Steve Jobs

word “we” in that sentence, he cupped his hands and tapped his fingers on his chest. And then, in his final peroration, he continued to stress the word “we” as he talked about Apple’s future. “We too are going to think differently and serve the people who have been buying our products from the beginning. Because a lot of people think they’re crazy, but in that craziness we see genius.”During the prolonged standing ovation, people looked at each other in awe, and a few wiped tears from their eyes. Jobs had made it very clear that he and the “we” of Apple were one.
    The Microsoft Pact
    The climax of Jobs’s August 1997 Macworld appearance was a bombshell announcement, one that made the cover of both
Time
and
Newsweek.
Near the end of his speech, he paused for a sip of water and began to talk in more subdued tones. “Apple lives in an ecosystem,” he said. “It needs help from other partners. Relationships that are destructive don’t help anybody in this industry.” For dramatic effect, he paused again, and then explained: “I’d like to announce one of our first new partnerships today, a very meaningful one, and that is one with Microsoft.” The Microsoft and Apple logos appeared together on the screen as people gasped.
    Apple and Microsoft had been at war for a decade over a variety of copyright and patent issues, most notably whether Microsoft had stolen the look and feel of Apple’s graphical user interface. Just as Jobs was being eased out of Apple in 1985, John Sculley had struck a surrender deal: Microsoft could license the Apple GUI for Windows 1.0, and in return it would make Excel exclusive to the Mac for up to two years. In 1988, after Microsoft came out with Windows 2.0, Apple sued. Sculley contended that the 1985 deal did not apply to Windows 2.0 and that further refinements to Windows (such as copying Bill Atkinson’s trick of “clipping” overlapping windows) had made the infringement more blatant. By 1997 Apple had lost the case and various appeals, but remnants of the litigation and threats of new suits lingered. In addition, President Clinton’s Justice Department was preparing a massive antitrust case against Microsoft. Jobs invited the lead prosecutor, Joel Klein, to Palo Alto. Don’t worry about extracting a huge remedy against Microsoft, Jobs told him over coffee. Instead simply keep them tied up in litigation. That would allow Apple the opportunity, Jobs explained, to “make an end run” around Microsoft and start offering competing products.
    Under Amelio, the showdown had become explosive. Microsoft refused to commit to developing Word and Excel for future Macintosh operating systems, which could have destroyed Apple. In defense of Bill Gates, he was not simply being vindictive. It was understandable that he was reluctant to commit to developing for a future Macintosh operating system when no one, including the ever-changing leadership at Apple, seemed to know what that new operating system would be. Right after Apple bought NeXT, Amelio and Jobs flew together to visit Microsoft, but Gates had trouble figuring out which of them was in charge. A few days later he called Jobs privately. “Hey, what the fuck, am I supposed to put my applications on the NeXT OS?” Gates asked. Jobs responded by “making smart-ass remarks about Gil,” Gates recalled, and suggesting that the situation would soon be clarified.
    When the leadership issue was partly resolved by Amelio’s ouster, one of Jobs’s first phone calls was to Gates. Jobs recalled:
    I called up Bill and said, “I’m going to turn this thing around.” Bill always had a soft spot for Apple. We got him into the application software business. The first Microsoft apps were Excel and Word for the Mac. So I called him and said, “I need help.” Microsoft was walking over Apple’s patents. I said, “If we kept up our lawsuits, a few years from now we could win a billion-dollar patent suit. You know it, and I know it. But Apple’s not going to survive that long if we’re at war. I know that. So let’s figure out how to settle this right away. All I need is a commitment that Microsoft will keep developing for the Mac and an investment by Microsoft in Apple so it has a stake in our success.”
     
     
    When I recounted to him what Jobs said, Gates agreed it was accurate. “We had a group of people who liked working on the Mac stuff, and we liked the Mac,” Gates recalled. He had been negotiating with