FUNDAMENTALS OF COMPUTER

Detailed explanation-1: -For this deal, Microsoft purchased a CP/M clone called 86-DOS from Tim Paterson of Seattle Computer Products for less than US$100, 000, which IBM renamed to IBM PC DOS.

Detailed explanation-2: -Microsoft purchased 86-DOS, allegedly for $50, 000. This became Microsoft Disk Operating System, MS-DOS, introduced in 1981. “Microsoft also licensed their system to multiple computer companies, who supplied MS-DOS for their own hardware, sometimes under their own names.

Detailed explanation-3: -But here’s what Gates did: he bought a program from a small software company called the Quick and Dirty Operating System (or Q-DOS), for the price of 75, 000$. Q-DOS was, in fact, a ripoff of Gary’s CPM program. He then changed its name to MS-DOS (Microsoft DOS) and licensed it to IBM.

Detailed explanation-4: -Microsoft kept the version number, but renamed it MS-DOS. They also licensed MS-DOS 1.10/1.14 to IBM, which, in August 1981, offered it as PC DOS 1.0 as one of three operating systems for the IBM 5150 or the IBM PC. Within a year, Microsoft licensed MS-DOS to over 70 other companies.

Detailed explanation-5: -When Gates learned IBM was having trouble obtaining an operating system for its new personal computer, he bought an existing operating system from a small Seattle company for $50, 000, developed it into MS-DOS (Microsoft Disk Operating System), then licensed it to IBM.