Recruit Dave Cutler from DEC
Setting
By 1988, Microsoft needed to build a serious enterprise operating system. DOS/Windows couldn't compete with UNIX in corporate datacenters. OS/2 (with IBM) was too slow and IBM-controlled.
The solution: find the best OS architect in the world and pay whatever it takes.
People
- Responsible: Bill Gates
- Approvers: Microsoft Board
- Consulted: Nathan Myhrvold
- Informed: DEC (after the fact)
The Target
David Neil Cutler was the architect of VMS at Digital Equipment Corporation—the most reliable operating system ever built. His credentials:
| Achievement | Impact |
|---|---|
| RSX-11M (1972) | Real-time OS for PDP-11 |
| VMS (1978) | Enterprise-grade, fault-tolerant |
| Reputation | "Best systems programmer alive" |
| Work Ethic | Legendary intensity |
DEC was declining. Cutler's latest project (PRISM) had been cancelled. He was frustrated and available.
Alternatives
Option A: Build with Existing Team
Rejected: Microsoft's OS talent couldn't match DEC/IBM/UNIX veterans.
Option B: Acquire Company with OS
Rejected: No suitable acquisition target.
Option C: License/Fork Existing OS
Rejected: Would create dependency, limit control.
Option D: Recruit Dave Cutler and Team
Pros:
- Gets the best OS architect alive
- Brings elite DEC engineering team
- Clean-sheet design, no legacy constraints
- Full Microsoft ownership
Cons:
- Extremely expensive
- Multi-year project (5+ years)
- Cutler's personality challenging
- DEC legal risk
Decision
Chosen: Option D — Recruit Cutler
Gates personally recruited Cutler with:
- Full control over NT architecture
- Team of his choosing (20+ DEC engineers followed)
- Compensation package (salary + equity)
- Promise of resources and patience
The Cutler Factor
Technical Genius
Cutler's design decisions shaped computing for 35+ years:
- Hardware Abstraction Layer (portability)
- Protected memory (reliability)
- Preemptive multitasking (performance)
- Security architecture (enterprise)
Legendary Intensity
"Dave would work 80-hour weeks and expect everyone else to match."
His code reviews were brutal. His standards were uncompromising. Results were exceptional.
Cultural Transplant
Cutler brought DEC's engineering culture:
- Documentation-first design
- Rigorous testing
- Long-term thinking
- Zero tolerance for shortcuts
Consequences
Positive
- +Windows NT — Enterprise-grade OS shipping 1993
- +Server dominance — NT became Windows Server
- +Platform unification — NT kernel powers Windows 11
- +Azure infrastructure — Cutler later built Azure hypervisor
- +Talent magnet — Best engineers wanted to work with Cutler
Negative
- −5-year timeline — NT 3.1 didn't ship until July 1993
- −Resource intensive — $150M+ development cost
- −Cultural friction — DEC-vs-Microsoft tension
- −Hardware requirements — NT needed expensive machines initially
Cutler's Continued Impact
| Project | Years | Impact |
|---|---|---|
| Windows NT | 1988-1996 | Enterprise OS foundation |
| Windows 2000 | 1997-2000 | Mainstream enterprise |
| Xbox | 2001-2003 | Real-time kernel work |
| Azure | 2006-present | Cloud hypervisor |
At 80+, Cutler reportedly still codes at Microsoft.
The Quote
"Dave is the best systems programmer in the world. If we didn't get him, someone else would, and they would build the operating system of the future instead of us." — Bill Gates
This hire is one of the most consequential talent acquisitions in technology history.