Adapted by:
Javier Pastor
Senior WriterComputer scientist turned tech journalist. I've written about almost everything related to technology, but I specialize in hardware, operating systems and cryptocurrencies. I like writing about tech so much that I do it both for Xataka and Incognitosis, my personal blog.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
50 years ago, two young men named Bill Gates and Paul Allen founded what has become the largest software empire in history. On April 4, 1975, Micro-Soft was born. Allen coined the name, although some years later, he couldn’t recall why he chose to include a hyphen and a capital letter.
This is just one among many anecdotes that are now part of the history of a company that has managed to stay relevant and at the forefront for half a century. Few in the tech world can boast this longevity. How did Microsoft achieve this?
By continually reinventing itself.
Microsoft has consistently risen from its setbacks, and there have been many and very significant ones.
In the beginning, like many major companies, Microsoft was beloved long before it faced intense criticism. Gates and Allen were in the right place at the right time, but they also knew how to seize their opportunities. One pivotal moment came in 1980 when they struck a deal with IBM to provide the operating system for IBM’s PCs.
History tends to repeat itself, and this is precisely what happened with the operating system that eventually became known as MS-DOS. Bill Gates and Paul Allen didn’t develop it from scratch. Instead, they purchased the original software, QDOS/86-DOS, from computer programmer Tim Paterson for $50,000. Then, they modified it for use on IBM PCs.
Apple followed a similar path with NEXTSTEP, which was based on FreeBSD. It acquired NeXT and eventually transformed that operating system into Mac OS X. Years later, Google purchased a small startup called Android Inc. to leverage a mobile operating system it had developed. Again, history ended up repeating itself.
The agreement with IBM was a crucial turning point for Microsoft, especially due to its terms. Microsoft received $430,000 for the product, which was far less than IBM had expected. However, Microsoft retained the rights to sell its operating system to other companies.
From that moment on, Microsoft soared, largely due to the relentless drive of Gates. With a mix of achievements and challenges, Gates and his company pursued an ambitious goal: putting a computer in every home.
It didn’t matter if others approached things differently or more effectively. Microsoft always managed to prevail. This was evident with MS-DOS, and it continued with the complex line of Windows operating systems and the Office suite. Microsoft Office now epitomizes the desire to transform everything into a cloud service (even if it shouldn’t).
For 25 years, Microsoft was unbeatable, but then the challenges began to surface. First came the Internet, browsers, search engines, and social media platforms. Then, the smartphone emerged. Microsoft lost these battles, consistently arriving late and making missteps. The company ultimately fell victim to the innovator’s dilemma, where David triumphs over Goliath.
However, here’s the remarkable part: Microsoft stumbled and lost those wars but managed to recover and reinvent itself. Even in battles it had won, like the browser war with Internet Explorer, it eventually faced defeat. However, this was inconsequential in the grand scheme of things.
Microsoft’s true strength shone through in its resilience. Despite public disdain, the company refused to give up, repeatedly trying again and again. It struggled with Bing in the search engine market, and spent $26.2 billion to compete in the social media field. It also faced significant setbacks with Windows Phone.
Still, these failures didn’t deter the company. In response to its setbacks, Microsoft found new successes, marking a definitive reinvention. Under the leadership of CEO Satya Nadella, Microsoft transformed its image and strategy.
From being widely disliked and nearly overlooked, Microsoft reemerged as a relevant and even beloved entity. While it made modest inroads in the mobile sector, it achieved remarkable success in the cloud arena. Azure stands today as a key competitor alongside AWS.
As the computing landscape evolved, both small failures and significant successes emerged. Notably, there were some iconic products along the way.
These include the Xbox, a cornerstone of a bold yet challenging venture into the video game market. The Surface devices have been a great success. Meanwhile, the HoloLens didn’t achieve commercial viability, but it demonstrated the company’s unwavering commitment to innovation.
Microsoft is currently attempting to seize what might be the most crucial opportunity in history: the field of AI. Its response has been swifter and more ambitious than in previous endeavors. However, uncertainties about the outcome of this gamble remain substantial.
Regardless of what happens, it likely won’t matter in the long run. Microsoft will continue to do what it has always done: reinvent itself.
Happy 50th birthday, Microsoft!
Image | Demure Storyteller
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