WEBVTT

00:00:00.160 --> 00:00:08.800
apple google amazon facebook and microsoft combined are worth about 9

00:00:05.440 --> 00:00:12.320
trillion us dollars which is way more

00:00:08.800 --> 00:00:14.880
than the entire gdp of japan

00:00:12.320 --> 00:00:19.199
holy cow but how did these companies get so freaking big let's have a quick look

00:00:17.279 --> 00:00:22.880
at how each one of these tech titans grew to become a member of the

00:00:20.560 --> 00:00:26.960
industry's big five starting with microsoft the first of the companies to

00:00:24.720 --> 00:00:31.359
be formed everyone knows microsoft for Windows but it was actually the earlier

00:00:29.119 --> 00:00:36.800
ms-dos that really vaulted the company into international relevance and here's

00:00:33.600 --> 00:00:39.360
why back in 1980 ibm needed an operating

00:00:36.800 --> 00:00:43.600
system for its new Intel-based personal computer and got in touch with the

00:00:41.360 --> 00:00:47.440
company digital research to license an os called cp

00:00:45.600 --> 00:00:52.239
m which had been around for a while and was written specifically for Intel cpus

00:00:50.320 --> 00:00:57.840
but surprisingly ibm and digital research couldn't work out a deal so big

00:00:54.559 --> 00:01:00.239
blue asked microsoft to create an os

00:00:57.840 --> 00:01:05.280
instead ironically microsoft didn't create one from scratch but instead

00:01:02.079 --> 00:01:08.000
licensed an os called 86 dos which was

00:01:05.280 --> 00:01:12.880
very similar to cpm and tweaked it to create ms-dos and by the time ibm

00:01:10.560 --> 00:01:18.720
released its original pc in 1981 microsoft had already written lots of

00:01:14.560 --> 00:01:21.360
software for ms-dos the ibm pc took off

00:01:18.720 --> 00:01:25.759
in popularity quickly and as a result so did microsoft software and as other

00:01:23.680 --> 00:01:30.400
computer companies created ibm compatibles ms-dos and later Windows

00:01:28.400 --> 00:01:35.439
quickly spread to those pcs as well setting the stage for microsoft to

00:01:32.000 --> 00:01:37.119
dominate home computing to this day

00:01:35.439 --> 00:01:41.680
but there are plenty of macs and macbooks out there as well so let's talk

00:01:39.680 --> 00:01:45.360
about apple did you know they very nearly went bankrupt as recently as

00:01:43.840 --> 00:01:48.320
1996. apple was selling overpriced products

00:01:47.439 --> 00:01:52.960
and that hasn't changed but back then their

00:01:50.640 --> 00:01:56.720
overpriced products were underpowered and apple had way too many of them

00:01:55.040 --> 00:02:00.719
meaning consumers often didn't even know what they were buying apple had to do

00:01:58.640 --> 00:02:06.799
something drastic to avoid going under so steve jobs was brought back in 1997

00:02:04.159 --> 00:02:10.879
and he made a crucial decision partner with apple's old rival

00:02:09.039 --> 00:02:16.080
microsoft after microsoft invested 150 million

00:02:13.520 --> 00:02:20.879
dollars into apple jobs simplified the product lineup and brought in joni ive

00:02:18.319 --> 00:02:26.560
to transform apple into a design focused company the result was the original imac

00:02:23.520 --> 00:02:28.800
in 1998 a simple attractive device that

00:02:26.560 --> 00:02:34.080
was extremely popular and kept apple afloat followed by the ipod in 2001 the

00:02:32.319 --> 00:02:37.840
ipod's practical design and clever marketing got the public to start

00:02:35.519 --> 00:02:42.720
thinking of apple as a lifestyle brand a perception that was cemented after the

00:02:39.840 --> 00:02:48.640
iphone came out in 2007. next up is amazon which started in 1994 as an

00:02:45.280 --> 00:02:50.400
online bookseller jeff bezos chose books

00:02:48.640 --> 00:02:54.080
because they didn't cost much to buy wholesale and he believed there was a

00:02:51.840 --> 00:03:00.000
demand for books people had a hard time finding in physical stores turns out

00:02:56.879 --> 00:03:02.480
he did it congratulations as amazon's

00:03:00.000 --> 00:03:06.480
online only model let them sell a far wider selection of books than its brick

00:03:04.319 --> 00:03:10.560
and mortar competitors this initial success allowed amazon to buy more

00:03:08.480 --> 00:03:15.760
warehouse space and sell products like dvds and toys again the low overhead

00:03:13.599 --> 00:03:20.159
meant amazon could undercut traditional retailers and before long amazon had

00:03:18.000 --> 00:03:24.159
enough money to take chances on niceties like free shipping and one-click

00:03:22.080 --> 00:03:27.920
ordering with the latter giving amazon insights into customer behavior a

00:03:26.000 --> 00:03:31.360
relatively ahead of the curve idea at the time but perhaps the most

00:03:29.599 --> 00:03:35.519
consequential decision was to make amazon web services available to the

00:03:33.599 --> 00:03:40.319
public as it was originally a system aimed at making amazon's internal it

00:03:37.760 --> 00:03:44.000
more efficient this happened in 2006 meaning amazon got ahead of the game in

00:03:42.000 --> 00:03:47.840
terms of cloud computing this earned amazon so much money that the company

00:03:45.840 --> 00:03:52.480
kept extending its tentacles into everything from game streaming to movies

00:03:50.159 --> 00:03:57.280
to home security but you could possibly consider google to be the og cloud

00:03:55.040 --> 00:04:01.200
computing company as its first product google search is all about asking a

00:03:59.200 --> 00:04:04.319
computer in some distant location to fetch you an answer although google

00:04:02.799 --> 00:04:09.040
wasn't the first search engine when it launched in 1997 it did something really

00:04:06.640 --> 00:04:12.400
cool that other search engines weren't doing instead of presenting results

00:04:10.959 --> 00:04:17.120
based on how many times your search string appears on a page it looked at

00:04:14.480 --> 00:04:21.199
how many times other pages linked to a page in order to determine how relevant

00:04:19.280 --> 00:04:25.840
and important a search result was although google's algorithm today is

00:04:23.680 --> 00:04:30.720
much more complicated this innovation made it much more accurate and popular

00:04:28.560 --> 00:04:35.680
than its rivals this made google an appealing platform to advertise on and

00:04:33.040 --> 00:04:39.520
google wisely kept its ads text based for a cleaner look meaning it could load

00:04:37.680 --> 00:04:43.759
results quickly further boosting its popularity the money it made off of

00:04:41.680 --> 00:04:48.400
search meant it could buy Android in 2005 and youtube in 2006 and as

00:04:47.040 --> 00:04:53.120
important as smartphones and online video are now the rest as they say

00:04:51.520 --> 00:04:57.280
is a history but it was facebook that perhaps had the

00:04:55.360 --> 00:05:02.080
fastest rise to becoming a global superpower as it was only founded in

00:04:59.520 --> 00:05:06.160
2004 and even then it was a social network exclusively for harvard students

00:05:04.720 --> 00:05:09.440
after expanding to other colleges investors saw the potential in the

00:05:07.759 --> 00:05:14.240
platform which opened to the general public in 2006 because facebook offered

00:05:12.320 --> 00:05:20.400
more features and less spam than its competitor myspace hi tom it overtook

00:05:17.680 --> 00:05:24.400
the latter in popularity in 2009. by this time facebook had already become a

00:05:22.240 --> 00:05:29.600
very valuable company through ad revenue and it put that revenue to good use in

00:05:26.080 --> 00:05:33.280
2012 when it bought instagram for one

00:05:29.600 --> 00:05:35.600
billion dollars sound like a lot well it

00:05:33.280 --> 00:05:39.759
actually spent another 19 billion dollars on whatsapp just two years later

00:05:38.240 --> 00:05:44.800
because the service already had around a half billion users and was growing at a

00:05:41.759 --> 00:05:46.800
rate of million new users per day not

00:05:44.800 --> 00:05:50.639
only has whatsapp since become extremely popular in huge swaths of the world but

00:05:49.120 --> 00:05:55.280
it's allowed facebook to expand the reach of its other services as well so

00:05:52.960 --> 00:05:58.479
that's how the big five got so big if only someone would have told me to

00:05:56.560 --> 00:06:03.400
invest in them earlier and you should invest some time in checking out our

00:06:00.080 --> 00:06:06.560
sponsor the drop x sennheiser open back

00:06:03.400 --> 00:06:09.120
hd58x jubilee headphones they're tuned

00:06:06.560 --> 00:06:13.039
by axel grell of sennheiser and massdrop based on feedback from the community

00:06:10.800 --> 00:06:17.680
they feature new 150 ohm drivers and a colorway inspired by the hd580s as well

00:06:15.600 --> 00:06:21.199
as a clear fast and dynamic sound profile they've got a glossy black

00:06:19.360 --> 00:06:26.319
headband and elliptical ear cups with replaceable soft velour ear pads

00:06:24.319 --> 00:06:30.400
and they feature a detachable six foot cable so check it out now at the link

00:06:28.160 --> 00:06:33.840
below that was a tech wiki guys i'm not sure if you noticed hey like the video

00:06:32.160 --> 00:06:37.039
if you liked it dislike it if you dislike it check out our other videos

00:06:35.600 --> 00:06:40.880
comment below with video suggestions and don't forget to subscribe and follow

00:06:39.360 --> 00:06:46.039
this channel this guy

00:06:42.800 --> 00:06:46.039
oh yeah