For Microsoft, 1981 means an entrance into the Operating Systems Business, we organize into a privately help organization and revenue jumps to over 17 million bucks.

Previous Episodes:

The History of Microsoft - 1975

The History of Microsoft - 1976

The History of Microsoft - 1977

The History of Microsoft - 1978

The History of Microsoft - 1979

The History of Microsoft - 1980

April 9, 1981

First semi-annual company meeting is held in the newly built Bellevue Athletic Club.

June 25, 1981

Microsoft reorganizes into a privately held corporation with Bill Gates as president and chairman of the board and Paul Allen as executive vice president. Microsoft becomes Microsoft, Inc., an incorporated business in the state of

Washington.

August 12, 1981

IBM introduces its Personal Computer (PC), MS-DOS version 1.0, plus BASIC, COBOL, Pascal, and other Microsoft products. This is Microsoft’s entry into the operating systems business. Included in the IBM-compatible list of software

is a game newly adapted to the PC, Microsoft Adventure.

October 1, 1981

The Microsoft Building (Northup Building) at 10700 Northup Way, (P.O. Box 97200) Bellevue, Washington, 98004, is leased.

December 8, 1981

Microsoft announces that is has signed a letter of intent to enter a second-source agreement with The Santa Cruz Operation, Inc. for the XENIX operating system. The agreement will provide additional services to purchasers of XENIX,

especially pre- and post-sale support, maintenance, and documentation.

1981 Revenue/Headcount

The 1981 year-end sales total $17,331,000. The 1980 Calendar Year employee headcount totals 129 people.

Notable employees hired:

Tandy Trower, Jeff Raikes, Chris Peters and 100th

employee Ellen Aycock. Chris Larson is hired as an FTE after several summer-long internships.

Other 1981:

· Osborne Computer introduces the Osborne 1, the first portable microcomputer.

· Ronald Reagan takes the oath as 40t