Bill Gates was born in Seattle Washington in 1955.
As a youth, Gates was highly intellectual, motivated, competitive, hungry for reading, a whiz at math, and an academic standout.
By age 12, he became intrigued by computers. Not long afterwards, computers became his main life focus, almost to the extent of becoming an obsession. He wrote his first software program at age 13, and by high school he had garnered a reputation as a computer master.
While attending a private school well stocked with computers and computer enthusiast students, Gates led the school’s computer group. He formed and lead a group of programmers. They soon computerized the school’s payroll system, and formed a company called Traf-O-Data, which sold computer system traffic counting to local governments.
Aside from computers, Gates also buried himself in books.
After high school graduation, Gates seemed intent on focusing on computers as soon as possible—but his parents planned otherwise, which prompted him to somewhat reluctantly head to Harvard University in 1973. He would later remark that he arrived at Harvard expecting to learn from people who were more brilliant than him, but was disappointed when he got there.
By 1975, Gates partnered with his high school and college schoolmate Paul Allen, and together they pursued computer programming ventures for micro / personal computers. The partnership seemed ideal, as Allen added hiw own insight on personal computers, while matching Gates's wisdom and passion, as well as his brilliance and creativity
Both of them also clearly foresaw the future impact of the personal computer, and were confident they would be the people who would create the software for it. And they realized that the dominant computer companies of that time did not understand the rapidly evolving world of computers, and were leaving themselves vulnerable to being overtaken by an up and coming company.
Not long after forming their team, Allen and Gates adapted the BASIC, a computer programming language for use on a personal computer. They made versions of BASIC for the various PC companies, including one for the Altair 8800—the first commercially successful personal computer.
In late 1975, they began referring to their computer software company as Microsoft. Shortly later, Gates dropped out of Harvard.
With a vision of “a computer on every desk in every home, running Microsoft software,” and an internal company slogan of “we set the standard,” he and Allen began hiring a select group of many of the industry’s elite young programmers, and licensing Microsoft personal computer software to many customers, including industry leading PC manufacturers such as Tandy and Apple.
In the early 1980s, Gates purchased an operating system known as Q-DOS for $50,000, from a computer software company called Seattle Computers. He and his Microsoft team altered and fully developed the program, renamed it MS-DOS, and set their sites on making it the company’s flagship product.
Early on, Gates perceived that in order to secure the dominant position in computer operating system software, it was most critical for a company’s software to become established as the industry-wide standard—a commonly used and authoritative brand of operating system. He also realized that the software company to strike first and establish key positioning as soon as possible in the rapidly changing PC arena would also be the one to most like become and remain the software of choice for PC users.
This being so, Gates set his sights on winning the contract to supply industry giant IBM with the MS-DOS PC operating system software.
At the time, IBM was the long time dominant company in mainframe computers, which, after having made a meager and failed 1975 attempt to market a PC, followed in 1980 with a major reentry into the PC market, in hopes of catching up to rapidly growing PC industry leader Apple Computers.
Due to IBM’s immense brand name recognition and its dominance in mainframe computing, it seemed almost a given that the company would soon rival Apple for the top spot in the PC market.
Upon entering the PC business, IBM decided to outsource both the computer operating system software and the microprocessor manufacturing—most likely out of a belief at that time that the computer business was based mainly on selling hardware.
To Gates, striking a deal to become IBM’s PC operating system software supplier would not only give Microsoft prime positioning to become the industry standard, but would also give Microsoft instant credibility.
Fully aware of what was at stake, he devoted himself to making a deal with IBM, and doggedly did whatever he could to put himself at the gates of opportunity and in the ideal position to win the contract.
As IBM searched for a provider, the decision eventually came down to two competing companies: Gate’s Microsoft, and Digital Research Inc, the owners of the operating system used for the Apple II.
IBM initially dealt with both companies, but due to Gates’ relentlessness, he was soon able to outmaneuver Digital Research and strike a deal to make MS-DOS the standard operating system for the IBM PC. Moreover, the deal also permitted Microsoft to license the software to other companies. Plus, IBM was required to fund the software’s development.
When the IBM PC began production and shipped to customers in the early 1980s, the computer’s featured MS-DOS operating system software gave Microsoft the positioning, leverage, and credibility that had Gates had sought, plus a steady stream of revenue form royalties. And when personal computing began spreading at rapid rates, almost every new PC company that entered the scene decided to use MS-DOS as its operating system, adding further to Microsoft’s stranglehold on the market for operating systems of non-Apple PCs.
At first, the IBM PC seemed to be a huge success for the company, as it rapidly established itself as an industry leader in PCs. However, the company had relinquished its operating system rights to Microsoft, as well as its microprocessor manufacturing to a company named Intel—and those two segments eventually turned out to become by far the two most profitable segments of the IBM compatible personal computer business.
And although IBM did manage to later beat out rival Apple and reach the number one spot among PC manufacturers, and although the PC industry grew at astounding rates, IBM itself often did not even manage to turn a profit on the PC segment of its business—and over the same period, Microsoft and Intel made enormous profits year after year, and also became the credible, trusted, and most used industry standards in PC operating system software and in PC microprocessors, respectively.
Microsoft became the leader in PC operating systems, and was able to dominate its only remaining major competitor, Apple.
Apple, the first dominant PC maker, produced its own PC operating system software rather than licensing it to other companies, in order to make Apple hardware the exclusive user of the Apple operating system, and vice versa. With this strategy, the company felt confident that it could withstand IBM’s entry into the PC market, as well as Microsoft’s MS-DOS PC operating system software used in both IBM PCs and most other manufacturers' PC.
Apple probably felt its hardware and PC operating system was superior, and would therefore be a guaranteed success.
However, there market share quickly dwindled and was soon a distant second to the Microsoft brand PC operating system software MS-DOS, which over three fourths of PCs were using.
Gates had succeeded in making most of the personal computer industry standardized on MS-DOS, and at the same time, even getting Microsoft to surpass IBM in its visibility and authoritativeness in the PC arena.
And though IBM had an option to cancel their contract with Microsoft, they could not find a way to be unreliant on Microsoft anymore, especially since the PC industry was so heavily standardized on MS-DOS.
IBM had made a feeble effort to steer users to a new IBM brand operating system called OS/2, but it didn’t catch on. (And oddly enough, Gates and Microsoft were the main parties involved in developing the OS/2 software.)
They ultimately decided to renew the contract with Microsoft and Gates for the MS-DOS software.
Perhaps the reason IBM missed out on these tremendous opportunities because there company structure—which seemed to promote sucking up more than the company’s interests—made the IBM people caught sleeping, and be no match for Gates and Microsoft.
Upon gaining this dominant position with its MS-DOS software, Gates was able to position himself to exploit this opportunity and open it up to so many other channels.
In the 1980s, Gates and Microsoft introduced their next level of PC operating system software, Microsoft Windows. Though it initially was obscure and not widely used, it was only a matter of time before it also became the most widely used standard in personal computing, particularly after the release of Microsoft Windows version 3.1.
Since its early years, Microsoft has also produced various word processors, spreadsheets, and other office software. By the mid 1990s, with Gates’s ingenuity and his utilization of positioning advantages, these products became among the leaders in their respective categories, and they are currently by far the most widely used in the industry as well, having surpassed formerly leading products such as WordPerfect and Lotus 1-2-3.
Today, the vast majority of personal computers run Microsoft software, particularly the Microsoft Windows operating system, and the Microsoft Word word processing software. Most computers have Windows and other Microsoft software preinstalled onto the computers when sold, and Microsoft keeps on collecting royalty revenues. And Microsoft, meanwhile, has expanded into countless other areas of business, and surely hopes to catch on to the next big thing.
One thing Gates was a little slow on jumping on was the Internet. By the mid 1990s, Microsoft was actually playing catch-up, a very uncommon position for the campany. However, they made the adjustments to their structure and software, and managed to estblish themselves as a major player in the industry, with the Microsoft Network of wesbites along with the Microsoft Internet Explorer web browser.
Perhaps the most notable aspect of Bill Gates is that he has a passion and love for what he does, and he does it with sincerity. He has said, “They key point is that you’ve got to enjoy what you do every day.” He is also a wizard at technology, writing computer code, programming, etc.
Some people criticize Gates and Microsoft for not fully originating, inventing, or innovating what they produce, and instead just taking other ideas. But Gates does not believe that one needs to necessarily have to create or recreate from scratch. He is about finding solutions, and then bringing them into play from whatever source they are at. If they already exist, fine. He can take what already exists, modify it, and utilize it. Gates does not need to prove he is original, and believes that an idea of absolute innovation is overrated. Why neglect what is already there, what already exists and will solve problems and be an effective solution? Gates and Microsoft have demonstrated time and time again that they can take an idea, and turns it into a blockbuster product; they can take a product, and make it better.
Gates gets what he needs in whatever way needed. He often buys research or software from other companies, or buys the entire companies. Many of the companies he buys might not make much impact alone, but synergized with Microsoft they often become a tremendous asset for Microsoft.
Gates has been criticized many times for allowing Microsoft to pour immense amounts of money into investing in research and development. However, he believes that it is critical to his company’s success, it is the most valuable asset of Microsoft, and it pays off great returns.
Gates also knows how to run his company properly as it applies to employees, communication, organization, and decision-making. He is a good judge of people and what they can do. Perhaps his most important decision as far as getting the right people was to partner with Paul Allen, who formed a nearly invincible duo with Gates. Another of the most important people he chose to have on the Microsoft team is Steve Ballmer, who has been involved with the company since 1980, and who Gates has so much faith in, that he relinquished the CEO position to Blamer in 2000. (Gates is currently the Chairman and “Chief Software Architect” of the company)
Gates has once said, “It’s important to have someone who you totally trust, who is totally committed, who shares your vision, and yet who has a little bit different set of skills and who also acts as something of a check on you. Some of the ideas you run by him, you know he’s going to say, ‘Hey, wait a minute, have you thought about this and that?’ The benefit of sparking off somebody who’s got that kind of brilliance is that it not only makes business more fun, but it really leads to a lot of success.”
Throughout the company, Gates has taken great care to fill Microsoft with the right people, including many of the best programmers in the industry. He always looks for the most suitable, creative, and brilliant individuals to recruit, and generally prefers those who are inexperienced at working in corporate America. He also prefers yang people, and has said, “Young people are more willing to learn, and come up with new ideas.” He often hires employees straight out of college.
Gates is also careful not to hire the wrong people—which to him would be the people who do not work, are mediocre, lackadaisical, and are for the most part only concerned with getting by. Gates realizes that these kinds of employees are difficult to weed out and eliminate, and can take the place of someone better that can be part of Microsoft. And Gates is strict in not hiring too many people. He believes its better to hire too few than too many.
As for those that Gates does employ, he creates the right environment for them. Most integral in this is the way that he compensates them. Throughout its history, Microsoft has been known for paying low salaries and high stock options, thus ensuring that employees would be concerned with the actual results that Microsoft would produce. Many of his employees have reaped millions this way, and it has spurned employees to remain motivated to produce the great results that Microsoft has achieved year in and year out throughout its stellar history.
Aside from creating this tremendous opportunity for financial gain, Gates has also created a fun, exciting, and challenging work environment that will leave employees satisfied with their Microsoft experience.
And in his interaction with his people, Gates does not treat all people alike. He determines what he believes is the best way to treat each individual based on his or her own individuality, and then interacts with him or her accordingly.
Gates has also instituted an effective and efficient yet simplified structure of organization and communication. Everything is set up so that people know what they need to know, and are focused on their own concerns and responsibilities, so that there will be teamwork based on the individual. And the company is sure to utilize anything that will advantage the process, particularly email, which has virtually eliminated the use of paper in most of Microsoft’s day-to-day functions.
Of course, throughout Microsoft history, at the head of all of this organization has been Bill Gates. Gates has been the key person in the decisions of importance and heading the direction of the company. He has headed technology, and has been focused on Microsoft’s products. He has made most of the final says and strategations, figures out what is most important. And although he did give Steve Blamer control of the CEO position, he still remains one of the key people in the most important matters the company encounters.
Gates is a masterful strategist. He seizes opportunities, presses and multiplies his advantages, leverages his positions, understands and adapts to change, exercises foresight but realizes his predictions might not always be accurate, anticipates and prepares for the future, puts himself in situations where he will be at the right place at right time, and assesses risk-reward ratios.
He is very difficult to defeat, and rarely misses an opportunity to defeat others. He sees the immediate but also keeps a look on the long term and far way. He capitalizes on the mistakes of others. He is willing to take on the big companies, and is eager to exploit their shortcomings and weaknesses. He did this when he first went into business and was fully aware that IBM was ready to be taken apart by a keen observer like himself—a man who IBM probably underestimated as being just a young naďve computer programmer, but turned out to be the most astute and savvy person of all, anticipating and adapting to things that the mammoth IBM corporation was caught almost completely off-guard on.
Gates is very tough to beat. Even when IBM and apple came together in an effort to battle Microsoft, they lost.
Gates wants to win, he loves to win, he hates to lose, and he makes winning a habit. He is tough and even vicious. Stewart Alsop, editor of PC Leter, said, “Gates is tenacious. That’s what’s scary… he always comes back, like Chinese water torture. His form of entertainment is tearing people to shreds.” Gates is willing to crush competition, but he is also willing to ally with others when it is too his advantage. He is willing to be the bad guy if necessary. But even though he sometimes creates enemies and has grudges, he does not become too adamant in maintaining the grudges, and he always pursues what is best, even if he has to align with someone he formerly held a grudge against.
He is always learning.
He is not only a dreamer, but he is also a doer, a businessman, and a determined man.
He is an objective assessor. He has said, “You have to be careful, if you’re good at something, to make sure you don’t think you’re good at other things that you aren’t necessarily so good at.”
He is always looking out for himself. Even at the top, Gates is protecting himself.
He cares about the customer and about his products. He tests software on customers before release. He gets continuous customer feedback on his products.
He is good at generating publicity and attention from media.
He is always looking out for the next big thing.
He manages and utilizes his time well. He realizes that time used for one thing can be used for something better.
He is flexible. He is constantly seeking to find new methods for making software expand the uses for computers and other devices.
He is charitable. Along with his wife, he founded the Bill & Melinda Gates Foundation, and has donated billions to various causes, and intends to eventually donate most of his fortune.