History

Microsoft is an American corporation headquartered in Redmond, Washington

founded by childhood friends Paul Allen and Bill Gates

In January of 1975, Allen stumbled upon an article in Popular Electronics magazine about Altair 8800, which was a microcomputer.

http://www.youtube.com/watch?v=ad4m9U_u7X4

Birth of Microsoft

On April 4th, 1975, Microsoft was born.

software on 91% of personal computers worldwide

In 1980 International Business Machines Corporation also known as IBM asked Microsoft to produce the essential software, or operating system, for its first personal computer, the IBM PC

Bill Gates

Household name

Reasons for status

Influence is felt everywhere

Bill & Melinda Gates Foundation

95 % of wealth donated over time

Facts About Bill Gates

History

Middle class upbringing

Parents encouraged extremely competitive atmosphere

At Lakeside School, a preparatory school, his mastery of coding was demonstrated

School allowed him to write code to schedule students

He took advantage of the opportunity

Post-Lakeside

Graduated in 1973

Enrolled at Harvard College the same year

SAT of 1590 out of 1600

Met Steve Ballmer

Paul Allen joined him at Honeywell in 1974

Allen convinces Gates to start a new company after MITS Altair 8800

Management Style

Aggressive strategy

Expansion of products and services

Capture and control; broaden and deepen

Confrontational with senior managers

Played the role of the executive for most of his time with the company

Oversaw the coding and programming during the early years

Still serves on the tech oversight board

Gates in the U.S. government investigation

Post-Microsoft

During the late 2000s, Gates began turning over the reins to new management so that he could focus on his philanthropic designs.

Along with Mark Zuckerberg and Warren Buffet, he signed onto the Giving Pledge – which stated he would donate at least 50 % of his wealth to charity over time

Most of Gates’s personal contributions have been toward the medical and educational fields

ALS Ice Bucket Challenge

Paul Allen

Cofounder of Microsoft

Met Gates at Lakeside and kept in contact with him after Gates left for Harvard

Microsoft probably owes its existence to Paul Allen

It was Paul Allen who convinced Gates to start Microsoft and eventually drop out of college

Miscellaneous Info About Paul Allen

Scored a perfect SAT score of 1600

Washington State University

Dropped out two years to work as a programmer for Honeywell

This brought him closer to Bill Gates location at Harvard

Defining moment in computer software history

He was instrumental in securing a distribution contract with IBM that helped solidify Microsoft’s place in the market

By the late 1990s, Allen began to distance himself from the company and resigned his senior position during this time

He still owns the bulk of his shares and consults with the company from time to time

Also a signee of the Giving Pledge

Microsoft’s Products: The Rise and Fall of an Empire

1975-1981: The beginning

1975- Gates and Allen partnership.

1980- Steve Ballmer joins the company.

Microsoft releases first operating system: MS-DOS.

Introduced “commands” that users could give to the computer. (“C”)

The backslash key is introduced (\).

Effective, but hard to use for personal computer users.

1985-1994: Windows 1.0-3.01985: Windows 1.0 Interface Manager was

proposed name for operating system.

Settled on “Windows” because of the new boxes or computing windows.

Introduced “point and click” rather than typing commands.

Introduced drop down menus, scroll bars, icons, and dialog boxes.

Shipped with Paint, Notepad, Calculator, and Calendar.

First operating system that was easy enough for anyone to learn.

1987: Windows 2.0 Desktop icons, expanded

memory, improved graphics.

Keyboard shortcuts were introduced.

Companies other than Microsoft begin to write programs for Windows.

In 1988, Microsoft became the world’s largest PC software company based on sales volume.

Computers become part of daily life at work.

1990: Windows 3.0 Sold 10 million copies.

Most widely used operating system up to this point.

Improved memory and graphics.

Introduction of Program Manager, File Manager, and Print Manager.

Solitaire, hearts, and minesweeper.

Microsoft has established dominance in the computing industry.

1995-1998: Windows 95- The Modern Day PC

Most anticipated launch of all time.

Released on August 25, 1995.

Sold 7 million copies in five weeks.

Fax, email, modems, and the Internet.

In 1995, 80% of the world’s computers are running some version of Windows or MS-DOS.

Available in 12 languages.

The star menu is introduced.

Taskbars and the ability to minimize, maximize, and close windows.

Internet Explorer released later that year.

1998: Windows 98

First version of windows designed specifically for individual users, not businesses.

“Works Better, Plays Better.”

DVD Discs, USB Drive.

Windows Me presented numerous music, video, and home networking capabilities (Windows Media Player).

System Restore allows users to revert their computer back to a point in time where it was working properly.

2000: Windows 2000

Designed to replace Windows 95, Windows 98 on all business desktops and laptops.

Added reliability improvements, ease of use, and better internet compatibility.

Introduced hardware installation support (Wizard).

Fun Fact- The nightly stress test performed on Windows 2000 during development is the equivalent of three months of run time on up to 1,500 computers.

Steve Ballmer takes over as C.E.O.

2001-2005: Windows XP- Continuing Dominance in the PC World Released in October 2001.

Completely redesigned clean and simple look and feel. Fast and stable.

Available in 25 languages.

From the mid 1970s up until October 2001, over 1 billion PCs have been shipped.

Introduced increased security protocols to deal with the increase of hacking and computer viruses.

Remote desktop support, advanced networking features, Windows Messenger.

One of Microsoft’s most popular products of all time.

2006-2008: Windows Vista- The Decline Graphically and visually

impressive.

Updated security system.

At times, during production it would take the system 10 minutes to boot up.

Unstable, frequently crashed.

PC world declared Vista “The biggest tech disappointment of 2007”.

For the first time, Microsoft loyalists had begun to look elsewhere for their operating system needs

2009: Windows 7

Attempted to get back to its “Microsoft Roots”.

Simpler and more stable design than Vista.

Release was geared towards wireless and laptop users.

Debut of Windows Touch.

Over 8 million beta testers worldwide before the release.

Eagerness to get away from Vista.

2012-Current: Windows 8

Completely reimagined design.

Extremely touch friendly.

Intended to be used for both computers and tablets. Both pieces of hardware will be able to run the same operating system.

Start screen has “tiles” that connect to friends, files, applications, music, videos, and websites.

Windows Store is built into start screen.

The verdict is out on user acceptance.

Other Notable Microsoft Products

Skype Xbox Series

What Led to Microsoft’s fall?

Lack of innovative edge.

Corporate bureaucracy.

Change in leadership. Bill Gates to Steve Ballmer.

Increased competition from visionary Steve Jobs and Apple.

When Apple introduced the iPhone, Steve Ballmer laughed. “No chance that the iPhone is going to get any significant market share.”

Similar reactions to iPod, iPad, and Google.

in 2005 he proclaimed, “Google’s not a real company. It’s a house of cards.”

The culture of Microsoft

Overview

Vision statement

Networking

Diversity

Vision statement

the establishment of a company’s goals for the long term future.

Microsoft’s vision statement

How their vison statement influences their decision making

Networking

The overall work culture at Microsoft is all based on networking

Employees see it as a fast paced, challenging experience

Without communicating and networking they cannot succeed.

Diversity

Value viewing ideas from a different perspective

Encourages employees to perform at the highest level possible

Gives them an edge over their competitors

http://www.youtube.com/watch?v=N24TWrtlJEU

U.S. V. MICROSOFT (2001)

Maintenance of Monopoly

Introduction

In May of 1998, the US Department of Justice, twenty individual states, and DC filed suit against Microsoft Claimed Microsoft had monopolized the market for

PC OSs Also that it had used its monopoly to engage in a

wide range of antitrust violations

Claims by Both Sides

The Government claimed that Microsoft had engaged in multiple anticompetitive acts to protect its OS monopoly Consumers were being harmed by higher prices

Microsoft’s actions had reduced innovation

Microsoft argued it was not a monopoly Highly dynamic industry

Microsoft also claimed to be procompetitive since consumers benefited Access to high quality, innovative software

Background (How it Got Started)

The battle of the browsers

Netscape Navigator was first successful internet browser

To catch up Microsoft forced OEMs to license and install their browser (Internet Explorer)

The Government sued Microsoft for this and was initially successful

On appeal, however, it was ruled that the combination of Internet Explorer and the OS offered functionality not available without product “integration.

Background (How it Got Started)

DOJ, 20 states, and The District of Columbia brought suit against MS claiming:

That Microsoft had engaged in a range of practices in violation of Section 1 of the Sherman Act

Operating System Licenses with Original Equipment Manufacturer.

Contracts with Internet Service Providers

Ties between its Operating Systems and Internet Explorer

That Microsoft had attempted to monopolize the market for internet browsers (Violated Section 2 of the Sherman Act)

Debating the Economic Issues

Did Microsoft have monopoly power?

The Government’s Perspective

Yes, according to market share data Microsoft’s share of PC operating systems was very high and had remained stable over time.

During the 1990s, Microsoft’s worldwide share of shipments of Intel-based operating systems had been approx. 90 percent or more

What happened after?

Almost a decade later, the government’s predictions about browser competition have turned out to be correct. Internet Explore’s share of the market grew to over 90%

Microsoft’s OS monopoly continues today

New challenges for Microsoft A rise in browser competition from Firefox, etc.

Power has shifted to web based companies

Linux based operating systems gaining traction

The Future for Microsoft

http://www.microsoft.com/office/vision/