First Publicly Released Operating System by Company

Microsoft's entry into the operating system market began with the announcement of Xenix, a variant of Unix, which marked the company's first publicly released operating system. This operating system was acquired from AT&T through a distribution license, allowing Microsoft to leverage the established Unix framework. The decision to develop Xenix was strategic, as it enabled Microsoft to expand its product offerings beyond programming languages and into the realm of operating systems. To facilitate the adaptation of Xenix for various hardware platforms, Microsoft engaged the Santa Cruz Operation, a company known for its expertise in Unix systems. This collaboration was crucial in ensuring that Xenix could run on multiple systems, thereby increasing its market reach and usability. The impact of Xenix on Microsoft's business was significant, as it became a key revenue source shortly after its release. The operating system was priced at $349, which, when adjusted for inflation, reflects a substantial investment for consumers at the time. Xenix not only helped Microsoft establish a foothold in the operating system market but also laid the groundwork for future developments in software. The success of Xenix demonstrated the viability of Unix-based systems in commercial environments, influencing subsequent operating system designs and strategies within the tech industry. As Microsoft continued to evolve, the lessons learned from Xenix would inform the development of later operating systems, ultimately shaping the landscape of personal and enterprise computing.