 
technology world forever. 

The deal meant IBM had its long-awaited operating system, and Microsoft had a 
lucrative deal with one of the undisputed titans of the industry at that 
time. The only issue was that Microsoft didnt actually have an operating 
system to use. 

Reports over exactly how this deal went down are conflicting, but in the 
months prior to the Microsoft deal IBM had been in close contact with Digital 
Research, developer of the CP/M operating system. 

Highly popular at the time, it appeared to be the perfect match for IBM, but 
the deal fell through. Its here that Microsofts role in the whole affair was 
crucial. 

 86-DOS , developed by Seattle Computer Products (SCP) and known by designer 
Tim Paterson as QDOS (Quick and Dirty Operating System) was licensed by 
Microsoft. 

Paterson was hired to port the system for use on the IBM PC, and within a 
year the blossoming tech giant had purchased all rights for the OS from SCP 
for a fee of $50,000. 

If youre wondering why DOS sounds familiar, its because the operating system 
was renamed  MS-DOS , the companys original operating system. Part of the 
deal with IBM included a clause that allowed Microsoft to sell the OS to 
other manufacturers, rather than IBM as a sole customer. 

Within the space of a few years, MS-DOS came to dominate the industry, and 
was the primary operating system for PCs globally before being superseded by 
Windows. Microsoft sparks into life 

Microsoft was by no means a minnow of the tech industry by this point, having 
been founded in 1975 and establishing itself as a key player in the 
programming space. 

With the emergence of microcomputers in the 1970s, Microsofts version of the 
BASIC programming language had become highly popular. The deal with IBM took 
it to new heights, however, and positioned the company as a leading developer 
of operating systems. 

The story from there speaks for itself. When MS-DOS was merged with Windows 
95, it played a crucial role in driving the popularity of the iconic 
operating system. 

That operating system, underpinned by MS-DOS, truly set the standard for the 
tech companys future operating systems , with key features of Windows 95 even 
remaining to this day. 

Today, Microsoft is one of an exclusive group of tech companies boasting a 
market cap in excess of $3 trillion, sitting alongside Nvidia, Alphabet and 
Apple. 

In the age of AI tools , the company has also emerged as a dominant player, 
having struck an early lead in the generative AI race through its 
relationship with OpenAI. Windows 95 at 30 - Way ahead of its time, or the 
greatest Microsoft game-changer?



======================================================================
Link to news story:
https://www.techradar.com/pro/the-ibm-deal-that-sparked-microsofts-rise-to-pro
minence


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