History of Silicon Valley and Success of Bill Gates - Research Paper Example

Report Title: Silicon Valley and Bill Gates Introduction ‘Valley of Dreams’, ‘Garden of America’, ‘Garden of the World’ are few of the names that have been given to the epicenter of information in the world- Silicon Valley. It is considered to be a place where people create and live their dreams. Pellow and Park (2002) explained that it is known as the birthplace of the computer chip and the place which successfully launched the first commercial personal computer. The focal point of the valley is to utilize the novel technology and create products and services that would change the way people live and make their lives more convenient. The valley situated along the San Francisco Bay area in the state of California in the United States, has become the hub of latest technology due to the great number of entrepreneurs and engineers present in the region. Silicon Valley lodges offices of some of the largest companies of the world; namely Oracle Corporation, Apple, Google, eBay, Hewlett Packard etc. Silicon Valley has been responsible for some of the most innovative breakthroughs in the field of software and internet. History of Silicon Valley Snitow and Kaufman (2002) highlighted the history of Silicon Valley and stated that this region was called “Valley of the Heart’s Delight”; since it was very rich in producing fruit trees and farms. With the advent of the technological trend; it came to be known as ‘Silicon Valley’. Cahners Publishing Company (1986) stated that ‘Valley’ indicates the valley of Santa Clara, which is situated at the San Francisco Bay. Whereas, ‘Silicon’ has been used to indicate the great magnitude of semi-conductor and computer companies in the region. This name was developed by Ralph Vaerst who was a well known entrepreneur in California. Fig.1: Santa Clara Valley History Association (2010) The phenomenon of this hub of technology was developed in 1970s but the origin of this place can be found as early as 1890s. Markoff (2009) highlighted the history of Silicon Valley and stated that the concept of this valley was initiated when Stanford University opened there. The people behind this university envisioned this establishment as a way to contribute to the West and therefore directed the institution in the same way. These pioneers wanted their region to become a powerful one because of which they encouraged their students to develop their own companies. Santa Clara Valley History Association (2010) stated in one their articles that in the decades of 1940s and 1950s, Fredrick Terman was the dean of Stanford University who induced the spirit of regional solidarity in his students and encouraged them to become entrepreneurs. It was due to his guidance and vision that some of the students launched a few companies, namely Hewlett-Packard and Varian Associates. At this point of time, the Silicon Valley that we know today had not taken its proper shape. Therefore these companies grew around the Stanford campus only. Tajnai (1985) explained that Terman is usually known as the ‘Father of Silicon Valley’. The students and affiliates of Stanford University have played a great role in the development of Silicon Valley. With the passage of some years, experimentation and research gave way to new developments in the fields of radio, semiconductor and computer chips. Many companies got attracted to this region of technological developments and started making their offices and research centers in Silicon Valley. Development of Computer Industry Santa Clara Valley History Association (2010) described random access memory system as one of the most important invention in the Silicon Valley. This invention was proudly owned by IBM in San Jose. It gave a boost to the small computer industry in that region in those times and established an entire new field of disk drives. Santa Clara Valley History Association (2010) further stated that later, Intel made a revolutionary invention that gave way to the computer systems that we know today. After much research and development, Intel devised the mechanism of installing read-only computer memory on chips. This served as the foundation for the most important invention of our times- microprocessor. Ted Hoff was responsible for proposing the architecture and Federico Faggin for its implementation. This breakthrough in computer technology had a positive effect on establishing the image of Silicon Valley as an important technological region. Enthusiastic technical professionals and entrepreneurs started considering Silicon Valley as a mecca. Silicon Valley started attracting high investments; not only local but also foreign investments. The open and inviting opportunities also added to the success of the region. Lécuyer (2010) explained that there was a lot revolutionary development witnessed in the area of semiconductors as well, that changed the electrical components manufacturing complex of that region. These blooming conditions of the computing and electronics industry introduced many jobs in Silicon Valley. Here is a chart showing the increase of jobs in different fields in Silicon Valley that have been witnessed over the years: Fig 2: Lécuyer (2010) It is apparent from the graph that computer jobs have always been very popular in the valley. Lécuyer (2010) further described that Hewlett-Packard had earlier only focused their business on electrical instruments. After the advent of the semiconductors and random access memory, they launched their efforts in the fields of calculators, minicomputers and printers. Some new projects also made them focus on video games like Atari, and other equipments like Rolm. The invention of personal computers attracted the attention of people from all over the world. A group of entrepreneurs started an informal club with the name of Homebrew Computer Club, to promote personal computer. They initiated many projects for PC in the mid 1970s, which included Processor Technology, Apple computer etc. After ceaseless efforts from these companies, Apple and Intel became the most prominent personal computer maker in the region. Development and innovative inventions continued to make Silicon Valley the hub of information technology and made it a dream for every IT professional to work there. The development and success of Silicon Valley becomes apparent in many success stories of its professionals and companies. Facts about Silicon Valley According to statistics from the Department of Planning, Building and Code Enforcement (2009) at Silicon Valley; the population of the capital of the Silicon Valley- San Jose; was estimated to be 1,006,892 in the population census of 2009. They concluded in their report that population in the region has increased by 21,585 persons or 2.2% since 2008. Silicon Valley does not only lodge US citizens but people from all over the world. According to a report by Silicon Valley Community Foundation; it was concluded that one fourth of their population is very new to the valley and have lived there since even less than 5 years. The survey regarding the origin of the residents concluded that one third of their population was born in their state, one third was a born somewhere else in the United States and a whole one third of their population belonged to different countries and nations of the world. The report by Silicon Valley Community Foundation also stated that the boom in the computer industry brought good money to the valley and gave new faces to their societies, but it has also created some difficulties for the people there. The prices of houses went up along with the rise in the cost of living. Fig. 3: Silicon Valley Community Foundation Silicon Valley is considered to be a land of opportunity for the entrepreneurs and IT professionals. Harris (2010) reported that the yearly total was $28 billion in 2008 and $30.5 billion in 2009 from venture investments in Silicon Valley. The region earns millions of dollars from new startups and existing flourishing businesses. Google (2010) conducted a survey that has been included in one of their articles; it stated that the global recession has victimized Silicon Valley as well. It is recorded that there was a loss of 90,000 jobs in the region between the 2nd quarter of 2008 and 2nd quarter of 2009. According to a news report by Kumar (2009, 15 April); the total capitalization that has been recorded for 2008, with respect to the top 150 companies of Silicon Valley, is about $850 billion. This number has decreased 32% due to the global recession. Success Story of Bill Gates Introduction Bill Gates is the founder of one of the world’s most successful companies- Microsoft. He is also one of the wealthiest men on the planet. He was born in a wealthy family who had a respectable position in the society. Paluri (2004) stated that his great-grandfather was a mayor of his town; his grandfather was the vice president of a national bank while his own father was a successful lawyer. Bill Gates was born in 1955. Fig. 4: Paluri (2004) Even from his childhood, he was motivated towards achieving great things. He was very smart and competitive. He used to get top grades in the subject of mathematics and science. He was very interested in computers even at that early age and made an informal club with the name of “Programmers Group” with his friends, in 1968. Through this group, Bill Gates found a medium to apply his knowledge about computers. In the following year, these group of students got the opportunity to work in Information Sciences Inc. as programmers. Their group became more structured after their first job at ISI. Gates’ Road to Success Paluri (2004) highlighted the start of Gates’ career and stated that after some time Bill Gates and his friend Allen decided to start a computer company with the name of “Traf-o-Data”. The main product of this small company was a small system to measure traffic flow. This project earned them $20,000. This company could not be maintained for long as Bill Gates left for Harvard University in 1973. But he stayed in touch with his friend Allen and often discussed their future plans of making a big company. After a year of studying in Harvard, Gates could not find anything that would seem suitable for him or challenging enough so he dropped out of there. Then, he decided to establish his own company with his friend in 1975, with the name of Microsoft. They did not realize that they were about to establish a revolutionary company that would serve millions of people around the world. Paluri (2004) explained that their vision was to have a computer on every desk for every individual and that computer would have Microsoft software on it. As mentioned earlier, Gates has always been a very ambitious person who loves meeting challenges in life. Later, they collaborated with IBM and became partners. This gave them the opportunity to give away the software with the machines that IBM sold in the market. They earned a certain royalty on every machine sold. After some years in the 1990s they launched their most successful software- Microsoft Windows, which became the operating system for most machines all over the world. In a short span, they captured 90% of the market and overshadowed all the other operating system software in the market. Fig. 5: Frommer and Angelova (2010) Microsoft is counted as one of the biggest companies of the world. According to a report by MSFT Investor Relations (2008); Microsoft recorded annual revenue of almost $60.42 billion in 2008. They have offices in around 105 countries and have 90,000 employees worldwide. It undertakes numerous activities such as development of a great number of software for computing devices, issues license to their software etc. Paluri (2004) further explained that he believes in setting goals and objectives, then working hard to achieve them at any cost. He does not merely rely on luck and destiny to make his life. On the contrary, he believes in making things happen for yourself and ceasing every opportunity that comes in ones way no matter how challenging it may look. His beliefs and will power are so strong that he will continue to be a good competition for the other companies for years to come. The best thing about Bill Gates is that he is not a greedy man. He believes in helping mankind in any way possible. Due to this spirit for humanity; Gates stepped down from the post of CEO in the year 2000, and became the chairman of the company. Then, later in 2006, he even stepped down from this post and transitioned from his job at Microsoft to a full-time job at his foundation. This foundation is the Bill and Melinda Gates foundation; it is meant to reduce poverty in the world, improve health care etc. He currently acts as the non-executive chairman of Microsoft. Role of Silicon Valley and Bill Gates in the Computer Industry Silicon Valley is considered as the place where many revolutionary inventions have been witnessed; these inventions provided the foundation for so many things that we use in our lives today and changed the world of computing for good. For example; IBM established setup a lab in Silicon Valley in 1950s to devise new data storage technologies. After ceaseless efforts, this establishment was able to invent the technology of disk drives and floppy disks. These technologies have evolved with time but even now follow the basic concept laid by IBM in Silicon Valley. In the same manner; personal computer was invented in the region which made the usage of computer convenient for the future generations. Silicon Valley has played a major role in the success of many companies and individuals and helped them in earning millions of dollars. This technological hub acts as a focal point for computing revolutions and thus provides a market for the computer companies and IT professionals to promote their new ideas and concepts. Silicon Valley has proven to be an accelerating platform for the promotion of computing technologies. Over the years, Microsoft has launched a range of software in the market. Bill Gates always had the vision of making computer technology accessible to every individual and easy enough to be operated by everyone. His products have always been developed with this concept in view. He has promoted the usage of computers throughout the world by making donations and giving away scholarships to students. For instance, Paluri (2004) stated that he visited an elementary school in Chicago some years back and donated $110,000 for the improvement of computer facilities and even carried out measures to provide internet connectivity to schools in that region. References Department of Planning, Building and Code Enforcement, (2009), Population and Housing Data, Retrieved from http://www.sanjoseca.gov/planning/data/population/default.asp Cahners Publishing Company, (1986), Datamation, Retrieved from http://www.netvalley.com/donhoefler.html Frommer, D., Angelova, K., (2010), Chart of the Day, Business Insider, Retrieved from http://www.businessinsider.com/chart-of-the-day-microsoft-operating-income-by-division-2010-2 Google, (2010), Silicon Valley future as innovation hub at risk: report, Retrieved from http://www.google.com/hostednews/afp/article/ALeqM5h2nOJzMfnFJJkqusB6v4kiRcXpHg Harris, S., D., (2010), Silicon Valley startup economy shifts into higher gear, Silicon Valley Mercury News, Retrieved from http://www.mercurynews.com/business/ci_14427334 Kumar, A., (2009, 15 April), Facing biggest slump since 2002, Silicon Valley firms eye India, The Gaea Times, Retrieved from http://blog.taragana.com/index.php/archive/facing-biggest-slump-since-2002-silicon-valley-firms-eye-india/ Lécuyer, C., (2010), Technology and Entrepreneurship in Silicon Valley, Noble Prize.org, Retrieved from http://nobelprize.org/nobel_prizes/physics/articles/lecuyer/index.html MSFT Investor Relations, (2008), Microsoft Fourth Quarter FY 2008 Earnings Release, Microsoft Corporation Markoff, J., (2009), Searching for Silicon Valley. New York Times, Retrieved from http://travel.nytimes.com/2009/04/17/travel/escapes/17Amer.html?pagewanted=1. Retrieved 2009-04 Pellow, D., N., Park, L. S., (2002), Silicon Valley of Dreams, New York University Press, NY, ISBN: 0-8147-6709-5, http://books.google.com.pk/books?id=Z4TI-niBdGkC&printsec=frontcover&dq=Silicon+Valley&source=bl&ots=pM7pZDfn89&sig=qXe14Er53OFg72ZLy4PmSKnAftw&hl=en&ei=0nd_S9zPEcjBrAef_difBw&sa=X&oi=book_result&ct=result&resnum=16&ved=0CD0Q6AEwDw#v=onepage&q=&f=false Paluri, R., K., (2004), Bill Gates – A story of Success, Buzzle.com, Retrieved from http://www.buzzle.com/editorials/7-19-2004-56835.asp Santa Clara Valley History Association, (2010), Silicon Valley's History, Retrieved from http://www.siliconvalleyhistorical.org/home/silicon_valley Silicon Valley Community Foundation, Giving Back- The Silicon Valley Way, Retrieved from http://www.siliconvalleycf.org/docs/GivingBackSVWay2.pdf Snitow, A., Kaufman, D., (2002), Secrets of Silicon Valley, Retrieved from http://www.secretsofsiliconvalley.org/studyguide.pdf Tajnai, C., E., (1985), Fred Terman: The Father of Silicon Valley, Manager Stanford Computer Forum Stanford University, Retrieved from http://www.netvalley.com/archives/mirrors/terman.html Read More