seminar: Analytical report

1. NERDS • seminar: • Analytical report Teacher: DR. Ahmadpour By :saharjelodari Spring 2009

2. introduction • This documentary is about the computer industry and its growth process. It is about Paul Allen and his friend bill gates, they were running Microsoft, invented pc and launched a revolution that changed the way we live, work and communicate. This industry becoming the third largest industry in the world, some where between energy production and illegal drugs.

3. How it happened? • It is amazing that its all happened accidently because some boys just want to impress their friends, the nerds formed club to talk about the new toy, they discuss about their new idea ,problems and present their invention in a club to impress their friends, one of the first was the homebrew computer club which met on Wednesday evenings in a hall rented from Stanford university in silicon valley.

4. Report (mainframes) • Nerds started their work in a garage, they were exactly in right place and right time in silicon valley (environment), although they knew that they would lose money, but did not dive it up (risk taking). They hope and believe that pc would become a big thing (determination), they started their invention as a hobby not a business (dollar), they wont be tired and other people can not stop their dreams, they work very hard and some times did not realize time passing, some times they eat in the car. actually writing code was the primer force that drives their lives so (dedication),

5. Reports (Intel and microprocessor ) • Intel was started 28 years a go by a handful guys after a row with their old buss (independences), the Intel microprocessor is widespread from calculator to traffic light, in 1975 an ex-air force officer ED Robrts launched first pc Altair 8800, just because he wanted one to play with, he run a calculator company called MITS. 20 years after that Paul Allen wrote basic language for Altair. Bill drop university because he was afraid of missing his chance to dominate the new industry (dedication). Bill & Allen were leader and created industry so dozens of companies came to competition (value creation), they transfer the spirit to product so customers can sense the spirit (), working together was the reason of their successfulness (team working)

6. Report (Apple) • Apple is the first mass market pc company, selling the real package computer was Steve job’s dream, he was visionary who saw microcomputers as a business (dream), they asked help from Arthor Rock a venture capitalist, he had originally funded Intel. Steve jobs got a million $ when he was 23, ten million $ when he was 24, over 100 million $ when he was 25, but he did not work for money (need for achievement).

7. Report(IMB) • IBM made mainframe computers for large company not pc. IBM transfer this industry from hobby to big business (money), this company hired conservative hard worker straight from school (human resource). IBM is really more a country than it is a company because it has its own dress, culture, bureaucracy and even its own song. IBM is like Switzerland conservative, a little dull, yet prosperous, it has committee to make decision.

8. Bill gate & Gary kildall • Gary kildall was a computer Ph.D. run a company called Intergalactic Digital Research, he had invented the pc’s first operating systems called cp/m, he wrote it for his own, he avoided conflict and hate it, he do not go rushing off the patent but otherwise bill hardly fought his way up from the gutter, he was a hard worker, some times he was to busy to take a bath and change close, because of this characteristics IBM choose Bill to write the operating system and language like basic for its new personal computer, but bill gats did not work on OS so they call Gary but he drop the ball and Poul Allen had found another operating system because they were not men to give rivals a second chance ().

9. Being multi billionaires • there is a local company called CL Computer Products by a guy named Tim Patterson and had done an OS. It was kind of CPM, and a very rudimentary, they fix it up and used it for IBM pc. Tim Patterson called his OS QDOS the quick and dirty OS ,Microsoft and IBM called it PC DOS 1.0 ,it was exactly just like CPM with a few differences ,the prize didn’t go to inventor but to the exploiter of the invention ,there was still a problem TIM worked for Seattle Computer Products or SCP, they still owned the rights to Q dos rights that Microsoft had to have ,for whatever usage they bought it fifty thousand dollar , it was the deal that made Bill gates and Paul Allen multi billionaires ,they licensed it to the world for up to fifty dollars pc, think of it one hundred million PC running MS DOS software .

10. Role model • Compaq the company set up to compete head –on with the IBM PC, they decided to manufactured and market a portable version of the IBM PC using reverse engineering technique. IBM mad it easy to copy only one part was IBM’s alone, a vital chip that connected the hardware with the software called the ROM-BIOS, this was IBM ‘s own design protected by copy right. Compaq had to somehow copy the chip without breaking the law, they spent 1 million for several month and they built Compaq portable computer, they set an American business record in their first year of sales ,111 million dollars .

11. Intel, IMB, Microsoft • The most obvious winner at first was Intel , maker of PCs microprocessor chip. And making chops smaller , quicker and cheaper, IMB was now facing dozens of rivals like Amstrad, AST and Dell. All of this new company bought OS from Microsoft, the middle of 80s was boom time for bill. From the beginning Microsoft recruited straight out of college. they choose people who had no experience of life in other companies. Young people who just were out of school saw him as this incredible role model or leader, bill valued their contributions and spend hours with them .

12. Conflict between ibm and Microsoft • IBM ‘s glacial pace and high overhead put them at a disadvantage to the leaner clone market .and IBM lost its dominant market share. so in a big gamble they stacked their PC future to new system : anew line of computers with proprietary closed hardware and their very own operating system . IBM planed to steal the market from Gates with a brand new OS called OS/2 , they asked Microsoft to write the code, why would Microsoft help create what was intended to be the instrument of their own destruction? Because Microsoft knew IBM was the source of their success and they would tolerate almost anything to stay close to big blue. And to keep DOS competitive . The relationship between Microsoft and IBM was a culture clash. With development of OS/2 the strains began to show. There was a rule in IBM that evaluated programs with an scale called KLOC, and thy pay based on more KLOC ,and this was a context of conflict

13. Windows • Gates had been pouring recourses into a new programme called windows. Pictures rather than words making the pc easy and intuitive . • They created windows in parallel. They kept saying to IBM hey, windows is the way to go, graphical is the way to go, and we got virtually everyone- else enthused about windows. IBM made a the single worst mistake in the history of enterprise on earth which was the manufacture being the first manufacturer and distributor of the Microsoft/Intel PC which they mistakenly called IBM PC .they shared a third of their market value to Microsoft and Intel by accident, in 1980 IBM was 3000 times of Microsoft, today Microsoft is worth more.

14. Microsoft is a reflection of its founder bill gates, bill wanted to win incredible desire to win and to beat other people. bill gates doesn’t feel secure about the future ,he feared growing old because , you know once you beyond thirty , you don’t have as many good idea anymore, you are not smart anymore, and he is going to hire the smartest people and he is going to surround himself with all these smart people No one ‘s got guaranteed position in the high tech business

15. Apple • It all started when Xeroxe management had a sinking feeling that if people started reading computer screens instead of paper, Xeroxe was in trouble. So they event Alto computer around 1973, it was not ever for sale, without it we would not have Macintosh and windows. It had the first computer which had graphic and mouse point and link to other pc by Ethernet, and people could exactly print what they saw on screen by laser printer. Stive Jobs use this opportunity, he jots care about success, he formed a small team to do the Macintosh, they revolutionize the pc market, and introduce Mac.