Microport was critical to enabling the Free Software Foundation (FSF) to port its GNU C compiler (gcc) and associated utilities, onto the x86 architecture by donating a complete 386 development system to the Richard Stallman-led group.

[citation needed] In an effort to promote System V, AT&T created a program with Intel, Motorola, Zilog, and other major CPU manufacturers at the time.

[citation needed] By providing this software with the reference hardware, computer manufacturers could easily put UNIX onto their new systems, with a substantial reduction in cost.

[citation needed] This demo and announcement paved the way for its initial business opportunities and brought Microport to the attention of IBM, SCO, and Microsoft.

[citation needed] Following its founding days, Microport gradually adopted an increasingly corporate environment that catered more towards large OEM and VAR deals.

[citation needed] Microport ran into an early problem competing for business contracts due to a lack of application software for its operating system (OS) ports.

[citation needed] Beginning in 1988, sales declined as ISC, Bell Technologies, Everex, and others started selling their version of the 386 port, eroding Microport's market position and making continued inflow of investment capital unlikely.

Microport maintained development for select drivers and still closed large OEM deals until SCO bought the rights to UnixWare from Novell in December 1995.

[citation needed] Microport became a reseller for SCO, which failed to recognize the threat posed by Linux and Berkeley Software Distribution (BSD).

[citation needed] Although Microport later targeted sales towards OEMs and VARs, they had created a new market opportunity for other low-cost UNIX technology to follow, including Linux and BSD for the PCs in the 1990s.