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Companies in the Race
Level: Beginner8 lessons
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The personal-computer race

IBM and Microsoft: The PC standard emerges

How IBM’s relatively open architecture and MS-DOS created a broad compatible-PC market.

In this lesson

The main idea

The IBM PC succeeded through a system of available components, an operating system and software around a standard others could reproduce and extend.

Companies and milestones

  • 1975 — Microsoft: founded to provide BASIC for the Altair, signaling the rise of independent software companies. Type: software.
  • 1981 — IBM PC 5150: a personal computer built around an Intel 8088 and relatively standard components. Type: hardware/platform.
  • 1981 — Microsoft MS-DOS 1.0 on the IBM PC: increasing separation between the computer maker and operating-system supplier. Type: software.
  • 1995 — Microsoft Windows 95: a unified interface, Start menu, Plug and Play and a vast software market. Type: software.

Why was this a qualitative leap?

An ecosystem emerged: Intel processors, many hardware makers, Microsoft’s OS and software developers. Competition became platform competition.

Check your understanding

What is the difference between a personal computer and the PC standard?

Answer

A personal computer is a device category; the PC standard is a compatible architecture and ecosystem that let many companies build machines running the same software.

Sources

Source 1: www.ibm.com

Source 2: news.microsoft.com

Source 3: news.microsoft.com