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Mr Gates realised that falling hardware costs, combined with the negligible expense of making extra copies of standard software, would turn the computer business on its head.
In the US, Gartner said, falling hardware prices meant 50percentnt of households had a PC in 1998, against just 27percentnt in 1995.
In theory, the flexibility would allow software to be upgraded without affecting the car itself and enable the communication companies to take advantage of falling hardware prices.
In a world where steeply falling hardware prices allow companies like Google to create vast server farms, preservationists have come up with ideas for electronic depositories, big and small, that businesses or government could build.
Dramatically falling hardware costs are shifting innovation toward smaller teams in a similar manner to how web technologies have evolved over the last 10 years".
""Much of the drive behind this increase is coming from growing consumer awareness and falling hardware prices, coupled with PS3 owners increasingly using their consoles for video playback," adds Jack Wetherill, who focuses on the hardware business at Futuresource.
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In six decades of spaceflight, no one has ever been hit by falling space hardware, he said.
The functionality of the software is what sold, and with processing power steadily increasing and hardware falling in price, regular corporate hardware refresh cycles took care of the problem.
And if demand for speed grows, the falling cost of hardware means it will be cheaper to provide in future than it is today.Could political motives lie behind the largesse?
Over time however, falling prices in hardware manufacture and a push towards a digital world has meant that employees have found their personal IT has become more powerful, or preferable to that offered at work.
App store siloes, near frictionless distribution, and falling software and hardware costs all working in startups' favor.
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CEO of Professional Science Editing for Scientists @ prosciediting.com