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When IBM’s programmers tried to run MS DOS on their prototype IBM PCs, they could hardly believe how buggy it was. By one count Microsoft had left at least 300 bugs in the software, and IBM eventually chose to rewrite the entire program. But Gates delivered on time, which kept the entire IBM PC project on schedule. The new IBM PC made its debut in August 1981, accompanied by a massive computer industry had never seen.
It took only a few years for Big Blue’s new desktop machines to take over the entire PC market. By 1983, two out of every three new home computers were made by IBM and were running the MS DOS operating system.
When Kildall got his first look at the IBM PC, he was enraged. He felt that MS DOS was nothing more than a crude clone of CP/M and that Gates stabbed him in the back. But he never sue IBM and Microsoft, partly because software copyrights were a hazy area of the law, but also he was so confident of CP/M-86’s superiority.
Once that CP/M-86 was ready for release in early 1982, Kildall was certain that most computer users would switch over from MS DOS. That’s not what happened. CP/M-86 did prove to be a better and more reliable operating system, but it was also more expensive.
Then IBM cautioned PC buyers that it would only offer technical support for computers running MS DOS. In no time at all, Microsoft displaced Digital Research as maker of the industry standard in operating systems. Software companies responded to IBM’s growing market dominance by pouring their resources into new applications for subsequent revisions of MS DOS. They also stopped bothering to upgrade their existing CP/M-compatible products.
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