In 1981, Microsoft bought an operating system for the Intel based 8086 chip from a small company called Seattle Computer Products and redesigned its product to license it to IBM for its new personal computer. Microsoft started in 1975 as a producer of programming languages for the MIPS Altair 7500. Let us go back in time a little to the mid-1970s when IBM was the king of the computer hardware industry. ![]() It is a combination of smart business decisions, mistakes by competitors, and perhaps some shady tactics thrown in that helped the company develop into the market leader and monopoly of today. How did Microsoft develop into a giant software monopoly? Monopolies do not sprout up overnight. Microsoft has an 85% market share of the office suite market, which includes Word, Excel, Powerpoint (a presentation package), Microsoft Exchange (a mail client), and Microsoft Access (a database). Microsoft also produces the leading word processors and spreadsheets for both Windows and Macintosh operating systems. It produces the vast majority of operating systems for all PCs: Windows95, Windows 3.1, and DOS. ![]() ![]() Microsoft Corporation is the largest software company in the world.
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