Jeff said:
This is begining to sound like an arguement based soley on which company you
hate more, IBM or Microsoft. You each seem to be stating facts and then
coloring them to suit your own arguements.
My point is precisely the opposite. That it isn't a matter of 'who you hate
more' but rather a matter of different visions of the market and different
business strategies, not to mention different 'businesses'. Microsoft
wasn't in the 'hardware' business and IBM was into software primarily to
sell hardware, or 'systems'.
Not really surprising since it was the same thing IBM had done for decades
with what they might have called, by comparison, 'a real computer' and
selling (proprietary) 'hardware' was big business prior to the PC. You'd
buy "an IBM <insert model>" or "a Burroughs <insert model>" or a DEC
PDP<insert number>" and they each had their own proprietary operating
systems, which they'd really rather not have to mess with but you need one
to sell 'the computer'. So who gives a tinker's dam if you let an O.S.
developer 'sell to others'? It runs on 'an IBM', and a specific model at
that, so they have to buy 'an IBM', which is what they wanted to sell anyway.
Microsoft had the vision of running the same software on anyone's 'PC
clone' and while it may seem obvious today it was anything but obvious in
1980 as the 'home computer' world was a hodge podge of individual hardware
types each running their own O.S. (of a sorts) just like the mainframe
world was. Commodore stuff didn't run on an Apple and Apple stuff didn't
run on an Atari, and Atari stuff didn't run on a CPM machine (CPM being the
closest to a 'multiple hardware supplier' O.S.). Point being that
'retaining the rights' to sell Atari DOS on non-Atari computers would have
gotten you exactly nothing as it didn't run on anything else and nobody but
Atari made Atari computers.
IBM was right in that their 'PC', by virtue of the IBM name and reputation
(who knows about Atari but IBM is here to stay), put just about every other
'home computer' type out of business but, somehow, they missed the fact
that their 'PC', the design for which they had purchased anyway, wasn't
proprietary. It was freely copyable, and copied it was, so you didn't 'have
to' buy 'an IBM' to get a 'PC'. IBM later tried to 'fix' that mistake with
the proprietary PS/2 MCA bus but it was too late. They were hoisted on
their own petard of an 'IBM (clone) Standard' and roasted alive for trying
to close it.
Nobody held a gun to either Microsoft or IBM's head nor was Microsoft
anything 'special' at the time. They weren't an 'industry leader' in
anything nor did they have some 'special' wonder DOS, or even a proven one,
to hold over IBM's head in order to 'force' a deal. IBM simply figured they
had a steal at only $80,000 for a DOS to sell 'PCs' with, just like buying
the hardware design had been a cheap, quick and dirty, way to get into the
questionable 'home computer' market.
Microsoft made very little on the deal gambling, instead, on future sales
of software to a then nonexistent clone market where they could have ended
up with the equivalent of a 'right to sell to others' an Atari DOS that
only runs on Ataris made by Atari.
It's simply a matter that Microsoft had the vision to see it (what's to
loose when you have nothing?) and IBM didn't.