Historical Importance of the Conference:

Bill Gates opens the Windows 32 Developers Conference by noting its unprecedented size, outgrowing even the Moscone Center’s capacity. This serves as an indicator of the high level of interest and significance attributed to the Windows 32 platform within the developer community.

Opportunity in Windows 32:

Gates emphasizes the role of seizing opportunities in the software industry. He frames the conference as being about the “opportunity represented by Windows 32,” which he places in the context of historic opportunities that have shaped the tech industry. He suggests that Windows 32 represents a similar pivotal moment.

Microsoft’s Genesis:

Gates takes a nostalgic route to explain Microsoft’s origin, which was over 15 years ago from the time of the speech. He shares that Microsoft identified the potential in microprocessor-based machines despite their early limitations, like small memory size and limited power.

The Role of Microsoft BASIC:

He recounts how Microsoft’s first product, a programming language called BASIC, played a key role in the company’s growth. BASIC was designed to be a standard across different machines, allowing for software sharing. Gates notes that interpretive languages like BASIC are once again becoming mainstream, especially as they integrate object-oriented programming.

Personal Involvement and Team Evolution:

Gates adds a personal touch by mentioning that the BASIC code was handcrafted and fit into just 4K of memory. He knew every line by heart and was heavily involved in its development. He contrasts the simplicity of products and team size back then to the present day, even showing a picture of the original Microsoft team to draw parallels with the current audience.

The presentation serves as both an insight into Microsoft’s history and an overview of upcoming opportunities, linking the past, present, and future in the tech industry.

Transition to 16-bit Architecture:

Bill Gates talks about Microsoft’s early vision of transitioning from 8-bit to 16-bit architectures. He recounts how they convinced IBM to move from their initial 8-bit plan to a 16-bit one, resulting in the original IBM PC.

Software Optimization for Hardware:

Gates underscores the importance of optimizing software to exploit the full capabilities of new hardware. He contrasts ported software packages with those designed explicitly for 16-bit architectures, highlighting their greater success. Examples include software packages like Lotus 1-2-3.

Microsoft-IBM Partnership:

Gates gives a personal anecdote about how Microsoft initially interacted with IBM, a much larger company at the time. Despite their nervousness and cultural differences, they found a way to collaborate effectively.

Semiconductor Technology’s Role:

The advancements in semiconductor technology play a pivotal role in software evolution, according to Gates. He cites Intel’s 486 processor and its evolution as an example of hardware improvements that software developers need to keep pace with.

Evolution of Software Applications:

From VisiCalc to Microsoft Excel, software has become increasingly powerful. Gates argues that while increasing software capabilities are essential, ease-of-use must also be prioritized. He credits Xerox’s graphical interfaces as a major inspiration for Microsoft Windows.

Windows and Long-term Commitment:

The first versions of Microsoft Windows did not become instantly popular. Gates mentions how continuous improvement and partnerships with companies like Aldus helped to eventually gain traction in the market.

High-End OS Strategy:

Gates discusses Microsoft’s struggle to identify a sustainable high-end operating system strategy. He candidly mentions the failures and challenges tied to OS/2, a joint venture with IBM, citing its inability to meet the unique needs of the PC environment.

Unix vs. Microsoft OS Licensing:

Finally, Gates contrasts the licensing strategies of Unix and Microsoft. He points out that while Unix allows for customization, leading to fragmentation, Microsoft maintains a consistent base across all applications by disallowing modifications to its operating systems.

The segment provides an in-depth look into Microsoft’s strategic moves, lessons learned, and how they adapted to challenges and opportunities in the evolving software ecosystem.

Unified Strategy:

Bill Gates emphasizes a unified approach to Windows development rather than splitting it into low-end and high-end segments. The focus is on Windows 32, the applications interface, which will be a key topic at the conference.

Historical Success:

Gates credits the historical success of Windows to its inception in May 1990, notably with version 3. This period also marked the rise of 386-based PCs with VGA graphics, which helped push Windows into the mainstream.

Positive Feedback Loop:

The strategy has led to a positive cycle where increased sales of Windows spurred application development, which in turn drove further Windows sales. Gates draws a parallel to how DOS dominated the market in the 1980s, capturing over 90% of the desktop share.

Windows 3.1 Milestone:

Gates highlights the successful launch of Windows 3.1, stating it sold a million copies in its first week. Existing users quickly adopted this version, and it attracted a large number of new users, doubling sales to this demographic.

Hardware Partnerships:

A key element of Windows’ success has been collaboration with hardware manufacturers. Gates notes that they work closely with chip and peripheral makers to optimize systems for Windows. The ‘Windows Ready to Run’ logo signifies that a system is optimized for the Windows environment.

Industry Inspiration:

Drawing inspiration from the hardware industry, notably IBM’s 360 and DEC’s VAX strategies, Gates highlights the importance of a single architecture with multiple implementations, allowing customers to leverage investments across a range of machines.

Scalability of Windows:

The vision for Windows is to be scalable across an increasing range of hardware products, from wallet-sized devices and intelligent fax machines to high-performance servers. This scalability is part of the long-term strategy to keep Windows relevant in various segments of the computing market.

Future Development:

Gates notes that as Windows evolves, they will continue to improve the Windows API by adding features like multimedia and voice input support to meet the needs of a broad range of applications and hardware platforms.

Developer Leverage and End-User Learning:

Bill Gates emphasizes that the scalability of the Windows family benefits both developers and end-users by leveraging their work and learning across different products.

Microsoft Windows 32 Developer Kit:

Gates announces a major milestone with the availability of the Microsoft Windows 32 Developer Kit. Distributed at the conference and priced at $399 with documentation or $69 for the CD only, the kit aims to jumpstart the development of Windows 32 applications.

Windows as Opportunity:

Gates identifies the universal draw for both corporate and commercial developers as “opportunity.” He indicates that the growing user base for Windows-based applications presents a significant opportunity for developers to scale their projects.

Financial Projections:

Sales of Windows-based applications have already exceeded $2 billion, and Gates anticipates this number to more than double in coming years, owing to the extensive reach of the Windows platform.

Diverse Development Communities:

The vision for Windows is to unify different development communities that have previously worked on Macintosh, Unix, or mainframes. Gates aims to innovate and build a new class of applications unique to the Windows platform.

Developer Communication:

Engagement with developers has been ramped up through conferences and the distribution of CDs filled with useful information. Gates views this as crucial for the ecosystem’s growth.

Role of Software in Innovation:

While some may say “Windows is just software,” Gates contends that software is key to innovation. Microsoft’s original vision was that software would be central to developing new systems.

Long-Term Vision:

The ultimate goal is to develop a machine that obviates the need for the user to think about applications or configuration files. Gates is optimistic that the industry will achieve this vision by the end of the decade.

Conclusion:

Gates closes by reiterating that the objective is to create tools for universal use, targeting both office and home environments. The focus is on meeting the communication and information needs of users through the symbiotic relationship between powerful microprocessors and robust software.

Transition to 64-bit Environment:

Bill Gates discusses the shift from a 32-bit to a 64-bit environment. He assures that the transition will be straightforward and will mainly involve changes to memory pointers. This is due to the initial shift from 16-bit to 32-bit having already moved from a segmented to linear memory architecture.

Competition Among Microprocessors:

Gates speaks on the portability of Windows technology across different microprocessors. While he expects Intel-based processors to dominate the market, he also expresses openness to other architectures like MIPS and Alpha, emphasizing that Windows aims to facilitate innovation across all microprocessor types.

Language Tools and Development Environment:

Addressing questions about the C development environment, Gates reveals that a major new release is in the pipeline that will be fully integrated into the Windows ecosystem. He emphasizes that the market for language tools is competitive and that Microsoft aims to play a strong role in it.

Corporate vs Commercial Developers:

Gates observes that the needs of corporate developers are even more varied than those of commercial developers. While some corporate developers require the latest OS releases and language libraries similar to commercial developers, others may benefit from tools that abstract system complexities. Special programs like Microsoft Consulting are aimed specifically at corporate developers to help them allocate resources efficiently.

Humorous Moment on Question Submission:

In a lighter moment, Bill Gates humorously addresses the difficulty attendees had with submitting questions, joking that the design of the question box required people to be ‘really serious’ about their inquiries.

Commitment to Windows NT over OS2:

Bill Gates elaborates on Microsoft’s historical involvement with two operating systems: OS2 and Windows. He underscores that Microsoft chose to put all its resources behind Windows, learning from their experience with OS2. Microsoft’s future is tied to Windows, with Gates stating they have “all their wood behind one arrow.”

VMS vs. Windows NT on Alpha:

Regarding a query about transitioning from VMS to Windows NT for a large network, Gates suggests that Windows NT will be highly compatible with Alpha processors. While not directly advising the abandonment of VMS, he indicates that Windows NT and VMS can be complementary. New application development, however, is increasingly favoring the NT environment.

Global Language Support:

Bill Gates describes Microsoft’s focus on internationalization, particularly for Asian markets. Windows NT will support over 20 languages within six months of its main release. Importantly, Windows NT incorporates Unicode, allowing a single binary version of applications to work worldwide when equipped with appropriate string tables.

Lighthearted Moment on Car Importation:

In a humorous interlude, Bill Gates discusses a car he owns that is stuck in a free trade zone due to import regulations. This is not directly related to the main technological topics but adds a personal touch to the discussion.

Competing with Workstation Leaders:

Though the transcript cuts off, it’s evident that the next point of discussion will revolve around Microsoft’s strategy to compete with established workstation leaders like Sun and Next. Given the rest of the conversation, this would likely involve elaborating on how Windows NT fits into this competitive landscape.

Windows NT’s Competitive Edge:

Bill Gates explains that a broad range of applications and compatibility with many hardware manufacturers will give Windows NT a competitive advantage. He aims for NT to penetrate niche markets where PCs are less popular, seeing an opportunity to grow in areas dominated by Unix-based platforms.

Commitment to Groupware:

Gates emphasizes Microsoft’s commitment to groupware, saying that workgroup capabilities will be built right into the operating system. This includes features like security, messaging, and directories, negating the need for individual applications to define these. The system will be flexible, programmable, and customizable to meet the specific needs of a company.

Compliance and Third-Party Integrations:

When asked about more advanced compliance standards like XOpen or OSF, Gates mentions that while NT ships with basic POSIX capability, third parties can provide additional functionalities. He gives the example of Digital Equipment building an X-based product on top of NT and leaves the door open for bundling such functionalities if there’s customer demand.

High-End Applications on MIPS R4000:

Gates confirms that Microsoft’s high-end applications, starting with Excel, will be available in forms that fully exploit the capabilities of Windows NT, even for the MIPS R4000 platform. The porting process for these applications is described as straightforward, signaling smooth adaptation.

Licensing and Chip Architecture Support:

In terms of CPU chip support, Gates mentions that the focus is currently on Intel and MIPS architectures and providing support to DEC for the Alpha platform. However, he indicates that post-launch, they will make it easy for other chip architectures to be adopted, suggesting that NT could eventually be available on all popular chip architectures.

Competition and Economy:

Bill Gates asserts that competition, exemplified by the Microsoft-IBM rivalry, benefits the U.S. economy. He points out that the PC software industry is U.S.-centric and export-oriented, and has created positive economic ripples. Gates believes that even IBM’s downsizing due to technological shifts has been beneficial, as it has led to resource allocation and strategic adjustments.

Software Compatibility:

Addressing a query about future compatibility between Win32 API applications and DOS, Gates assures that Microsoft is continuously working to bridge the gap. He suggests that their new version of DOS will support more Win32 functionalities, enhancing the overall software ecosystem. He mentions that although some features may not be fully functional, they can still be incorporated.

Telephony and Integration:

Gates discusses Microsoft’s initiatives in integrating PCs with office and home devices, including telephones, fax machines, and copiers. He notes efforts to develop APIs that allow seamless functionality across these platforms. The intent is to redefine the office environment dramatically, pulling together disparate systems like fax and PC network directories under a unified, secure system.

Windows NT and Future Trends:

In a speculative view of the future, Gates suggests that five years hence, Windows NT could be the mainstream product given technological advancements. While acknowledging the resilience of DOS, he states that NT would offer more features and better performance.

Public Perception:

In a lighter moment, Gates briefly comments on Bob Cringley’s book “Accidental Empires.” He downplays its narrative, citing inaccuracies, but does not delve deeper into the matter.

The conversation provides valuable insights into Microsoft’s impact on the economy, its focus on interoperability, and future plans for technological integration.

Banking Sector Initiatives:

Bill Gates discusses Microsoft’s strategic approach to support the banking sector. The focus is on creating standardized extensions to aid developers in this industry. For instance, Microsoft collaborated with system companies like NCR to standardize interfaces for ATMs and check readers. The aim is to offer advanced development kits for simplifying the creation of both retail and commercial banking applications. This approach will also be extended to other industries like retail and real-time quote data systems.

Visual Basic Development:

Regarding the limitations of Visual Basic (VB) for high-performance applications, Gates acknowledges the need for improvements. Although Visual Basic will be tuned for better performance, he states that a compiler for VB is in the pipeline. Microsoft plans to introduce Object Basic as an integrated macro language across applications, and also continue to enhance C programming language capabilities.

Open Systems and Windows NT:

When questioned about open systems, Gates emphasizes that Microsoft’s definition revolves around giving customers a wide range of choices in hardware and software. He sees Windows NT as a bridge that offers the power of high-end systems with the openness of PCs, also allowing for easier migration of Unix applications.

Microsoft and IBM Relationship:

On Microsoft’s relationship with IBM, Gates points out that their cooperative efforts, especially regarding connectivity to IBM’s larger systems, often go unnoticed due to media focus on competitive aspects. Microsoft works with IBM to ensure that Windows systems can seamlessly integrate with IBM’s AS400 and mainframe groups.

Response to Advertisements and UNIX Future:

Gates comments on the recent advertisements against Windows, asserting that they are not factual and highlights Windows’ broad adoption. He also discusses the future of Unix, emphasizing Microsoft’s plan to make NT source code available to research groups and to ensure compatibility with Unix standards.

Political Aspirations:

In a lighter vein, Gates dismisses rumors of entering the political realm with Ross Perot, stating he finds his current role in the tech industry more fulfilling.

The discussion provides valuable insights into Microsoft’s strategic goals in several key areas, from industry-specific solutions to programming languages and open systems.