Microsoft started its journey in 1975, and it’s now hitting the incredible milestone of 50 years. Back then, they kicked off the personal computing revolution with MS-DOS and later, Windows.
In the 80s, they teamed up with IBM on Project Chess, showcasing that everyday people could access business computing without needing to be tech experts. When the IBM PC launched in 1981, it came equipped with VisiCalc, a groundbreaking spreadsheet tool. This made it easy for business users to analyze data without going through an entire department for numbers.
The 90s brought dramatic changes. Microsoft transitioned from the command-line style of MS-DOS to a more user-friendly graphical interface with Windows. This shift wasn’t just cosmetic; it marked a turning point in how people interacted with computers. During this time, IBM and Microsoft parted ways, with IBM pushing its OS/2 system while Microsoft focused on fixing its Windows GUI. The launch of Windows 3 in 1990 signaled improvements, and by 1993, they ventured into server operating systems with Windows NT, originally ideated alongside Sybase and Ashton-Tate.
As the World Wide Web emerged, Microsoft made a bold move in 1995 with the launch of Windows 95, their first fully graphical operating system. While Linux was gaining ground as a competitor in data centers, Microsoft introduced Exchange in 1996—a key move to secure their presence in that market. By the end of the century, upgrades like Windows 2000 and Windows Server 2003 began shaping Microsoft’s server lineup.
On the desktop, Microsoft sought to encourage upgrades to Windows XP, yet many users remained loyal to the older Windows Me version. Fast forward to October 2023, and Microsoft plans to roll out a new version of Windows, retiring Windows 10, while pushing users towards Windows 11, launched in 2021. This upgrade cycle often means older hardware can’t support the new OS, nudging users to purchase new PCs. Microsoft is also preparing users for the AI era, emphasizing the need for machines equipped with neural processing units to handle local AI tasks.
Steve Ballmer, a former CEO, famously rallied support for developers during a Microsoft event. From its inception, Microsoft recognized the importance of fostering a developer community. Microsoft Basic was launched to give the world’s first microcomputer, the Altair 8080, a programming language. This foundation led to the introduction of a software developer kit (SDK) with Windows, which opened the door for a massive wave of Windows applications. Their IDE, Visual Studio, became a go-to tool for developers.
Throughout its history, Microsoft has aimed to set standards in technology and often found itself at odds with regulators. They’ve faced accusations of anti-competitive practices, notably after bundling Internet Explorer with Windows in 2000. More recently, the EU hit Microsoft with a €2.2 billion fine for bundling Teams with its Office 365 suite.
In a surprising shift, Microsoft embraced open-source software, acquiring GitHub for $7.6 billion in 2016. They also integrated a Linux subsystem into Windows, allowing Linux users to easily work within a Windows environment.
Microsoft has established itself as a serious player in the cloud market with Azure, competing directly with Amazon Web Services (AWS). This move aligns with their long-standing relationships with enterprise customers, enabling them to promote cloud services effectively. Current market share shows Amazon leading at 30%, followed closely by Microsoft at 21%.
Recently, a $10 billion investment in OpenAI, the developer of ChatGPT, has positioned Microsoft well for the AI era, boosting cloud service revenues significantly.
Satya Nadella has led Microsoft since 2014, transforming it into a powerhouse in AI. However, the future holds questions about the direction of LinkedIn, which Microsoft acquired for over $26 billion. As it stands, LinkedIn generates around $2.2 billion a year but is anticipated to grow slowly. Microsoft still needs to clarify how LinkedIn will fit within its broader enterprise strategy.