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some friction with his programmers It s kind of painful sometimes if you have somebody else working on the project They never code stuff exactly the same way you like to see it coded I remember when we were working on Basic, I d go back and recode other people s section of code, without making any dramatic improvements That bothers people when you go in and do that, but sometimes you just feel like you have to do it 17 Following the early urry of excitement with the Altair, the IBM PC soon eclipsed the Apple II and every other machine on the market By the end of 1983, IBM had sold more than a half million PCs.

Bruce Johnson, Gary Katler, Pat Lynch, John Newhouse, Jim Oliff, William Salatich, Jack Sandner, William Shepard, Howard Siegel, and myself) as representing the past and having inherent con icts At one point the Audit Committee was asked by management to retain an outside consultant for recommendations regarding the composition of the board It seemed to Bill Miller that such an exercise should come from the full board rather than the CEO unless, in Bill s words, it was postured to a speci c conclusion against existing board members In March of 2002, Bill called me in Arizona to alert me of this eventuality in order that I could make it known to the entire board.

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At the time, there were four types of software in the microcomputer business: operating systems like Gary Kildall s CP/M, programming languages like Bill Gate s Basic, applications like VisiCalc, and utilities Gates knew very little about applications, but when Charles Simonyi joined Microsoft in 1979, he brought with him his experience in developing application software Simonyi came straight from PARC and brought with him exactly the expertise that Gates needed to start an applications division at Microsoft They quickly made a wish list of products to develop, including a spreadsheet program, a word processor, and a database package Simonyi was one of many PARC transplant successes Simonyi also brought his PhD research to Microsoft Reading through the dissertation, Gates saw in Simonyi s meta-programmer concept just the mechanism he thought he needed to control Microsoft and its fty employees The term meta-programmer was not used at Microsoft.

Purchase Operating Expense as % of Purchase Spend % Purchase Spend Managed/ Controlled by Purchasing

Gates called his system at Microsoft a software factory, but what he and Simonyi implemented at Microsoft was a hierarchy of meta-programmers Unlike Simonyi s original vision, Gates implemented several levels of metaprogrammers, which allowed a much larger organization Gates was the lead meta-programmer But after less than three months, the meta-programming experiment was a failure according to at least one observer18 The lesson was that art cannot ourish in an autocracy This highly specialized top down approach proved inef cient and counterproductive Software development, like the writing of books, is an iterative process You write a program and if it doesn t work, you improve it The information ow was never adequate to demonstrate success Microsoft went back to writing code in the conventional manner But the structure of architects and program managers was left in place.

A telling example of lack of recognition of the history and culture at the Merc was evidenced in a conversation that I once had with Satish Nandapurkar in my of ce sometime near the end of 2001 Satish had come up with a chart to show me the plan he and Jim had devised showing the CME s potential massive revenue stream The plan had a speci c purpose, to attract investors to the forthcoming IPO planned for some time in early 2002 (The IPO, at the insistence of some of us, was delayed and later delayed again) His chart showed how in the following year, on a given date, the CME s revenue stream would suddenly rocket skyward Puzzled, I asked, How is this going to happen Satish explained that on that day, the Eurodollar futures complex would go exclusively electronic.

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