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Microsoft PowerPoint

Presentation application, part of Microsoft 365 and Microsoft Office

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It was originally created by Robert Gaskins, Tom Rudkin, and Dennis Austin at a software company named Forethought, Inc. It was released on April 20, 1987, initially for Macintosh computers only. Microsoft acquired PowerPoint for about $14 million three months after it appeared. This was Microsoft's first significant acquisition, and Microsoft set up a new business unit for PowerPoint in Silicon Valley where Forethought had been located.

PowerPoint became a component of the Microsoft Office suite, first offered in 1989 for Macintosh and in 1990 for Windows, which bundled several Microsoft apps. Beginning with PowerPoint 4.0 (1994), PowerPoint was integrated into Microsoft Office development, and adopted shared common components and a converged user interface.

PowerPoint's market share was very small at first, prior to introducing a version for Microsoft Windows, but grew rapidly with the growth of Windows and of Office. Since the late 1990s, PowerPoint's worldwide market share of presentation software has been estimated at 95 percent.

PowerPoint was originally designed to provide visuals for group presentations within business organizations, but has come to be widely used in other communication situations in business and beyond. The wider use led to the development of the PowerPoint presentation as a new form of communication, with strong reactions including advice that it should be used less, differently, or better.

The first PowerPoint version (Macintosh, 1987) was used to produce overhead transparencies, the second (Macintosh, 1988; Windows, 1990) could also produce color 35 mm slides. The third version (Windows and Macintosh, 1992) introduced video output of virtual slideshows to digital projectors, which would over time replace physical transparencies and slides. A dozen major versions since then have added additional features and modes of operation and have made PowerPoint available beyond Apple Macintosh and Microsoft Windows, adding versions for iOS, Android, and web access.

History

Creation at Forethought (1984–1987)

PowerPoint was created by Robert Gaskins and Dennis Austin at a software startup in Silicon Valley named Forethought, Inc. Forethought had been founded in 1983 to create an integrated environment and applications for future personal computers that would provide a graphical user interface, but it had run into difficulties requiring a "restart" and new plan.

On July 5, 1984, Forethought hired Robert Gaskins as its vice president of product development to create a new application that would be especially suited to the new graphical personal computers, such as the Apple Macintosh and later Microsoft Windows. Gaskins produced his initial description of PowerPoint about a month later (August 14, 1984) in the form of a 2-page document titled "Presentation Graphics for Overhead Projection." By October 1984, Gaskins had selected Dennis Austin to be the developer for PowerPoint. Gaskins and Austin worked together on the definition and design of the new product for nearly a year, and produced the first specification document dated August 21, 1985. This first design document showed a product as it would look in Microsoft Windows 1.0, which at that time had not been released.

Development from that spec was begun by Austin in November 1985, for Macintosh first. About six months later, on May 1, 1986, Gaskins and Austin chose a second developer to join the project, Thomas Rudkin. Gaskins prepared two final product specification marketing documents in June 1986; these described a product for both Macintosh and Windows. At about the same time, Austin, Rudkin, and Gaskins produced a second and final major design specification document, this time showing a Macintosh look.

Throughout this development period, the product was called "Presenter". Then, just before release, there was a last-minute check with Forethought's lawyers to register the name as a trademark, and "Presenter" was unexpectedly rejected because it had already been used by someone else. Gaskins says that he thought of "PowerPoint", based on the product's goal of "empowering" individual presenters, and sent that name to the lawyers for clearance, while all the documentation was hastily revised.

Funding to complete development of PowerPoint was assured in mid-January 1987, when a new Apple Computer venture capital fund, called Apple's Strategic Investment Group, selected PowerPoint to be its first investment. A month later, on February 22, 1987, Forethought announced PowerPoint at the Personal Computer Forum in Phoenix; John Sculley, the CEO of Apple, appeared at the announcement and said "We see desktop presentation as potentially a bigger market for Apple than desktop publishing."

PowerPoint 1.0 for Macintosh shipped from manufacturing on April 20, 1987, and the first production run of 10,000 units was sold out.

Acquisition by Microsoft (1987–1992)

By early 1987, Microsoft was starting to plan a new application to create presentations, an activity led by Jeff Raikes, who was head of marketing for the Applications Division. Microsoft assigned an internal group to write a specification and plan for a new presentation product. They contemplated an acquisition to speed up development, and in early 1987 Microsoft sent a letter of intent to acquire Dave Winer's product called MORE, an outlining program that could print its outlines as bullet charts. During this preparatory activity Raikes discovered that a program specifically to make overhead presentations was already being developed by Forethought, Inc., and that it was nearly completed. Raikes and others visited Forethought on February 6, 1987, for a confidential demonstration.

Raikes later recounted his reaction to seeing PowerPoint and his report about it to Bill Gates, who was initially skeptical:

I thought, "software to do overheads—that's a great idea." I came back to see Bill. I said, "Bill, I think we really ought to do this;" and Bill said, "No, no, no, no, no, that's just a feature of Microsoft Word, just put it into Word." ... And I kept saying, "Bill, no, it's not just a feature of Microsoft Word, it's a whole genre of how people do these presentations." And, to his credit, he listened to me and ultimately allowed me to go forward and ... buy this company in Silicon Valley called Forethought, for the product known as PowerPoint.

When PowerPoint was released by Forethought, its initial press was favorable; the Wall Street Journal reported on early reactions: "'I see about one product a year I get this excited about,' says Amy Hora, a consultant in Bala Cynwyd, Pa. 'People will buy a Macintosh just to get access to this product.'"

On April 28, 1987, a week after shipment, a group of Microsoft's senior executives spent another day at Forethought to hear about initial PowerPoint sales on Macintosh and plans for Windows. The following day, Microsoft sent a letter to Dave Winer withdrawing its earlier letter of intent to acquire his company, and in mid-May 1987 Microsoft sent a letter of intent to acquire Forethought. As requested in that letter of intent, Robert Gaskins from Forethought went to Redmond for a one-on-one meeting with Bill Gates in early June 1987, and by the end of July an agreement was concluded for an acquisition. The New York Times reported:

... July 30, 1987— The Microsoft Corporation announced its first significant software acquisition today, paying $14 million [$39.7 million in present-day terms] for Forethought Inc. of Sunnyvale, Calif. Forethought makes a program called PowerPoint that allows users of Apple Macintosh computers to make overhead transparencies or flip charts. ... [T]he acquisition of Forethought is the first significant one for Microsoft, which is based in Redmond, Wash. Forethought would remain in Sunnyvale, giving Microsoft a Silicon Valley presence. The unit will be headed by Robert Gaskins, Forethought's vice president of product development.

Microsoft's president Jon Shirley offered his company's motivation for the acquisition: "'We made this deal primarily because of our belief in desktop presentations as a product category. ... Forethought was first to market with a product in this category.'" Microsoft had 50% market share in Macintosh applications, and led in three categories; Raikes said that after the acquisition it would lead in five categories. (Forethought distributed the database Filemaker, which Microsoft wanted to continue marketing.) The company intended for Forethought to be its Silicon Valley base to develop and market future graphics software, so set up within its Applications Division, an independent "Graphics Business Unit" for PowerPoint, the first Microsoft application group distant from the main Redmond location. The company hoped to hire employees uninterested in living in Washington state; by 1987 more than 90% of Microsoft developers came from outside Seattle. All the PowerPoint people from Forethought joined Microsoft, and the new location was headed by Robert Gaskins, with Dennis Austin and Thomas Rudkin leading development. PowerPoint 1.0 for Macintosh was modified to indicate the new Microsoft ownership and continued to be sold. A year after the acquisition, Gaskins reported that all seven Forethought PowerPoint employees had stayed with Microsoft, and the Graphics Business Unit had hired 12 employees, many of whom did not want to move to Redmond. The GBU had moved to a new location on Sand Hill Road in Menlo Park, California; it was much larger than needed for 19 people, but Gaskins wrote that he and Microsoft wanted future capacity as the company grew in Silicon Valley.

A new PowerPoint 2.0 for Macintosh, adding color 35 mm slides, shipped in May 1988, and again received good reviews. The same PowerPoint 2.0 product re-developed for Windows was shipped two years later, in mid-1990, at the same time as Windows 3.0. Much of the color technology was the result of a joint development partnership with Genigraphics, the dominant presentation services company.

PowerPoint 3.0, which was shipped in 1992 for both Windows and Mac, added live video for projectors and monitors, with the result that PowerPoint was thereafter used for delivering presentations as well as for preparing them. This was at first an alternative to overhead transparencies and 35 mm slides, but over time would come to replace them.

Part of Microsoft Office (since 1993)

PowerPoint had been included in Microsoft Office from the beginning. PowerPoint 2.0 for Macintosh was part of the first Office bundle for Macintosh which was offered in mid-1989. When PowerPoint 2.0 for Windows appeared, a year later, it was part of a similar Office bundle for Windows, which was offered in late 1990. Both of these were bundling promotions, in which the independent applications were packaged together and offered for a lower total price.

PowerPoint 3.0 (1992) was again separately specified and developed, and was advertised and sold separately from Office. It was, as before, included in Microsoft Office 3.0, both for Windows and the corresponding version for Macintosh.

A plan to integrate the applications themselves more tightly had been indicated as early as February 1991, toward the end of PowerPoint 3.0 development, in an internal memo by Bill Gates:

Another important question is what portion of our applications sales over time will be a set of applications versus a single product. ... Please assume that we stay ahead in integrating our family together in evaluating our future strategies—the product teams WILL deliver on this. ... I believe that we should position the "OFFICE" as our most important application.

The move from bundling separate products to integrated development began with PowerPoint 4.0, developed in 1993–1994 under new management from Redmond. The PowerPoint group in Silicon Valley was reorganized from the independent "Graphics Business Unit" (GBU) to become the "Graphics Product Unit" (GPU) for Office, and PowerPoint 4.0 changed to adopt a converged user interface and other components shared with the other apps in Office.

When it was released, the computer press reported on the change approvingly: "PowerPoint 4.0 has been re-engineered from the ground up to resemble and work with the latest applications in Office: Word 6.0, Excel 5.0, and Access 2.0. The integration is so good, you'll have to look twice to make sure you're running PowerPoint and not Word or Excel." Office integration was further underscored in the following version, PowerPoint 95, which was given the version number PowerPoint 7.0 (skipping 5.0 and 6.0) so that all the components of Office would share the same major version number.

Although PowerPoint by this point had become part of the integrated Microsoft Office product, its development remained in Silicon Valley. Succeeding versions of PowerPoint introduced important changes, particularly version 12.0 (2007) which had a very different shared Office "ribbon" user interface, and a new shared Office XML-based file format. This marked the 20th anniversary of PowerPoint, and Microsoft held an event to commemorate that anniversary at its Silicon Valley Campus for the PowerPoint team there. Special guests were Robert Gaskins, Dennis Austin, and Thomas Rudkin, and the featured speaker was Jeff Raikes, all from PowerPoint 1.0 days, 20 years before.

Since then major development of PowerPoint as part of Office has continued. New development techniques (shared across Office) for PowerPoint 2016 have made it possible to ship versions of PowerPoint 2016 for Windows, Mac, iOS, Android, and web access nearly simultaneously, and to release new features on an almost monthly schedule. PowerPoint development is still carried out in Silicon Valley as of 2017.

In 2010, Jeff Raikes, who had most recently been President of the Business Division of Microsoft (including responsibility for Office), observed: "of course, today we know that PowerPoint is oftentimes the number two—or in some cases even the number one—most-used tool" among the applications in Office.

Sales and market share

PowerPoint's initial sales were about 40,000 copies sold in 1987 (nine months), about 85,000 copies in 1988, and about 100,000 copies in 1989, all for Macintosh. Computer Intelligence estimated that year that Microsoft had 6% of the Fortune 1000 PC presentation software market, third to Ashton-Tate's 40% and Lotus Development's 20%. PowerPoint's market share in its first three years was a tiny part of the total presentation market, which was very heavily dominated by MS-DOS applications on PCs. The market leaders on MS-DOS in 1988–1989 were Harvard Graphics (introduced by Software Publishing in 1986) in first place, and Lotus Freelance Plus (also introduced in 1986) as a strong second. They were competing with more than a dozen other MS-DOS presentation products, and Microsoft did not develop a PowerPoint version for MS-DOS. After three years, PowerPoint sales were disappointing. Jeff Raikes, who had bought PowerPoint for Microsoft, later recalled: "By 1990, it looked like it wasn't a very smart idea [for Microsoft to have acquired PowerPoint], because not very many people were using PowerPoint."

This began to change when the first version for Windows, PowerPoint 2.0, brought sales up to about 200,000 copies in 1990 and to about 375,000 copies in 1991, with Windows units outselling Macintosh. PowerPoint sold about 1 million copies in 1992, of which about 80 percent were for Windows and about 20 percent for Macintosh, and in 1992 PowerPoint's market share of worldwide presentation graphics software sales was reported as 63 percent. By the last six months of 1992, PowerPoint revenue was running at a rate of over $100 million annually ($283 million in present-day terms).

Sales of PowerPoint 3.0 doubled to about 2 million copies in 1993, of which about 90 percent were for Windows and about 10 percent for Macintosh, and in 1993 PowerPoint's market share of worldwide presentation graphics software sales was reported as 78 percent. In both years, about half of total revenue came from sales outside the U.S.

By 1997 PowerPoint sales had doubled again, to more than 4 million copies annually, representing 85 percent of the world market. Also in 1997, an internal publication from the PowerPoint group said that by then over 20 million copies of PowerPoint were in use, and that total revenues from PowerPoint over its first ten years (1987 to 1996) had already exceeded $1 billion.

Since the late 1990s, PowerPoint's market share of total world presentation software has been estimated at 95 percent by both industry and academic sources.

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