Microsoft and IBM Partnership for Operating System

The partnership between Microsoft and IBM marked a pivotal moment in the evolution of personal computing. Microsoft entered into an agreement with IBM to provide an operating system that would be bundled with IBM's personal computers. This arrangement allowed Microsoft to receive royalties for each computer sold, establishing a revenue model that would significantly contribute to its growth. The collaboration not only provided IBM with a reliable operating system but also positioned Microsoft as a key player in the software industry. As IBM was a leading manufacturer of personal computers, this partnership enabled Microsoft to gain widespread exposure and credibility in the market. Following the initial success, IBM sought to develop a new operating system known as OS/2, which Microsoft was tasked to create. However, Microsoft continued to market its own operating system, leading to competition between OS/2 and Microsoft's alternative. This competition played a crucial role in shaping the operating system landscape, as it encouraged innovation and improvements in software development. The partnership ultimately laid the groundwork for the dominance of Microsoft in the operating system market, influencing the trajectory of personal computing and software development for years to come.