History
Founding and Early Growth
Microsoft was founded on April 4, 1975, by Bill Gates and Paul Allen in Albuquerque, New Mexico. The company initially developed and sold BASIC interpreters for the Altair 8800 microcomputer. In 1980, Microsoft partnered with IBM to provide an operating system, which led to the creation of MS-DOS. This partnership significantly boosted Microsoft's prominence in the software industry. (britannica.com)
Expansion and Dominance
In 1985, Microsoft released Windows 1.0, a graphical extension for MS-DOS, marking the beginning of its dominance in the operating system market. The subsequent release of Windows 95 in 1995 introduced a more user-friendly interface and integrated internet support, solidifying Microsoft's position in personal computing. (britannica.com)
Legal Challenges
During the late 1990s and early 2000s, Microsoft faced significant legal challenges. In 1999, a U.S. District Court found Microsoft in violation of the Sherman Antitrust Act for maintaining a monopoly in the PC operating systems market. The company reached a settlement in 2001, agreeing to share its application programming interfaces with third-party companies. (britannica.com)
Diversification and Innovation
Under the leadership of CEO Satya Nadella, who assumed the role in 2014, Microsoft shifted its focus towards cloud computing and artificial intelligence. The launch of the Azure cloud platform and the acquisition of LinkedIn in 2016 for $26.2 billion exemplify this strategic direction. (britannica.com)
Products and Services
Operating Systems
Microsoft's Windows operating system has been a cornerstone of its product lineup. Windows 10, released in 2015, introduced features like the Cortana digital assistant and the Edge web browser. Windows 11, launched in 2021, offered a redesigned interface and enhanced performance. (britannica.com)
Productivity Software
The Microsoft Office suite, including applications like Word, Excel, and PowerPoint, has been a staple in business and personal productivity. The transition to Office 365, a subscription-based model, reflects the company's adaptation to cloud-based services. (britannica.com)
Cloud Computing
Azure, Microsoft's cloud computing platform, has become a significant revenue driver. In 2025, Azure's annual revenue surpassed $75 billion, marking a 34% year-over-year increase. (apnews.com)
Gaming
Microsoft entered the gaming industry with the release of the Xbox console in 2001. The acquisition of Mojang, the developer of Minecraft, in 2014 for $2.5 billion, and the purchase of Activision Blizzard in 2023 for $68.7 billion, have bolstered its gaming portfolio. (britannica.com)
Artificial Intelligence
Microsoft has invested heavily in artificial intelligence, including a multi-billion dollar partnership with OpenAI. This collaboration has integrated AI capabilities across Microsoft's products, such as Microsoft 365 and Azure. (ft.com)
Financial Performance
As of July 2025, Microsoft achieved a market capitalization of $4 trillion, becoming the second company to reach this milestone after Nvidia. The company's fiscal year 2025 revenue was $281.7 billion, with Azure contributing over $75 billion. (tomshardware.com)
Corporate Culture and Leadership
Under Satya Nadella's leadership, Microsoft has fostered a culture of innovation and inclusivity. The company's mission is to "empower every person and organization to achieve more." (techi.com)
Key Facts
- –Founders: Bill Gates and Paul Allen
- –Founded: April 4, 1975
- –Headquarters: Redmond, Washington, USA
- –CEO: Satya Nadella
- –Market Capitalization: $4 trillion (as of July 2025)
- –Annual Revenue: $281.7 billion (fiscal year 2025)
- –Employees: 228,000 (as of 2025)