History of Microsoft Corporation

 

Microsoft Corporation History 

 

Microsoft Corporation (originally Micro-Soft) was founded in 1975 by Bill Gates and Paul Allen in New Mexico. The two students land their first contract and create BASIC, a computer language interpreter for one of the first laptops, Altair 8,800. 

In 1978, the company developed its first international activity in Japan, under the name ASCII Microsoft. 

It is the beginning of the Microsoft company which then passes from a small office in a garage in Albuquerque to real premises in Bellevue in Washington in 1979. 

The creation of the MS-DOS system in 1981 undoubtedly marked the beginning of the success of the Microsoft brand. Bill Gates had the ingenious idea of only selling the license of his software and of remaining the owner, unlike other publishers who sold all the rights to their customers and thus lost the possibility of multiplying their earnings. 

Microsoft won a contract with IBM in 1981 to develop its MS-DOS system for laptops (PC-DOS). 

The famous Microsoft Office software suite was released in 1988 with only Word and Excel. In the early 1990s, Microsoft continued to develop its software with Access (databases), Outlook, PowerPoint, Encarta (an encyclopedia for computers) . 

In 1992, the firm launched Microsoft Windows 95 and began a partnership with the company Spyglass to create Internet Explorer, later included in Windows 95. 

MSN (Microsoft Network) was created in 1995, along with the MSNBC (Microsoft and NBC) joint venture for the creation of a cable television channel. The online political and social magazine Slate is also owned by Microsoft, which launched it the same year. 

In 2001, the launch of the Xbox game console was a commercial success, followed in 2005 by the Xbox 360. Microsoft also has its own search engine, Bing, whose success has been mixed, especially against the giant Google. The XP range makes its appearance (Office XP, Windows XP). 

In 2008, Bill Gates decided to retire from the management of Microsoft to devote himself to his charitable foundation "The Bill & Melinda Gates Foundation", nevertheless, he kept one foot in the company he co-founded, in fact, he chairs the Board of Directors of the firm. 

In 2010, Microsoft attempted a breakthrough in the world of smartphones with its operating system. Here again, success is mixed. The company has to face other formidable competitors including one of its "enemies", Apple, with whom, moreover, peace had been declared in 1997, at the time of Steve Jobs, following a series of lawsuits and legal remedies. 

From 2012 to 2013, Microsoft launched Windows 8, the Kinect, and the Xbox One. The company is on all fronts and is positioning itself in popular sectors to diversify its offer and overshadow its competitors by constantly innovating. 

Often criticized by its competitors for abuse of a dominant position and by free advocates for its proprietary software, Microsoft has had to face numerous lawsuits throughout its existence but has always been able to bounce back and remains, despite everything, a major player on the market. 

 

Sectors / Business division of the company Microsoft Corporation 

 Microsoft is an IT organization that creates working frameworks for PCs and cell phones. This company also develops software and video game consoles, as well as computer hardware (mice, keyboards). For many years, Microsoft has been building up its satellite TV business with the American station NBC. Microsoft is also present on the Internet with Internet Explorer and the Bing web crawler.

Geographic distribution of Microsoft Corporation revenue: 

• 50.7% commercialization of operating systems 

• 32.4% software application development 

• 12.9% video games 

• 4% online services 

• development of the manufacture and marketing of computer hardware 

 

Presence in the world of Microsoft Corporation 

 Microsoft Corporation is a multinational corporation with more than 90,000 employees in more than 190 countries around the world. 

Geographic distribution of Microsoft Corporation's activity: 

• 52.7% in the United States 

• 47.3% Other countries 

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Management of Microsoft Corporation 

 The Chairman and CEO of Microsoft Corporation have been Steven Ballmer since 2000. He succeeds Bill Gates directly. The latter chairs the Board of Directors of Microsoft Corporation, composed of 9 members: 

• Steve Ballmer

• Dina Dublon

• Bill Gates 

• Maria Klawe

• Stephen Luczo

• David Marquardt 

• Charles Noskj 

• Dr. Helmut Panke 

• John Thompson 

The Board of Directors is supported by various committees: 

• the audit committee (4 members) 

• the remuneration committee (3 members) 

• the governance and nomination committee (3 members) 

• the public and legal relations committee (3 members) 

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Microsoft Corporation Financial Data 

 Microsoft Corporation is a public limited company listed on the Wall Street Stock Exchange on the Dow Jones Index. 

Number of shares: 8,351,107,000 

Market capitalization  : $ 292,372 million 

Microsoft Corporation shareholding breakdown: 

• 81.1% free float 

• 9.5% Managers and Directors 

• 5.5% William H. Gates III 

• 4% Steven Ballmer 

Turnover from 2008 to 2012 in thousands of € 

2008	2009	2010	2011	2012
45 721 464	44 220 872	47,283,348	52 927 776	55 788 204

Net income from 2008 to 2012 in thousands of € 

2008	2009	2010	2011	2012
13 379 695	11,024,760	14,196,204	17,518,236	12 847 716

  

Microsoft Marketing Analysis 

 You can consult the SWOT analysis of Microsoft  but also many others in our SWOT Business section 

You can also consult the detailed files on the largest French and global companies in our company glossary