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Microsoft and IBM

 
Computer Desktop Encyclopedia: Microsoft and IBM

Many people are too new to the computer industry to remember that IBM once occupied a similar position to Microsoft. From the early 1960s to the mid-1980s, because of its size and power, IBM took the blame for everything wrong with the computer industry. Like Microsoft, countless articles were written about how evil the company was, and how, if not restrained, it was going to destroy the industry and dominate the world order.

In 1986, a book by Thomas DeLamarter, senior economist for the U.S. government, was published with the title "BIG BLUE, IBM's Use and Abuse of Power." Its subhead read "The Truth About IBM's Success and the Ominous Implications of Its Stranglehold on the Information Society." And what seems inevitable when there is absolute power, the government stepped in to keep IBM from taking over the service bureau industry, and later, to soften Microsoft's heavy-handed licensing.

IBM may have given Microsoft the keys to the kingdom with DOS, but, in so doing, it shed a lot of negative press. In the process of losing control of the PC to Microsoft (as well as Intel), IBM turned itself into something akin to a giant, benign bear that controls the heart and soul of corporate data processing without being in the crosshairs of everybody's daily wrath. See Gates & Co., Microsoft, Microsoft trial and IBM.

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