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.

