Microsoft History

Background The beginning of Microsoft Inc. started with Bill Gates and Paul Allen writing computer program code for local businesses and municipalities. In 1975 they were inspired by an issue of Popular Electronics that showed the new Altair microcomputer kit, manufactured by MITS Computer. Bill Gates and Paul Allen wrote a version of BASIC, a computer programming language, for the machine.

Later that year Bill Gates left Harvard University to work full time developing programming languages for the Altair, and he and Paul Allen relocated to Albuquerque, New Mexico, to be near MITS Computer, where Paul Allen took a position as director of software development. Bill Gates and Paul Allen named their partnership Micro-soft (Microsoft Company History, 2008). Microsoft’s big break came in 1980 as IBM began developing its Personal Computer, or PC. While IBM contracted Microsoft to develop languages for the PC, Microsoft was not their first choice.

Instead IBM’s first choice to provide an operating system was a company called, Digital Research, a leader in the field at the time (Microsoft Company History, 2008). However, IBM and Digital Research were unable to agree on terms, so the contract for the operating system was awarded to Microsoft (Microsoft Company History, 2008). In 1981 the company was incorporated as Microsoft, Inc. , with Bill Gates as president and chairman and Paul Allen as executive vice-president.

The company ended their first year with 128 employees and revenues of $16 million (Microsoft Company History, 2008). Trends Every January the Consumer Electronic Show (CES) takes place and everyone is waiting to see what Microsoft has been developing. Microsoft’s presentation was somewhat calm compared to previous years. This year they are focusing on integrating the Xbox 360, Windows Mobile and Windows Vista into a fully integrated streamlined system (Thomas, Brett, 2008).

The big news of the day at the CES included NBC and Disney bringing their TV shows to the Xbox Live Marketplace, which brings the network up to having more than doubled the on-demand content of any cable or satellite provider worldwide (Thomas, Brett, 2008). Apple is one of Microsoft’s biggest competitors and in mid-January they started getting into the movie business. Apple will rent movies from Fox at its iTunes digital media store. Microsoft is already offering online video rentals. But Apple has a user base of more than 100 million people worldwide who own iPods (Regan, Tom, 2008).

Another future trend Bill Gates touched on was Microsoft Sync, the joint effort with Fiat in Europe and Ford in the USA to create a streamlined voice activation system for your personal devices in a car (MP3, mobile phone, GPS, etc. ) (Thomas, Brett, 2008). Training Microsoft is dedicated to helping its employees do their best, both now and in the future. Microsoft’s goals are to grow the skills that make leaders more effective in their current roles, while at the same time preparing them for upcoming challenges. Achieving these goals requires an educator’s specialized training in effective learning techniques (Microsoft. om, 2008). It also takes the ability to recognize areas in which tech-industry professionals need to develop, and often involves identifying the leadership techniques and business knowledge that will benefit Microsoft personnel, plus the creation of training tools including classroom seminars and training materials that help employees learn. The goal of Training and Development at Microsoft is to achieve an optimal match between each employee’s professional growth and Microsoft’s business objectives (Microsoft. com, 2008).

You can benefit from having a career or professional development plan, whether you are at the beginning of your career, looking to make some changes in your present position, or even if you already have your dream job and want to enrich your skills and knowledge. As a Microsoft employee, you will find an abundance of resources and assessment tools to help you clarify your business interests and improve your competencies and skills. They encourage professional development by reimbursing tuition and textbook fees for approved work-related courses (Microsoft. om, 2008). Financial INCOME STATEMENTS (In millions, except per share amounts) Year Ended June 302007 2006 2005 Revenue$51,122 $44,282 $39,788 Operating expenses: Cost of revenue10,693 7,650 6,031 Research and development7,121 6,584 6,097 Sales and marketing11,455 9,818 8,563 General and administrative3,329 3,758 4,536 Total operating expenses32,598 27,810 25,227 Operating income18,524 16,472 14,561 Investment income and other1,577 1,790 2,067 Income before income taxes20,101 18,262 16,628 Provision for income taxes6,036 5,663 4,374

Net income$14,065 $12,599 $12,254 Earnings per share: Basic$001. 44 $001. 21 $001. 13 Diluted$001. 42 $001. 20 $001. 12 Weighted average shares outstanding: Basic9,742 10,438 10,839 Diluted9,886 10,531 10,906 Cash dividends declared per common share$000. 40 $000. 35 $003. 40 Attached is an Income Statement from 2005 to 2007 (Microsoft Corporation Annual Report, 2008). As you can see, revenues and net income have continued to increase over the years. Earnings per share have increased as well. This shows that Microsoft is in a good financial standing.

This means they are able to pay their shareholders and increase what they are paying them each year and they do not need to borrow any additional funds because they have large amounts of liquid assets on hand. Benefits Microsoft offers benefits in the following areas: Investment •Savings Plus 401(k) •Employee Stock Purchase Plan •Discounted Financial Services Health Benefits •Preferred Plus Plan •Health Savings Plan •Vision Care •Dental Plan •Life Insurance •Disability Family and Parenting Benefits •Paid Maternity & Parental Leave •Adoption Assistance •Child Care Discounts (Microsoft Careers-Benefits, 2008)

Microsoft offers many benefits in their package. The health benefits are a very important part of this package because it encompasses everything I would need for myself and later down the road, my family. The investment options are just as good. Offering a 401k and an employee stock purchase plan is crucial for saving and investing for the future. Culture Microsoft has an innovative corporate culture and a strong product development focus that is designed to keep them on the leading edge of the industry. They believe that their employees are the company’s most important asset (Human Resources, 2008).

They are the source of their creative ingenuity and success. They empower each staff member to take initiative in solving problems, coming up with new ideas and improving the organization. Microsoft sells software to 180 million people, in 70 countries, speaking 150 languages, they can’t afford to have a singular point of view. Microsoft employs people from many nationalities and backgrounds (Human Resources, 2008). Their employees are their most valued asset, and in recognition of this, Microsoft provides flexible programs, resources and tools to help them create their own kind of balance in life.

In this hectic industry, careers are demanding, but if your work is to be fun and rewarding it must take its place and priority alongside your other life interests (Human Resources, 2008). I contacted a marketing manager at Microsoft named Chris. When I asked him about the people he worked around and with he said, “Microsoft is filled with the smartest people I’ve ever met. It’s amazing to come to work and collectively learn and collaborate and achieve success with this group of incredible people who care so much about making a difference. After researching Microsoft, I believe that Microsoft would be a great company to work for. They employ the smartest and brightest people from all over the world. They are the industry leaders in many aspects including product development and continuing education. They offer a great deal of benefits from medical to dry cleaning delivery at work. Microsoft is definitely a company I would work for and after I graduate I plan on sending my resume to them. References: Microsoft Careers-United States (n. d. ) Retrieved June 09, 2008 from ttps://members. microsoft. com/careers/mslife/benefits/default. mspx Microsoft Company Website (n. d) Retrieved June 09, 2008 from https://microsoft. com Microsoft Corporation—Company History (n. d. ) Retrieved June 09, 2008 from http://www. Microsoft. resesarch/Microsoft/Corporation/Company/History. html Regan, Tom, (2008), Six tech trends to watch for in 08. Retrieved June 17, 2008. http://www. csmonitor/tech. com Thomas, Brett, (2008) CES 08 – Gates Keynote high on fun, low on fact. Retrieved June 09 2008 from http://www. bit-tech. net/ces08.

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