In our Companies and Institutions That Changed the World series, this time our subject is Microsoft, one of the technology companies that played the greatest role in the spread of personal computers. With its Windows operating system, Office software, cloud computing services, and artificial intelligence investments, it is considered one of the companies that changed the history of technology worldwide.
While Intel developed the microprocessor that enabled personal computers to operate, Microsoft produced the software that would run on this hardware. This powerful combination of hardware and software accelerated the personal computer revolution. Intel’s processors and Microsoft’s operating systems became the common standard for millions of computers starting in the 1980s and laid the foundations of the modern information age.
Microsoft was founded on April 4, 1975, by childhood friends Bill Gates and Paul Allen.
Altair 8800 and the birth of the Microsoft idea.
The company’s founding purpose was to develop a BASIC programming language interpreter for the Altair 8800, one of the most remarkable personal computers of that period.
The event that inspired the birth of Microsoft was the Altair 8800 story published on the cover of Popular Electronics magazine in January 1975. When Paul Allen saw the magazine in Boston, he immediately informed his friend Bill Gates, who was studying at Harvard University. The two believed that this new computer would create a major market.
Although the Altair 8800 had powerful hardware, it did not have a BASIC interpreter that would allow users to write programs easily. In response, Gates and Allen developed a BASIC interpreter that could run on the device in approximately eight weeks, even though they did not have a physical Altair computer. They used a simulation environment to develop and test the software without the actual hardware.
They successfully presented the software they developed to MITS (Micro Instrumentation and Telemetry Systems), the manufacturer of the Altair 8800. After the software was accepted and licensed, they decided to establish their own company.
The company was initially founded under the name Micro-soft. This name was created by combining the words Microcomputer and “Software.” After a while, the hyphen was removed, and the company’s name became Microsoft as it is known today.
This event is considered not only the beginning of Microsoft but also one of the starting points of computer software becoming an independent industry.
MS-DOS
In 1980, IBM chose Microsoft while looking for an operating system for its first personal computer. Microsoft did not have its own operating system. Therefore, it purchased a system called QDOS from Seattle Computer Products, developed it, and turned it into MS-DOS.
Instead of selling the operating system to IBM, Microsoft licensed it. Thanks to this decision, it was later able to sell the same operating system to Compaq, Dell, HP, and hundreds of computer manufacturers. Many historians consider this decision one of the most successful commercial agreements in the history of technology.
The birth and development of Windows
In the early 1980s, personal computers began to spread rapidly. However, the vast majority of these computers operated through a command line. Users had to type commands on the keyboard to open programs, create files, or perform an operation. This limited computer use to people with technical knowledge.
Microsoft decided to develop a graphical user interface.
Microsoft decided to develop a graphical user interface so that computers could be used easily by everyone. As a result of these efforts, Windows 1.0 was introduced on November 20, 1985. Windows offered a graphical environment running on MS-DOS; it formed the basis of many innovations we are familiar with today, such as mouse use, switching between windows, and working with icons.
The real major turning point was Windows 95, introduced on August 24, 1995. With the Start Menu, Taskbar, Plug and Play support, and advanced 32-bit architecture, computer use became much easier and more intuitive. Windows 95 attracted great attention worldwide and became one of the most successful product launches in software history by selling approximately 7 million copies in its first five weeks.
One of the most important reasons behind Windows’ success was that Microsoft licensed its operating system to run not only on its own computers but also on computers from different manufacturers. As a result, hundreds of companies producing IBM-compatible computers began using the same operating system.
The rise of Windows shaped the computer industry together with the microprocessors developed by Intel. While Intel provided the hardware, Microsoft created the software infrastructure. In the technology world, this partnership gradually came to be known as “Wintel.” During the 1990s and 2000s, millions of personal computers operated with Intel processors and the Windows operating system.
In the following years, Microsoft continuously improved its operating system with new versions such as Windows 98, Windows XP, Windows 7, Windows 10, and Windows 11. Each new version offered higher performance, improved security, easier use, and features compatible with new technologies.
Today, Windows is considered not only an operating system but also one of the most important building blocks of the personal computer revolution. By making the power of microprocessors accessible to millions of users, Windows transformed computers from complex devices used by engineers into an indispensable part of homes, schools, and workplaces.
The birth of Word
One of the greatest sources of inspiration in the development of Microsoft Word was the graphical word processing technologies developed at the Xerox PARC research center. Charles Simonyi, who joined Microsoft, brought the experience he gained there to Word. And he developed the product together with Richard Brodie. Bill Gates’ goal was to bring this innovative approach to millions of personal computer users and make document preparation easy and accessible for everyone.
The birth of Excel
In the early 1980s, Lotus 1-2-3 had the largest market share among spreadsheet software. However, this program was mainly used with commands and could not benefit from the advantages offered by a graphical user interface.
Microsoft decided to develop a new spreadsheet program that was easier to use, mouse-supported, and had a graphical interface. As a result of these efforts, Microsoft Excel was first released in 1985 for Apple Macintosh computers. The Macintosh’s advanced graphical interface and mouse support allowed Excel’s innovative features to be displayed in the best possible way.
With the release of the Windows version in 1987, Excel reached a much wider user base. Thanks to its powerful calculation engine, advanced formulas, chart creation capabilities, and ease of use, it quickly became one of the indispensable software programs of the business world. Over time, Excel surpassed Lotus 1-2-3 and began to be accepted as the global standard in spreadsheet software.
The release of the Office package
Excel was released on Macintosh before Windows. The reason for this was that Macintosh offered advanced graphical interface and mouse support at that time. Since Windows was not yet mature enough, Microsoft first offered Excel to Macintosh users and later developed the Windows version.
Microsoft Word was first released in 1983 under the name Multi-Tool Word. It stood apart from many of its competitors of the period thanks to its graphical word processing features and mouse support. In the following years, it rapidly spread with Windows versions and became one of the most widely used word processing programs in the world.
Microsoft Excel was first developed in 1985 for Apple Macintosh computers. With the release of the Windows version in 1987, it reached broad audiences. Thanks to its powerful calculation, formula, and chart creation features, it quickly became the industry standard in spreadsheet software.
In 1989, Microsoft introduced the Microsoft Office package, bringing Word, Excel, and PowerPoint together under a single software package. This approach significantly increased productivity in the business world by enabling office applications to work together and in harmony. Over time, Office became the most widely used productivity software package worldwide and became an indispensable tool for millions of users, from education to public institutions, from small businesses to large companies.
What is Microsoft doing now?
Having pioneered the personal computer revolution since its founding, Microsoft today is much more than a company that develops only Windows and Office software. It operates as one of the world’s most influential technology companies in the fields of cloud computing, artificial intelligence, enterprise software, gaming technologies, and developer tools. Today, the company is among the world’s most valuable companies, with a market value reaching trillions of dollars, and it makes investments that shape the direction of the technology sector.
One of Microsoft’s most important growth areas is its cloud computing platform called Azure. Azure offers companies data storage, virtual servers, artificial intelligence services, big data analytics, and cybersecurity solutions. Today, public institutions, banks, healthcare organizations, universities, and large companies around the world run their digital infrastructures on Azure. With the rapid spread of cloud computing technologies, Azure has become one of Microsoft’s most important sources of revenue.
One of the company’s most remarkable investments in recent years has been in the field of artificial intelligence. Through its strategic partnership with OpenAI, Microsoft has played an important role in the development of generative artificial intelligence technologies. The artificial intelligence models developed as a result of this collaboration have been integrated into many products such as Windows, Microsoft 365, GitHub, and Azure through Microsoft Copilot services. In this way, users can benefit from artificial intelligence support in document preparation, data analysis, software development, and daily business processes. Microsoft has strengthened the technology ecosystem not only through the products it has developed but also through major acquisitions. In 2016, it acquired LinkedIn, the world’s largest professional business network, and in 2018, it acquired GitHub, a platform used by millions of software developers. Thanks to these investments, the company reached a strong position both in the professional business world and in the software developer community.
Microsoft also holds an important place in the gaming industry, serving millions of players with Xbox game consoles and the Xbox Game Pass subscription system. In addition, with the acquisition of Activision Blizzard, it further increased its influence in the gaming industry by adding some of the world’s most popular game brands, such as Call of Duty, Diablo, and Warcraft, to its portfolio.
Today, Microsoft reaches billions of users with numerous products and services such as the Windows operating system, Microsoft 365 applications, Azure cloud platform, Copilot artificial intelligence solutions, GitHub, LinkedIn, and Xbox. While maintaining its identity as the software producer that launched the personal computer age, the company continues to be one of the most important technology companies shaping the digital world of the future through its investments in cloud computing and artificial intelligence technologies.
Today, Microsoft is one of the world’s largest technology companies with approximately 228 thousand employees. The company operates in more than 190 countries and reaches billions of users. Thanks to its investments in cloud computing and artificial intelligence, Microsoft is seen as one of the most important actors not only of the personal computer age but also of the digital technologies of the future.
Conclusion
Microsoft changed the way the business world works with Word, Excel, PowerPoint, and the Office package. The preparation of documents, calculations, and presentations moved into the digital environment, significantly increasing productivity.
The company continues to shape the direction of the technology sector not only with desktop software but also with its investments in cloud computing, artificial intelligence, developer tools, and enterprise technologies.
When we look at the history of technology, while Intel developed the microprocessors that provided computers with processing power, Microsoft developed the software that enabled millions of people to use this hardware easily.
Microsoft is not only a software company; it is a global technology giant that enabled the spread of personal computers, made office software a global standard, and today also holds a leading position in cloud computing and artificial intelligence. The company that Bill Gates and Paul Allen started as a small venture now develops products and services that affect the daily lives of billions of people. With Windows, Office, Azure, and artificial intelligence solutions, Microsoft continues to be one of the most influential companies in the history of technology.
Bibliography;
- Microsoft Annual Reports. Microsoft Corporation. (Accessed: 2026).
- Microsoft Learn – The History of Microsoft (1975–1994). Microsoft Corporation. Official chronology regarding Microsoft’s founding, MS-DOS, Windows, and company history.
- Computer History Museum. Computer History Museum Makes Historic MS-DOS and Word for Windows Source Code Available to the Public. 2014.
- Microsoft Official Blog – MS-DOS and Word Source Codes. Microsoft Corporation. 2014.
- Microsoft Open Source Blog – Open Sourcing MS-DOS 4.0. Microsoft Corporation. 2024.
- Hard Drive: Bill Gates and the Making of the Microsoft Empire
