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In 1943, IBM chairman Thomas Watson allegedly said, 'I think there is a world market for maybe five computers.' Whether or not he actually said this, the sentiment was common—computers were massive, expensive machines for governments and large corporations.
By 1977, that assumption lay in ruins. The Apple II, Commodore PET, and TRS-80 hit the market—affordable computers for homes and small businesses. Within a decade, 'personal computer' went from oxymoron to household term.
This revolution demanded entirely new thinking about operating systems. Time-sharing optimized for many users sharing one expensive machine. Personal computing inverted this: one user, one machine, entirely their own.
By the end of this page, you will understand how the personal computer revolution transformed operating systems, from early single-tasking systems like CP/M and DOS through the graphical revolution of the Macintosh and Windows, to the eventual adoption of robust multi-tasking kernels that we use today.
Personal computers became possible because of one invention: the microprocessor—an entire CPU on a single integrated circuit chip.
The Intel 4004 (1971):
The first commercial microprocessor was designed for calculators, not computers. But visionaries saw the potential:
| Processor | Year | Word Size | Transistors | Significance |
|---|---|---|---|---|
| Intel 4004 | 1971 | 4-bit | 2,300 | First commercial microprocessor |
| Intel 8008 | 1972 | 8-bit | 3,500 | First 8-bit processor |
| Intel 8080 | 1974 | 8-bit | 6,000 | Enabled first PCs (Altair) |
| MOS 6502 | 1975 | 8-bit | 3,510 | Apple II, Commodore, Atari |
| Zilog Z80 | 1976 | 8-bit | 8,500 | CP/M machines, TRS-80 |
| Intel 8086 | 1978 | 16-bit | 29,000 | IBM PC ancestor |
| Intel 8088 | 1979 | 16-bit | 29,000 | IBM PC processor |
Rapid Price Decline:
Moore's Law—the observation that transistor density doubles approximately every two years—meant that computing power became exponentially cheaper:
| Year | Computer | Price | Computing Power |
|---|---|---|---|
| 1965 | IBM 360/50 | $500,000 | Benchmark: 1.0 |
| 1975 | Altair 8800 | $395 (kit) | ~0.001 |
| 1977 | Apple II | $1,298 | ~0.01 |
| 1981 | IBM PC | $1,565 | ~0.1 |
| 1984 | Mac 128K | $2,495 | ~0.2 |
| 1995 | Pentium PC | $2,000 | ~10 |
Price dropped while power increased—within 20 years, a $2000 PC exceeded the capabilities of a $500,000 mainframe.
The January 1975 Popular Electronics cover featured the Altair 8800—a kit computer hobbyists could build for $395. Two young programmers—Bill Gates and Paul Allen—saw the article and realized the software opportunity. They wrote BASIC for the Altair, founding Microsoft. This moment, driven by cheap microprocessors, launched the personal computing industry.
Early microcomputers had minimal operating systems—often just a BASIC interpreter in ROM. But as systems gained floppy disk drives, a proper disk operating system became essential.
CP/M - Control Program for Microcomputers (1974):
Gary Kildall's CP/M became the first dominant microcomputer OS. It established patterns that would persist through DOS and beyond:
CP/M's Genius: Hardware Abstraction
CP/M's layered architecture solved a critical problem: the microcomputer market was fragmented. Dozens of manufacturers made incompatible hardware. CP/M isolated hardware dependencies in the BIOS, allowing the same software to run on any CP/M machine:
Application Software
│
│ (uses standard BDOS calls)
▼
┌─────────┐
│ BDOS │ ← Same for all machines
└────┬────┘
│ (uses BIOS)
▼
┌─────────┐
│ BIOS │ ← Different for each machine
└────┬────┘
│
▼
Hardware
Software developers could write once and sell to the entire CP/M market—a precursor to today's platform ecosystems.
CP/M (and later DOS) had no memory protection whatsoever. User programs could access any memory address, including the OS itself. A buggy program could crash the entire system. This was accepted because personal computers had one user—if you crashed your own machine, you only hurt yourself.
MS-DOS / PC DOS (1981):
When IBM built the PC, they approached Microsoft for an operating system. Microsoft purchased QDOS (Quick and Dirty Operating System) from Seattle Computer Products, modified it, and licensed it as MS-DOS (to IBM) and PC DOS (IBM's version).
DOS was heavily influenced by CP/M—similar architecture, similar commands (DIR instead of CP/M's DIR, TYPE instead of TYPE, etc.). The key differences:
| Feature | CP/M | DOS |
|---|---|---|
| Processor | Intel 8080, Z80 (8-bit) | Intel 8088/8086 (16-bit) |
| Memory Limit | 64 KB | 640 KB (1 MB addressable) |
| File Names | 8.3 format | 8.3 format (same) |
| Directories | None (flat) | Hierarchical (DOS 2.0+) |
| Device Model | Fixed device names | DOS device model |
| Market | Hobbyist, business | Business, home |
DOS Characteristics:
Single-Tasking: One program at a time. When you ran a program, it took over completely. To run another program, you had to exit the first.
Command-Line Interface: Users typed commands at the C:\> prompt. No built-in graphics—programs could draw directly to screen memory.
Real Mode Only: The 8088's limited memory model meant programs could access all memory—no protection.
Terminate and Stay Resident (TSR): A clever hack allowing programs to remain in memory after 'exiting', providing primitive multitasking (pop-up utilities, print spoolers).
640KB Limit: Due to IBM's memory map design, only 640KB of RAM was available for DOS programs—the infamous 'conventional memory' limit that plagued PCs for years.
While CP/M and DOS served power users well, they required learning arcane commands. A parallel development would ultimately transform computing: the Graphical User Interface (GUI).
Xerox PARC (1973-1979):
Xerox's Palo Alto Research Center developed breakthrough technologies that defined modern computing: the Alto computer with its bit-mapped display, mouse input, windowing system, and object-oriented programming.
The Alto's interface was revolutionary:
In December 1979, Steve Jobs visited Xerox PARC. He later said: 'Within ten minutes, it was obvious to me that all computers would work like this someday.' Apple licensed concepts from Xerox and began developing the Lisa (1983) and Macintosh (1984). This visit transformed Apple's direction—and computing history.
Apple Lisa (1983) and Macintosh (1984):
The Lisa was Apple's first GUI computer—technically impressive but at $9,995, commercially unsuccessful. The Macintosh, launched in January 1984 at $2,495, brought the GUI to (upper) mainstream consumers.
Microsoft Windows (1985-1995):
Microsoft saw the GUI future but faced a challenge: millions of existing DOS users and software. Windows began as a graphical shell running on top of DOS:
Windows 1.0 (1985): Tiled windows only (couldn't overlap), limited capabilities, slow. Commercial failure.
Windows 2.0 (1987): Overlapping windows, better performance, VGA support. Modest success.
Windows 3.0 (1990): Major redesign. Protected mode support for more memory, improved graphics, program manager. First mass-market Windows success.
Windows 3.1 (1992): Refined, stable, TrueType fonts, OLE. Became ubiquitous in business.
Windows 95 (1995): Revolutionary release. 32-bit support, true preemptive multitasking, long file names, Plug and Play, Start menu, taskbar. Defined the PC interface for a generation.
| Version | Year | Key Advancement | DOS Dependency |
|---|---|---|---|
| Windows 1.0 | 1985 | First GUI for PC | Runs on top of DOS |
| Windows 3.0 | 1990 | Protected mode, virtual memory | Runs on top of DOS |
| Windows 3.1 | 1992 | Stability, multimedia | Runs on top of DOS |
| Windows 95 | 1995 | 32-bit, preemptive multitasking | DOS integrated underneath |
| Windows 98 | 1998 | USB, Internet integration | DOS still present |
| Windows ME | 2000 | Last DOS-based Windows | DOS-based, buggy |
While Windows 3.x and 95 added GUI sophistication, they remained fundamentally limited by their DOS heritage. Microsoft needed a true modern OS for professional use.
Windows NT (New Technology, 1993):
Microsoft recruited Dave Cutler, the architect of DEC's VMS operating system, to design a completely new OS from scratch. NT was everything DOS-based Windows wasn't:
NT Architecture:
┌─────────────────────────────────────────────────────────────┐
│ User Mode Applications │
├─────────────────────────────────────────────────────────────┤
│ Win32 │ POSIX │ OS/2 │ Security Subsystem │
│ Subsystem│ Subsystem│ Subsystem│ │
├───────────┴───────────┴───────────┴─────────────────────────┤
│ NT Executive Services │
│ ┌─────────┬──────────┬──────────┬──────────┬────────────┐ │
│ │ I/O Mgr │ Obj Mgr │ Proc Mgr │ Memory │ Security │ │
│ │ │ │ │ Manager │ Ref Monitor│ │
│ └─────────┴──────────┴──────────┴──────────┴────────────┘ │
├─────────────────────────────────────────────────────────────┤
│ Hardware Abstraction Layer (HAL) │
├─────────────────────────────────────────────────────────────┤
│ Hardware │
└─────────────────────────────────────────────────────────────┘
Key NT Design Decisions:
Every modern Windows—Windows 2000, XP, Vista, 7, 8, 10, 11—is descended from Windows NT. The NT kernel remains the foundation, evolved but fundamentally the same architecture designed in the early 1990s. Understanding NT is understanding Windows today.
While Microsoft dominated the PC market, Unix—born in the time-sharing era—found its way to personal computers through multiple paths.
BSD and University Unix (1970s-1990s):
The University of California, Berkeley extended AT&T Unix with virtual memory, networking (the TCP/IP stack used everywhere today), and the vi editor. BSD (Berkeley Software Distribution) became the Unix of choice for research and engineering.
BSD variants continue today: FreeBSD (servers), OpenBSD (security), NetBSD (portability).
Linux (1991-present):
Linus Torvalds, a Finnish student, began writing a Unix-like kernel for his 386 PC in 1991. Unlike commercial Unix, Linux was freely distributed under the GNU General Public License.
Linux is technically just the kernel. The complete operating system combines Linux with GNU utilities (bash, coreutils, gcc), creating what Richard Stallman insists should be called 'GNU/Linux'. Most users just say 'Linux', understanding it means the kernel plus the surrounding software ecosystem.
macOS: Unix with a Beautiful Face (2001-present):
When Steve Jobs returned to Apple in 1997, the classic Mac OS was showing its age—no modern memory protection, no preemptive multitasking. Apple needed a new foundation.
The solution came from NeXT, Jobs's company during his exile from Apple. NeXTSTEP was built on Mach (a microkernel from CMU) and BSD Unix. Apple combined these into Darwin, the open-source Unix core of macOS:
┌─────────────────────────────────────────┐
│ macOS Applications │
├─────────────────────────────────────────┤
│ Cocoa/Cocoa Touch │ Carbon │
├─────────────────────────────────────────┤
│ Core Services │
│ (CoreFoundation, Security, etc.) │
├─────────────────────────────────────────┤
│ Darwin (XNU Kernel) │
│ ┌─────────────────┬─────────────────┐ │
│ │ Mach Kernel │ BSD Layer │ │
│ └─────────────────┴─────────────────┘ │
└─────────────────────────────────────────┘
macOS demonstrates that Unix can power an intuitive consumer OS. The same Darwin kernel underlies iOS, iPadOS, watchOS, and tvOS—Unix runs on billions of Apple devices.
The personal computer era led to remarkable operating system diversity. By the mid-200os, three major families dominated:
Windows Family:
Unix/Linux Family:
Apple Family:
| Domain | Dominant OS | Runner-up | Notes |
|---|---|---|---|
| Desktop | Windows (~75%) | macOS (~15%) | Linux growing slowly |
| Server | Linux (~75%) | Windows (~25%) | Linux dominates web, cloud |
| Mobile | Android (~70%) | iOS (~28%) | Both Unix-derived |
| Supercomputers | Linux (~99%) | Other (~1%) | Nearly complete dominance |
| Embedded | Linux, RTOS | Windows IoT | Fragmented market |
| Cloud | Linux (~90%) | Windows (~10%) | AWS, GCP, Azure mostly Linux |
Despite surface differences, modern operating systems share fundamental concepts: preemptive multitasking, virtual memory, hierarchical filesystems, user/kernel separation, process abstraction. The PC era standardized these ideas across all platforms. An OS designer from 1970 would recognize the core principles in any modern system.
The personal computer era established user interface paradigms that remain dominant today. Let's examine the key elements that emerged and their evolution:
The Desktop Metaphor's Longevity:
Despite being over 40 years old, the desktop metaphor persists:
Attempts to replace this metaphor (like Windows 8's full-screen Start) faced user resistance. The desktop metaphor succeeded because it mapped computing concepts to familiar physical objects, reducing cognitive load.
Touch and Beyond:
Mobile computing introduced new idioms—swiping, pinching, long-pressing—but didn't eliminate WIMP concepts. Rather, it adapted them. iOS and Android still use windows (now fullscreen), icons, and a form of pointer (the finger). The PC-era foundations remain.
The personal computer revolution transformed computing from an institutional resource to a personal tool. Operating systems evolved to match, prioritizing individual productivity over shared resource management:
What's Next:
The personal computer brought computing to the home and office. The next evolution would bring it everywhere else—into cars, appliances, factories, and pockets. The final page explores modern OS evolution: mobile computing, cloud infrastructure, containers, and the emerging patterns that will define operating systems for the next generation.
You now understand how personal computers transformed operating systems from time-sharing utilities to personal productivity tools. From CP/M through Windows 11, from Lisa through macOS, from Minix through Linux—the PC era established the computing paradigm billions of people use every day. Next, we'll examine how modern operating systems continue to evolve.