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ChuckMcMlast Friday at 6:53 PM2 repliesview on HN

The original comment said they were both on the board of United Way. Those are the votes he'd be curating. United Way, at the time, was the largest non-profit in the United States and it's mission was to funnel donations to "deserving" non-profits. Many companies, including IBM, had a payroll contribution you could make to United Way. The 'service' United Way provided was doing the research to avoid scam charities and non-profits. The old joke "I gave at the office" when a person comes to your door asking for donations, was in reference to giving to United Way and implicitly telling the solicitor that if they wanted a donation to go to United Way and convince them to give some of the donated money to their charity.

As a result, being on the board gave a person tremendous soft power by giving them a direct impact on whether or not they chose to fund a non-profit. The way that expressed would be trips and junkets "for free" for United Way board members as a means of attempting to persuade them to fund a given non-profit. So let's say your kid starts a non-profit and you want other board members to advocate for it being funded. You, as the parent, have a conflict of interest and so must recuse yourself from that decision, but others on the board do not. Having someone in that meeting you can count on to make a solid case for your kids non-profit is worth a lot.

Rich people giving advantages to other rich people is frowned upon as collusion and nepotism, but when you launder that through a giving non-profit and even better you get to use other peoples money, and avoid a whole passel of tax implications. Well who is going to complain that United Way is funding this non-profit versus another? They had so much money to give away it was no doubt easy to hide the less well supported donations from things like the Red Cross or mothers against drunk driving donations.

That's the game at this level.


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canucker2016last Friday at 7:58 PM

Paul Allen states his version of the IBM selection of OS for their IBM PC in his autobiography, Idea Man.

see my comment at https://news.ycombinator.com/item?id=43591941 for the long version.

Hopefully short version.

IBM went to Microsoft (MS) for languages for the new PC. IBM asked if MS could provide an OS. As per unwritten agreement, MS told IBM to go to Digital Research (DRI) for an OS.

Whatever happened at DRI, IBM didn't get a licensing deal for an OS. No OS meant no need for MS languages. When IBM complained to MS about not getting a licensing agreement for CP/M for IBM PC, one of the MS people suggested Tim Patterson's CP/M clone. IBM was outsourcing everything to keep away the IBM bureaucracy, so they told MS to handle everything.

When MS asked IBM how they wanted to pay for the OS, MS gave several options including 1) per copy royalty, or 2) flat rate (which turned out to be $40K). For easy accounting, IBM chose 2). MS asked to be able to license OS to others. IBM said yes. MS didn't really care about how IBM paid for the OS, their bread and butter was languages. DRI wanted to be paid per copy of CP/M-86.

DRI still didn't have a retail CP/M-86 for IBM PC at launch time. By the time they did ship CP/M-86, charging much more than PC-DOS1.0, Lotus 123 would launch within a few months running on PC-DOS. By the time DRI lowered the price for CP/M-86, they were way behind in market share.

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WalterBrightlast Friday at 7:37 PM

The Gates family was indeed wealthy, but they were nowhere near the kind of wealth that would influence IBM. I'm sure Ms Gates was intelligent, well educated, and quite charming, but she didn't know anything about computers. IBM would have been foolish to let her decide their PC division's major decisions.

I.e. I'm not buying the notion that her influence went beyond simply suggesting they check into what her son was doing.

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