Traf-O-Data
Encyclopedia
Traf-O-Data was a partnership between Bill Gates
Bill Gates
William Henry "Bill" Gates III is an American business magnate, investor, philanthropist, and author. Gates is the former CEO and current chairman of Microsoft, the software company he founded with Paul Allen...

, Paul Allen
Paul Allen
Paul Gardner Allen is an American business magnate, investor, and philanthropist. Allen co-founded Microsoft with Bill Gates...

, and Paul Gilbert. The objective was to read the raw data from roadway traffic counters and create reports for traffic engineers. The company had only modest success but the experience was important in the creation of Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...

 a few years later.

State and local governments frequently do traffic surveys with a pneumatic road tube traffic counter. Rubber hoses are stretched across a road and passing vehicles create air pulses that are recorded by a roadside counter. Today a solar powered microprocessor system records the number of vehicles and the time of day each passed. In 1970 the counts were mechanically recorded on a roll of paper tape. The time and number of axles were punched as a 16 bit pattern into the paper tape. (The standard Teletype paper tape uses only 8 bits.) Cities would hire private companies to translate the data into reports that traffic engineers could use to adjust traffic lights or improve roads.

Bill Gates and Paul Allen were high school students at Lakeside School
Lakeside School
Lakeside School is a private/independent school located in the Haller Lake neighborhood at the north city limits of Seattle, Washington, USA, for grades 5–12....

 in Seattle. The Lakeside Programmers Group got free computer time on various computers in exchange for writing computer programs. Gates and Allen thought they could process the traffic data cheaper and faster than the local companies. They recruited classmates to manually read the hole-patterns in the paper tape and transcribe the data onto computer cards. Gates then used a computer at the University of Washington to produce the traffic flow charts. (Paul Allen's father was a librarian at UW.) This was the beginning of Traf-O-Data.

The next step was to build a device to read the traffic tapes directly and eliminate the tedious manual work. The Intel 8008
Intel 8008
The Intel 8008 was an early byte-oriented microprocessor designed and manufactured by Intel and introduced in April 1972. It was an 8-bit CPU with an external 14-bit address bus that could address 16KB of memory...

 microprocessor was announced in 1972 and they realized it could read the tapes and process the data. Allen had graduated and was enrolled at Washington State University. Since neither Gates nor Allen had any hardware design experience they were initially stumped. The computer community in Seattle at that time was relatively small. Gates and Allen had a friend, Paul Wennberg who like them had hung around CDC Corporation near the University of Washington cadging open time on the mainframe. Wennberg, founder of the Triakis Corporation, was then an electrical engineering student at the University of Washington. In the course of events Gates and Allen mentioned they were looking for somebody to build them a computer for free. They needed somebody good enough to build a computer from parts and the diagrams found in a computer magazine. It was Wennberg who came up with the man to do just that. After discussion with another friend, Wes Prichard, Prichard suggested to Wennberg that Gates and Allen head over UW Physics building to where Gilbert, another EE student worked in the high-energy tracking lab. It was there that Paul Gilbert was approached by the duo to become a partner in Traf-O-Data. That year Gilbert, piece by piece, wire wrapped, soldered and, assembled from electrical components the working microcomputer. Miles Gilbert, Paul Gilbert's brother, a graphic designer and draftsman, helped the fledgling company by designing the company's logo. Gates and Allen started writing the software. To test the software while the computer was being designed, Paul Allen wrote a computer program on WSU's IBM 360 that would emulate the 8008 microprocessor.

The computer system was completed and Traf-O-Data produced a few thousand dollars of revenue. Later the State of Washington offered free traffic processing services to cities, ending the need for private contractors, and all three principals moved on to other projects. The real contribution of Traf-O-Data was the experience that Gates and Allen gained developing software for computer hardware that did not exist. Paul Gilbert, sometimes referred to as "the hardware guy", was the man who made Traf-O-Data work. Without his efforts in the construction of this computer, and the day-to-day running of this pioneering company, the rise of what became Microsoft might have been delayed. The experience gained in this venture would later be used to write Altair BASIC
Altair BASIC
Altair BASIC was an interpreter for the BASIC programming language that ran on the MITS Altair 8800 and subsequent S-100 bus computers. It was Microsoft's first product , distributed by MITS under a contract...

 for the MITS
Micro Instrumentation and Telemetry Systems
Micro Instrumentation and Telemetry Systems was an American electronics company founded in Albuquerque, New Mexico that began manufacturing electronic calculators in 1971 and personal computers in 1975. Ed Roberts and Forrest Mims founded MITS in December 1969 to produce miniaturized telemetry...

 Altair 8800
Altair 8800
The MITS Altair 8800 was a microcomputer design from 1975 based on the Intel 8080 CPU and sold by mail order through advertisements in Popular Electronics, Radio-Electronics and other hobbyist magazines. The designers hoped to sell only a few hundred build-it-yourself kits to hobbyists, and were...

 computer and start Microsoft
Microsoft
Microsoft Corporation is an American public multinational corporation headquartered in Redmond, Washington, USA that develops, manufactures, licenses, and supports a wide range of products and services predominantly related to computing through its various product divisions...

.
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