In 1975 Bill Gates and Paul Allen formed a partnership called Microsoft. Like most start ups, Microsoft started small, but had a huge vision, a computer in every person's home. In June 1980 Gates and Allen hired a friend from college to help run the company. This man's name is Steve Ballmer. The month after, IBM approaches Microsoft with a project code-name "Chess". In response, Microsoft worked on a new operating system-the software that manages, or runs, the computer hardware and also serves to bridge the gap between the computer hardware and the programs, such as a word processor.