Chapter 22: IT Market Chaos

In the late 1970s, the IT market was buzzing with activity. The microcomputer market had bright prospects, but many so-called leading companies were just a joke. Despite Apple's efforts, its market share remained only at thirty percent. But if one company doubled its sales, it meant others could too. White Software had released its beta version, and the market's response was quite positive. Within a month, everyone would be back at the starting line. Many software companies sought a piece of the pie, but they ultimately chose to give up. The reason was simple: the patent barriers were daunting. The most frustrating part was the file formats. Without authorization, one couldn't use those formats at all. Of course, new paths could be taken, but who had enough customers for that? By the time your software hit the market, others would have already claimed their share. After a certain point, software costs became negligible. If competitors sold theirs for 9.9 dollars and barely lost money, how could you compete with that? Suddenly soaring sales stirred excitement throughout the industry. Almost every computer company was essentially an assembly operation. A rush of parts orders kept IT businesses buzzing. Even in a down market, those orders helped some companies survive. Reports from various business agencies indicated that this was not a spur-of-the-moment purchase; there were numerous companies with similar needs. The final demand in the market was enormous, expected to reach 1.5 million units by next year. Wow. Most industry insiders thought with the demand from Europe and Asia, sales were bound to reach 2 million easily! The American market had its advantages, particularly in professional research agencies. As long as you could pay enough, their reports were quite reliable. ... Apple was considering personnel changes due to Morgan Stanley's stubbornness. After being questioned about their expertise, Morgan Stanley showed visible discomfort, but the facts were undeniable. Morgan Stanley's worries were not unfounded. With competition set to intensify in the latter half of the year, the question was whether Apple could maintain its strength. The competition was about to heat up, and Steve Jobs was none too pleased. He felt he had been wronged and needed to confront William White. Other executives looked grim; they had never had the courage to reject the terms initially presented. In truth, Apple gained a considerable advantage. Phil Schiller even knew White Software had everything ready for some time; they were just honoring their earlier promise. If Jobs continued to kick up a fuss, the products might hit the shelves the next day. Apple's upper management tried to calm Jobs down while Morgan Stanley's representatives looked stunned. Wow. The best investment was definitely in White Software; no wonder they were waiting until next year for their Series A funding. A valuation of 20 million dollars? You can't be serious! Even if only half the computers installed the software, they would still have over a hundred million in revenue. Making 50 million profit would be reasonable, right? You actually think you can buy a 10% stake for 2 million? It was commendable they didn't curse him out outright. What about competitors? They couldn't just keep selling those two software products! Did you think they were hiring people just for maintenance? Let's not kid ourselves; with that many software engineers, it was clear they were working on new software. The outside world simply didn't know. ... Bill Gates felt frustrated. He couldn't understand where William came from and how he shot to success. But that frustration didn't last long for Gates. If this guy could do it, why couldn't he? He was determined to surpass William in the future. There's no denying that the unsuccessful had their reasons for failure, while the successful didn't rely on luck. That stubborn spirit to persevere was not something just anyone could achieve. ... "Boss, Jobs just came by and threw a fit," one of the employees reported. "Ha! You call Markkula. Our software is already ready. If I were a public company, I couldn't hide it," William replied. "All right, boss. I'll call him right away." William saw Jobs' accusation as jealousy. He figured it wouldn't take long for Jobs to realize that. The Apple higher-ups found Jobs' stubbornness quite troublesome, but thankfully, they didn't take it to heart. A good laugh could smooth things over. People at White Software understood that William valued Steve Jobs and wouldn't hold any petty grudges against him. So, in the company, Jobs carried on without concern. Talented individuals tended to be a bit unruly, and that was true everywhere. The deceptive smiles, like Gates' demeanor, could be the most troublesome. Jobs was an exceedingly proud man and looked down on other products. Gates, however, was relentless. If you caught his eye, you better watch your back. Most of his products were built on stolen ideas; he hardly had anything original. Even Windows wore a thin disguise of Apple's design. In his early days, he nearly went bankrupt because of that, but have you ever seen him change? Some claimed his success was mainly luck because his mother had connections with IBM, and it was mere coincidence he succeeded. But one could argue that without preparation, luck wouldn't help you either. His success was not just a stroke of good fortune. Even without IBM, he would still find his way to success. "Sir, the person you needed has arrived," someone announced. "Yeah, I'll be right there," William replied. Now that he was running a private enterprise, he could arrange his staff however he liked. Software companies had fewer concerns, so those folks could easily help him with the game console project. These people knew their boss was a workaholic. With so many blueprints, it was clear that this wouldn't be accomplished in a day or two. The company offered great benefits, and William was quite generous. White Software had a unique structure; they had a points system that led to promotions and bonuses upon reaching certain milestones. Stock incentives were also accumulative, providing plenty of attractions. "Guys, I'm giving you three months -- just three months. I want to see results. Is that clear?" "Don't worry, boss. We have no issues," they assured him. "Good. Thanks for your hard work. If you need anything, let the manager know." "Sure thing, boss." With that settled, William didn't need to get involved further. With the detailed blueprints and plans, if they couldn't execute, they deserved to be fired. In a sense, they were just senior engineers and coders. Such work in the future would be done by others. Their only advantage was their all-around technical skills, which avoided repeated revisions. Not placing these folks in Silicon Valley made sense due to the crowd. Some secrets were simply impossible to keep under wraps. ***** https://www.patreon.com/Sayonara816.