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In late 1980, IBM was developing what would become the original IBM Personal Computer. CP/M was by far the most popular operating system in use at the time, and IBM felt it needed CP/M in order to compete. There are at least two rumors about why IBM ended up licensing QDOS instead of CP/M.
One story is that Gary Kildall, of Digital Research and creator of CP/M (and subsequently DR-DOS) simply refused to answer the door when representatives from IBM rang his doorbell. However, the most prevalent story, and the one relayed by Bill GatesWilliam Henry Gates III KBE, (born October 28, 1955), commonly known as Bill Gates is the co-founder and current Chairman and Chief Software Architect of Microsoft. According to Forbes magazine in 2004, Gates is the wealthiest person in the world, a posit, is that when IBM approached Kildall for a license, Kildall kept the IBM executives waiting for hours while he went flying in his airplane. He missed one of the great opportunities of the century when IBM then turned to MicrosoftMicrosoft Corporation , headquartered in Redmond, Washington, USA, is the world's largest software company (with over 50,000 employees in various countries, as of May 2004). Microsoft develops, manufactures, licenses and supports a wide range of software, who was already supplying a version of the BASICBASIC is a family of high-level programming languages. Originally devised as an easy-to-use tool, it became widespread on home microcomputers in the 1980s, and remains popular to this day in a handful of heavily evolved dialects. BASIC's name, coined in c computer language, to provide an operating system.
Neither story is generally accepted as true. By many accounts, Kildall did not handle business negotiations and left that to his former wife, Dorothy McEwen and his attorney, neither of whom was willing to sign IBM's non-disclosure agreementA non-disclosure agreement NDA is a legal contract between two parties which outlines confidential materials the parties wish to share with one another for certain purposes, but wish to restrict from generalized use. NDAs are commonly signed when two comp. In addition, they refused to modify CP/M-86, and insisted on a higher royalty than IBM proposed. As a result, IBM turned to Microsoft, since Microsoft was a CP/M subcontractor—Microsoft sold a plug-in Z80 board that made the Apple II capable of running CP/M. IBM asked if they could subcontract CP/M for the IBM PC. Microsoft's contract would not permit it. However, Microsoft was acquainted with Paterson, and purchased a nonexclusive license for QDOS—by then being marketed under the name 86-DOS—from Seattle Computer Products in April 1981Events January-February January Sarawak Chamber found January 1 Greece enters the EEC January 1 Palau becomes self-governing January 4 Sheffield police arrests Peter Sutcliffe, the Yorkshire Ripper January 16 Protestant gunmen shoot and wound Bernadette D for $25,000. Microsoft hired Tim Paterson to port it to the IBM-PC, which used the slower and less expensive Intel 8088The Intel 8088 is an Intel microprocessor based on the 8086, with 16- bit registers and an 8-bit external data bus. The processor was used in the original IBM PC. The 8088 was targeted at economical systems by allowing the use of 8-bit designs. Large bus processor. IBM fixed over 300 bugs in the ported version, and wrote the user manual for it. In July 1981, a month before the PC's release, Microsoft purchased all rights to 86-DOS from SCP for 50,000 USD.
QDOS met IBM's main criteria: It looked like CP/M, and it was easy to adapt existing 8-bit CP/M programs to run under it. Microsoft licensed QDOS to IBM, and it became PC-DOS 1.0. This license also permitted Microsoft to sell DOS to other companies, which it did. Spectacularly successful, this deal was later challenged in court by SCP on the grounds that Microsoft had concealed its relationship with IBM in order to purchase the operating system cheaply; subsequently, there was a settlement, but no admission of duplicity or guilt.
When IBM released DOS, it sold for $60 USD, and was much more attractively priced than the $240 CP/M. Digital Research considered suing Microsoft, since DOS replicated nearly all of the CP/M system calls, program structure, and user interface, but decided against it. Digital Research realized that they would have to also sue IBM, and decided that they did not have the resources to sue a company of that size, and would not likely win.
By 1982, when IBM asked Microsoft to release a version of DOS that was compatible with a hard disk, Microsoft rewrote DOS to such an extent that Digital Research had lost their opportunity to sue. PC-DOS 2.0 was an almost complete rewrite of DOS, so by March 1983, very little of QDOS remained. The most enduring element of QDOS was its primitive line editor, EDLIN, which remained the only editor supplied with Microsoft versions of DOS until the release of MS-DOS 5.0 in June 1991.