Microsoft
A global technology company spanning operating systems, productivity software, cloud computing, artificial intelligence, gaming, developer tools, devices, and online services.
Last updated August 31, 2026
Overview
Microsoft is an American multinational technology company founded in Albuquerque, New Mexico, in 1975 by Bill Gates and Paul Allen. The founders initially developed and marketed a BASIC interpreter for the Altair 8800 microcomputer. That early software partnership with Micro Instrumentation and Telemetry Systems gave Microsoft a foothold in the emerging personal-computer industry and established its enduring focus on software platforms and developer ecosystems. The company’s decisive expansion began with operating systems. In 1980 Microsoft agreed to supply software for IBM’s forthcoming personal computer and obtained the rights to market a system based on 86-DOS, which it adapted and sold as MS-DOS. Microsoft retained important ownership and licensing rights, allowing the operating system to spread beyond IBM hardware to the wider IBM-compatible PC market. Windows began in 1985 as a graphical environment for MS-DOS and became increasingly capable through the 1990s. Windows 3.0, Windows 95, Windows 98, Windows XP, and later releases made Microsoft the defining software platform provider of the PC era. Microsoft also built a powerful productivity-software franchise. Microsoft Office, introduced in 1990 as a bundle of applications including Word and Excel, became a standard business and education suite. The company expanded into server software, databases, developer tools, networking, and enterprise applications. Its growing control of PC operating systems and software distribution attracted extensive antitrust scrutiny in the United States and Europe, including the United States v. Microsoft case and later European Commission proceedings concerning interoperability, media-player bundling, and server protocols. During the late 1990s and 2000s, Microsoft broadened its consumer and online activities. It developed Internet Explorer, MSN, Bing, Outlook.com, and other online services; entered the console-gaming market with Xbox in 2001; and released Windows Server, SQL Server, Visual Studio, and related enterprise products. Under Steve Ballmer, who became chief executive in 2000, Microsoft acquired Skype, introduced the Surface hardware line, pursued Windows Phone and its partnership with Nokia, and continued investing in enterprise infrastructure. The company’s mobile-phone strategy ultimately failed to establish a durable position against Apple’s iPhone and Google’s Android ecosystem. Cloud computing became the central strategic transition of the following decade. Microsoft announced its Azure platform in 2008 and gradually reorganized its business around cloud infrastructure, recurring subscriptions, enterprise security, collaboration, and data services. Satya Nadella became chief executive in 2014 and accelerated this transformation. Microsoft increasingly supported Linux and open-source development, expanded cross-platform access to its services, and emphasized Azure, Microsoft 365, Teams, Dynamics 365, GitHub, LinkedIn, and security products. The acquisitions of LinkedIn in 2016 and GitHub in 2018 strengthened its professional-networking, developer, and enterprise positions. Artificial intelligence became a major pillar of Microsoft’s strategy through its partnership with OpenAI, expanded cloud infrastructure, and the Copilot family of assistants. From 2023, Microsoft introduced Copilot experiences across Bing, Edge, Windows, Microsoft 365, GitHub, and business applications. The company has positioned Azure as a platform for training and deploying AI models while integrating generative AI into productivity and developer workflows. Gaming remains another major business. Xbox includes consoles, PC gaming, Game Pass subscriptions, cloud gaming, digital distribution, and first-party studios. Microsoft formed the Microsoft Gaming division in 2022 and completed its acquisition of Activision Blizzard King in 2023 after extensive regulatory review. The transaction added franchises and studios associated with Activision, Blizzard…
History
Microsoft’s history follows the evolution of the computing industry from hobbyist microcomputers to networked personal computers, enterprise infrastructure, cloud platforms, and AI services. Gates and Allen founded the company in 1975 after creating a BASIC interpreter for the Altair 8800. Microsoft’s early business model combined software development with licensing and distribution partnerships rather than manufacturing its own computers. The IBM PC agreement of 1980 was the pivotal early turning point. Microsoft supplied an operating system marketed as MS-DOS and retained rights that enabled it to license the system to other PC manufacturers. This decision helped create a broad compatible-PC ecosystem. Windows, introduced in 1985, initially operated as a graphical layer over MS-DOS but became a full operating-system family. The 1986 public offering supplied capital and created substantial employee wealth, while the move to Redmond established the company’s long-term headquarters. In the 1990s, Windows and Office became foundational products in homes, schools, and workplaces. Windows 95 combined a new interface with broad hardware and software compatibility, while Office created a durable suite-based productivity standard. Microsoft simultaneously developed Windows NT, server software, developer tools, and Internet services. Its dominance brought antitrust investigations in the United States and Europe, especially over licensing practices, browser distribution, interoperability, and the relationship between Windows and adjacent products. The company entered gaming with Xbox in 2001 and expanded its enterprise portfolio through Windows Server, SQL Server, Visual Studio, and business applications. It launched Windows Vista and Windows 7, experimented with media players and mobile software, and pursued Windows Phone, but did not secure a leading smartphone ecosystem. Under Steve Ballmer, Microsoft also acquired Skype and began selling Surface devices. Azure, announced in 2008, marked the transition from packaged software toward cloud infrastructure and services. Satya Nadella’s appointment as CEO in 2014 accelerated this change. Microsoft emphasized Azure, Microsoft 365 subscriptions, Teams, Dynamics 365, security, GitHub, and LinkedIn, while becoming more receptive to Linux and cross-platform development. These changes broadened Microsoft from a PC software company into a diversified enterprise technology platform. The company’s recent direction has been shaped by AI investment and gaming consolidation. Its relationship with OpenAI supported the integration of generative AI into Azure and Microsoft products. Copilot became a common product identity for AI assistance in search, operating systems, productivity software, development tools, and business applications. Microsoft also created Microsoft Gaming and completed the Activision Blizzard King acquisition in 2023 following extended competition review. The company now operates across cloud computing, AI, productivity, security, developer services, gaming, professional networking, advertising, and devices, while facing continuing questions about competition, cybersecurity, privacy, AI safety, and responsible technology governance.
- 2023Copilot expands across Microsoft products
Microsoft consolidates and extends generative-AI assistants under the Copilot brand.
- 2023Activision Blizzard King acquisition closes
Microsoft completes its acquisition of Activision Blizzard after regulatory proceedings and negotiated remedies.
- 2022Microsoft Gaming division is formed
Microsoft organizes its gaming activities under the Microsoft Gaming structure.
- 2019Microsoft and OpenAI begin expanded partnership
Microsoft invests in and partners with OpenAI around advanced AI development and Azure infrastructure.
- 2018Microsoft acquires GitHub
GitHub joins Microsoft, strengthening the company’s position in software development and open-source collaboration.
- 2016Microsoft acquires LinkedIn
The acquisition adds a major professional network and business-data platform to Microsoft’s enterprise portfolio.
- 2014Satya Nadella becomes CEO
Nadella succeeds Ballmer and prioritizes cloud services, subscriptions, developer platforms, and cross-platform products.
- 2012Surface is unveiled
Microsoft introduces its Surface family of first-party computers and tablets.
- 2011Microsoft acquires Skype
Microsoft acquires Skype Technologies, expanding its communications and online-services portfolio.
- 2008Azure is announced
Microsoft announces its cloud-computing platform, later branded Microsoft Azure.
- 2001Xbox launches
Microsoft enters the video-game console market with Xbox.
- 2000Steve Ballmer becomes CEO
Steve Ballmer succeeds Gates as chief executive as Microsoft expands into enterprise software, online services, and consumer technology.
- 1995Windows 95 launches
Windows 95 introduces a redesigned interface and becomes one of Microsoft’s most significant consumer software releases.
- 1990Microsoft Office is introduced
Microsoft begins selling a bundled productivity suite that develops into the Office and Microsoft 365 franchises.
- 1986Microsoft becomes publicly traded
Microsoft completes its initial public offering on Nasdaq and moves its headquarters to Redmond, Washington.
- 1985Windows 1.0 launches
Microsoft releases Windows as a graphical operating environment for MS-DOS.
- 1981MS-DOS ships with the IBM PC
The IBM PC launches with Microsoft-supplied operating-system software, helping establish MS-DOS across the compatible-PC market.
- 1980Microsoft enters the operating-system business
Microsoft agrees to provide operating-system software for IBM’s personal computer project and subsequently develops MS-DOS.
- 1975Microsoft is founded
Bill Gates and Paul Allen establish Microsoft to develop and market software, beginning with Altair BASIC.
Products and positioning
A broad technology platform provider for consumers, businesses, developers, schools, and governments, combining software ecosystems, cloud infrastructure, AI services, enterprise applications, gaming, and first-party hardware.
WindowsOperating systems1985
Microsoft’s operating-system family for personal computers, enterprise endpoints, servers, and related devices. Windows became the company’s foundational platform in the PC era and remains integrated with Microsoft’s productivity, security, developer, gaming, and AI services.
Microsoft 365Productivity software and subscriptions2017
A subscription portfolio built around Office applications such as Word, Excel, PowerPoint, and Outlook, with cloud storage, collaboration, administration, security, and increasingly integrated AI capabilities for individual and organizational users.
AzureCloud computing2008
Microsoft’s cloud platform provides computing, storage, databases, networking, analytics, developer tools, security, and artificial-intelligence infrastructure. Azure supports enterprise workloads and is the principal infrastructure layer for many Microsoft and partner AI services.
Microsoft CopilotArtificial intelligence2023
A family of generative-AI assistants embedded across Windows, Bing, Edge, Microsoft 365, GitHub, Dynamics, security products, and other services. Copilot is positioned as a natural-language interface for drafting, analysis, search, coding, productivity, and business workflows.
XboxGaming and entertainment2001
Microsoft’s gaming ecosystem includes consoles, PC games, digital distribution, Game Pass subscriptions, cloud gaming, online services, and first-party studios. Its portfolio expanded materially through the Activision Blizzard King acquisition.
SurfaceHardware devices2012
A first-party hardware line covering laptops, tablets, detachable and convertible computers, accessories, and related Windows devices. Surface serves as both a commercial product family and a reference design for Microsoft’s hardware-and-software strategy.
Visual StudioDeveloper tools1997
An integrated development environment and family of tools used to build applications for Windows, cloud, web, mobile, games, and enterprise systems. It is complemented by Visual Studio Code and Microsoft’s wider developer platform.
GitHubDeveloper collaboration2008
A software-development collaboration platform used for source-code hosting, version control, issue tracking, automation, and open-source projects. Microsoft acquired GitHub in 2018 and has continued operating it as a distinct developer-focused service.
Flagship businesses
- Windows operating systems
- Microsoft 365 productivity subscriptions
- Azure cloud platform
- Microsoft Copilot AI services
- Xbox and Game Pass
- Surface devices
- Dynamics 365 business applications
- GitHub developer platform
- Windows
- Office 365
- Azure
- Microsoft 365
- Xbox
- Copilot
- Surface
- GitHub
- Microsoft Copilot
- Microsoft Teams
Marketing campaigns
- 2023Copilot brand integration
Global
Microsoft brought AI assistant experiences from Bing, Windows, Edge, Microsoft 365, GitHub, and business applications under the Copilot identity.
Outcome. Created a common commercial narrative for Microsoft’s consumer and enterprise AI products.
- 1995Windows 95 global launch
Global
Microsoft used extensive media coverage, retail events, midnight sales, and music-driven promotion to present Windows 95 as a major consumer technology release.
Outcome. The launch generated exceptional public attention and rapid early adoption.
- 1990Windows Computing Marketing Program
United States · Global
Microsoft conducted a large-scale campaign to promote Windows and its expanding software ecosystem during the company’s transition toward graphical PC computing.
Outcome. Helped strengthen Windows as a mainstream PC platform.
Brand decisions
- 2024Respond to European scrutiny of Teams bundlingOther
European regulators questioned whether combining Teams with Microsoft 365 and Office 365 could limit competition in workplace collaboration software.
What changed. Microsoft engaged with the European Commission and adjusted the commercial availability and packaging of Teams in relevant markets.
Aftermath. The proceedings reinforced regulatory attention on Microsoft’s bundling, distribution, and enterprise-SaaS practices; a final outcome is not established here.
- 2023Build a unified Microsoft Copilot experienceProduct launch
Generative AI was rapidly entering search, office software, operating systems, coding tools, and enterprise applications.
What changed. Microsoft unified multiple AI assistant experiences under Copilot and expanded them across consumer and business products.
Aftermath. Copilot became a principal route for commercializing and distributing Microsoft’s generative-AI capabilities.
- 2023Complete the Activision Blizzard King acquisitionM&A
Microsoft sought to expand Xbox content, mobile reach, and cloud-gaming capabilities while regulators examined effects on console and cloud competition.
What changed. Microsoft closed the acquisition and incorporated Activision, Blizzard, and King assets into its gaming organization, subject to regulatory commitments.
Aftermath. The transaction enlarged Microsoft’s games portfolio and strengthened its position across console, PC, mobile, and cloud gaming.
- Sony Interactive Entertainment — Sony raised competition concerns during regulatory proceedings, particularly regarding access to important game content and effects on console and cloud gaming.
- Nintendo — Microsoft made public cross-platform availability commitments for selected games during efforts to address competition concerns.
- 2014Accelerate the cloud-first and cross-platform transformationStrategy
Microsoft needed to respond to mobile-platform competition, slower PC growth, and the shift from licensed software to online services.
What changed. After Nadella became CEO, Microsoft prioritized Azure, subscriptions, developer services, enterprise applications, and access across competing platforms.
Aftermath. Cloud infrastructure, Microsoft 365, security, LinkedIn, GitHub, and AI became core parts of the company’s growth strategy.
- 2008Enter cloud computing with Windows AzureStrategy
The growth of hosted software and cloud infrastructure challenged Microsoft’s traditional packaged-software model.
What changed. Microsoft introduced Azure as a cloud platform offering computing, storage, development, and related services.
Aftermath. Azure became a central foundation of Microsoft’s enterprise, subscription, and AI businesses.
Leadership
| Name | Title | Tenure |
|---|---|---|
| Brad Smith | Vice Chair and President | 2015– |
| Satya Nadella | Chairman and Chief Executive Officer | 2014– |
| Satya Nadella | Chief Executive Officer | 2014– |
| Amy Hood | Executive Vice President and Chief Financial Officer | 2013– |
| Steve Ballmer | Former Chief Executive Officerformer | 2000–2014 |
| Steve Ballmer | Chief Executive Officer, formerformer | 2000–2014 |
| Susumu Furukawa | Founding president of Microsoft Japanformer | 1986– |
| Bill Gates | Former Chief Executive Officer and former Chief Software Architectformer | 1975–2008 |
| Bill Gates | Co-founder and former Chief Executive Officerformer | 1975–2000 |
| Paul Allen | Co-founder and former executiveformer | 1975–1983 |
| Yoshihiro Maruyama | Microsoft Japan executive associated with the public presentation of Xbox 360former | — |
Controversies
- 2024Teams and Microsoft 365 bundling investigationControversy
The European Commission investigated whether bundling Teams with Microsoft 365 and Office 365 disadvantaged competing collaboration products. The matter increased regulatory pressure on Microsoft’s enterprise-software packaging.
- 2024Cybersecurity governance criticismControversy
Following significant cyber incidents and government reviews, Microsoft faced criticism concerning the security of its products, cloud services, identity systems, and internal security priorities.
- 2004European Commission antitrust enforcementControversy
European authorities found Microsoft had abused its dominant position and imposed remedies concerning media-player distribution and disclosure of interoperability information, followed by additional compliance disputes.
- 1998United States v. Microsoft antitrust caseControversy
The U.S. Department of Justice and states challenged Microsoft’s use of Windows market power and its conduct involving Internet Explorer and PC distribution. The litigation became one of the defining antitrust cases in the software industry.
Recent events
- 2025Microsoft marked five decades of expansion through acquisitions
A Nikkei analysis described Microsoft as having completed nearly 300 acquisitions over its history, with recent activity concentrated in artificial intelligence, cloud, developer tools, and security.
M&A - 2024Microsoft-backed Rubrik completed its public listing
Rubrik, a cybersecurity company backed by Microsoft, listed on the New York Stock Exchange. The reported IPO raised $752 million; the figures are included as a transaction-time news report rather than Microsoft revenue.
M&AOther - 2023Microsoft completes acquisition of Activision Blizzard King
Microsoft closed its acquisition of Activision Blizzard after regulatory review, bringing major console, PC, mobile, and cloud-gaming assets into its gaming business.
M&A - 2023Microsoft introduces Copilot as a unified AI assistant brand
Microsoft unified several generative-AI assistant experiences under the Copilot name across consumer and enterprise products.
Product launch - 2023Microsoft and OpenAI expand partnership
The companies expanded their partnership around Azure infrastructure and the development and deployment of advanced AI systems.
Other - 2023Microsoft completed its acquisition of Activision Blizzard
After regulatory review and remedies, Microsoft completed the acquisition and placed Activision Blizzard within Microsoft Gaming.
M&ARegulation - 2022Microsoft launched Microsoft Advertising in Japan
Microsoft announced the start of its Microsoft Advertising business in Japan, opening search and native advertising access to Japanese agencies and brands across Bing and related Microsoft properties.
CampaignProduct launch - 2022Microsoft completed its acquisition of Nuance Communications
Microsoft completed the acquisition of Nuance, strengthening its industry-specific conversational AI and cloud capabilities, especially in healthcare and other regulated sectors.
M&A - 2019Microsoft Japan reports results from four-day workweek trial
During a summer trial, employees received paid Fridays off, while meeting lengths and attendance were reduced. The company reported a 40 percent productivity increase and a 23 percent reduction in electricity costs during the trial.
Other - 2016Microsoft announced its acquisition of LinkedIn
The company agreed to acquire the professional networking service, expanding its enterprise software and professional-data ecosystem.
M&A - 2014Satya Nadella appointed chief executive officer
Nadella succeeded Steve Ballmer and subsequently made cloud computing, subscriptions, developer platforms, and cross-platform services central to Microsoft’s strategy.
Leadership change - 2012Microsoft announces Surface
Microsoft unveiled Surface, its first major internally branded PC hardware family, linking Windows software with first-party devices.
Product launch - 2005Microsoft Japan presents Xbox 360
Yoshihiro Maruyama publicly presented Microsoft's Xbox 360 in Japan on May 13, 2005.
Product launch - 1986Microsoft goes public
Microsoft completed its initial public offering, beginning its life as a widely held public company and providing capital for continued expansion.
Other - 1986Microsoft Japan announces the AX project
The company introduced AX, a Japanese computing initiative intended to improve IBM-compatible PCs' handling of Japanese text.
Product launch - A global Microsoft-related outage disrupted organizations and websites
Reference material reports a major systems outage affecting airlines, public bodies, and other organizations. The supplied report does not establish the precise cause or date in a sufficiently reliable way.
Other
Sources
- Microsoft
- Microsoft company history and facts
- Microsoft annual reports
- U.S. Department of Justice Microsoft antitrust case materials
- European Commission Microsoft antitrust materials
- Windows 1.0 launches
- Microsoft Office is introduced
- Windows 95 launches
- Xbox launches
- Azure is announced
- Microsoft acquires Skype
- Surface is unveiled
- Satya Nadella becomes CEO
- Microsoft acquires LinkedIn
- Microsoft acquires GitHub
- Microsoft and OpenAI begin expanded partnership
- Copilot expands across Microsoft products
- Activision Blizzard King acquisition closes
- Windows Computing Marketing Program
- European Commission antitrust enforcement
- Cybersecurity governance criticism
- Workplace-management litigation reported in Japan
- OEM Windows许可条款受到审查
- Microsoft marked five decades of expansion through acquisitions
- Microsoft-backed Rubrik completed its public listing
- 微软与OpenAI扩大合作
- Microsoft completed its acquisition of Activision Blizzard
- Microsoft launched Microsoft Advertising in Japan
- Microsoft completed its acquisition of Nuance Communications
- Microsoft announced its acquisition of LinkedIn
- Microsoft goes public
- A global Microsoft-related outage disrupted organizations and websites
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