The Rise of Microsoft
Microsoft is an American multinational technology company that develops, licenses, and supports a variety of computer software products and services. The company is best known for its Windows line of operating systems, the Microsoft Office suite of productivity applications, and the Azure cloud computing platform. Its hardware products include the Xbox video game consoles and the Surface lineup of touchscreen personal computers. Microsoft was founded in 1975 by Bill Gates and Paul Allen, two college classmates who worked on a compiler for the Altair 8800, a primitive early microcomputer. The company adopted its name from the first letters of the words “microcomputer software” and “Altair.”
By 1990, Microsoft had seized control of the world’s PC market. Its Windows operating system was the dominant software choice, powering 90 percent of new personal computers sold that year. The operating system offered a user-friendly graphical interface and outstripped longtime competitors like Apple Computer’s Mac OS in sales and usage. The company was also the leader in office software, with programs such as Word and Excel.
The company expanded into gaming and hardware in the 2000s, with the launch of the Xbox console and related subscriptions that competed with Sony and Nintendo. It entered the cloud computing industry in 2008 with the release of Azure, a rival to Amazon Web Services. In 2012, Microsoft introduced the Surface tablet, a line of touch-enabled computers that bundles PC hardware with the Windows operating system.
In 2022, Microsoft ranked 14th in the Fortune Global 500 list of the largest United States corporations by revenue. The company’s stock price has increased by nearly 60 percent since the start of the millennium, and it has a market capitalization of more than $800 billion.
Microsoft’s culture of innovation is undergoing a revival, with CEO Satya Nadella leading the charge. Many observers had written the company off as a 20th-century phenomenon, fat from its Windows monopoly and slow to innovate. But in the fall of 2019, Microsoft made a dramatic about-face, launching an ambitious artificial intelligence (AI) strategy that challenges Google’s search dominance and reviving its reputation for bold experimentation.
In addition to AI research, the company is pushing into virtual reality and other emerging technologies. Its mixed-reality headset HoloLens allows users to collaborate on projects with people in different locations using 3D content, and its Surface tablets and laptops can be used as digital whiteboards. The company is also experimenting with self-driving cars and robots that can assist people with daily tasks such as cooking, cleaning, or taking medication. Microsoft has a wide range of internal collaboration tools, including Teams, which provides external access for guest users to communicate with team members through chat, meetings, and file sharing. The Microsoft Teams API enables developers to extend the capabilities of the tool by creating custom bots that perform various functions. For example, one bot aims to help people stay organized by reminding them of meetings and tasks, while another offers suggestions for lunch restaurants.
