QUOTE(BladeR @ Mar 3 2007, 07:39 AM) [snapback]2762102[/snapback]
windows wasn't the first os with a good gui they just knew how to sell their stuff
Although Gates rightfully earned credit for building one of the fastest-growing and most profitable companies ever established, Microsoft started out on a shaky foundation. Gates and Allen had sold their first commercially developed software for $3,000 and royalties. Before long, however, Microsoft found itself unable to cover its overhead. Even though Gates and Allen received royalties, their software was also pirated by computer hackers. This piracy led Gates to write an "Open Letter to Hobbyists," which said that computer software should not be copied by the then relatively small computer community without the developer's permission. Gates also recognized at this point in time that the future of computer software lay in owning a standard software package to be used on most computers.
By the late 1970s the computing giant IBM had plans for marketing a personal computer for home use. They approached Microsoft to develop the standard operating system for their home computer models. Gates and Allen then went out and purchased for $50,000 an operating system called Q-Dos, which had been developed by Seattle Computer. Q-Dos was compatible with the Intel processor that IBM intended to use. The two then adapted the Q-Dos system and presented it to IBM. Money magazine quoted Gates as recalling, "We bet all our resources on that system" (July 1986).
Gates had learned well his early lessons in the software business. He insisted that IBM make Microsoft the exclusive software licensee for their home computers, meaning that all IBM products would have Microsoft operating systems. Furthermore, Gates negotiated a contract that allowed Microsoft to retain the right to manufacture and license the software, which he and Allen had named MS-DOS, to other manufacturers. Because there were three other operating systems for microprocessors at that time, Gates didn't own the sole industry standard. But he was well on his way. He and Allen made MS-DOS the most attractive system to computer manufacturers because Microsoft offered a flat-fee license rather than a per-unit contract. Gates and Allen also encouraged software developers to create programs that would broaden their system's capabilities. Their strategy was a huge success because manufacturers initially saved money. In addition, the software developers had an easier job designing such single applications as word processing for use on computers made by other manufacturers.http://www.answers.com/bill%20gates