Unsung Hero: Exploring Gary Kildall, the Man Who Almost Became Bill Gates

Today at a Glance

• Gary Kildall
• IBM & Gary
• What went wrong?
• The Twist
• Gary Sued IBM
• The end of the road

Gary Kildall

Gary Kildall was a computer scientist and entrepreneur who played a key role in the development of the personal computer. In the 1970s, he created the CP/M operating system, which became the de facto standard for early microcomputers. He also founded Digital Research, Inc. (or "DRI"), which became one of the leading software companies in the industry. Kildall's work helped make personal computers accessible to a wider range of people and laid the foundation for the modern computing era.

During the 1980s, Kildall also appeared on PBS as co-host of Computer Chronicles, a weekly informational program that covered the latest developments in personal computing.

Although Kildall's entrepreneurial career in computing spanned more than two decades, he is mainly remembered in connection with his development of the CP/M operating system, which was later licenced and adapted by Microsoft for use on the IBM PC.

IBM & Gary

Back in the early 1980s, IBM was looking to create its own line of personal computers. However, they didn't have an operating system. The young, 25-year-old Bill Gates had recently created his company, Microsoft. IBM turned to Gates to see if he could come up with a solution to their problem.

At the time, the most popular operating system for personal computers was CP/M, which was created by Gary Kildall. Kildall's company, Digital Research, held the copyright to CP/M.

When IBM approached Microsoft, Bill first pointed them to Kildall, who was 13 years older than Gates. Being under a strict non-disclosure agreement, he then called Gary and said:

“Someone is coming to see you. Treat them well; they are important people.” 

Gates couldn’t reveal exactly who was coming to visit because of the non-disclosure agreement.

Before Gary Kildall developed the CP/M operating system, each computer required custom-made software. With an operating system like CP/M, programmers only needed to write the software once, and CP/M would take care of the rest. This meant that the same software could run on different computers. Although Kildall was not interested in business, his wife, Dorothy, convinced him to start a business and license his creation. This led to the formation of Digital Research.

By 1979, Digital Research had become the industry standard for operating systems. In essence, they were the Microsoft of the late 1970s, and Gary was equivalent to Bill Gates.

So when IBM had just approached Bill Gates and asked him if he could make an operating system for their new PC, Bill Gates rightly pointed them in the direction of Gary, citing that Microsoft had yet to build an operating system of its failed. So, without wasting any time, IBM takes Bill’s advice and pays a visit to Gary in Seattle.

What went wrong?

Gary had left negotiations to his wife, Dorothy, who is now head of operations at Digital Research, as he usually did, while he and a colleague used Gary's private aeroplane to deliver software. Before the IBM representatives would explain the purpose of their visit, they insisted that Dorothy sign a non-disclosure agreement.

On the advice of DRI attorney, Dorothy refused to sign the agreement without Gary's approval. Gary returned in the afternoon and tried to move the discussion with IBM forward. Accounts on this story disagree on whether he signed the non-disclosure agreement as well as whether he ever met with the IBM representatives. But both parties failed to reach an agreement.

The Twist

A few days later, IBM made a second approach to Bill Gates. Recognizing his deterministic and opportunistic nature, Gates astutely grasped the potential opportunity at hand. He perceived that IBM possessed the capability to revolutionize the PC market, transitioning it from its prevailing geeky enthusiast image to a new and refined business. It was at this critical juncture that Gates made a strategic decision. Ingeniously, he conveyed to IBM that Microsoft was fully capable of developing an operating system, despite not having one at the time."

What Microsoft decided to do was just buy an operating system from Seattle Computers for $75,000. This operating system was called the Quick and Dirty Operating System, or QDOS for short. If you think that's a strange name, there's a reason for it. The code it utilised for the software was effectively a copied version of Gary's operating system, CP/M. So, with this CP/M knockoff, Microsoft now had their hands on a working operating system. QDOS would be renamed Microsoft DOS, or MS-DOS, and would be included with every IBM PC.

So if you've ever used MS-DOS, you've been using the Microsoft Dirty Operating System. This name, however, would be changed to Microsoft Disc Operating System. Of course, MS-DOS would eventually become Microsoft Windows.

Gary Sued IBM

A year later, IBM introduced its personal computers into the market, and MS-DOS was sold alongside each one of them.

Upon discovering Microsoft's actions, Gary, recognizing a potential copyright violation, expressed his intention to take legal action against IBM. This led to negotiations between the parties, resulting in an agreement where DRI C/PM would be made available for purchase alongside MS-DOS. The terms of the agreement appeared equitable, and Gary found himself content. As a result, customers were given the freedom to select their preferred operating system for their machines.

However, there was a significant caveat to consider. Customers had the option to choose between MS-DOS and C/PM, but there was a notable difference in their prices. While MS-DOS was available for $40, C/PM was priced at a much higher $240. This substantial price difference ultimately led to the demise of C/PM.

As a result, Microsoft gained a significant advantage and emerged victorious in the technology market. Digital Research Inc. (DRI), the company behind C/PM, suffered a severe setback and gradually faded from the industry's spotlight, causing Gary Kildall's influence to wane along with it.

This licencing deal has been called the greatest deal in history. It made Bill Gates a billionaire. Gary’s failure to be there at the right time is, conversely, called one of the biggest business failures in history.

The end of the road

Gary’s life wasn’t the same post-IBM contract.

Gary had lost to a clone of his own creation. Regrettably, he did not handle it well, and the impact of this event weighed heavily on him. The immense disappointment of missing out on an extraordinary opportunity resulted in Dorothy divorcing him.

In a final attempt to challenge Microsoft, Gary decided to sell DRI to Novell in 1991. Unfortunately, this endeavour also. These consecutive setbacks had a significant impact on him, leading to his withdrawal from "The Computer Chronicles," a renowned television show that he had co-hosted since 1985.

In the subsequent years, the widespread adoption of personal computers served as a constant reminder to Gary of his shortcomings, which had a profound impact on his mental state. He descended into a period marked by deep sadness and dependency on alcohol. Tragically, in 1994, Gary's life was cut short as a result of severe head injuries sustained during an altercation at a biker bar.

Don't think for a minute that [Bill] Gates made it 'big time' because of his technical savvy. Gary Kildall

In March 1995, Kildall was posthumously honoured by the Software Publishers Association (SPA) for his contributions to the microcomputer industry:

• The first programming language and first compiler specifically for microprocessors: PL/M. (1973)
• The first microprocessor disk operating system, which eventually sold a quarter of a million copies: CP/M. (1974)
• The first successful open system architecture by segregating system-specific hardware interfaces into a set of BIOS routines. (1975)
• Creation of the first diskette track buffering schemes, read-ahead algorithms, file directory caches, and RAM drive emulators.
• The file system and data structures for the first consumer CD-ROM. (1985, with KnowledgeSet)

Following the announcement of Kildall's death, Bill Gates commented that he was:

one of the original pioneers of the PC revolution" and "a very creative computer scientist who did excellent work. Although we were competitors, I always had tremendous respect for his contributions to the PC industry. His untimely death was very unfortunate, and his work will be missed.

THE END!