The information stored in the computer is called software. Most software stays in RAM temporarily and is erased from RAM when you no longer need it. But some software stays in the computer’s circuits permanently: it hides in the ROM and is called firmware.

You can feed the computer four kinds of software: an operating system, a language, application programs, and data. Let’s look at them.…

An operating system is a set of instructions that explains to the CPU how to handle the keyboard, the screen, the printer, and the disk drive.

The operating system is divided into two parts. The fundamental part is in the ROM chips provided by the manufacturer. The advanced part is on a disk and called the disk operating system (or DOS, which is pronounced "doss"). So to use the advanced part of the operating system, you must make sure the computer contains a disk (floppy or hard) containing DOS.

Mac computers use an operating system called the Mac System.

Apple 2 computers use Apple DOS or Pro DOS.

Radio Shack’s TRS-80 computers use TRSDOS (pronounced "triss doss").

DEC’s Vax minicomputers use an operating system called the Virtual Memory System (VMS).

Ancient microcomputers use the Control Program for Microcomputers (CP/M).

Big computers — IBM maxicomputers — use the Multiple Virtual Storage (MVS) system or the Virtual Machine with Conversational Monitor System (VM with CMS).

Most of IBM’s personal computers (such as the IBM PC, IBM PC XT, IBM PC AT, IBM PS/1, and IBM PS/2) use an operating system called PC-DOS. Clones use a variant called MicroSoft DOS (which is abbreviated as MS-DOS, which is pronounced "em ess doss").

Instead of buying MS-DOS (or PC-DOS), you can buy a newer operating system called Windows 95, invented in 1995 by Microsoft. Since Windows 95 is a complete operating system, you can buy and use it without buying MS-DOS.

Some computers still use an old Windows version, called Windows 3.1, which is not a complete operating system; instead, it’s a supplement to MS-DOS. Before using Windows 3.1, you must put MS-DOS (or PC-DOS) into your computer. Having MS-DOS supplemented by Windows 3.1 is almost as nice as having Windows 95, but not quite!

A supplement (such as Windows 3.1) that modernizes an ugly operating system (such as MS-DOS) and hides the system’s ugliness is called an operating-system shell. Yes, MS-DOS is an ugly operating system; Windows 3.1 is an operating-system shell; Windows 95 is a good operating system.

A competitor to Windows 95 is Operating System 2 (OS/2), invented by IBM. Since Windows 95 is easier to learn than OS/2 and compatible with more hardware and software than OS/2, few people choose OS/2.

Another alternative to Windows 95 is Windows New Technology (Windows NT), an operating system invented by Microsoft. Like OS/2, it’s incompatible with much hardware and software and unpopular.

PC-DOS, MS-DOS, Windows 3.1, Windows 95, Windows NT, and OS/2 are all called operating environments.

AT&T’s Bell Laboratories invented an operating system called Unix. It’s pronounced "you nicks", so it sounds like "eunuchs", which are castrated men. (Be careful! A female computer manager who seems to be saying "get me eunuchs" probably wants an operating system, not castrated men.) "Unix" is an abbreviation for "UNICS", which stands for "UNified Information and Computing System".

Microsoft invented a slightly improved Unix called "eXtended Unix" or Xenix (pronounced "zee nicks"). It runs on the IBM PC and other microcomputers.

A Finnish programmer named Linus Torvalds (whose first name is pronounced "lee nuss") invented a Unix imitation called "Linus Unix" or Linux (pronounced "lee nucks"). It’s free! It runs on 386, 486, and Pentium computers and also on Atari and Commodore Amiga computers.

Languages that humans normally speak — such as English, Spanish, French, Russian, and Chinese — are called natural languages. They’re too complicated for computers to understand.

To communicate with computers, programmers use computer languages instead. The most popular computer languages are BASIC, LOGO, PASCAL, C, DBASE, and COBOL. Each is a tiny part of English — a part small enough for the computer to master. To teach the computer one of those tiny languages, you feed the computer a ROM or disk containing definitions of that tiny language’s words.

Although those six languages are the most popular, many others have been invented. Five old languages still in use are FORTRAN, RPG, LISP, PL/I, and SPSS. Five new languages are FORTH, PILOT, PROLOG, ADA, and MODULA.

The computer will do whatever you wish — if you tell it how. To tell the computer how to do what you wish, you feed it a program, which is a list of instructions, written in BASIC or in some other computer language.

A person who invents a program is called a programmer. Becoming a programmer is easy: you can become a programmer in just a few minutes! Becoming a good programmer takes longer.

You can buy two kinds of programs. The most popular kind is called an application program: it handles a specific application, such as payroll or psychotherapy or chess. The other kind of program is called a system program: it creates a system that just helps programmers write more programs!

To make the computer replace your typewriter, buy a word-processing program. To replace your filing cabinet, buy a database program. To replace your calculator, buy a spreadsheet program. Each program typically comes on a set of disks.

Word processing A word-processing program helps you write memos, letters, reports, and books. It also helps you edit what you wrote.

The most popular word-processing programs are Word Perfect and Microsoft Word. Each runs on the IBM PC and the Mac.

Spreadsheets A spreadsheet program handles tables of numbers. For example, it can handle your budget, inventory, general ledger, baseball statistics, and student test scores.

The most famous spreadsheet program is Lotus 1-2-3, which runs on the IBM PC. Discount dealers sell it for $290.

For a fancier spreadsheet program, get a competitor called Quattro Pro, which discount dealers sell for just $63!

The fanciest spreadsheet program of all is Excel, invented by Microsoft. It requires either a modern IBM PC (containing Microsoft Windows) or a Mac. Discount dealers sell it for $299.

Databases A database program helps you manipulate long lists of data, such as names, addresses, phone numbers, birthdays, comments about folks you know (your friends, customers, suppliers, employees, students, and teachers), past-due bills, and any other data you wish!

The best easy-to-use database program is Q&A (which stands for "Questions & Answers"). It costs $149. It also includes an easy-to-use word processor, at no extra charge.

If you have a Mac, you can’t run Q&A. Instead, get Filemaker Pro. It’s an easy-to-use program that performs almost as many database tricks as Q&A but lacks a word processor. Discount dealers sell it for $177. Filemaker Pro is also available for IBM PC computers using Windows.

If you need different database tricks than Q&A performs, get Filemaker Pro or Alpha or Approach or Microsoft Access (which is harder) or Paradox (which is even harder) or invent your own database program (by using a programming language called DBASE or an imitation called FOXPRO).

Sometimes, word processing can be too much fun. Since it’s so much fun to edit on a word processor, people using word processors edit more thoroughly than people using typewriters or pens. Word processing fosters compulsive perfectionism.

The first easy-to-use graphics program was Mac Paint, developed by Apple Computer Incorporated for the Mac. It lets you use the Mac’s mouse to draw pictures on the screen, copy them onto paper, and perform special effects. It’s fun. It’s the program that made the Mac popular.

Architects and engineers draw blueprints by using a program for computer-aided design (CAD).

If you’re giving a talk at a business meeting, you can illuminate your talk by creating a slide show. Each slide contains a summary of your advice, with pictures, photos, and graphs. The computer can help you create those slides, if you get a presentation program. The best presentation-graphics programs are Microsoft’s Power Point and Lotus’s Freelance.

A program that lets you combine graphics with text — to create posters, ads, and newsletters — is called a page-layout program or desktop-publishing program. The fanciest desktop publishing programs are Pagemaker, Frame Maker, Quark XPress, and Ventura Publisher. Each runs on the IBM PC and Mac. They let you easily create headlines and multiple columns with graphics.

For the IBM PC, you have a simpler, cheaper alternative: Microsoft Publisher. Discount dealers sell it for just $69. It asks you questions about what you want to create; then it creates a mock-up of what you desire. Just edit the mock-up (by changing its words and pictures to the ones you want), and you’re done!

Instead of buying a word-processing program, a spreadsheet program, and other programs separately, you can buy an office suite, which includes them all!

The best and most popular office suite is Microsoft Office.

It comes in three editions. The standard edition ($445) includes a word-processing program (Microsoft Word), spreadsheet program (Excel), and presentation program (Power Point). The professional edition ($530) resembles the standard version but also includes a database program (Microsoft Access). The small-business edition ($445) includes Microsoft Word, Excel, and a desktop-publishing program (Microsoft Publisher).

Its main competitor is Corel’s Word Perfect Suite.

It comes in two editions. The standard edition ($280) includes a word-processing program (Word Perfect), spreadsheet program (Quattro Pro), and presentation program (Corel Presentations). The professional edition ($345) resembles the standard version but also includes a database program (Paradox).

Another competitor is Lotus’s Smart Suite ($358), which includes a word-processing program (Word Pro), spreadsheet program (Lotus 1-2-3), database program (Approach), and presentation program (Freelance).

Instead of buying an office suite, you can pay less by getting a cute little program, called an integrated program, which does a little bit of everything!

The best integrated programs are Q&A, Microsoft Works, Claris Works, and PFS First Choice. Here’s how they compare.

Q&A is the best at handling databases. Q&A’s main weakness is that it does not handle spreadsheets at all. Get the DOS version, since the Windows version is terrible.

Microsoft Works is the best at handling word processing and spreadsheets. Its Windows version is good; its DOS and Mac versions are not. The best way to get Microsoft Works is to buy Microsoft Home Essentials, which requires Windows 95, costs $109, and includes Microsoft Works, Microsoft Word, Microsoft Money (a checkbook-balancing program), and Encarta (a computerized encyclopedia).

Claris Works (by the Claris division of Apple) is the best at handling desktop publishing. It’s available for the Mac and Windows.

PFS First Choice is the easiest to learn how to use and its also the cheapest ($39); but you’ll outgrow it soon, since it lacks advanced features. The only version is for DOS.

Old IBM clones built by Tandy came with an integrated program called Deskmate.

For the Apple 2 family, the most popular integrated program is Appleworks. It’s mainly a spreadsheet program but also handles word processing and databases.

Software that can be used by a wide variety of businesses is called horizontal software. Programs for word processing, spreadsheets, and spreadsheets are all examples of horizontal software.

Software targeted to a specific industry is called vertical software. Programs specifically for doctors, lawyers, and real-estate management are all examples of vertical software.

Some nasty programmers have invented computer viruses, which are programs that purposely damage your other programs and sneakily copy themselves onto every disk that you use. To avoid catching a virus, make sure that the only software entering your computer comes from a reputable, safe source.

If you buy a simple, old program, it comes on a floppy disk. Here’s how to use that program disk, if you have just one floppy disk drive and no hard drive.

Insert a second disk, called the data disk. At first, the data disk contains no information; it’s blank. Put your fingers on the keyboard and type the data that you want the computer to manipulate. The computer will display your data on the screen and copy it onto the data disk.

The 16 dominant software companies are Microsoft, Novell, Corel, Lotus, Borland, Symantec, Oracle, Computer Associates, Intuit, Netscape, Claris, Adobe, Autodesk, Electronic Arts, Broderbund, and The Learning Company. Here’s why.…

The most important software company is Microsoft, which takes in about 11 billion dollars of revenue per year. It makes the most popular operating system (which is MS-DOS). The company’s main founder, Bill Gates, became a billionaire when he was 30 years old and appeared on the cover of Time Magazine. On October 28, 1995, Bill celebrated his 40^th birthday — and was worth 14.7 billion dollars. At the beginning of 1997, he was worth 24 billion dollars; seven months later, at the end of July, he was worth 40 billion dollars. He doesn’t have that much cash in his pocket, of course: most of his billions are invested in Microsoft stock. He’s the richest American, just because Microsoft’s stock is ridiculously overpriced.

40 billion dollars is a lot of money! For example, even if you earn 40 million dollars per year, you’ll need to work 1000 years to get what Bill has. Programmers often measure their salaries in microbills, where a microbill is defined as being a millionth of Bill Gates’ worth, so a microbill is currently $40,000. Bill plans to donate 95% of his wealth before he dies;. he’s begun by giving a large grant to libraries. Bill’s 40 billion dollars is enough to give $150 to each American, or $6.70 to each person on the planet. His 40 billion dollar bills, if laid end-to-end, would stretch to the moon and back, 8 times.

Microsoft is the most diversified software company: besides selling MS-DOS, it also sells other operating environments (Windows and Xenix), programming languages (Microsoft BASIC, FORTRAN, COBOL, C, and others), a word-processing program (Microsoft Word), a spreadsheet program (Excel), database programs (Access and Fox Pro), an integrated program (Microsoft Works), a computerized encyclopedia (Encarta), and a wide variety of other software. It’s the main software publisher for the IBM PC and Mac. It also wrote the versions of BASIC used by the Apple 2 family, Commodore Amiga, Commodore 64, and Radio Shack TRS-80.

Novell makes Netware & Intranetware, which are programs letting you wire computers together so the computers can communicate with each other.

In 1994, Novell bought Word Perfect Corporation, which made the most popular word-processing program, Word Perfect. Novell’s purchase was natural, since both companies were in Utah. Word Perfect Corporation sold out to Novell because Word Perfect Corporation was having financial trouble, since many customers were switching to Microsoft Word, which has been improving dramatically.

Novell also bought a product called Quattro Pro, which was invented by a company called Borland. Borland sold that product to Novell because Borland was having financial trouble competing against Microsoft.

Novell’s founder, Ray Noorda, has quit. Novell’s new head, Robert Frankenberg, is trying to make the company smaller and more manageable, so in 1996 he sold Word Perfect and Quattro Pro to a Canadian company, Corel, which is famous for inventing a graphics program called Corel Draw.

Lotus made the most popular spreadsheet program (which was 1-2-3). For too many years, Lotus sat on its laurels, and customers gradually began to switch to competitors such as Microsoft Excel and Quattro Pro. We expected Lotus to die.

But during the 1990’s, Lotus displayed good taste and made wise moves: it dramatically improved 1-2-3; it bought a company called Samna, which made the nicest word-processing program (Ami Pro), so Ami Pro became a Lotus product; it began selling an easy-to-use presentation-graphics program, Freelance; and it began selling a product called Notes, which helps people send electronic mail to each other and edit each other’s documents.

Borland was started by Philippe Kahn, who grew up in France.

The university offered two introductory classes: one explained how to program using a language called PL/I, the other explained PASCAL. Since PASCAL was brand new then, nobody had heard of it, so 200 students signed up for PL/I and just 5 students signed up for PASCAL. Philippe signed up for PASCAL because he hated big classes. His professor was PASCAL’s inventor, Niklaus Wirth.

In 1983, Philippe went to California and started a computer company. Since he was an illegal alien, he tried to pretend he was thoroughly American and named his company Borland, in honor of the land that produced astronaut Frank Borman. His first product was Turbo PASCAL, which he had created back in Europe with the help of two friends.

Philippe occasionally experimented with dropping prices. For example, he dropped the price of Borland’s spreadsheet program, Quattro Pro, to just $49.95, even though Quattro Pro was in some ways better than 1-2-3, which Lotus was selling for about $300. Microsoft’s head, Bill Gates, said that the competitor that worried him the most was Borland, because he feared Philippe would pull another publicity stunt and drop prices below $50 again, forcing Microsoft to do the same.

During the 1980’s, Borland bought two companies that invented wonderful database programs: Reflex and Paradox. Borland eventually stopped selling Reflex, but Paradox lives on.

Paradox’s main competitor was DBASE, published by a company called Ashton-Tate. Philippe decided to win the competition against Ashton-Tate the easy way: he bought Ashton-Tate, so now Borland publishes both Paradox and DBASE. Philippe said he bought Ashton-Tate mainly to get his hands on Ashton-Tate’s mailing list, so he could sell DBASE users on the idea of converting to Paradox.

In 1995, Philippe stepped down from being the head of Borland — though he’s still on Borland’s board of directors. Now Philippe spends most of his time running a new start-up company, called Starfish Software.

My favorite database program, Q&A, is published by Symantec.

Like Lotus, Symantec shows good taste in acquisitions: it bought two companies making good versions of the C programming language (Lightspeed and Zortech) and also bought two companies making DOS utility programs that fix DOS’s weaknesses (Peter Norton Software and Central Point Software). Now Symantec takes in about half a billion dollars per year.

Oracle and Computer Associates (CA) make software that runs on computers of all sizes: maxicomputers, minicomputers, and microcomputers.

Intuit makes programs that handle accounting on microcomputers. Intuit’s programs are cheap: under $100.

Intuit’s most popular accounting programs are Quicken (which tracks expenses and balances your checkbook), Quickbooks (which handles all major business accounting), and Turbo Tax (which helps you fill in your 1040 income-tax form for the IRS). Turbo Tax used to be published by a company called Chipsoft, but Intuit bought Chipsoft in 1994.

Netscape makes Netscape Navigator, which helps your computer communicate with an international computer network called the Internet.

Claris, which is owned by Apple, makes the Filemaker Pro database (which is as easy as Q&A) and the Claris Works integrated package (which resembles Microsoft Works). Claris programs run on the Mac. Out of pity for folks who don’t have Macs, Claris also sells versions that run on IBM PC clones using Windows.

Adobe makes Postscript software (used in many laser printers). In 1994, Adobe bought Aldus (the company that invented the first desktop-publishing program, Pagemaker).

Autodesk publishes Autocad, which is the fanciest program for handling computer-aided design (CAD).

Electronic Arts and BrØderbund make the best educational games and low-cost tools for budding young artists and musicians. Those two companies planned to merge but changed their minds, so they’re still separate.

Softkey, Spinnaker Software, and The Learning Company all published lots of cheap programs, priced between $2 and $40 each. Those three companies have merged: the combo is called The Learning Company.

The typical fancy program (such as a word-processing program, database program, or spreadsheet program) has a list price of $495. That’s also called the manufacturer’s suggested retail price (MSRP). If you buy the program directly from the software’s publisher, that’s the price you’ll pay. (You’ll also pay about $7 for shipping & handling. If the publisher has a sales office in your state, you’ll also be charged for sales tax, even if you’re phoning the manufacturer’s out-of-state headquarters.)

But if you walk into a typical computer store, you will not pay $495 for the program. Instead, you’ll pay $299. That’s called the street price because it’s the price you see when you walk down the street and peek in the windows of computer stores. (You’ll also pay sales tax.)

Instead of charging $299, mail-order dealers charge slightly less: $279. That’s called the mail-order price. (You’ll also pay about $7 for shipping & handling, but you won’t pay tax if the mail-order company is out-of-state.) Another way to get that kind of price is to visit a discount computer superstore such as Comp USA.

If you already own an older version of the program, you can switch to the new version cheaply, by asking for the version upgrade, which costs just $99. You can order the version upgrade at your local computer store, or from mail-order dealers, or directly from the program’s publisher. The most aggressive dealers (such as Comp USA) charge slightly less: $95.

If you bought the old version shortly before the new version came out, you can get the new version free! Just phone the publisher and ask for the free version upgrade.

If you don’t own an older version of the program, you can’t get the version-upgrade price. Here’s the best you can do: if you already own a competing program (such as a different brand of word processor that competes against the word processor you’re trying to buy), ask for the competitive-upgrade price. It’s usually $129, which is just slightly higher than the version-upgrade price. Get it from your local store, mail-order dealer, or directly from the publisher.

If you give copies to your friends and become a lawbreaker, you’re called a pirate; making the copies is called piracy; the copies are called pirated software or hot software. Don’t be a pirate! Don’t distribute hot software!

Some software publishers use tricks that make the computer refuse to copy the program. Those tricks are called copy protection; the software is copy protected. But even if the software publisher doesn’t use such tricks, it’s still against the law to make copies of the program for other people, since the program is still copyrighted.

Besides sitting at a friend’s computer, another way to "try before you buy" is to phone the program’s publisher and ask for a free demo disk.

Although some demo disks are just useless animated ads, the best publishers provide useful demo disks (called trial-size versions) that closely imitate the full versions. For example, the typical trial-size version of a word-processing program has nearly all the features of the full version, but it refuses to print memos that are more than a page long and refuses to copy your writing onto a disk.

Trial-size versions are nicknamed crippled software, because each trial-size version has one or two abilities cut off. Playing with crippled software is a great way to give yourself a free education!

Software that you’re allowed to copy and use freely is called freeware. For example, most demo disks and trial-size versions are freeware.

Shareware is software that comes with a plea: although the author lets you copy the software and try it, you’re encouraged to mail the author a contribution if you like what you tried.

The suggested contribution, typically $25, is called a registration fee. It makes you a registered user and puts you on the author’s mailing list, so the author can mail you a printed manual and newer versions of the software.

Though most shareware authors merely "ask" for contributions, other shareware authors "demand" that you send a contribution if you use the software for longer than a month. Software for which a contribution is "demanded" is called guiltware — because if you don’t send the contribution, the author says you’re guilty of breaking the law.

After inventing a program, its publisher must test it, to make sure it works on many kinds of computer equipment and in many situations. At first, the publisher’s employees test the program on their own computers: that’s called alpha testing. Next, the publishing company lets outsiders try the still-not-quite-perfected program: that’s called beta testing.

The outsiders who try it are called beta testers; the version being tested by outsiders is called a beta version. Beta versions are sometimes distributed for free or at a reduced price; but if you use a beta version, don’t rely on it, since it hasn’t been perfected yet.

If your office wants many employees to use a program, ask the publisher for a site license, which permits your company to make copies for all employees in the office. Typically the employees are not allowed to take the copies home: the copies must all be used at the same site.

If you’re in a school and trying to teach kids how to use a program, ask the publisher for a trial-size version or academic version or educational site license.

If you own two computers and want to put the same program on both, you must typically buy two copies of the program. For example, if you want to put Windows 95 on two computers, you must buy two copies of Windows 95 (to avoid piracy), unless both computers are on the same site and you have a site license. Microsoft, Claris, and some other major software publishers permit this exception, called the 80% rule: