Friday, 7 March 2008
03:47:14 PM (GMT)
-- Bill Gates (The richest man in the world)
( Part 1 ) -- Bill Gates (The richest man in the world)
* 1 Bibliography
* 2 The birth of Microsoft
o 2.1 The idea
o 2.2 The start
o 2.3 Products Overview
o 2.4 Competition
o 2.5 Management
* 3 Financial report of Microsoft
o 3.1 Financial Highlight
o 3.2 2003 Annual Report
* 4 The Future
( Part 2 ) -- Bill Gates (The richest man in the world) [extended]
* 1 Early life
* 2 Microsoft
o 2.1 BASIC
o 2.2 2.2 IBM partnership
o 2.3 Strategy and management
* 3 Personal life
o 3.1 Wealth and investments
o 3.2 Philanthropy
o 3.3 Transition
* 4 Awards and recognition
* 5 In film
* 6 Musical
( References )
* References ( Part 1 )
* References ( Part 2 )
William (Bill) H. Gates is chairman and chief software architect of
Microsoft Corporation, the worldwide leader in software, services and
Internet technologies for personal and business computing. Microsoft
had revenues of US$32.19 billion for the fiscal year ending June
2002, and employs more than 50,000 people in 72 countries and
Born on Oct. 28, 1955, Gates grew up in Seattle with his two sisters.
Their father, William H. Gates II, is a Seattle attorney. Their late
mother, Mary Gates, was a schoolteacher, University of Washington
regent, and chairwoman of United Way International.
2 The birth of Microsoft
2.1 The idea
In December of 1974, his partner Allen was on his way to visit
Gates when along the way he stopped to browse a magazine. After he
saw that, it changed his and Bill Gates's lives forever. On the cover
of Popular Electronics was a picture of the Altair 8080 and the
headline "World's First Microcomputer Kit to Rival Commercial
Models." He bought the issue and rushed to Gates's room. They both
recognized it was a great opportunity for business and their business
brain started to work. They knew that the home computer market was
about to explode and that someone would need to make software for the
Within a few days, Gates had called MITS (Micro Instrumentation and
Telemetry Systems), the makers of the Altair. He told the company
that he and Allen had developed a BASIC that could be used on the
Altair [Teamgates.com, 9/29/96]. They had not even written a line of
code. They had neither an Altair nor the chip that ran the computer.
The MITS company was very interested in seeing their BASIC since they
never seen such thing before. Gates and Allen began to work
feverishly on the BASIC they had promised. The code for the program
was left mostly up to Bill Gates while Paul Allen began working on a
way to simulate the Altair with the schools PDP-10.
When they both felt their program was ready. Allen was to fly to MITS
and show off their creation. The day after Allen arrived at MITS, it
was time to test their BASIC. Entering the program into the company's
Altair was the first time Allen had ever touched one. If the Altair
simulation he designed or any of Gates's code was faulty, the
demonstration would most likely have ended in failure.
2.2 The start
In the Spring of 1968, the Lakeside prep school decided that it
should acquaint the student body with the world of computers
[Teamgates.com, 9/29/96]. Computers were still too large and costly
for the school to purchase its own. Instead, the school had a fund
raiser. A few thousand dollars were raised which the school figured
would buy more than enough time to last into the next school year.
In 1968, Computer Center Corporation opened for business in Seattle.
It was offering computing time at good rates, and one of the chief
programmers working for the corporation had a child attending
Lakeside. A deal was struck between Lakeside Prep School and the
Computer Center Corporation that allowed the school to continue
providing it's students with computer time.
Gates and his comrades immediately began exploring the contents of
this new machine. It was not long before the young hackers started
causing problems. They caused the system to crash several times and
broke the computers security system. They even altered the files that
recorded the amount of computer time they were using. They were
caught and the Computer Center Corporation banned them from the
system for several weeks.
Bill Gates, Paul Allen and, two other hackers from Lakeside formed
the Lakeside Programmers Group in late 1968. They were determined to
find a way to apply their computer skills in the real world. The
first opportunity to do this was a direct result of their mischievous
activity with the school's computer time. The Computer Center
Corporation's business was beginning to suffer due to the systems
weak security and the frequency that it crashed. Impressed with Gates
and the other Lakeside computer addicts' previous assaults on their
computer, the Computer Center Corporation decided to hire the
students to find bugs and expose weaknesses in the computer system.
In return for the Lakeside Programming Group's help, the Computer
Center Corporation would give them unlimited computer time.The boys
could not refuse. Gates says "It was when we got free time at C-cubed
(Computer Center Corporation) that we really got into computers.
Although they were hired just to find bugs, they also read any
computer related material that the day shift had left behind. The
young hackers would even pick employees for new information. It was
here that Gates and Allen really began to develop the talents that
would lead to the formation of Microsoft seven years later. This was
how bills business got started.
2.3 Products Overview
1983 Microsoft Windows was announced November, 1983 and sells for
1985 Microsoft Windows 1.0 is introduced in November, 1985 and is
initially sold for $100.00.
1987 Microsoft Windows 2.0 was released December 9, 1987 and is
initially sold for $100.00.
1987 Microsoft Windows/386 or Windows 386 is introduced December 9,
1987 and is initially sold for $100.00.
1988 Microsoft Windows/286 or Windows 286 is introduced June, 1988
and is initially sold for $100.00.
1990 Microsoft Windows 3.0 was released May, 22 1990. Microsoft
Windows 3.0 full version was priced at $149.95 and the upgrade
version was priced at $79.95.
1991 Microsoft Windows 3.0 or Windows 3.0a with multimedia was
released October, 1991.
1992 Microsoft Windows 3.1 was released April, 1992 and sells more
than 1 Million copies within the first two months of its release.
1992 Microsoft Windows for Workgroups 3.1 was released October, 1992.
1993 Microsoft Windows NT 3.1 was released August, 1993.
1993 The number of licensed users of Microsoft Windows now totals
more then 25 Million.
1994 Microsoft Windows for Workgroups 3.11 was released February,
1994 Microsoft Windows NT 3.5 was released September, 1994.
1995 Microsoft Windows NT 3.51 was released June, 1995.
1995 Microsoft Windows 95 was released August, 1995 and sells more
than 1 Million copies within 4 days.
1996 Microsoft Windows NT 4.0 was released August, 1996.
1996 Microsoft Windows CE 1.0 was released November, 1996.
1997 Microsoft Windows CE 2.0 was released November, 1997.
1998 Microsoft Windows 98 was released June, 1998.
1998 Microsoft Windows CE 2.1 was released July, 1998.
1999 Microsoft Windows 98 SE (Second Edition) was released May, 1999.
1999 Microsoft Windows CE 3.0 was released 1999.
2000 Microsoft Windows 2000 was released February 2000.
2000 Microsoft Windows ME (Millennium) released July 2000.
2001 Microsoft Windows XP is released October 25, 2001.
Over the past two decades, Microsoft Windows® products have
evolved from a single, one-size-fits-all desktop operating system
into a diverse family of operating systems and mobile technologies.
Today, Windows products help people worldwide achieve their potential
at work, home, and just about anyplace in between.
On November 10, 1983, Microsoft announced Microsoft Windows®, an
extension of the MS-DOS® operating system that would provide a
graphical operating environment for PC users. With
Windows, the graphical user interface (GUI) era at Microsoft had
begun. Even there were some other good OS before them, like UNIX and
Mac OS, their products was still very successful.
Before Bills starting his business and his products there were
already some products in the technology market like Unix and Mac OS.
They were complicated and require high skills of education and
When Dos that was Microsoft Companys first product has come out, it
overtakes and influences a large area of the technology market. The
software attracts home user and office because it was more
user-friendly and easy to understand without requiring high level of
In a matter of fact, it was very hard for Bill to construct such a
huge and high technology company because he has not gain any support
from the government. But hopefully, he got his great financial
support from his family.
His company is a labour intensive system. There is 50,500 staff and
it has branch department in 70 countries. His aim is to make
everything on the top, every product should be on the top of the high
tech equipments. Therefore he paid a lot on the development. This
year, the company is committed to a long-term view, reflected in its
investment of more than $4 billion on research and development.
His has some main management targets. One of Microsoft's key
strategies is, "Find smart people who know the technology and the
business."( According to the authors of Microsoft Secrets).
One of the reasons why Microsoft people need high levels of
competence is the fast-changing nature of the industry in which it
competes. Microsoft rose to its position of industry dominance in a
period of a few years, and Bill Gates, the company's well-known CEO,
is determined that the company will stay on top. For example, Gates
and other Microsoft executives recently concluded that the company
needed to embrace the Internet and incorporate it into virtually all
products and services. As a result, software developers and marketers
need to be able to acquire new skills quickly.
3. Financial report of Microsoft
3.1 Financial Highlight
In millions, except earnings per share
Year Ended June 30 1998 1999 2000 2001 2002
Revenue $ 15,262 $ 19,747 $ 22,956 $ 25,296 $ 28,365
Operating income 6,585 10,010 11,006 11,720 11,910
Income before accounting change 4,490 7,785 9,421 7,721 7,829
Net income 4,490 7,785 9,421 7,346 7,829
Diluted earnings per share
before accounting change 0.84 1.42 1.70 1.38 1.41
Diluted earnings per share 0.84 1.42 1.70 1.32 1.41
Cash and short-term investments 13,927 17,236 23,798 31,600 38,652
Total assets 22,357 38,321 51,694 58,830 67,646
Stockholders equity 16,627 28,438 41,368 47,289 52,180
3.2 2003 Annual Report
INCOME STATEMENTS(In millions, except earnings per share)
Three Months EndedJune 30 Year EndedJune 30 of:
2002, 2003, 2002, 2003:
Revenue $7,253 $8,065 $28,365 $32,187
Cost of revenue 1,368 1,238 5,191 5,686
Research and development 1,184 1,336 4,307 4,659
Sales and marketing 1,543 2,104 5,407 6,521
General and administrative 284 1,194 1,550 2,104
Total operating expenses 4,379 5,872 16,455 18,970
Operating income 2,874 2,193 11,910 13,217
Losses on equity investees and other (14) (15) (92) (6
Investment income (loss) (617) 689 (305) 1,577
Income before income taxes 2,243 2,867 11,513 14,726
Provision for income taxes 718 946 3,684 4,733
Net income $1,525 $1,921 $7,829 $9,993
Earnings per share (1):
Basic $0.14 $0.18 $0.72 $0.93
Diluted $0.14 $0.18 $0.70 $0.92
Weighted average shares outstanding (1):
Basic 10,830 10,737 10,811 10,723
Diluted 11,061 10,862 11,106 10,882
(1) Earnings per share and weighted average shares outstanding for
the three months and year ended June 30, 2002 have been restated to
reflect a two-for-one stock split in February 2003.
We can see the net income is become more and more. It means the
company is running even more successful than before. We also see the
research and development fee are so much, he spend a lot of money to
develop new product, to keep his product on the top of the market,
and innovate more new product for people to use, making our life
easier than before.
4 The Future
His company is always keeping their products on the top. They are not
only concentrating on the Operating System, but also other field of
high technological products. For example, they are recently innovated
the new computer games machine (XBOX), and also the Windows CE to
work on the PDA. Again they gained a great success.
I believed that their products will also leading the market, and will
bring many convenient to us. They will keep innovating new products
and making all the software more users friendly and easy to use. No
doubt, his company will still be one of the best in the world. And
his management skills are a good example for us to learn.
(Bill Gates: Well, business will be changing more in the next ten
years than has in last twenty-five. Because of the digital tools and,
in particular, the PC and the Internet, the way that we organize our
business, the way that we use our workers, the way that we buy and
sell, the way that we collaborate, all of those would be very
different. The leading companies, the successful companies of this
next era, will be the ones that embrace this digital revolution and
build what I call a digital nervous system.) (According to the
Interviewed on March 11, 1999 in Yokohama, Japan.)
From this interview, I could find out that he is going to make his
business even better. Making the products to suit people, to make
people comfortable, to make people interested, are the aim. Hence,
I forecast that his product and his business will be even more
( Part 2 ) -- Bill Gates (The richest man in the world) [extended]
William Henry Gates III (born 28 October 1955) is an American
entrepreneur, software executive, philanthropist, the world's third
richest man (as of 200 and chairman of Microsoft, the software
company he founded with Paul Allen. During his career at Microsoft
he has held the positions of CEO and chief software architect, and he
remains the largest individual shareholder with more than 9 percent
of the common stock.
Gates is one of the best-known entrepreneurs of the personal computer
revolution. Although he is admired by many, a large number
of industry insiders criticise his business tactics, which they consider
anti-competitive: an opinion which has in some cases been upheld by
the courts. Other court cases on the same charges, in different
jurisdictions, are still ongoing. In the later stages of his career, Gates
has pursued a number of philanthropic endeavors, donating large
amounts of money to various charitable organizations and scientific
research programs through the Bill & Melinda Gates Foundation,
established in 2000.
The annual Forbes magazine's list of The World's Billionaires has ranked
Gates as the richest person in the world from 1995 to 2007, with
recent estimates of his net worth over US$59 billion. When family
wealth is considered, his family ranks second behind the Walton family,
heirs of Wal-Mart founder Sam Walton. In July 2007, Fortune magazine
reported that the increase in value of Mexican billionaire Carlos Slim's
holdings of stock caused him to surpass Bill Gates as the world's richest
man. Forbes maintained that Slim was second to Gates until its
recalculation of billionaire fortunes. Forbes recalculated billionaire fortunes
in 2008 and found Warren Buffett to be the world's richest man with Slim
in second and Gates in third.
1 Early life
William Henry Gates III was born in Seattle, Washington, to
William H. Gates, Jr. and Mary Maxwell Gates. His family was wealthy;
his father was a prominent lawyer, his mother served on the board of
directors for First Interstate Bank and the United Way, and her father,
J. W. Maxwell, was a national bank president. Gates has one older sister,
Kristi (Kristianne), and one younger sister, Libby. He was the fourth of his
name in his family, but was known as William Gates III or "Trey" because
his father had dropped his own "III" suffix. Several writers claim that
Maxwell set up a million-dollar trust fund for Gates. A 1993
biographer who interviewed both Gates and his parents (among other
sources) found no evidence of this and dismissed it as one of the "fictions"
surrounding Gates's fortune. Gates denied the trust fund story in a
1994 interview, and indirectly in his 1995 book The Road Ahead.
Gates excelled in elementary school, particularly in mathematics and the
sciences. At thirteen he enrolled in the Lakeside School, Seattle's most
exclusive preparatory school. When he was in the eighth grade, the school
mothers used proceeds from Lakeside's rummage sale to buy an ASR-33
teletype terminal and a block of computer time on a General Electric
computer. Gates took an interest in programming the GE system in
BASIC and was excused from math classes to pursue his interest. After
the Mothers Club donation was exhausted he and other students sought
time on other systems, including DEC PDP minicomputers. One of these
systems was a PDP-10 belonging to Computer Center Corporation, which
banned the Lakeside students for the summer after it caught them
exploiting bugs in the operating system to obtain free computer time.
At the end of the ban, the Lakeside students, Gates, Paul Allen,
Ric Weiland, and Kent Evans, offered to debug CCC's software in
exchange for free computer time. Rather than use the system via
teletype, Gates went to CCC's offices and studied source code for
various programs that ran on the system, not only in BASIC but
FORTRAN, LISP, and machine language as well. The arrangement
with CCC continued until 1970, when it went out of business. The
following year Information Sciences Inc. hired the Lakeside students
to write a payroll program in COBOL, providing them not only computer
time but royalties as well. At age 14, Gates also formed a venture with
Allen, called Traf-O-Data, to make traffic counters based on the Intel
8008 processor. That first year he made US$20,000; however, when
his age was discovered, business slowed.
As a youth, Gates was active in the Boy Scouts of America where he
achieved its second highest rank, Life Scout. Gates stated that he
scored 1590 on his SATs. He enrolled at