Traf-O-Data

Traf-O-Data

File:Logo of Traf-O-Data.svg
Industry	Transportation engineering
Founded	1972 (1972) Seattle, Washington, U.S.
Founders	Bill Gates Paul Allen Paul Gilbert
Defunct	Template:End date and age
Fate	Renamed to Microsoft
Successor	Microsoft Corporation
Headquarters	Seattle, Washington , U.S.

Traf-O-Data was a business collaboration formed in the early 1970s by Bill Gates, Paul Allen, and Paul Gilbert. The company focused on converting raw data collected from roadway traffic counters into reports useful for traffic engineers. Although it achieved only limited commercial success, the venture provided crucial practical experience that later influenced the establishment of Microsoft Corporation.

Traffic counting

During the 1970s, state and municipal agencies conducted traffic studies using pneumatic tube counters placed across roads, which detected vehicle axles by generating air pulses recorded on paper tape. This data was encoded mechanically into 16-bit patterns punched onto paper tapes. Municipalities contracted private firms to interpret these tapes and produce traffic management reports.

At Seattle's Lakeside School, Gates and Allen identified a chance to streamline this process. Their concept involved creating a computer powered by the Intel 8008 processor to automate the reading and analysis of traffic tape data, intending to market the system as a cost-effective solution for government clients.

Since they lacked hardware design skills, they collaborated with Paul Gilbert, who contributed to building a prototype device capable of manually interpreting hole patterns from paper tape and transferring the information onto computer punch cards. Gates utilized computers at the University of Washington to generate graphical representations of traffic flow. This partnership laid the foundation for Traf-O-Data.

Traf-O-Data hardware

To replace manual data processing, Gates and Allen sought to develop a machine based on the recently released Intel 8008 microprocessor in 1972. Without prior experience in hardware design, they recruited Paul Wennberg, an electrical engineering student at the University of Washington, who introduced them to fellow EE student Paul Gilbert. Gilbert constructed a functioning microcomputer by wire-wrapping and soldering components together, while his brother Miles created the company’s logo. Meanwhile, Gates and Allen handled software development; Allen wrote an 8008 emulator running on Washington State University's PDP-10 mainframe to facilitate software testing during hardware assembly.

Though their plan was to produce and sell these devices, early demonstrations failed to generate strong interest from local government officials. The business attained limited success by manually processing traffic tapes initially, then later employing their prototype machine for some revenue generation, but it did not become profitable. When Washington State began providing free traffic data processing services, private contracts ceased, prompting the founders to pursue other ventures.

The greatest significance of Traf-O-Data was the hands-on experience gained by Gates and Allen, which directly enabled them to develop Altair BASIC for the MITS Altair 8800 computer: