Translated by
2020/01/31 13:20:31

History of Microsoft

The history of the American corporation Microsoft is story of the most successful IT company of the world of the end of the XX century. You watch also Microsoft Rus.


Some facts from the history of Microsoft are selected in separate articles:


Bill Gates left Board of Directors of Microsoft

In the middle of March, 2020 Bill Gates announced leaving Board of Directors of Microsoft. The businessman made this decision to focus on charity. Read more here.

Development of ethics of artificial intelligence

At the beginning of March, 2020 Microsoft and IBM signed the ethical code of use of AI published by the Pope. At a special three-day conference Rome urged to observe the basic ethical principles when using AI. Read more here.

Software development for a 5G equipment under control of the American government

On February 4, 2020 it became known that technology and telecommunication companies, including Microsoft, Dell and AT&T, develop the software for a 5G equipment under control of the American government. Thanks to this work the White House expects to weaken the leading positions of Huawei in this market. Read more here.

Data of millions of clients of Microsoft appeared in open access

On January 22, 2020 it became known that data of millions of clients of Microsoft appeared in open access. It happened because of the wrong setup of the Elasticsearch database: its parameters were exposed in such a way that from the directory anyone could browse all information.

The problem was announced by the information security specialist from Security Discovery company Bob of Dyachenko. According to him, in the DB settings about 250 million records with data of clients of Microsoft appeared from behind an error in free access. In particular, it was possible to look at the e-mail addresses, the IP addresses and data on the technical support given to users.

It became known that data of millions of clients of Microsoft appeared in open access

It is noted that in base there were data in 14 years. Access was open on December 5, 2019, and the 31st Microsoft closed it.

The lawyer of Comparitech company (specializes in questions of confidential data protection) Paul Bischoff says that it is impossible to underestimate danger which is born by this leak. If data got to malefactors, then quite fraud chances: clients can be called on various pretexts on behalf of the staff of technical support of Microsoft, he noted.

Microsoft recognized date leak and noted that the company has tools allowing to prevent similar incidents, but specifically they were not applied to this base.

As we understood, it is good to review periodically settings to be convinced of use of all available means of protecting — said in corporation.

According to the chief executive of Appsian company (specializes in technologies of data protection) Greg Wendt, the incident shows, it is how difficult even to understand to the large companies, data and who can get access to them are stored where exactly. Even after detection of vulnerability of Microsoft cannot precisely define whether malefactors used these data or not, he added.[1]

Plan of transition to the negative level of emission of carbon

On January 17, 2020 Microsoft on behalf of the CEO Satya Nadella and other top officials of the company officially expressed the intention by 2030 to reach the negative level of emission of carbon, and by 2050 completely to eliminate effects of emissions during all the time from the moment of foundation of the company in 1975. Also Microsoft intends to invest $1 billion in development of technologies for elimination of a carbon trace and to help the clients with reduction of emissions.

The initiative assumes:

1. Reduction of own carbon trace.

By 2030 Microsoft intends to reach the negative level of carbon issue, deleting more, than making. Reduction of emissions includes transition to renewable energy sources for all DPCs, buildings and campuses by 2025 and also complete electrification of internal vehicle fleet. By 2050 the company is going to delete completely the carbon trace, both from direct emissions, and due to electricity consumption, during all the time from the moment of its basis. A number of methods, such as, for example, landing and recovery of the woods, carbon sequestration (catching of carbon in the soil), bio-energetics with binding and storage of carbon (BECCS) and direct capture of air (DAC) will be used for this purpose.

2. Creation of the innovation fund for $1 billion.

Within the next 4 years the company is going to select $1 billion within Fund of climatic innovations to accelerate development of progressive methods, technologies and scientific developments in reduction of emissions of carbon and their output from the atmosphere.

3. Help to an ecosystem of partners and clients.

Microsoft will develop and implement technologies which will help partners and clients to reduce own carbon emissions. In particular, the new Microsoft Sustainability Calculator tool is capable to predict the volume of carbon issue from use of a cloud of Azure, visualizing results in Power BI. It will help clients to estimate the volume of the current emissions and to potentially estimate ecological advantage of full migration at a cloud. In 2021 Microsoft intends to integrate the ecological principles into processes of purchases and logistics that will promote reduction of carbon emissions by our suppliers.

Annually Microsoft is going to publish the report of Environmental Sustainability Report where it will provide statistics about the done work. Also the company intends to create all necessary conditions in order that the staff of the company could make the contribution to common efforts on climate protection.


U.S. authorities permitted Huawei to use software of Microsoft

At the end of November, 2019 the Ministry of Commerce of the USA granted Microsoft corporations the license for sale of software of the Chinese company Huawei. Read more here.

Brazil limited expenses of state agencies on software of Microsoft

In the middle of October, 2019 the government of Brazil limited expenses of state agencies on software and the services provided to Microsoft. It will give advantages to competitors of the American corporation, but for a while.

The secretariat of digital control (SGD) of the Ministry of Economics of Brazil published the list with the maximum prices which can be paid for software and services of Microsoft.

The government of Brazil limited expenses of state agencies on software and the services provided to Microsoft

New rules belong to all 217 central government departments and state agencies and already took effect. Unreasonable costs became a reason for introduction of similar restrictions — it is known that expenses of the government of Brazil on software of Microsoft during the period from 2012 to 2018 reached 1 billion reals ($246 million), and now state agencies intend to reduce them not less than by 35%.

The government of Brazil warns that it intends to adhere afterwards to the same approach and in the relations with other large software suppliers, including IBM, Oracle, Red Hat and VMware.

According to the statement of SGD, a main objective is economy of costs and also standardization and simplification of process of purchases for the central government. The prices will be established or through agreements with suppliers, or unilaterally from the government. Meanwhile the amounts marked by the government were defined according to the bottom price paid Microsoft during the period from 2017 to 2019 for each of the listed services. Other suppliers are invited to discussion of new policy until the end of 2019 then for them similar lists will be published.

Brazil is not the first country which decided to introduce similar restrictions. For example, in Australia restrictions for the cost of IT contracts are applied since 2017. Validity periods of contracts were also reduced that the government of Australia could implement the innovative technologies and services from other suppliers in time.[2]

The agreement on development of strategic partnership in the field of innovations with Samsung

On August 8, 2019 the companies Microsoft also Samsung announced development of long-term strategic partnership in the field of innovations. Since Samsung Galaxy Note10 productive applications and Microsoft services will be are integrated in products of the line, including function of automatic synchronization with PC Link to Windows OneDrive, Outlook and also Word, Excel and PowerPoint. In more detail here.

Fine of $25 million for bribery of officials

On July 22, 2019 it became known that Microsoft paid $25 million American the government for pre-judicial settlement according to the results of investigations according to the results of which the company was convicted of bribery of officials.

According to Reuters, the most part of the amount collected from Microsoft  — $16.6 million  — will be told    to the U.S. Securities and Exchange Commission (SEC)  as compensation on   the civil actions submitted by it against corporation.

Microsoft will pay $25 million for bribes

The rest  — $8.75 million  is the penalty imposed on  the Hungarian division of Microsoft for  violations of the law about anti-corruption abroad (   Foreign Corrupt Practices Act — he prohibits the American companies to use bribery as one of methods of preserving and promotion of the business outside the native land). It is about withdrawal of illegally got profit ($13.8 million) plus about $2.8 million as percent.

The investigations made by SEC and the U.S. Department of Justice showed that the Hungarian office Microsoft for several years gave to local resellers and distributors big discounts for a licensed software. Microsoft partners sold software on the quotations close to standard, and used the gained income for bribery to employees of the government and the conclusion of the profitable transactions of state agencies with Microsoft.

According to data of the U.S. Department of Justice, the chief representative of Microsoft in Hungary in a false manner assured the headquarters of need of such discounts.

These employees did not manage to report to clients of a discount who, according to them, were necessary for the conclusion of the transaction. Instead the Ministry of Justice came to a conclusion that "the overestimated margin was used for financing of inadequate payments — the president of Microsoft Brad Smith reported, trying to justify actions of the management of the Hungarian office.

SEC also found out that Microsoft subsidiary companies in Saudi Arabia and Thailand offered "inadequate trips and gifts" (i.e. bribes) to officials and the staff of the non-state companies.

Besides, the Turkish division of Microsoft as reported the regulator, provided "an excessive discount" to the third party without any signs of the offered services. Did not begin to consider this episode of SEC as a bribe.

According to the reached agreement, Microsoft officially not will neither admit the guilt, nor to deny it.

Brad Smith wrote to employees the letter in which told that employees, involved in corruption, were dismissed, and the company broke off the relations with four resellers. Those filed a lawsuit against the software giant, having said that the termination of cooperation violates conditions of contracts. Microsoft said that it is important "terminate all communications" with any company, participating in similar corruption schemes.

Removal of charges of bribes will cost Microsoft millions of dollars

After scandal of Microsoft improved the anti-corruption measures, including provided transparency of process of providing discounts to the state clients and began to use artificial intelligence for identification of potentially illegal sales.[3]

According to the iTWire edition, is not the first case when Microsoft was convicted of doubtful transactions in Eastern Europe. The former Romanian minister and three other officials were committed to prison for assignment of discounts which Microsoft provided to the schools buying the software of the company. Government employees not just did not manage to appeal against sentence — their prison terms and penalties were increased.

The event in Romania belongs to a system which was started in 2003 and which allowed the authorities to avoid open tenders on IT services and allowed Microsoft to sell to state customers of Windows license at inflated prices through the third parties.

Bill Gates created Microsoft without days off

At the end of June, 2019 Bill Gates told that in the first days of existence Microsoft worked without days off and did not take a vacation. It is the inevitable victim which should be brought during creation of home company, Gates considers. Read more here.

Bill Gates called the greatest error of Microsoft

In June, 2019 Bill Gates told about "the greatest mistake" which was made by Microsoft and the cofounder of this company. The businessman regrets that not Microsoft, but Google created the mobile operating system, most popular in the world — Android. Read more here.

Microsoft joined Hyperledger

In the middle of June, 2019 Norilsk Nickel and also the companies Microsoft also Salesforce joined consortium Hyperledger. New participants of the organization will pay membership fees and to develop new applications using Hyperledger. In more detail here.

Microsoft terminates all communications with Huawei

On May 21, 2019 it became known of the termination of cooperation of Microsoft with Huawei. More and more companies refuse to do business with the Chinese mobile device manufacturer and telecommunication equipment because of sanctions of the USA. Read more here.

Creation of Accenture Microsoft Business Group

At the beginning of February, 2019 Accenture, Microsoft and Avanade announced creation of joint company Accenture Microsoft Business Group which will promote corporate products of Microsoft. This project became the largest investment of Microsoft into partner business. Read more here.

Selection of $0.5 billion for construction of cheap housing for state employees in Seattle

On January 16, 2019 Microsoft announced selection of $500 million for overcoming a housing crisis in Seattle. Money of the American company will be spent for construction of cheap apartments and houses for workers of the budget sphere.

Within the announced plan of Microsoft within three years will direct $475 million for subsidizing of builders thanks to what those will be able to offer clients housing at the reduced prices. $25 million more will go for solution of the problem of the homeless.

The camp for the homeless under the name Nickelsville in Seattle, on November 3, 2015

The corporation emphasizes desire to help first of all doctors, teachers, firefighters and other workers with small prosperity.

Growth of the average salary does not get on well at the region behind rates of value addition of housing therefore workers with the low and average level of income move away further and further from an opportunity to live near that place where they work, said in the statement of Microsoft.

It agrees to the data collected by the company, during the period from 2011 to 2018 the average cost of the house in the region Puget Sound  (there is a large number of additional offices of the companies from Silicon Valley) jumped by 96% whereas the average income of family during this time grew only by 34%. By estimates of Microsoft, in Seattle about 305 thousand apartments by the beginning of 2019 are not enough.

The housing crisis in Seattle and San Francisco is caused first of all by arrival of the large technology companies, including Microsoft, Amazon, Alphabet and Facebook and also sets of successful startups there.

Highly paid employees are able to afford lease or purchase of expensive real estate. However locals and arrived from other cities which work in other spheres, faced a problem of rise in price of rental housing and are forced to move to less qualitative and remote apartments and houses. Also in the megalopolis the problem of the homeless becomes aggravated.[4]


Expenses on lobbyism in $9.5 million

At the end of January, 2019 the federal report of the USA on lobbying according to which in 2018 five the technology companies, largest in the country, spent $64.3 million for lobbying of government officials was issued. Expenses of Microsoft on these purposes made $9.5 million Read more here.

Arrest the top manager for attempt to appropriate $1.5 million through the contract with NFL

On October 18, 2018 the U.S. Department of Justice announced that charge of attempt to take control about $1.5 million by drawing of counterfeit accounts is brought to Jeff Tran. Working at a position of the director of sports marketing and alliances in Microsoft, he profited on tickets which provided National Football League (NFL) companies within advertizing contracts. Read more here.

Participation in an initiative of consolidation of data Open Data Initiative

On September 24, 2018 Microsoft, SAP and Adobe announced a joint initiative which is designed to help the companies better and more profitable to itself to use own data. Read more here.

As Microsoft earns tens of millions of dollars from bribes. Scheme

In August, 2018 it became known of the corruption scheme in which Microsoft was involved in Hungary. The U.S. Department of Justice and Securities and Exchange Commission (SEC) make investigation. 

According to the The Wall Street Journal (WSJ) newspaper with reference to the informed sources, in Hungary Microsoft sold to government agencies software through intermediaries. The last received software products, including a packet of Microsoft Office, at greatly reduced prices, and then resold it to state agencies at the total price or close to it. 

Such scheme existing from 2013 to 2014 represented nothing else as bribery of officials, only Microsoft did it not directly, and through partners. Investigators suspected that intermediaries used the formed difference to pay bribes and rollbacks to employees of the government.

In August, 2018 it became known of the corruption scheme in which Microsoft was involved in Hungary

The edition received the comment of the deputy general counsel of Microsoft David Howard. He reported that Microsoft quickly began internal trial as soon as learned about possible offenses in Hungary.

We are committed ethical Nome of business and we will not make concessions in a loss to these standards — he noted. 

The company announced cooperation with the American Ministry of Justice and SEC in this investigation and also announced dismissal of four employees of the representation in Hungary, including the head of office Istvan Papp which broke the policy of Microsoft. Besides, the software giant broke off partnership agreements with four firms in this country and began to pay more attention to questions of transparency when providing discounts.

Journalists of WSJ contacted Istvan Pappus via WhatsApp and that in the short message told that he was "dear member" of family of Microsoft and received positive reviews from the management.  He refrained from additional comments.

Istvan Pappus is the former head of the Hungarian office Microsoft

According to the newspaper Microsoft in 2012 made an attempt to dissuade the Hungarian government from use of free text editors and spreadsheets from competitors. In November, 2012 the operating officer of the company of that time Kevin Turner met the prime minister of Hungary Viktor Orban who brought group of owners of the small companies. 

What that meeting ended with, it is not specified, however it is known that within the next two years of Microsoft annually sold to such companies the software for the amount $30 million, sometimes with discounts which could reach 30%. At the same time WSJ notes what cannot still be defined what part from these sales was exposed to check.

According to one of interlocutors, a discount were approved with the sales managers working outside Hungary as the Hungarian employees swindled and were convicted of the indication of false information. At the same time not all discounts which were provided by Microsoft finally reached the state clients buying software from intermediary firms tell sources of WSJ.

In the publication it is noted that such transactions which became a subject of anti-corruption investigation promoted growth in sales of Microsoft and strengthening of the status of the Hungarian division. In the press release of June, 2015 Microsoft called this office by "most effective "daughter" among representations of such size" for five previous years. The representative office of Microsoft in Hungary was open in 2013.

Microsoft is suspected not for the first time of rollbacks and bribery of officials. In 2013 The Wall Street Journal wrote that the American authorities study partner relations of the company in China, Romania, Italy, Russia and Pakistan against the background of statements that these intermediaries could participate in corruption schemes. 

According to WSJ, in August, 2018 SEC carries out an inspection regarding expected anti-competitive behavior of Microsoft connected with patents in the Czech Republic. The company stated that it knows about investigation and promotes it. What suspect Microsoft of, it is not specified.

In Romania in September, 2018 judicial proceedings within which the former head of local representative office of Microsoft of Guelder-roses Tatomir (Călin Tatomir) is accused of washing and participation that officials abused the official position at signing of the contracts with the company will take place.

Prosecutors say that Tatomir, using corruption schemes, helped intermediaries with sale of the software of Microsoft that the government got "unreasonable advantage". At the same time the corporation is not accused of any violations.

Kalin Tatomir is the former head of the Romanian office Microsoft

U.S. authorities have broad competence for investigation and prosecution if claims of bribery and corruption abroad arrive. They have such powers according to the law on fight against corruption in foreign economic activity (U.S. Foreign Corrupt Practices Act). This law prohibits the companies to bribe for signing of the contracts and business development. widespread case, often the companies announce trials on the basis of complaints from informants from within the company possible violations. Many investigations from regulators do not find anything illegal after fixed consideration.[5]

Israel refused software of Microsoft because of growth of cost of products twice

In August, 2018 the Israeli government announced termination of the license agreement with Microsoft as new conditions assume value addition of products of the company twice. Read more here.

Microsoft accused Russia of intervention in the upcoming elections in the USA

On August 20, 2018 Microsoft accused Russia of intervention in congressional elections of the USA which will take place in November. According to the company, the hackers connected with Russian authorities created the false websites which are potentially interesting to the American politicians. Read more here.

Microsoft dismissed technical support of Xbox and took free volunteers

In May, 2018 the Microsoft corporation dismissed Xbox support service, having replaced it with free volunteers from among admirers of game consoles. The Polygon edition was reported about it by two ex-employees from the state of Xbox Support.

According to sources whose names are not revealed, about 12 people got laid off. The dismissed operators of a support service were employed by Affirma Consulting company, but worked at office Microsoft, being responsible for request processing on popular Twitter account of Xbox Support. Also work with participants of community Xbox Ambassadors — enthusiasts who help with work with addresses of users belonged to duties of employees, winning as remuneration prizes from Microsoft.

Microsoft dismissed Xbox support service, having replaced it with free volunteers from among admirers of game consoles

According to one of interlocutors of the edition, Microsoft, most likely, prepared for personnel cleaning as before dismissal it was entrusted to some staff of technical support of Xbox to train volunteers and to shift to them the bigger volume of work.

It is supposed that Microsoft saved several people from a former command to supervise volunteers of Xbox Ambassadors. On an edition request the press secretary of Microsoft reported that in corporation several highly-skilled employees of a support service, in addition to volunteers still work. The company ignored a question of dismissals and did not specify the number of staff of technical support.

Meanwhile, observers noted changes in work of Twitter account of Xbox Support. Usually operators daily answered tens of requests of the users arriving from more than one million subscribers of the account, but after May 18 the activity decreased. The last several weeks of Xbox Support do only retweets of messages of the account Xbox Ambassadors, and messages sent on @XboxSupport, @XboxAmbassadors processes now.

One of former employees of Microsoft said that similar economy will have an adverse effect on quality of work of a support service as volunteers lack professional knowledge.[6]

Microsoft ceased to consider Apple by the competitor

At the end of April, 2018 the marketing director of Microsoft Chris Capossela said in an interview to the Cheddar edition that the company does not consider Apple by the competitor any more and now places emphasis on cooperation.

We ceased to pay attention to the competition which as it seems to me, was in the past. We should release our products for platforms which our clients use. Therefore there is Office for iPad and iPhone — Kapossella reported.

Steve Jobs and Bill Gates

According to him, traditional competitive struggle in the technology industry does not make any more sense as the companies even more often work with each other products. The top manager gave Google which applies tools to software development of Microsoft Visual Studio as an example.

By the end of April, 2018 at the App Store directory there are more than 100 applications and utilities released by Microsoft. The company does not intend to introduce restrictions for users of IOS or macOS only because they do not like Windows, Kapossela told.

As notes Cheddar, founders of Apple and Microsoft Steve Jobs and Bill Gates maintained many years the ambiguous relations: helped each other, criticized, trying to show the superiority. In 1994 Apple filed a lawsuit against Microsoft, having accused the company of patent infringement. Three years later, when Apple appeared on the verge of bankruptcy, Bill Gates gave to the company a financial support.

Chris Kapossela says that with Satya Nadella's arrival to the management of Microsoft to the companies "the cultural shift" began, and it became more indrawn and focused on own admirers instead of trying to advance Apple or other IT companies in fight for the same users.

The modern youth says that when they think of growing, they think of Microsoft. When time to get a job came, they think of Microsoft. And it is an excellent position for us — the marketing director of the company concluded.[7]

Transfer to clients of the rights to patents at joint development of technologies

On April 4, 2018 it became known that Microsoft began to assign to clients the rights to patents and industrial samples at joint development of technologies.

According to the new rules published on April 4, 2018 at assignment of rights the technology giant will limit use of licenses to upgrade of the platform, and will not use joint development for the offer of competitive products. 

The new principles of a company performance were voiced by Brad Smith, the president and the director of legal issues, within an initiative of "Joint innovations". 

Microsoft began to assign to clients the rights to patents at joint development of technologies

According to GeekWire, is the next example of pragmatic approach of Microsoft at which use of intellectual property is considered as a marketing mix, but not protection against projects open source and other competitive technologies.  

According to Smith, the purpose of new rules – to dispel fears of clients that Microsoft can share the developed technology to compete with them.  

Joint projects with clients become more and more, Smith says. For example, the project of Microsoft and hospital 365c in North Korea when Microsoft helped to develop the system of the artificial intelligence (AI) for the help to surgeons during transactions. Now the medical institution is going to sell this software to other hospitals, notes the ZDNet edition.

As the number of similar joint projects increases, questions of the one who possesses the developed technology will arise even more often. It is important that there was an approach guaranteeing that key patents of clients for new solutions will belong to them and that the IT companies will not be able to use this knowledge to enter the market of clients and to become their competitors, perhaps, using technology which was created with the assistance of clients — Brad Smith reported. 

Microsoft promises "render assistance at submission of patent applications, created on the basis of joint development and assign the rights to clients".[8]

$5 billion investments into Internet of Things

On April 4, 2018 Microsoft announced investment of $5 billion into [[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|[[Internet of Things of Internet of Things (IoT)|Internet of Things (IoT)]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]. These means will be spent within four years, reported in the blog of the American company.

Microsoft did not specify to what purposes the selected investments will go. The corporate vice president of Microsoft Azure Julia White only noted that the IoT-platform of the company covers cloud services, operating systems and structures of Microsoft, and $5 billion will allow the organizations of any size and level of technical development to create the devices connected to networks and programs.

Microsoft till 2022 invests 5 billion dollars in Internet of Things
Our purpose is in what to give to each client an opportunity to transform the business and the world in general by means of network solutions … We are going to simplify an Internet access of things to any person and the company, on any budget — Whyte reported.

Microsoft is going to conduct researches, to work on development of an ecosystem and security of infrastructure in the market of Internet of Things. According to the vice president of the company  Jason Zander, by the beginning of April, 2018 the general amount of investments of Microsoft into IoT-projects reached $1.5 billion. These means went to researches, developments and support of the partner companies.

Microsoft says that using the Johnson Controls platform offered by the company created the "smart" thermostat, [[Schneider Electric [|Schneider Electric]] constructed automatic system of observation of solar panels in Nigeria, and Kohler created the whole line of "smart" lamps for kitchen and the bathroom.

The forecast of A.T. Kearney company  according to which on a global scale Internet of Things will help the companies to cut down by 2020 expenses in total for $177 billion is provided in the message of Microsoft and to increase efficiency which will be expressed in revenue in the amount of $1.9 trillion[9]


Office on a tree

In November, 2017 the Microsoft company created for the employees office on a tree. The famous architect Pete Nelson who keeps the "Masters of Lodges on a Tree" program on Animal Planet television channel was responsible for project implementation. 

Lodges instead of office in the territory of the corporate town of Microsoft in Redmond (the State of Washington, the USA) constructed around massive fir-trees. The staff of Microsoft accommodated in two wooden huts which connected among themselves an open terrace at the height about four meters above the ground.

Office Microsoft in wooden lodges

Houses built from a cedar which was processed on ancient Japanese technology. Trees burned in a special way, and then impregnated with linseed oil. Life of such constructions is stated in 20 years.

At unusual office convenient jobs, moisture-proof furniture, electricity, cafeteria and a wireless internet are provided. On the earth chairs, the street fireplace and a canopy protecting from the sun and a rain are placed. In a clear weather on a canopy the logo of the company appears.

The employee of Microsoft works at new office in natural style

The company management considers, office in the fresh air, the smell of natural wood and non-standard placement of office allow people to work more productively, to be tired to approach less and creatively solving of tasks.

Microsoft emphasized that this pilot project was created  at the request of employees who are drawn towards  work  outdoors. If it  is successful, then  possibly offices on  trees will appear also  in  other cities with  big offices Microsoft.

By November, 2017 the company created two constructions in a "natural" format, one more covered premises for holding of conferences and meetings will be finished until the end of the year. 

Updating of the headquarters

On November 29, 2017 the Microsoft company announced updating of the headquarters. In a campus in Redmond new buildings will be built, working spaces are upgraded and number of staff is increased.

By the end of November, 2017 the corporate town of Microsoft occupies the space in 500 acres. In 5-7 years it is going to build 18 new buildings, to repair 622 thousand square meters of office space and to invest $150 million in improvement of transport infrastructure, public places, cricket and golf fields, parks in the territory of a campus and near it. Shopping and sporting venues will be available not only to personnel of Microsoft, but also residents.

The plan of updating of a campus of Microsoft in Redmond

It is supposed that after project completion the campus of Microsoft will contain 131 buildings which on the area will correspond to 180 football fields. Modern jobs will receive 47 thousand employees working at head office every day. Besides, the corporation will increase the staff of personnel in the town on 8 thousand jobs, the president of Microsoft Brad Smith in the official blog of software giant wrote.

We focused on cultural transformation of the company. We want to create the working space maintaining culture which we advance. Jobs induce people to be creative, to work with each other and to study each other — he noted.

As reported by Bloomberg, updating of a campus of Microsoft assumes that buildings will be located to each other closer, and the parking will become underground. In general the project is designed with emphasis on pedestrians and use of the high-speed tram which will ply on the town. The company uses 2500 additional jobs for implementation of the plan of upgrade.[10]

Satya Nadella about production of bonus goods

Microsoft adheres absolutely to other approach in consumer segment, than Apple and Google, and does not aim to make bonus goods. Such statement at the beginning of November, 2017 was made by the head of corporation Satya Nadella, reports the Softpedia edition.[11]

Head of Microsoft Satya Nadella

According to Nadella, technologies of Microsoft are intended to give the chance to create with their help something special while competitors concentrated attention on offering completely ready-made product meeting the needs of the consumer.

Even if it is a consumer product, it is the tool. I love technologies of Microsoft for what with their help is created — Satya Nadella said in an interview to TechRadar.[12]

I do not want to underestimate progress which Apple or Google achieved. However we are very different companies. We do not speak in a mediator role at the market. We create tools, but we do not make luxury goods. We create technologies which help to create — he emphasized.

Though Satya Nadella directly did not call Apple the producer of luxury, he obviously hints at this company which goods are often positioned as premium level products. Take at least new flagman smartphone iPhone X — the most expensive in the history of corporation which price of the 256-gigabyte version in shop Apple Store reaches $1149.

Satya Nadella: We create tools, but we do not make luxury goods

However, Nadella partly dissembles, will not call products of Microsoft cheap too. For example, new Surface Book 2 in a top complete set costs more than $3000, and the price of a monoblock of Surface Studio can reach $4200.

Having become at a wheel of corporation, Satya Nadella always behaved gentlemanlike in relation to rivals, and during the interview he let know — for success of Microsoft absolutely optional that her rivals got beaten. On the contrary, all will only benefit from healthy competition, each company has culture and approach to clients.

Development of artificial intelligence

At the D.LIVE conference which took place in October, 2017 organized by the newspaper The Wall Street Journal (WSJ), the executive vice president for business development of Microsoft Peggy Johnson told about how the company develops the artificial intelligence (AI). Work on these technologies is conducted by a large number of the specialists involved including as a result of absorption of startups.

In what Microsoft sees the greatest opportunities, Johnson answered a question of so:

Frankly speaking, we look at everything. We see things which will solve our problems... We pay much attention to artificial intelligence.

About 8 thousand employees of Microsoft work on artificial intelligence

According to her, by October, 2017 Microsoft works on AI technologies about 25 years, about 8 thousand people are engaged in their development. For strengthening of positions in this market of Microsoft made 18 acquisitions for several years. Only in 2017 eight bargains are concluded, Johnson reported, having added that the corporation does not intend to be satisfied with what has already been achieved and prepares for new purchases. The particular emphasis is going to be placed for transactions in which it is about tools for development of artificial intelligence.

Earlier in 2017 Microsoft provided cognitive services through which developers can create the applications distinguishing the gestures translating the texts on a set of languages breaking video into fragments for quick search, editing and subtitling in real time and also adapting data for image understanding in the categories, most important for users.

Besides, the Laboratory of cognitive services Microsoft (Cognitive Services Labs) which allows developers to participate in researches of scientific community was started better to understand the future of AI. One of the first AI services available in Laboratory became API for gesticulation recognition which helps to create more intuitive and natural functionality that gives the chance to users to interact and manage using gestures.

In October, 2017 Microsoft announced the global tender Innovate.AI which purpose is search of startups which develop the future of artificial intelligence. The volume of fund for the venture funding is $3.5 million.

For several years of Microsoft made 18 acquisitions in the market of artificial intelligence technologies

Startups which use AI for "smart" applications, services or platforms can send requests via the Microsoft Ventures website. Developers will be able to compete for one of four prizes. The finalist who will receive $1 million the venture funding and $500 thousand on Azure credits will be selected from regions of carrying out tender (North America, Europe and Israel). The fourth prize will be won by the contestant whose project in the best way uses AI for wellbeing of society.

The initiative should help the beginning companies with high potential to receive financing on problem solving in these fields of computer sciences and eventually to improve life of people.

At the D.LIVE conference Peggy Johnson also reported that, in addition to artificial intelligence, the company considers the possibilities in such directions as quantum computings, games, cloud computing, machine learning, IT infrastructure and distribution of the corporate software in service quality.

We constantly study opportunities. We try not to look at it through a competitive prism. What synergy in it? If in it there is a sense, we continue, – Peggy Johnson said.

Purchase at General Electric of wind energy for DPCs

On October 9, 2017 the Microsoft corporation signed with General Electric the 15-year purchase agreement of the electric power in Ireland. The IT giant continues to use renewable energy sources actively.[13]

Microsoft bought from General Electric wind energy for DPCs for 15 years ahead

In accordance with the terms agreements Microsoft buys all electric power which will be made by the new 37-megawatt wind power plant of Tullahennel of General Electric company located in Ireland. The electric power will be used for ensuring the growing requirements of cloud data centers of Microsoft Azure.

The project is also directed to obtaining important data on increase in efficiency of storage of energy: each turbine will be equipped with the built-in accumulator, and the companies will study how similar accumulators can be used for collecting and storage of excesses of energy which, as required, will go then to network. It is supposed that the similar solution will help to provide constant voltage with network, having eliminated the irregularities of loading of network characteristic of wind power plants.

This agreement with Microsoft allows to increase already significant presence and investments of GE in Ireland where we already provided with jobs more than 1500 people, and, in particular, presence of GE in the electricity market from renewable sources — the commercial director of division of GE Renewable Energy Andres Isaza reported.

Thanks to this transaction the number of the purchased Microsoft of renewable energy in global market will be nearly 600 MW. Such energy costs cheaper, than received from traditional sources that allows to reduce maintenance costs of data processing centers.

The agreement of Microsoft and GE became known a week later after the declaration that the Belgian producer of sea wind power plants Parkwind becomes the strategic partner of the project of construction of wind power plant of Oriel in a northwest part of the Irish Sea. The power plant will consist of 55 turbines located in 22 kilometers from the coast Dundalk, and, according to Oriel Windfarm Limited, to have a capacity of 330 megawatts which has enough for supply with the electric power about 250,000 Irish households.

Settlement of the conflict with Kaspersky Lab

On August 10, 2017 it became known of a withdrawal of the complaint of Kaspersky Lab to Microsoft after the American IT corporation agreed to fulfill the requirements of the Russian anti-virus company. According to Reuters agency with reference to the statement of Kaspersky Lab, the company intends to refuse the claims filed in the European Commission to Microsoft.

Record number of requests from the American intelligence agencies

On April 13, 2017 Microsoft announced receiving from the American authorities record amount of requests for providing these users of products of the company.

The American companies have the right to disclose only number of the requests which arrived from law enforcement agencies. And it is possible to specify only the approximate range, but not an exact indicator. Provide detailed statistics about requests it is prohibited by the law "About Control of Activity of Foreign Intelligence Services" (Foreign Intelligence Surveillance Act, FISA).

Logo of Microsoft on office of the company in Massachusetts

According to Reuters agency with reference to the data published by Microsoft, in the first half of the year 2016 the company received from intelligence agencies from 1000 to 1500 requests for transfer of the user content whereas according to the results of each of half of 2015 no more than 500 requests are recorded.

Thus, the amount of requests doubled and appeared record to share during all the time, so far Microsoft such information (since 2011).

According to the results of January-June, 2016 U.S. authorities made a request according to the law FISA concerning   17,500 — 18,000 accounts of users of products of Microsoft against   12,000 — 12,500 for the same period of previous year.

The volume of the powers on espionage conferred to intelligence services of the USA according to the law "About Control of Activity of Foreign Intelligence Services" actively is discussed after Donald Trump became the president of the country.

Earlier in April, 2017 it became known that the Federal Bureau of Investigation of the USA received the FISA warrant for shadowing the Carter Page contacts — the former adviser for the international relations of the campaign headquarters of an election campaign of Donald Trump. Intelligence agencies check Page within investigation on suspicion of communication of a presidential campaign of Trump with Russia.[14]


Kaspersky Lab complains of the partner

On December 12, 2016 it became known of plans of Kaspersky Lab - to address to European Commission with the complaint to Microsoft which, according to software developer of antivirus protection, does not give time for adaptation of products to upgraded versions of Windows that promotes undeserved public awareness of an antivirus of Windows Defender. The address is expected in January, 2017.

Developers of antivirus software consider - the term accepted by the American corporation in 66 days for preparation of products before release of RTM versions, does not allow them "to fulfill fully the obligations to users". As a result clients are left without protection, and "Kaspersky (earlier Kaspersky Lab)" sustains financial losses[15].

The developer company of antiviruses because of partner communications with corporation did not find it possible to complain earlier.

Opening of the center of check of software on existence of tabs

On October 19, 2016 Microsoft opened the center of a computer security which tasks included prevention of cyberpiracy and provision of a guarantee for security of the software to clients of the company.

Organization which Microsoft called the Center of transparency (Transparency Center) is opened in Brazil. There the experts representing the interests of the governments of the countries of Latin America and the Caribbean Region will be able to browse the source code of products and to check it for existence of tabs. Microsoft did not specify how deep will be the analysis of the code for detection of vulnerabilities.

Microsoft opened the center of check of software on existence of tabs
The center is aimed at showing that there are no traps, it is a good step — told Reuters agency in the Brazilian government as anonymity.

The corporate vice president of Microsoft Tony Townes-Whitley importance of development of transparent and trusted relationships with the authorities to which the company helps with the plan of technologies and data protection on the Internet emphasized. The world endures new technology revolution which engine are clouds, and fuel — data, it continues. At the same time clouds should be reliable and guarantee that the data which are stored in them will not be cracked. Microsoft will check it by means of the Centers of transparency, similar to the fact that are open in Brazil, added Townes-Whitley.

At the action devoted to opening of this center there was a head of the lower house of the Brazilian congress Rodrigo Maia. According to him, the initiative of Microsoft will allow to improve control of public Internet services and will provide to users more security accreditations.

Microsoft and other IT companies began to suspect of espionage for the users after the former employee of National Security Agency Edward Snowden published classified documents in which it was announced the mass shadowing organized by the U.S. Government with direct participation of local equipment manufacturers and the software.[16]

The court permitted Microsoft to deny to U.S. authorities access to mail of the clients

According to a verdict of Court of Appeal of the Second District of State of New York, the company is not obliged to provide access to the maintenance of the electronic mailboxes which are stored on the server in Ireland. According to Reuters, the court satisfied the complaint of Microsoft, having recognized unauthorized the verdict rendered in 2014. Then official requests for providing personal data of clients obliged to execute the American corporation, otherwise the authorities had the right to apply punishment[17].

What to wait from Microsoft for

At the end of December, 2015 the Business Insider edition published article in which journalists tried to predict what to expect from Microsoft in 2016. According to observers, the American company will release new smartphones and tablets, will progress in development of HoloLens augmented rReality glasses, will expand partner communications, will open new shops, etc.


These augmented rReality glasses will be available in the version to developers in the first quarter 2016 at the price of $3 thousand. At least, it in October, 2015 was promised by the executive vice president of division of Windows and devices of Microsoft Terry Mayerson. However before a product yield on mass market there will pass some more years.

According to observers Business Insider, the American company will release new smartphones and tablets, will progress in development of HoloLens augmented rReality glasses, will expand partner communications, will open new shops, etc.

Surface Phone и Lumia

Rumors about development smartphone of Surface Phone focused on corporate users go to media for a long time. According to unofficial data, this device expected in 2016 will receive the 5.2-or 5.5-inch screen with the resolution of 2560 x 1440 pixels, powerful processor Intel, the 20-megapixel main camera, the metal body, the scanner of an iris of the eye of an eye and the Windows 10 Mobile operating system which can get support of Win32-applications later.

If Surface Phone is addressed to business audience, then the line of Lumia will remain consumer. It is not necessary to doubt that it will be expanded in 2016, considering a large number of the telephone new products which are released in Microsoft in 2015.

Tablets and notebooks

In 2015 Microsoft provided the first notebook — Surface Book. Business Insider assumes that in the 2016th there will be a second generation of this portable computer which will become more productive, easy and thin in comparison with the predecessor.

Also software giant probably prepares new Surface 4 and Surface Pro 5 tablets.

Retail expansion

With expansion of the range of products of Microsoft began to increase number of retail stores worldwide. Such sales points, for example, are open in New York and Sydney. In the press there passed information that the similar salon will be open in London in 2016.

It is more than partners

Under the leadership of Satya Nadella Microsoft became more open for cooperation, including with competitors. The company already concluded partner bargains with Apple, Salesforce, Box, Cyanogen, Samsung, etc. In 2016 this list should extend.

New software

Microsoft is considered the largest producer software therefore the company, certainly, will continue to improve Windows 10 Office, the new Microsoft Edge browser and other products. In 2016 it is quite possible to expect a lot of updates as for consumer, and corporate software.


In 2015 Microsoft purchased several firms through which software products of the company were improved. Microsoft aims at that its technologies were used on different platforms so not to do it without new acquisitions, journalists consider.[18]


Creation of the center of protection of business against cyber attacks

On November 17, 2015 the Microsoft corporation told about R&D-расходах in the field of technologies of the information security (IS) and also announced creation of division of support of corporate clients in fight against cyber attacks.

As the CEO of Microsoft Satya Nadella during the presentation at the conference reported Microsoft Government Cloud Forum in Washington, the company intends to build the complex cybersecurity platform which will allow to detect virus attacks, to be protected and react to them properly and also to build "smart" network of collection of information and interaction with other players of the industry. At the same time the platform will work in connection with Azure cloud, the Windows 10 operating system and Microsoft Enterprise Mobility Suite service, Nadella noted.

Satya Nadella says that Microsoft annually to spend more than $1 billion for research and development of cybersecurity technologies

According to him, Microsoft aims to provide data protection of the clients where they would not be. For implementation of this task the company annually spends more than $1 billion for research and development of technologies of ensuring cyber security.

"We live in the world where attacks can proceed from where it is necessary, and the attacks became much more difficult. As these threats very serious, the companies need to build the new line of defense" — the head of Microsoft told

With respect thereto Microsoft creates the Command center cyber defense (Cyber Defense Operations Center) which integrated the best specialists of the company in information security fields. This division which will work round the clock will include not only cybersecurity experts, but also analysts, developers, programmers, operational questions specialists and project managers, Nadella told.

All these people will closely work with the new department of Microsoft Enterprise Cybersecurity Group created to help the companies to resist to cyber attacks. Employees of this group will estimate the level of security of information systems of the enterprises, to conduct monitoring of security of their IT infrastructure, to reveal dangerous activity and to react to incidents.

Some consulting firms and IT vendors already offer similar services, however are sure of Microsoft that experience of the company in the market of cloud services will help it to involve with Microsoft Enterprise Cybersecurity Group of corporate and private clients worldwide.[19]

Disclosure of these users at the request of the authorities

On October 14, 2015 Microsoft published new edition of the regular report in which the company tells about the requests for providing and removal of user data arriving from the authorities. It turned out that in China most often ask to remove software giant content from the services.

According to promulgated data, in the first half of 2015 Microsoft received from the governments of the different countries of 186 delete queries of information from the search system Bing, the MSN portal and other online projects. 165 requests fell to the share of Celestial Empire that honor in eight times more in comparison with all other countries combined. For comparison, in the United States Microsoft recorded only 11 instructions on an exception of data from the websites (mainly from Bing search engine), in Germany – only five.

China most often asks Microsoft to remove content from the services

As the deputy general counsel of Microsoft John Frank reported, the company aims to follow local laws and laws on protection of intellectual property, adhering at the same time to the principles of transparency and freedom of speech.

If the amount of delete queries of information is measured by tens, then in a case with requirements of providing personal data which proceed from law enforcement agencies and intelligence agencies, it is about tens of thousands. So, in January-June, 2015 Microsoft received 35,228 similar applications against 31,002 in the second half of 2014.

In the first half of the year of the 2015th the American corporation denied 12.4% of such requests in view of their illegality according to Microsoft. According to the results of the first six months 2014 the percent of the requirements rejected by IT giant made 5.9%.

The company says that most often the authorities want to obtain a so-called basic information about the user, for example, his name, a surname or the IP address, is more rare – correspondences by e-mail and the loaded photos.[20]

Large-scale reorganization

On September 28, 2015 Microsoft announced financial reorganization within which the American corporation will publish data on revenues of three main divisions instead of former to seven. The software giant changes a reporting format taking into account the emphasis on cloud and mobile business.

According to Reuters with reference to the statement of Microsoft, revenue and operating profit of the company will be distirbuted on three following divisions:

  • Productivity and Business Processes,
  • Intelligent Cloud и
  • More Personal Computing.

7 divisions on which Microsoft reported earlier are united in 3

Office applications of Microsoft Office and Office 365 and also customer relationship management system of Dynamics and Dynamics CRM Online are carried to Productivity and Business Processes.

In Intelligent Cloud income of server products and services, including the Windows Server operating systems, a cloud platform of Windows Azure and an analysis system and management of SQL Server relational databases will be considered.

The More Personal Computing segment will include sales of consumer electronics (tablets, smartphones, video game consoles, etc.) and also income from licensing of operating systems of Windows and the business connected with the search system Bing.

As specified to the Bloomberg agency the representative of Microsoft Cameron Bays, in structure of the company there will also be a small Corporate and Other group which is responsible for deferred revenues.[21]

Before this reorganization cloud business, server solutions, Windows and Office were a part of the direction of the corporate products Commercial, and consumer business was supervised by structure of Devices & Consumer. These two big business groups included seven divisions.

Microsoft will begin to report on a new system already in the first quarter 2016 financial year which will be closed at the end of September of the 2015th. The company will publish financial results of this period on October 22. Also Microsoft promises to issue the reports made taking into account reorganization for 2014 and 2015 financial years.[22]

The company in digits: Office uses every seventh inhabitant of Earth

At the end of September, 2015 the Microsoft company updated the section of Microsoft by the Numbers in which told about the most perceptible achievements of the products. According to promulgated information, every seventh inhabitant of Earth uses a packet of Microsoft Office.

As of the end of September, 2015 the number of users of Office reached 1.2 billion people. Many people work with this software package by means of mobile devices running the operating systems which are not concerning Windows. So, the packet of Office is loaded more than 100 million times by owners of IOS - and Android gadgets.

The number of users of Office reached 1.2 billion people

According to the statistics of Microsoft, 80% of the companies entering list 500 of the largest according to the edition Fortune work with cloud services of corporation. By 2018 Microsoft is going to increase revenue from sales of cloud solutions to $20 billion. By September, 2015 about 40% of the income generated by the Azure platform arrive from startups and independent software developers. Every fifth Azure virtual machine is started on Linux.

Microsoft also told about progress of the VoIP- service Skype. With its help calls lasting more than 3 billion minutes are made every day, and the Skype Translator service allows to translate voice messages into 6 different languages.

Besides, the software giant pointed to 400 million active users of postal service, 48 million users of game service Xbox Live, 669 thousand applications in Microsoft Store online store (being Windows Store) and over 75 million computer devices on the Windows platform 10. The American company expects growth of the last indicator to 1 billion devices by 2018. Daily Microsoft donates about $2.6 million for development of software for benefit of more than 86 thousand non-profit organizations worldwide.

Modular data centers of Microsoft consume 50% less energy in comparison with traditional DPCs. Finally It should be noted one more curious digit: employees of the headquarters of Microsoft in Redmond order every year about 984 thousand portions of French fries in cafeterias of a campus.[23]

Expenses in billions of dollars on updating of the headquarters

At the beginning of September, 2015 it became known of large expenses of Microsoft on updating of the headquarters in the city of Redmond (the State of Washington, the USA). The American company decided to change offices so that to involve more young specialists and to adjust close work of employees among themselves, Bloomberg reports.

It is about failure from separate offices for benefit of work areas with open designs. At such offices the working space is separated by partitions of average height which often are a part of tables and create illusion of a separate office.

One of buildings in the territory of Microsoft headquarters in Redmond

Some departments of Microsoft, including division of developers, are already transferred to such format of accommodation of employees. The company wants to use it everywhere in the headquarters.

"We constantly work on the plans concerning a campus of Microsoft to try to expect future requirements" — said in corporation.

In addition to re-planning of offices of the headquarters in Redmond, it is going to construct new and to reconstruct the built buildings therefore in the territory of a complex there can be restaurants, shops, premises for trainees and traveling employees and even a public exhibition of artists.

According to the edition, Microsoft can spend several billion dollars for upgrade of the headquarters which consists of 80 buildings located on the area more than 200 hectares. Though the company still up to the end did not decide on carrying out similar works, it already employed the architectural bureau Skidmore, Owings & Merrill LLP known on design of the highest building in the world — towers of Burj Khalifa in Dubai. This zha firm helped Microsoft with reorganization of a small campus with Mountain View (the State of California, the USA).

The territory of a complex of Microsoft in Redmond is divided by the speedway of State Route 520. The company agreed to organize new walking and bicycle paths there. Besides, earlier it was announced plans for construction of the line of the high-speed tram from Seattle to Microsoft headquarters. Carrying out construction work is planned for 2016-2023.[24]

Three priorities

At the beginning of August, 2015 Microsoft announced three main objectives which the company is going to execute in the near future. Among them there is no mentioning of operating systems.

Windows did not enter about the list of the priority directions of Microsoft

Financial year Microsoft listed three priority directions for research and development in 2015-2016 in the report sent to the U.S. Securities and Exchange U.S. Securities and Exchange Commission:

  • Improve office software products and business processes. This task concerns a packet of Office 365 and the related solutions. By the end of June, 2015 the number of subscribers of Office 365 was 15.2 million, having increased by 3 million users in one quarter. Microsoft does not intend to be satisfied with what has already been achieved and is going to make a maximum of efforts for involvement of new clients, including due to improvement of the products by means of purchase of useful assets.

  • Construct an intellectual cloud platform. A basis of this plan is the cloud of Microsoft Azure thanks to which in April-June, 2015 revenue of corporation in the market of commercial cloud services jumped by 88% to $832 million. The software giant is going to strengthen further the cloud business especially as the company Satya Nadella – the former head of cloud division directs.

  • Create more personal calculations. There is a speech about formation of more personalized approach during creation of computer systems, considering customer requirements.

As notes the Busniess Insider edition, in the priority list of Microsoft there was no Windows 10 in spite of the fact that the company lays great hopes on this operating system and wants that it was fixed in the most different electronics.[25]

Perhaps, Microsoft positions Windows 10 as means of accomplishment of the tasks stated above. For example, the operating system is ready to  use of a set of Azure services  —  in particular, Azure Active Directory  that will allow to open the new directions of business, such as infrastructure of virtual desktops, sale of the licenses Office 365, creation of a private cloud or configuring of disaster recovery on  network.

Growth in sales of cloud subscriptions

In the fourth financial quarter (corresponds to the second calendar in 2015) Microsoft increased number of subscribers of Office 365 Home and Personal service to 3 million, and their total quantity reached 15.2 million. At the same time total revenue from rendering corporate cloud services by corporation grew up for 88%.

Plans for trebling of cloud sales to $20 billion

On April 29, 2015 Microsoft announced plans to treble the revenue in the market of cloud products in three years. It can be promoted by sales increase of devices based on Windows 10.

During communication with financial analysts at the Build 2015 conference (on April 29 — on May 1) the CEO of Microsoft Satya Nadella said that the company pursues the aim to earn from corporate cloud products, such as Office 365, Azure and Dynamics CRM Online, about $20 billion for 2018 financial year. In the 2015th the volume of this business is expected at the level of $6.3 billion.

According to Nadella, for Microsoft the cloud direction is strategically important front of fight against competitors. At the same time the top manager recognized that many individual developers and startups prefer to use the competing product Amazon Web Services for online calculations. Microsoft wants to attract as much as possible such clients to the Azure platform.

Satya Nadella speaks at the Build 2015 conference (on April 29, 2015)

Satya Nadella speaks at the Build 2015 conference (on April 29, 2015)

It should be noted that Amazon, as well as Microsoft, estimates the annual volume of cloud business at $6.3 billion. Revenue of Amazon Web Services in the first quarter grew 2015 by 50% year on year, having made $1.57 billion.

At the Build 2015 conference the chief financial officer of Microsoft Amy Hood reported that in 2015 financial year the company predicts a gross margin in the sector of corporate clouds at the level of 44%. How this indicator in comparison with previous year will change, the top manager did not specify.

She added that Microsoft will still direct a capital expenditure to expansion of cloud business though in 2016 financial year operating costs of the company will remain at the level of year prescription.

On Build 2015 also the operating officer of Microsoft Kevin Turner acted. He reported that one of the last large customers of Azure is the meteorological Accuweather portal which by means of a cloud platform of Microsoft began to process about 10 billion requests for display of reports of weather each 24 hours.

Turner also told that Microsoft predicts presence in the market in total of 1 billion devices based on Windows 10 by 2017-2018[26]

Aspiration to a uniform ecosystem, as at Apple and Google

From March 16 to March 19, 2015 in Atlanta (the State of Georgia, the USA) Microsoft held the Convergence 2015 conference during which the senior representative of the company told about one of aspects of business on which the software giant lags behind competitors. It is about the developed ecosystem, the website Microsoft News reports.[27]

During the conference the marketing director of Microsoft Chris Capossela gave an illustration on which the interrelation of corporate products of Microsoft, Google and Apple is represented. On this image it is visible how these or those solutions of one producer interact among themselves.

Interrelation of products of Apple, Google and Microsoft

For example, according to a slide from the presentation on Convergence 2015, owners of iPad tablets almost for certain use the desktop Safari browser, and users of the web observer of Chrome prefer a mail service of Gmail. Supporters of the last, most likely, look for information on the Internet through Google search engine, and for work with documents select cloud Google Docs. Quantity of the interacting products at Microsoft much less, than at competitors, Kapossela recognized.

"Microsoft has a set of large products, such as Windows, Internet Explorer and Office. However it is visible that they practically do not interact with each other, unlike those that develop Google and Apple" — the top manager of Microsoft told.

According to him, Apple can advertize only several devices, for example, of iPhone and iPad, but as all solutions of the company are connected by one ecosystem, each product effectively advances another without any marketing investments.

Following in the footsteps of Apple and Google, the Microsoft company is going to develop actively the ecosystem, including in it many products. By March, 2015 the company performance it in the direction developed into integration OneNote into Surface Pro 3 tablets, the searcher Bing – in the voice Cortana assistant and VoIP- service Skype — in, Chris Kapossela noted, having added that Microsoft "seriously" was engaged in close interaction of the products among themselves.

Promise to announce clients transfer of their data to intelligence agencies

On February 16, 2015 Microsoft announced support of the new standard for personal data protection of users in cloud services. Thus, the American corporation undertook not to use personal information of the clients for the advertizing purposes and to prevent them about the requests connected with transfer of data to law enforcement agencies.[28]

Microsoft will follow the ISO/IEC 27018 standard approved in 2014 by International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). This set of requirements contains restrictions and rules to which the provider of cloud services processing the user information should follow.

Microsoft undertook to announce clients transfer of their data to intelligence agencies

According to the statement of Microsoft, the British Standards Institute already confirmed compliance of ISO/IEC of 27018 services Microsoft Azure, Office 365 and Dynamics CRM Online. The similar certificate of confidentiality in a cloud environment for a product Microsoft Intune was issued by Bureau Veritas company.

Clients of Microsoft and other American companies attended to privacy issues after Edward Snowden told the former employee of the American intelligence agencies about illegal shadowing which is kept by the U.S. National Security Agency on the Internet and also the equipment and software of local producers. Having passed to the new standard of personal data protection in a cloud, Microsoft hopes to strengthen trust of users to itself.

In accordance with the terms ISO/IEC 27018, Microsoft will have to inform corporate clients on requests for transfer of their confidential data to the authorities. According to the general counsel of Microsoft Brad Smith, the new standard guarantees that clients of the company will always know where there are their data and what third parties demand access to them.

"Besides, if unauthorized access to personal information, technology equipment or capacities therefore there was a loss, disclosure or change of these data took place, we will let you know" — Smith in the blog on the website of Microsoft wrote.


Failure to transfer to U.S. authorities data from servers in Europe

At the beginning of December, 2014 Microsoft started the appeal of court's decision on need to provide to the American law enforcement agencies data from servers which are in Europe.[29]

In July, 2014 the court of Manhattan decided that Microsoft is obliged to open in the interests of the investigation the electronic correspondences of some users which are stored in a mail hosting of the company in the Irish data center. The software giant considered this requirement illegal as the European assets are not in jurisdiction of the USA.

With assistance of a number of the international IT companies Microsoft an udalost to freeze the resolution, however at the end of August, 2014 prosecutors convinced court of need of accomplishment by the company of the judgment.

file: IoMzUKv6RK E.jpg ‎

Microsoft considers illegal application of the warrant of national value for data acquisition, stored abroad

On December 8, 2014 Microsoft took the New York Court of Appeal of the second district of the USA (US Second Circuit Court of Appeals) with the appeal where it asks judges to cancel the court order of lower instance.

In the petition for appeal of Microsoft it is said that direct or indirect intervention in internal affairs of the sovereign country is fraught with serious effects for foreign policy and also threatens confidentiality of citizens of the USA.

"The data transmission demanded from us can endanger all our private digital information: not only letters of e-mail, but also all the rest that we store in so-called "cloud" which represents a hiding place of the classified personal information protected by constitutional rights of citizens on private life" — said in Microsoft.

According to the general counsel of Microsoft Brad Smith, issue of correspondences to the authorities can create a dangerous precedent, and other countries will begin to make similar demands.

Microsoft is sure that application of the order of national value violates the sovereignty of Ireland so the American authorities need to sign the interstate agreement with the European country to obtain those data which they want.

Microsoft signed the agreement with the Madrid Real

In November, 2014 Microsoft signed the four-year agreement with Real Madrid Club de Fútbol. Terms of the contract assume cooperation in creation of the digital platform based on Power BI integrating admirers of legendary Spanish team worldwide.


The EU Commission completed investigation about imposing of Internet Explorer

The Antimonopoly Committee of the European Union finished investigation in the relation Microsoft on the case of imposing web browser Internet Explorer and now prepares official charge, reported on September 27 Reuters.

If the guilt of Microsoft is proved, then the company is threatened by an impressive penalty in the amount of 10% of the profit of the company for 2012 financial year that makes about 7.4 billion dollars.

Experts in the antimonopoly right consider that case of Microsoft will become a good example of other companies.

"Fear of a heavy fine will brake the companies in desire to deliver other market participants in unequal conditions", - the expert in the field of the antitrust law of Nabaro company Rachelle Bakler told.

The share Internet Explorer was reduced almost twice since 2008 to 29%. Generally the former clients of the browser began to use Google Chrome and Mozilla Firefox - 29.3% and 30.3% a market share respectively.

Microsoft pled guilty of antitrust violation in July, 2012 and assured regulators of correction of this error. The company suggested to give within the next 15 months an opportunity of the choice of the web browser to users, in addition to obligatory warning of what browser is installed on the PC.

If the regulator makes the decision on removal of a penalty of Microsoft, - it will be the largest penalty for all history IT of the industry. Now a record by the amount of penalties in the field of the antitrust law the producer of microchips Intel which in 2009 received claims for the amount of 1.06 billion euros (1.36 billion dollars) that made 4.8% of its revenue for 2008 financial year has.

Blocking of participation of competitors at a conference of Microsoft

In July, 2013 Microsoft blocked a possibility of participation in one of the main actions in a year for representatives of the competing companies. It is about the universal partner conference (Microsoft Worldwide Partner Conference 2013) which took place from July 7 to July 11, 2013 in Houston, the USA.

Though the competition between the companies in IT market quite tough, is quite exceptional case when someone from mega-vendors so openly "banned" specialists of competitors. To cut unwanted visitors from the companies Google, VMware and Salesforce, Microsoft provided the special point of a registration form which is directly specifying that to the staff of this three not the place on an action.

Warning on the website of the company that to specialists of Google, VMware and close an input on an action'

Partner conference this that place where sales specialists learn everything about new products and services of corporation so Microsoft made secure for obvious reasons. In total in 2013, predictably on the eve of the action, 16 thousand people from 160 countries of the world had to visit a conference.

It is interesting that any obstacles for visit of an action in 2013 for representatives of the companies Apple Amazon Red Hat Cisco, IBM and Oracle the Microsoft corporation did not make though it with all from listed conducts tough fight in different segments of the market.

New structure of the company

In the first decade of July, 2013 Steve Ballmer announced the significant conversions concerning the purposes, strategy and structure of corporation, having sent to all her employees corresponding [30]. Microsoft stakes on integrated solutions (iron plus software) and is going to develop a line of own devices.

The new structure consists of the following groups:

  • Operating Systems Engineering Group led by Terry Myerson, group responsible for development of operating systems for all types of devices.

  • Devices and Studios Engineering Group led by Julie Larson-Green, group is responsible for development of devices and also supply chains concerning the accompanying components. The second area of work - entertaining content (games and so on).

  • Applications and Services Engineering Group led by Qi Lu is responsible for applications and services, including communication and search.

  • Cloud and Enterprise Engineering Group led by Satya Nadella is responsible for development a back-end of technologies for data centers, databases and special corporate solutions.

  • Dynamics led by the native of Russia Kirill Tatarinov will continue to develop the line of business applications of the same name as before.

  • Advanced Strategy and Research Group led by Eric Rudder researches also the innovative developments.

  • Marketing Group led by Tami Reller maintains all marketing activity of corporation.

  • The operating officer Kevin Turner who heads sales, marketing, support and also the directions of licensing and commercial transactions around the world is separately mentioned.

  • Business Development and Evangelism Group led by Tony Bates specializes in partnership, including OEM, vendors, developers and also is engaged in evangelism.

  • Finance Group is a group of financiers led by Amy Hood.

  • Legal and Corporate Affairs Group led by Brad Smith is responsible for legal ensuring activity of corporation.

  • HR Group led by Lisa Brummel deals with personnel problems.


Tax evasion charge

Microsoft and Hewlett-Packard use "holes and tricks" for tax avoidance in the USA for the amounts which are measured by millions of U.S. dollars. It was said by senator Carl Levin, the chairman of subcommittee on investigations of Senate Committee of national security and committee on affairs of the government.

According to him, Microsoft lowers disproportionately large number of revenue in the child divisions having different tax eases, and HP, in turn, constantly uses short-term loans from the subsidiary companies abroad what to avoid a tax on the means returning to the USA. "It is very doubtful that some of these the practician do not conflict to the existing tax law", - the democrat Lyovin on listenings of committee said.

It is interesting that, according to him, Microsoft and HP not only who evades in paying taxes in the USA in this way, but special investigation of committee concerned directly these two companies. Activity of Microsoft and HP raises "serious questions", he concluded.

Many multi-national corporations which are located in the USA "use complex structure, doubtful transactions and legal fictions to display the profit abroad, avoiding taxes which could maintain our security, stability and productivity", Karl Lyovin noted during listenings.

At the same time representatives of vendors already made the statement that the companies pay taxes in full accordance with the legislation of the USA. At the same time republican senator Tom Coburn said that in use of tax loopholes there is nothing criminal. He considers that they are completely legal as they rely on the legislation created by the U. S. Congress. He also called the Congress for radical review and simplification of the Tax Code.

Lyovin also in detail told about schemes which used IT giant. So, Microsoft, levied high license payments for sale of own products from three foreign operations. In 2011 two such divisions in Ireland and Singapore having low tax jurisdiction paid about $4 billion for such licenses, and then $12 billion sold products for the amount though the tax law of the USA requires the fair prices for transfer of assets. Thus, Microsoft displaid about $8 billion out of limits of tax jurisdiction of the USA, Lyovin told.

Similarly Microsoft sold licenses to the division in Puerto Rico, in 2011 in Puerto Rico 47% of sales of corporation in the USA were displaid, senator considers. In 2011 Microsoft assigned about 55% of the revenue to divisions in Ireland, Singapore and Puerto Rico, Stephen Shay, professor of the tax law from Harvard said. Shay and two other experts were involved in investigation concerning Microsoft and HP.

HP at the same time used the excellent mechanism, Lyovin explained. According to the tax law of the USA, the companies are obliged to pay taxes on revenue abroad which was transferred to the USA, but the law does an exception for short-term loans. In recent years divisions of HP in Belgium and on Kaymansky islands provided constants a flow of such loans to head office on payment of different expenses, including the salary to workers to the USA and dividend payouts. In 2011 expenses of HP on salary payments in the USA made $10.3 billion.

Change of a logo

On August 23, 2012 the general manager on a brand of strategy of Microsoft Jeff Hensen in the blog of the company announced change of a logo of the company.


Hensen reports that change of a logo which was used almost 25 years is connected with start of new products of the company: Windows 8, Windows Phone 8 and Xbox.

It is planned that the new logo will be implemented already in new products of the giant. "Our logo should develop visually to emphasize the new beginning", says Hensen.

The old logo of Microsoft disappears

The new logo consists of the company name and its character. For writing of a word of Microsoft the Segoe font, a standard corporate font of the company is used. The graphics image from consists of four multi-colored squares which should symbolize a variety of a product portfolio of Microsoft.

Microsoft saves the share block of Facebook

Microsoft will not sell the share block to Facebook after removal on August 16, 2012 of prohibition on transactions with securities of the Internet company, Bloomberg with reference to unnamed sources reports. Prohibition extends to the shareholders who purchased papers of the company before the IPO which took place in May, 2012.

Microsoft considers that stocks of social network are a strategic asset which will help the giant to compete with Google through partnership of two companies.

In 2007 Microsoft purchased 26.2 million or 1.7% of stocks of Facebook for 240 million dollars. Now this packet is estimated at 572 million dollars.


Analysts doubt bright future of Microsoft

Some experts consider that the CEO of corporation Steve Ballmer too "hardly put the clamps" that redirected Microsoft from a way of the innovative development. Enough one or two unsuccessful quarters that the corporation followed a way of degradation. However as the company generating billion profits can stumble so seriously? As Matt Rosoff, the analyst of Business Insider considers, that can be promoted by "domino effect". Everything will begin with the fact that the popularity of tablets and, in particular, iPad, will finally bring down the market of personal computers. Read further

Updating of the agreement with SUSE

In August, 2011 it became known that the corporation Microsoft updated the current agreement on sales operating system of SUSE Linux and joint with SUSE development of programs for this OS which would maintain compatibility of page Windows.

Within the agreement calculated on four years, Microsoft intends to purchase and sell licenses of SUSE for the amount of 100 million dollars.

Orientation to interoperability of Windows only with SUSE of Linux while the previous arrangements provided compatibility of Windows and with other software products of Novell will become distinctive feature of the new agreement with Microsoft. Now Microsoft and SUSE through joint efforts service 725 clients in production, oil and financial areas and also in the field of health care. Besides, it is assisted producers (in particular, Dell companies) in assembly of computer systems on the SUSE platform.

Bill Gates sells 10 million shares

As it became known on February 11, 2011, only in 10 days of this month Bill Gates sold 10 million shares of Microsoft. In total for the last year the founder left from 90 million securities of the company, having reduced the share by 13%. And in the last two years Gates's share was reduced by 22% after more than dozens of transactions. Gates has only about 7% of stocks. As analysts note, some investors can regard such active sale of shares of Microsoft by the founder a bad omen.

The average annual income of investors for the last five years is only about 2.74%. At the same time, investments in Apple company would bring to the investor 38.8% a year, Google - 11.12%, Oracle - 30%, and IBM - 17.37%.

2009: A penalty of $388 million for benefit of the Singapore company Uniloc

In 2009 the Federal court of the USA obliged the world leader in production of the software Microsoft corporation to pay $388 million the Singapore company Uniloc for violation of the patent legislation. Uniloc accuses Microsoft of violation of its patent rights in the procedure of activation in Windows XP, Office XP and Windows Server 2003. This procedure requires to enter the code for blocking removal into a limited interval in order that the user could use a product further. The code is delivered together with the license. As declare in Uniloc, they patented such mechanism in 1992. The fine of $388 million is the amount of the missed Uniloc of benefit increased by two.

2008: Court with Google because of search in Windows Vista

Первые лица Microsoft нередко страдают от ненавистников монопольного положения своей корпорации. Последний случай произошел весной 2008 года - Steve Ballmer on a performance at the Hungarian university came under fire by eggs. In 1998 the Belgian avant-gardist Noel Goden during Bill Gates's visit to Brussels managed to flatten out about the person of the head of Microsoft cream cake

At this time Microsoft is condemned for opaque development of the majority of products that was the cause of several judicial proceedings.

So, the Google company submitted a claim against Microsoft for the purpose of obtaining data on the system of search Windows Vista and the other data necessary for development of Google Desktop for Windows Vista, one of functions of which is indexation and search of files. Google carried the case, having accused Microsoft of monopoly for the search system which is built in Windows Vista. It is the legal claim of Google against Microsoft which purpose was a receiving Google of data on the system of search Windows Vista and the other data necessary for development of Google Desktop for Windows Vista, one of functions of which indexation and search of files is. Google won process, having threatened monopoly of the search system which is built in Windows Vista from Microsoft.

The similar situation was also with the Internet Explorer browser.

2004: A penalty of €497 million according to the decision of the European Commission

In March, 2004 the court obliged to pay to Microsoft a penalty in the amount of €497 million and also to provide to competitors the source code of server OS. Microsoft paid a penalty, however, according to EC, regarding disclosure of the source code the company did not provide exact and reliable information. As a result, on July 12, 2006 antimonopoly regulating authorities of the EU made the decision on imposing of a penalty on Microsoft in the amount of €280.5 million ($357 million) for failure to follow the judgment of 2004. In response to it the corporation submitted a claim to European Commission according to which it required to recognize illegal the requirement to provide to competitors the source code of server OS and to pay a penalty in connection with abuse of a dominant position in the European market. However the claim of Microsoft was rejected by the European Court of Justice on September 17, 2007.

2002: The court found Microsoft guilty in monopoly in the market of OS

Microsoft quite often was in epicenter of judicial proceedings on antimonopoly affairs. So, in 2002 the court found Microsoft guilty in abuse of monopoly in the market of operating systems and web browsers in the claim of the U.S. Department of Justice.

Within extrajudicial settlement of the claim the company, Prosecutors General of states and the Ministry of Justice signed the agreement on prevention of further abuses of Microsoft. Though Prosecutors General demanded that the agreement worked within 10 years, the judge considered sufficient 5 years.

The duration of the agreement expired in November, 2007. Attorney-Generals of ten states of the USA (so-called Californian and New York groups) demanded from court to prolong observation of Microsoft for five years - till November 12, 2012, however the Ministry of Justice submitted the petition that in it there is no need. As a result, the Federal court of the USA made the decision on prolongation of antimonopoly supervision of Microsoft company for only two years - till November 12, 2009. At the same time, acceptance of complaints on antimonopoly case of 2002 as Microsoft, according to court, fulfilled the main part of the requirements antimonopoly the organizations stopped.

According to Department of Justice and the Prosecutor General's Office of the USA, the Microsoft corporation agreed to a compromise – competitors of software giant can start software based on Windows Vista OS.

1997: The end of hostility with Apple

During the first term of the management of Apple Steve Jobs became famous for the fight for the PC market which was marked by the direct conflict between Apple and IBM. In passing Apple opposed itself and Microsoft – to the company which delivered the IBM PC operating system, and afterwards, having taken appearance of the graphic Macintosh operating system as a basis, developed Windows.

The hostility between the defeated Apple and the market leader of Microsoft who acquired the status proceeded also after 1985 when Jobs already left the company. Opposition with Microsoft became a part of culture of Apple which proclaimed itself the fighter against everything that was connected with Microsoft and Wintel. And meanwhile, the Macintosh market continued to be narrowed, and its share was measured already by units of percent.

In 1996 Jobs found forces to recognize that war of desktop PCs is ended – Microsoft won. According to him, there was no sense to spend money and forces for the fight which did not have any perspectives. No, Apple will continue a game already by the rules and on the conditions. And the giant from Redmond let remains at the positions won by it, without preventing the company which took a new direction to move ahead.

In exchange for the agreement on mutual licensing Microsoft agreed to select for at least five years essential resources for development of new versions of Office and Internet Explorer for Macintosh. Besides, the corporation redeemed a share block of Apple for the amount of 150 million dollars, having confirmed the interest in success of this company. In turn, Apple agreed to make for five years Internet Explorer the browser by default for Mac OS.

The agreement which Jobs announced in 1997 in Boston at the Macworld conference (and which Bill Gates's hand was obviously traced) became the actual appeal to all admirers of Mac to bury tomahawks and to move further.

Steve Jobs (on a podium) and Bill Gates (on the video screen) discuss the agreement of Macworld and announce new alliance Apple and Microsoft, on August 6, 1997.

From now on Apple will develop in parallel with the former irreconcilable opponent, having refused direct confrontation with it. The new position of Jobs in relation to Microsoft allowed to release a power pulse of intellectual energy. Developers and admirers of Apple had an opportunity to move further and to win the new markets.

1995: Release of Windows 95 and Internet Explorer browser

Windows 95 which appeared in 1995 only for the first two weeks of sales was sold out in circulation in 7 million copies. From same year the corporation began to be guided by the Internet. The Internet Explorer Internet browser created by Microsoft became Windows 98 component.

The MSN system is included into the three of the largest searchers, however, seriously conceding not only to the leading Google, but also Yahoo taking the second place.

1993: Sale of 1 million OS a month

In 1993 the sales volume of operating systems from Microsoft reached 1 million copies a month.

1992: Opening of office in Russia

The corporation opened the representation in Russia in November, 1992 (since July, 2004 — Microsoft Rus LLC).


Roller: 1989 in the history of Microsoft. Bill Gates jumps out of a box on the stage before a performance

1987: The first version of Windows OS

In 1987 the first version of Windows OS was released.

1986: Carrying out IPO

IPO Microsoft took place on March 13, 1986. At that time the share price of the company was $21 for an action. Upon completion of first trading day share value was raised up to $28 for an action. In the years ahead stocks of the company continued to grow in the price, it promoted that some officers of corporation became millionaires. Share price reached a maximum in 1999 - $119 for an action.

Cost dynamics of stocks of Microsoft

Microsoft nine times split up the actions. Splitovat actions — rather widespread acceptance for the company which securities very quickly rise in price. Such maneuver is justified to make actions more available to a general population. Microsoft carried out Split nine times from the moment of entry into the exchange in 1986. If it it is not made, each paper issued during the IPO would cost $6 thousand in 2010.

1983: Microsoft Mouse за $200

In April, 1983 Microsoft provided the first "mouse" — Microsoft Mouse manipulator which cost equaled $200.

1981: Contract with IBM for the MSDOS installation for all its PCs

As a result, on August 12, 1981 the IBM corporation signed the contract with Microsoft according to which all IBM PCs were issued only from the preset MSDOS. Since then the glory of Microsoft promptly grew.

1979: Completion of QDOS to MSDOS

The first operating system which brought success of corporation became DOS (Disk Operating System). So, in 1979 Gates received the order for creation operating system (OS) for the first-ever personal computer from corporation IBM (IBM Personal Computer, PC). For development of OS for the PC IBM Microsoft redeemed the product QDOS from Tim Paterson, finished it and provided IBM under the name MSDOS.

1975: Foundation of the company

The company was founded on April 4, 1975 - then two partner and the friend, Paul Allen and Bill Gates, at first created Microsoft company, Microsoft Corporation (Microcomputer Software Corporation) later called. There was this event in the city of Albuquerque, State of New Mexico.

For the first time the company name arose in correspondence of two cofounders - Bill Gates and Paul Allen. Future richest person on Earth shared opinion that the name should capture the essence of business — symbiosis of "iron" and "software" entities (Microsoft). This name was also formalized: partners registered the legal person in the State of New Mexico where they should work for the first customer — the Micro Instrumentation and Telemetry Systems company which is deployed in Albuquerque. To this city of Geyts and Alen moved after finished work on a Basic language which rights to use sold to the MITS company which is at that time the first developer of the Altair personal computer.

On June 25, 1975 Microsoft becomes private corporation. At that time Bill Gates's mother who quite successfully promoted products of Microsoft to different computer giants acted as the sales manager.

See Also


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