Microsoft is a computer technology corporation founded on April 4, 1975, by Bill Gates and Paul Allen in Albuquerque, New Mexico, United States. It is best known for the Windows operating system, the Office productivity software suite, the Microsoft 365 subscription service, the Xbox video gaming brand, the Bing search engine, and the Azure cloud computing platform. In 1980, Microsoft formed a partnership with IBM to bundle Microsoft's operating system with IBM computers; with that deal, IBM paid Microsoft a royalty for every sale. In 1985, IBM requested Microsoft to develop a new operating system for their computers called OS/2. Microsoft produced that operating system, but also continued to sell their own alternative, which proved to be in direct competition with OS/2. Windows eventually overshadowed OS/2 in terms of sales. When Microsoft launched several Windows versions in the 1990s, they had captured over 90% market share of the world's personal computers. As of June 30, 2015, Microsoft has a global annual revenue of US$86.83 billion (~$112 billion in 2024) and 128,076 employees worldwide. It develops, manufactures, licenses, and supports a wide range of software products for computing devices.
1975–1985: Founding
In late 1974, Paul Allen, a programmer at Honeywell, was walking through Harvard Square when he saw the cover of the January 1975 issue of Popular Electronics that demonstrated the Altair 8800, the first microcomputer. Allen bought the magazine and rushed to Currier House at Harvard College, where he showed it to high school friend Bill Gates. They saw potential to develop an implementation of BASIC for the system. Gates called Altair manufacturer Micro Instrumentation and Telemetry Systems (MITS), offering to demonstrate the implementation. Allen and Gates had neither an interpreter nor an Altair system, yet in the eight weeks before the demo, they developed an interpreter with the help of Monte Davidoff. When Allen flew to Albuquerque to meet with MITS, the interpreter worked and MITS agreed to distribute Altair BASIC. Allen moved to Albuquerque, Gates soon quit Harvard to join him, and they co-founded Microsoft there. Revenues of the company totalled $16,005 by the end of 1976.
Allen came up with the original name of Micro-Soft, a portmanteau of microcomputer and software. Hyphenated in its early incarnations, on November 26, 1976, the company was registered under "Microsoft" name with the Secretary of State of New Mexico. The first employee Gates and Allen hired was their high school collaborator Ric Weiland. The company's first international office was founded on November 1, 1978, in Japan, entitled "ASCII Microsoft" (now called "Microsoft Japan"), and on November 29, 1979, the term, "Microsoft" was first used by Bill Gates. On January 1, 1979, the company moved from Albuquerque to a new home in Bellevue, Washington, since it was hard to recruit top programmers to Albuquerque. Shortly before the move, 11 of the then-13 employees posed for the staff photo on the right. Steve Ballmer joined the company on June 11, 1980, and would later succeed Bill Gates as CEO from January 2000 until February 2014. The company restructured on June 25, 1981, to become an incorporated business in its home state of Washington (with a further change of its name to "Microsoft Corporation, Inc."). As part of the restructuring, Bill Gates became president of the company and chairman of the board, and Paul Allen became executive vice president and vice chairman. In 1983, Allen left the company after receiving a Hodgkin lymphoma diagnosis, though he remained on the board as vice-chairman. This effectively ended the formal business partnership between Gates and Allen, which had been strained months prior due to a contentious dispute over Microsoft equity. Later in the decade, Gates and Allen repaired their relationship and together the two donated millions to their childhood school Lakeside. They remained friends until Allen's death in October 2018. Microsoft's early products were different variants of Microsoft BASIC which was the dominant programming language in late 1970s and early 1980s home computers such as Apple II (Applesoft BASIC) and Commodore 64 (Commodore BASIC), and were also provided with early versions of the IBM PC as the IBM Cassette BASIC. Microsoft also marketed through an Apple dealer in West Palm Beach, Florida two products for the Radio-Shack TRS-80. One was "Typing Tutor" which led the user through learning to use a keyboard. The other was authored by a professor at the University of Hawaii called "MuMATH" and had the ability to do mathematics in long integer math to avoid floating point numbers.
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![History of Microsoft: Microsoft staff in Albuquerque, December 7, 1978Top: Steve Wood, Bob Wallace, Jim LaneMiddle: Bob O'Rear, Bob Greenberg, Marc McDonald, Gordon LetwinBottom: Bill Gates, Andrea Lewis, Marla Wood, Paul AllenNot pictured: Ric Weiland, Miriam Lubow[11]](https://upload.wikimedia.org/wikipedia/en/thumb/5/5e/Microsoft-Staff-1978.jpg/330px-Microsoft-Staff-1978.jpg?utm_source=en.wikipedia.org&utm_campaign=parser&utm_content=thumbnail)


