In 1980, IBM was the giant. No one came close. They approached a small company- Microsoft when they required an operating system in their new PC. Big mistake.
Bill Gates spotted the opportunity and did not procrastinate. He made one major point during the deal and that is, Microsoft would retain the ownership of the software. IBM didn’t care. They were specialized in hardware money. That decision it made was everything.
This is the twist about it, Microsoft did not even have an OS.
So Gates was quick. He purchased a crude and incomplete system named QDOS at only $75,000. No drama, no delay. After that, he cleaned it, changed its name to MS-DOS, and prepared it.
And the very thrust: the business was not exclusive. Microsoft had the ability to sell the same software to anybody. And they did.
IBM believed that they were in the lead. As a matter of fact, they gave the reign to another person.
Imitation of IBM PCs became rampant. Each of them required an OS. Microsoft was ready. They did not sell machines, they sold the key to machines.
Hardware at IBM was replaceable. The software of Microsoft was inevitable.
This wasn’t luck. It was promptitude, rapidity, and keenness.
A purchase costing $75,000 became worldwide domination.
Not a partnership. A slow motion takeover.
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