Buying an Operating System, Changing the Business Model
When IBM, preparing its PC line, came to Microsoft seeking an operating system, Gates in turn bought at low price a prototype system called QDOS ("Quick and Dirty Operating System") from a small Seattle software firm, improved and packaged it, and licensed it to IBM as "MS-DOS," the key being that he insisted on keeping the right to license this system to other makers at the same time — precisely this decision let MS-DOS spread worldwide with the explosive growth of the PC-clone market, and Microsoft’s business model thereby went from "selling technology outright to a single customer" to "licensing software to the whole industry."