See why he is an Architect
5 moments from his public record that show the Architect pattern.
- In January 1975, Bill Gates and Paul Allen wrote a BASIC interpreter for the Altair 8800, a computer neither of them owned. They tested it on an emulator they built at Harvard. On 22 July 1975, they signed a deal to licence the software to the Altair's maker, MITS, as Microsoft's first product. Gates designed software for hardware he had never used, then found a way to deliver it. [2]
- On 6 November 1980, Gates signed a deal to supply an operating system for IBM's coming PC. He kept the right to license the same system, later renamed MS-DOS, to other computer makers. Within a year, Microsoft had licensed it to about 70 companies. Gates designed the commercial terms as well as the product, turning 1 IBM order into an industry standard. [3]
- On 26 May 1995, Gates sent Microsoft's executive staff and their direct reports a memo called “The Internet Tidal Wave”. He described the internet as “the most important single development” since the IBM personal computer and gave it “the highest level of importance” across the business. The memo set a clear internal direction before most competitors had moved. [4]
- From the mid-1990s, Microsoft built Internet Explorer into Windows instead of selling it as a separate product. Every Windows PC shipped with a browser already part of the platform. Gates treated the browser as part of the operating system's foundation, not as a standalone product competing beside it. [5]
- In January 2000, Gates stepped down as CEO and became chief software architect. He gave daily operations to Steve Ballmer so he could focus on Microsoft's technology and platform direction. [7]
What you can learn from his approach
Practices to use
- Design the commercial terms as carefully as the product. In the IBM contract, Gates kept the right to license MS-DOS to other computer makers. That turned 1 customer's order into an industry standard. [3]
- When a market changes, write the direction down and send it to the people who need to act. Gates sent the internet memo to Microsoft's executive staff and their direct reports instead of announcing it publicly first. [4]
Who helped deliver it
- Paul Allen co-founded Microsoft with Gates in 1975. He brought technical judgement to the company's early work, wrote code and helped negotiate the IBM partnership before leaving day-to-day work at Microsoft in 1982. [6]
- Steve Ballmer joined Microsoft in 1980 as its first business manager. He became CEO in 2000 when Gates moved to chief software architect, allowing Gates to focus on platform direction while Ballmer ran the company day to day. [7]
What to watch for with the Architect approach
An Architect can treat a finished design as complete before it has been tested by users, competitors or the law. These examples from Gates's public record show that risk.
- Building Internet Explorer into Windows led to a case brought by the United States Department of Justice and 20 states. On 3 April 2000, the district court ruled that Microsoft had illegally maintained its monopoly in PC operating systems and illegally tied Windows and Internet Explorer together, violating the Sherman Act. [5]
- Gates gave a deposition in the case on 27 August 1998. Businessweek reported that he used “I don't recall” so often that “even the presiding judge had to chuckle”, while prosecutors read emails that contradicted his answers. [5]
- In June 2000, the district court ordered Microsoft to be split into 2 companies. An appeals court overturned the breakup in 2001. Microsoft settled with the Department of Justice that November, agreeing to share programming interfaces with rivals and accept outside monitoring. The settlement did not require a breakup or changes to Microsoft's code. [5]
- The practical lesson is that a platform decision can have consequences beyond the product. Microsoft built and shipped the Windows and Internet Explorer bundle for years before a federal court tested whether the design was lawful. [5]
3 practices you can use
Keep the right to reuse your work. When you agree a first customer deal, protect your right to resell or license the work elsewhere. Gates's non-exclusive MS-DOS clause kept Microsoft from becoming only an IBM supplier. [3]
Write the change down. When you see a market shift before others do, write 1 clear internal memo and send it to the people who need to act. In May 1995, Gates gave the internet “the highest level of importance” inside Microsoft. [4]
Match the role to the work. When daily execution stops you thinking about the platform's next direction, hand operations to someone who is strong at it. In 2000, Gates became chief software architect while Ballmer ran Microsoft. [7]
Avoid using market power to block competitors
Don't copy aggressive tactics to control markets or dominate platforms without checking their effect on customers, competitors and the law. A tactic that works in the short term may not stand up to close scrutiny.
Building Internet Explorer into Windows used the same platform thinking that made the IBM deal valuable: make the product part of the foundation people already use. In a market Microsoft already dominated, that decision became an illegal tie. It created years of legal exposure and led a federal judge to order the company split in 2 before an appeals court reversed that remedy. Copy the instinct to make useful products work together. Do not use market power to make it harder for customers or competitors to choose another option. [5]
Sources
Every numbered claim on this page links to one of these.
- [1] Bill Gates
- [2] 50 years ago, Gates and Allen made the deal that launched Microsoft
- [3] The clever clause that made Microsoft
- [4] Bill Gates' Internet Tidal Wave - This Day in Tech History
- [5] United States v. Microsoft Corp.
- [6] The Genesis of a Tech Giant: Discovering Who Invented Microsoft
- [7] Steve Ballmer named CEO
Find your working style
Get your Profile
Get your Profile in about 10 minutes. It is free, and you can use it straight away.
Start the free Assessment