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IBM awarded a contract to Microsoft in November 1980 to provide a version of the CP/M OS to be used in the IBM Personal Computer (IBM PC). Microsoft entered the operating system (OS) business in 1980 with its own version of Unix called Xenix, but it was MS-DOS that solidified the company's dominance. Microsoft moved its headquarters to Bellevue, Washington, in January 1979. In August 1977, the company formed an agreement with ASCII Magazine in Japan, resulting in its first international office of ASCII Microsoft. : 108, 112–114 Gates and Allen established Microsoft on April 4, 1975, with Gates as CEO, and Allen suggested the name 'Micro-Soft', short for micro-computer software. MITS agreed to distribute it, marketing it as Altair BASIC.

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Allen worked on a simulator for the Altair while Gates developed the interpreter, and it worked flawlessly when they demonstrated it to MITS in March 1975 in Albuquerque, New Mexico. Gates called MITS and claimed that he had a working interpreter, and MITS requested a demonstration. The January 1975 issue of Popular Electronics featured Micro Instrumentation and Telemetry Systems's (MITS) Altair 8800 microcomputer, which inspired Allen to suggest that they could program a BASIC interpreter for the device. Gates enrolled at Harvard University while Allen pursued a degree in computer science at Washington State University, though he later dropped out to work at Honeywell. In 1972, they founded Traf-O-Data, which sold a rudimentary computer to track and analyze automobile traffic data. Paul Allen and Bill Gates on October 19, 1981, after signing a pivotal contract with IBM : 228Ĭhildhood friends Bill Gates and Paul Allen sought to make a business using their skills in computer programming.

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Microsoft has been criticized for its monopolistic practices and the company's software has been criticized for problems with ease of use, robustness, and security. As of 2022, Microsoft has the fourth-highest global brand valuation. public company to be valued at over $1 trillion after Apple and Amazon respectively. In April 2019, Microsoft reached the trillion-dollar market cap, becoming the third U.S. Įarlier dethroned by Apple in 2010, in 2018 Microsoft reclaimed its position as the most valuable publicly traded company in the world. Since Satya Nadella took over as CEO in 2014, the company has scaled back on hardware and has instead focused on cloud computing, a move that helped the company's shares reach its highest value since December 1999. in 2008, entering the personal computer production market for the first time in June 2012 with the launch of the Microsoft Surface line of tablet computers, and later forming Microsoft Mobile through the acquisition of Nokia's devices and services division. This unfolded with Microsoft acquiring Danger Inc. Steve Ballmer replaced Gates as CEO in 2000, and later envisioned a 'devices and services' strategy. The company also produces a wide range of other consumer and enterprise software for desktops, laptops, tabs, gadgets, and servers, including Internet search (with Bing), the digital services market (through MSN), mixed reality ( HoloLens), cloud computing ( Azure), and software development ( Visual Studio).

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Īs of 2015, Microsoft is market-dominant in the IBM PC compatible operating system market and the office software suite market, although it has lost the majority of the overall operating system market to Android. Since the 1990s, it has increasingly diversified from the operating system market and has made a number of corporate acquisitions, their largest being the acquisition of LinkedIn for $26.2 billion in December 2016, followed by their acquisition of Skype Technologies for $8.5 billion in May 2011. The company's 1986 initial public offering (IPO), and subsequent rise in its share price, created three billionaires and an estimated 12,000 millionaires among Microsoft employees. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by Windows. Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975, to develop and sell BASIC interpreters for the Altair 8800. It is one of the Big Five American information technology companies, alongside Alphabet, Amazon, Apple, and Meta. 21 in the 2020 Fortune 500 rankings of the largest United States corporations by total revenue it was the world's largest software maker by revenue as of 2019. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers.

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Its best-known software products are the Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers.

Microsoft Corporation is an American multinational technology corporation producing computer software, consumer electronics, personal computers, and related services headquartered at the Microsoft Redmond campus located in Redmond, Washington, United States.