Microsoft – The Biggest Software Company in the World
The world’s largest computer software company, Microsoft, has had a profound impact on the way we work, play and communicate. Its products — from operating systems to productivity apps to video gaming consoles — have transformed the technological landscape. However, the company has also been criticized for its treatment of workers. A notorious characterization of the firm is that of a “Velvet Sweatshop,” which relates to its practice of overworking employees to the point where their health may be compromised.
The Microsoft family of products is diverse and includes desktop office functionalities like Word, Excel and Outlook as well as cloud platforms such as Azure and a suite of tools for business collaboration called Teams. Its Xbox line of electronic gaming consoles has challenged established players such as Sony and Nintendo to capture a significant share of the market. In addition, Microsoft’s Surface devices bundle tablet hardware with the Windows operating system.
In 1975 Bill Gates and Paul Allen, two boyhood friends from Seattle, began working on a BASIC compiler for an early microcomputer, the Altair 8800. They named their newly formed company after the words “microcomputer” and “software.”
Since then, Microsoft has diversified significantly into multiple sectors of the economy. Its most profitable product is the Microsoft Office suite of desktop computer programs, which includes programs such as Word, Excel and PowerPoint for word processing, and Outlook for email management. Its Azure platform provides cloud computing, data storage and analytics as well as artificial intelligence functionality. Its Xbox family of gaming consoles has positioned the company as a major player in the console market, and its Xbox Live service offers online gaming, streaming and subscription services.
Microsoft is also making efforts to be more environmentally responsible. Its goal is to be carbon negative by 2030, which means it will remove more carbon from the atmosphere than it emits. And it is working to increase the number of women and people of color in its workforce.
The company is facing challenges in several markets, including a slowdown in tech spending and competition from rivals such as Google and Amazon. Last year, it laid off more than 5,000 workers. And it has faced criticism over its use of permatemp workers and forced retention tactics that could result in employee burnout and health problems. Despite these challenges, the company remains the world’s biggest software maker and is among the most valuable publicly traded companies.
