The Full History of Microsoft

In the 1970s, computers were big, heavy, and lived mostly in universities or government buildings. They were expensive machines, far away from normal people. But something magical was about to happen. Two boys — yes, just two boys — were sitting in a garage and dreaming something big. One was named Bill Gates and the other was Paul Allen. They were friends from school, both from Seattle, and both crazy about computers.

Bill Gates was born in 1955. His father was a lawyer and his mother was a strong woman involved in leadership work. Paul Allen, born in 1953, was more quiet, more technical. But both of them shared a passion: they wanted to make computers easy for everyone.

In 1975, something big happened. A new computer called the Altair 8800 was released. It was small — small for its time — and had no screen, no keyboard, no software. But it was cheap and opened doors for young tech lovers. Paul Allen saw it in a magazine. He ran to Bill Gates and said, “We have to build something for this.” They had no product yet, but they called the company and promised to make a computer language for the Altair. It was a bold move. It worked.

They created a software called BASIC — short for Beginner’s All-purpose Symbolic Instruction Code. It was simple, and it worked with the Altair. The company who made the Altair was impressed. They gave them a deal. Bill and Paul were only in their 20s, but now they had a real business.

On April 4, 1975, they officially started Microsoft. The name “Microsoft” came from “microcomputer” and “software.” Just like that, from a small room and a big dream, Microsoft was born.

In the early days, Microsoft focused only on writing software. They didn’t build computers. They wrote code. Bill was a sharp businessman. Paul was the genius coder. Together, they started making software for many early computers. Microsoft’s early work was mostly unseen but very important.

Then came the biggest break in tech history.

In 1980, another young company, IBM, needed software for their new computer — the IBM PC. They came to Microsoft. Bill Gates saw this as a life-changing opportunity. But Microsoft didn’t actually have the software IBM wanted. So what did they do? They bought an existing system called QDOS (Quick and Dirty Operating System) from a small company for around $75,000. They renamed it MS-DOS (Microsoft Disk Operating System) and gave it to IBM. The magic? Microsoft kept the rights to sell MS-DOS to other companies too. That one business decision made Microsoft the king of operating systems.

As the 1980s moved forward, MS-DOS became the brain of almost every personal computer. But it was still not easy to use. It had no pictures, just text commands. Then, Microsoft began building something beautiful — something with windows, buttons, and icons. In 1985, they launched Windows 1.0. It was the beginning of a new computer age.

Over the years, Microsoft kept improving Windows — Windows 2.0, 3.0, 3.1. Each version became better, faster, and more popular. In 1995, they released Windows 95 — the software that changed the world. It had a Start button, a taskbar, and support for the internet. On launch day, stores were flooded. People stood in long lines just to buy it. It sold millions of copies. Microsoft became a household name.

At the same time, they created Microsoft Office — with Word, Excel, PowerPoint. It became the go-to software for writing, working, presenting, and doing math. Businesses couldn’t work without it. Students couldn’t study without it.

Bill Gates became a young billionaire. He was not flashy. He wore simple sweaters, glasses, and gave boring talks — but he was smart. Very smart. He knew business. He knew code. He knew the future. By the late 1990s, Microsoft was the most powerful software company in the world. Nothing came close.

But the skies were not always clear.

In 2001, the U.S. government said Microsoft had too much power. They said it was becoming a monopoly — a company that crushes all others. Microsoft was sued. The court case became big news. They said Microsoft forced people to use Internet Explorer and pushed out other web browsers like Netscape. Microsoft had to pay fines and change its business ways. It was a dark time. People began to question: Is Microsoft too greedy?

Still, Microsoft kept growing. In 2001, they launched something completely new — a gaming console called the Xbox. It was Microsoft’s way of entering the living room. At first, people laughed. “Microsoft in gaming? That’s a joke,” they said. But soon, Xbox became a hit. With games like Halo, it attracted millions. Later, Xbox 360 became a top seller and helped Microsoft enter a new world: entertainment.

But there were some failures too. Microsoft created Zune, a music player to beat the iPod. It flopped. No one wanted it. They made Windows Phone to fight Android and iPhone. Again, it failed. Microsoft spent billions but got almost nothing. Their search engine, Bing, tried to beat Google. It never did. Even today, people joke, “I Googled it” — never “I Binged it.”

In 2008, Bill Gates left his daily work at Microsoft. He focused more on charity. He and his wife started the Bill & Melinda Gates Foundation, one of the biggest charities on Earth. He gave away billions to fight disease, hunger, and poverty. He was no longer just a tech boss — he became a global hero.

After Gates left, Steve Ballmer became CEO. He was loud, energetic, and full of ideas. But Microsoft struggled in the 2010s. Apple and Google were rising fast. Microsoft missed the mobile revolution. Windows 8 was confusing. People didn’t like it. The magic of the old days was fading.

Then in 2014, a new leader came — Satya Nadella. He was calm, humble, and different. Under him, Microsoft changed. They started building for other platforms. They made software for iPhones and Androids. They embraced cloud computing. Their cloud service, Azure, grew fast. It made billions.

Nadella focused on new areas: AI, cloud, security, and collaboration tools. Microsoft bought companies like LinkedIn, GitHub, and game studios like Bethesda and Activision Blizzard. It became a powerful force in the tech world again.

Microsoft Teams became a top tool during the pandemic. Millions of workers and students used it daily. Office became Microsoft 365. Windows 10 and then Windows 11 brought back smiles. Microsoft wasn’t just back. It was leading again.

Some unknown facts? Bill Gates wrote his first software at age 13. Microsoft’s first logo looked like a disco sign. The company once invested in Apple to save it from bankruptcy. Yes, Microsoft helped save its biggest rival. Strange, right?

Some dark truths? Microsoft was known to “embrace, extend, and extinguish” — a strategy to beat smaller rivals by copying, adding features, and pushing them out. They crushed many small companies in the 80s and 90s. Also, some said their work culture was harsh, full of competition and stress.

Still, the company kept evolving.

Now, in 2025, Microsoft is not just a tech company. It is a culture. It lives in schools, homes, offices, and games. It helps people work, play, write, talk, meet, dream, and imagine. From a dusty garage in Albuquerque to skyscrapers around the world — it’s a story of vision, risk, fall, rise, and re-invention.

Microsoft is more than Windows. It’s the software in your laptop. The cloud in your server. The AI in your assistant. The code in your game. The files in your OneDrive. The dreams in your Word doc. The formulas in your Excel. The voice in your Teams call. The future in your Azure cloud.