IBM partnership IBM, the leading supplier of computer equipment to commercial enterprises at the time, approached Microsoft in July 1980 concerning software for its upcoming personal computer, the IBM PC, after Gates's mother mentioned Microsoft to John Opel, IBM's then CEO. IBM first proposed that Microsoft write the BASIC interpreter. IBM's representatives also mentioned that they needed an operating system, and Gates referred them to Digital Research (DRI), makers of the widely used CP/M operating system. IBM's discussions with Digital Research went poorly and they did not reach a licensing agreement. IBM representative Jack Sams mentioned the licensing difficulties during a subsequent meeting with Gates and asked if Microsoft could provide an operating system. A few weeks later, Gates and Allen proposed using 86-DOS, an operating system similar to CP/M, that Tim Paterson of Seattle Computer Products (SCP) had made for hardware similar to the PC. Microsoft made a deal with SCP to be the exclusive licensing agent of 86-DOS, and later the full owner. Microsoft employed Paterson to adapt the operating system for the PC and delivered it to IBM as PC DOS for a one-time fee of $50,000.
IBM partnership IBM the leading supplier of computer equipment to commercial enterprises at the time approached Microsoft in July 1980 concerning software for its upcoming personal computer the IBM PC after Gates's mother mentioned Microsoft to John Opel IBM's then CEO IBM first proposed that Microsoft write the BASIC interpreter IBM's representatives also mentioned that they needed an operating system and Gates referred them to Digital Research (DRI) makers of the widely used CP/M operating system IBM's discussions with Digital Research went poorly and they did not reach a licensing agreement IBM representative Jack Sams mentioned the licensing difficulties during a subsequent meeting with Gates and asked if Microsoft could provide an operating system A few weeks later Gates and Allen proposed using 86-DOS an operating system similar to CP/M that Tim Paterson of Seattle Computer Products (SCP) had made for hardware similar to the PC Microsoft made a deal with SCP to be the exclusive licensing agent of 86-DOS and later the full owner Microsoft employed Paterson to adapt the operating system for the PC and delivered it to IBM as PC DOS for a one-time fee of $50000