Microsoft vs Apple (1988)

Microsoft and Apple have both lead to major technology innovations regarding the personal computer. Microsoft began with software and eventually the complex DOS operating system. Apple began with computers and in time an innovational operating system, the Apple Lisa, with point-and-click functions. After Apple's operating system Microsoft developed Windows which exacted from Apple's point-and-click functions.

Microsoft was very involved in the development of the Macintosh. Microsoft had been the first external developer to receive a Macintosh prototype. The prototype was quickly nicknamed SAND (Steve's Amazing New Device) by Bill Gates and Charles Simonyi. Microsoft produced productivity software that the Macintosh desperately required to make the Macintosh a competitor in corporate markets. After the public introduction of the Macintosh, Bill Gates personally wrote John Sculley, pressing him to license the software and ROMs to external manufacturers so that the Macintosh would become the new standard in personal computing. The proposal, dated June 25, 1985, was thoroughly rejected by Jean-Louis Gassée, who was given control of the Macintosh and Lisa after Steve Jobs had been divested of management duties. Gassée argued that the Macintosh was so immensely superior to the existing PC graphical environments that Apple would never confront any worthy competition and would be able to rely on profit-rich hardware sales.

When Gassée saw Windows 1.0, he discounted the software as no threat. But when Sculley saw the software, he was furious. Microsoft had been supplied early prototypes of the Macintosh and some source code to help optimize Word and MultiPlan. Now Windows had a menu bar nearly identical to Apple's. Windows even had a 'Special' menu, holding disk operations. Other components were strikingly related. Windows came bundled with Write and Paint, both mimicking Apple's MacPaint and MacWrite. In the end, Sculley agreed to license the Macintosh's "visual displays" to Microsoft to use in software derived from Windows 1.0, and Microsoft agreed to keep developing its Mac products and promised not to release Excel for any other platform for two years.

Windows 2.0 was a vast improvement over version 1.0, and Sculley recognized it. The new version provided overlapping windows, multitasking, and a limited object oriented environment. In addition to the new features, Windows 2.0 actually held programs for it. During the press conference, Microsoft disclosed that it had concluded developing Microsoft Word for Windows and Microsoft Excel for Windows, and that external companies including Aldus, Corel, and Microtek were all working on Windows 2.0-compatible programs.

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