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LESSONS FROM BILL GATES, MICROSOFT FOUNDER

Our original buyers were corporate clients

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We sold our software to hundreds of companies all over the world, including microprocessor manufacturers and controller chip manufacturers. We knew that in the long run we would be selling our products to the general public, which we started to do in the 1980s.

BILL GATES, LECTURE 1

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A computer on every desk and in every home was not the idea we started with

We first talked about this in an article in 1977, when we put in print our idea of a computer on every desk and in every home. It was a crazy and wild idea at that time. Even the smartest people were wondering why someone would need a computer.

BILL GATES, LECTURE 1

We sent IBM to our competitor

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When IBM ordered an operating system for its new processor we sent them to a competitor, Digital Research, because it had almost completed work on an OS, which became CP/M OS, and we couldnt meet IBMs deadline. In the end, IBM came back to us because the competitor wasnt willing to meet IBMs nondisclosure terms.

BILL GATES, LECTURE 1

We sent IBM to our competitor (contd)

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Eventually, weve decided to develop the OS our self, but to meet IBMs deadline we had to license the original code from another company. That OS became the core of MS DOS. MS DOS and Digital Researchs CP/M competed for 2-3 years, but MS DOS became much more popular.

BILL GATES, LECTURE 1

IBM refused to pay a royalty

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Our original deal with IBM was a flat-fee deal. However, it allowed us to work with IBMs competitors directly, which was an upside for us. The deal was very complicated, but it allowed us to benefit from the rising popularity of personal computers.

BILL GATES, LECTURE 1

We realized the potential of the business at the very beginning

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We threw numbers around. We multiplied the number of homes and number of desks in the world by the $20 we figured we could make on each computer and got huge numbers. However, we were very focused on the here and now. Our concerns included: do we have enough money to pay the bills? Can we hire one more person? We never focused on how big we could get.

BILL GATES, LECTURE 1

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We realized the potential of the business at the very beginning (contd)

When Intel executives began appearing on some of the lists of wealthy people, we thought about the possibility of software guys making big money, but that was never our focus. We were focused on making great software. It wasnt until 1995-1997 that we recognized we were the company that revolutionized software .

BILL GATES, LECTURE 1

Growing up I wasnt sure what my career would be

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I loved math and was an avid reader. The first time I used a computer was when I was 12 years old and I was fascinated with it. My friends and I were curious about what computers could and couldnt do. What caused us to create a software company was when we saw that computers could be cheap and affordable.

BILL GATES, LECTURE 1

Math came naturally

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My success at math gave me some confidence. Teachers encouraged me to take advanced courses. If you are comfortable with math it is extremely helpful across a wide range of interests, particularly when looking at economics, statistics, and causeand-effect.

BILL GATES, LECTURE 1

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Our first programs were typed on paper

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Computers were extremely expensive. A machine far less powerful than what is in a mobile phone today costs millions of dollars. We would share a machine with others (time sharing), but even sharing a computer was very expensive. So we typed our programs on paper we could feed into the computer to optimize our online time and keep costs down. The idea of computers being used 24/7 lasted for about 10 years. This changed in the 1970s when the cost of a computer fell dramatically and mini computers became more available to individuals.
BILL GATES, LECTURE 1

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My parents supported me when I left Harvard

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My parents were a little surprised, but supported me because Harvard had a very flexible policy for students taking leaves. So if my business failed I could have returned. My parents view was it would be OK if the company was a success and OK if the company failed. However, the real challenge for them was if the company was a mediocre success and I found myself stuck in it.

BILL GATES, LECTURE 1

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The American dream is a global dream now

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Today young people can come up with ideas and create companies that make contributions, not just jobs, but innovations. Capitalism is an open system, so when you combine it with good education and creativity the results will be surprising.

BILL GATES, LECTURE 1

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Microsoft was at the center of personal computer and software revolution

How about adding Microsoft believed in a software market when no one else did. The whole industry was built around Microsoft. Weve encouraged other companies and people to write software.

BILL GATES, LECTURE 1

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The Bill and Melinda Gates foundation was started in late 1990s
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We are putting computers in libraries in many different countries, including the US, and offering scholarships, furthering education opportunities. The Foundation is involved in reproductive health and population issues in developing countries, and over the years we have contributed resources and direction to these issues, as well as other issues affecting poorer nations. Now Im full-time at the foundation, travelling a lot. Its equally challenging.

BILL GATES, LECTURE 1

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