Microsoft was founded in 1975 by Bill Gates and Paul Allen in Albuquerque, New Mexico. The company’s initial focus was on software for the Altair 8800, one of the first personal computers. They created a version of the Basic programming language for this machine, which became the company’s first product.
In 1979, Microsoft moved to Redmond, Washington, and began to expand its focus from custom software for specific hardware to broader software products.
The company’s big break came in 1980, when IBM chose Microsoft to provide the operating system for its first personal computer. Microsoft created MS-DOS (Disk Operating System), which became the standard OS for IBM PCs.
In 1985, Microsoft launched Windows, a graphical user interface (GUI) that ran on top of MS-DOS. Windows faced initial resistance but eventually became the dominant operating system for personal computers.
During the 1990s, Microsoft experienced massive growth, largely driven by the success of Windows 95 and its associated software products like Microsoft Office. By the late ’90s, Microsoft was the largest software company in the world.
However, Microsoft faced legal challenges, particularly from the U.S. government, which filed an antitrust lawsuit accusing Microsoft of monopolistic practices, especially with its bundling of Internet Explorer with Windows. The case resulted in a settlement in the early 2000s, but it significantly impacted the company’s image.
In the 2000s, Microsoft struggled with its position in the emerging internet and mobile computing spaces. The company’s initial response to the rise of the internet was to focus on Internet Explorer and Windows-based browsers, but it lost ground to Google and Apple, especially with the rise of smartphones and tablets.
Under CEO Steve Ballmer, Microsoft made a series of moves to diversify its business, including the acquisition of Skype in 2011 and the development of the Windows Phone. However, Windows Phone failed to capture a significant share of the market.
In 2014, Ballmer stepped down as CEO, and Satya Nadella took over. Nadella refocused Microsoft on cloud computing and artificial intelligence (AI), with the company aggressively expanding its Azure cloud platform and acquiring LinkedIn in 2016. Nadella also led Microsoft to embrace open-source software, including the acquisition of GitHub in 2018.
In recent years, Microsoft has continued to grow, with key acquisitions like GitHub and ZeniMax Media (the parent company of Bethesda Game Studios, known for games like The Elder Scrolls and Fallout). Microsoft’s focus on cloud computing, AI, gaming (through its Xbox and Game Pass services), and its push for sustainability have helped cement its position as one of the leading tech giants in the world.
Today, Microsoft is one of the most valuable companies globally, known for its Windows OS, Office software suite, Azure cloud services, and the Xbox gaming platform, as well as its growing influence in areas like artificial intelligence and enterprise solutions.