Triumph of the Nerds

Tim Patersons development of 86-DOS largely from duplicating Gary Kildalls CP/M operating system. Microsoft purchased all rights to 86-DOS from Patersons employer SCP for US$50,000 shortly before the release of the IBM PC. Microsofts resulting MS-DOS was an operating system that could run on any 8086-family computer.

Steve Jobs, having viewed a demonstration of Xeroxs Star graphical user interface, developed a desktop manager for the Macintosh with an icon-based interface modeled on the Star. Cringely suggested that Xerox had the potential to be one of the key companies in the up and coming PC industry, had they managed to protect the intellectual property rights of Star GUI. Apple agreed to license parts of the Mac OS GUI to Microsoft who went on to develop Windows. Upon the release of Windows 2.0, Apple sued Microsoft in 1988 over the "look and feel" of the Mac OS. Apple lost the lawsuit in 1994, leaving Microsoft dominant in the operating system business. Steve Jobs had recruited Pepsi-Cola executive John Sculley to become CEO of Apple, saying to the latter "do you want to sell sugar water for the rest of your life or do you want to come with me and change the world?" The Apple Macintosh pioneered many of the features now standard in the PC, particularly ease of use. However, the Macintosh was considerable more expensive, so it was rapidly overtaken by the IBM PC, with some pundits not only saying that IBM had won, but also that Apple could potentially go out of business. Chris Espinosa described Sculleys ouster of Jobs saying "The grandiose plans of what Macintosh were going to be was just so far out of whack with the truth of what the product was doing and the truth of what the product was doing was not horrible it was salvageable but the gap between the two was just so unthinkable that somebody had to do something and that somebody was John Sculley".