The Rise of the Tech Giants: A Story of Innovation and Rivalry
Questions about the Movie Pirates of Silicon Valley
1. What was the first microcomputer commercially released? By which company? Was this computer successful? Why?
The Altair 8800, released by Micro Instrumentation Telemetry Systems (MITS), was the first commercially successful microcomputer. It featured eight bits, 256 bytes of RAM, input through a front key bank, and output via LEDs. Sold primarily as a kit, the Altair’s simplicity, while not entirely practical, sparked further software development and a trend of lower computer prices, making personal computers accessible to students, a demographic previously excluded due to high costs.
2. Describe a movie scene that uses the term “venture capitalism.”
In one scene, Steve Jobs visits Mike Markkula’s father’s garage, the birthplace of Apple Computer. Upon greeting Steve, Markkula’s father remarks that Mike has “taken his intelligence to Intel.”
3. Describe two scenes where large companies failed to recognize the value of innovative technologies. List the company and technology. Why did these companies fail to see the potential?
In one scene, Steve Jobs presents his computer to Hewlett-Packard, who dismiss the idea, believing ordinary people wouldn’t want computers. Another scene depicts Xerox executives in New York failing to grasp the significance of their California engineers’ inventions, such as the mouse and graphical user interface, dismissing them as insignificant.
4. Who said the phrase “profits are in hardware, not software?” Describe the scene. Comment on this phrase. How has the market’s perception of hardware versus software value changed since then?
An IBM executive uttered this phrase during a meeting with Bill Gates, who was trying to sell them DOS. At the time, hardware was considered more important than software. However, Gates convinced IBM of the software’s importance. Today, the perception has shifted, with software often seen as more valuable due to its content and high-value applications, including licensing fees.
5. Describe movie scenes that use the term “competitive intelligence.”
One scene involves Steve Jobs visiting Mike Markkula’s father’s garage, where Apple Computer began, and learning that Mike has joined Intel. Other scenes depict the market competition between IBM and Apple, the rivalry between the Apple II and Macintosh teams, and Microsoft outmaneuvering Apple by releasing Windows first.
6. Describe some of Bill Gates’ strategies as portrayed in the movie.
One strategy was presenting a computer language to a potential buyer even though he didn’t yet have the program, knowing he could find someone to create it and profit. Another strategy involved infiltrating Apple to gain access to the unreleased Macintosh, allowing him to modify their software and release Windows first, gaining a competitive edge.
7. Describe the expectations of Paul Allen and the owner of Seattle Computer Products when they planned to buy DOS. What were the potential consequences for Paul Allen if he couldn’t buy it? What was the Seattle Computer owner’s perception of DOS’s value?
They risked missing a significant business opportunity and potential wealth. The owner of Seattle Computer Products had a low perception of DOS’s value, selling it for $50,000, unaware of its potential worth.
8. Who said “good artists copy, great artists steal?” Comment on this phrase.
Steve Jobs said this phrase, justifying Apple’s appropriation of Xerox’s inventions. Bill Gates later echoed the sentiment when infiltrating Apple to gather information.