MICROSOFT

Microsoft Corporation, leading developer of personal-computer software systems and

applications. The company also publishes books and multimedia titles, offers e-mail services,
and sells electronic game systems, computer peripherals (input/output devices), and
portable media players. It has sales offices throughout the world. In addition to its main
research and development centre at its corporate headquarters in Redmond, Washington,
U.S., Microsoft has opened research labs in Cambridge, England (1997); Beijing, China
(1998); Aachen, Germany (2003); Sadashivnagar, Bangalore, India (2005); Cairo, Egypt
(2006); Cambridge, Massachusetts (2008); Herzliyya, Israel (2011); and New York, New York
(2012).

Brief History
The history of Microsoft began on April 4, 1975, when it was founded by Bill Gates and Paul
Allen in Albuquerque, New Mexico. When they were trying to figure out how to piece
together systems from parts found in electronics shops, MITS (Micro Instrumentation and
Telemetry Systems) of Albuquerque, New Mexico, announced the MITS Altair 8800 on the
cover of the 1st January 1975 issue of Popular Electronics. The MITS Altair inspired a new
generation of technology enthusiasts, including Bill Gates and Paul Allen, who were among
the first of these early hobbyists to realize that the key to the future of personal computing
lay in the unlimited potential of software.
Using the Altair's published specifications, Gates and Allen created a simulator on a DEC
PDP-10 computer that allowed it to emulate the MITS machine. Working day and night, they
created the first version of MICROSOFT BASIC for the Altair. They deliver it to MITS president
Ed Roberts in Albuquerque. This is the first computer language program written for a
personal computer.
On January 3, Paul Allen joins MITS (Micro Instrumentation and Telemetry Systems) as
Director of Software, and Gates follows him later that year to form an informal partnership
called Micro-soft, complete with hyphen.

MISSION and VISION

MISSION
Our mission is to enable people and organizations throughout the world to do more and
achieve more by creating technology that transforms the way people learn, work, play, and
communicate.
VISION
A computer in every desk, and in every home.

November 26,1976 - The trade name "Microsoft" is registered with the Office of the
Secretary of the State of New Mexico.

The picture shows:

Starting from the top, left: Steve Wood, Bob
Wallace & Jim Lane
Next row: Bob O'Rear, Bob Greenburg, Marc
McDonald & Gordon Letwin
Next row: Bill Gates, Andrea Lewis, Marla Wood &
Paul Allen

Bill Gates became president and Paul Allen vice president of Microsoft Corp.

November 1, 1978 - Microsoft establishes its first international sales office in Japan.
Organizing the new operation is Kazuhiko Nishi.
January 1, 1979 - Gates and Allen announce plans to return home and set up offices in
Bellevue, Washington, becoming the first microcomputer software company in the
Northwest.
June 18 1979 - Microsoft announces Microsoft BASIC for the 8086 16-bit microprocessor.
This first release of a resident high-level language for use on 16-bit machines marks the
beginning of widespread use of these processors.
November 29, 1979 - Microsoft expands its service to the European market with the
addition of a new representative, Vector Microsoft, of Belgium.
April 2, 1980 - Microsoft SoftCard - one of the company's
first hardware products. SoftCard was an enormous success
in early-day computer terms, and Microsoft sold more than
100,000 units between 1977 and 1982.
June 11, 1980 - Microsoft hires Steve Ballmer. He will be responsible for establishing
policies and procedures in the financial, organizational, and resource allocation areas.
June 25, 1981 - Microsoft reorganizes into a privately held corporation with Bill Gates as
President and Chairman of the Board, and Paul Allen as Executive Vice President. Microsoft
becomes Microsoft, Inc., an incorporated business in the State of Washington.
August 12, 1981 - IBM introduces its Personal Computer, which uses Microsoft's 16-bit
operating system, MS-DOS 1.0, plus Microsoft BASIC, and other Microsoft products.
1982 - Microsoft announces a new corporate logo, new
packaging, and a comprehensive set of retail dealer support
materials. The logo design is the name, Microsoft, with a distinctive
letter "o" filled with horizontal lines.
James Towne, was appointed president and chief operating officer of Microsoft (July 6 1982 -June 20 1983). In July, Towne took over all operating responsibilities from Bill Gates.
1983 - Microsoft Word for MS-DOS 1.00 was developed.
Microsoft unveils Microsoft Windows, an extension of the MS-DOS operating system that
provides a graphical operating environment.
Microsoft introduces the Microsoft Mouse, a low-cost, hand-held pointing device for use with
the IBM PC, as well as, any MS-DOS-based personal computer.

1985 - Microsoft celebrates its 10th anniversary with sales figures for the
fiscal year of 1985 of $140 million. The company has 900 employees and
a diverse product line including industry standards like operating systems,
languages, business software, and hardware.
Microsoft announces the retail shipment of Microsoft Windows, an
operating system, which extends the features of the DOS operating system.
February 26, 1986 - Microsoft moves to its new
building corporate campus Buildings 1 through 4,
Redmond, Washington.

fourin

The company introduced Microsoft Works, which integrated word processing, spreadsheet,
database, communications, and drawing functions into a single program.
1987 - Microsoft announces Microsoft Operating System/2 (MS OS/2) a new personal
computer operating system. This is the first product to be announced as a result of the Joint
Development Agreement between IBM and Microsoft announced in August, 1985.
Microsoft announces Microsoft Windows 2.0, offering compatibility with existing Windows
applications and a new visual appearance compatible with Microsoft OS/2 Presentation
Manager. In addition to the new visual appearance, it uses a system of overlapping windows,
rather than tiled windows. Windows 2.0 also includes significant performance enhancements
and improved support for expanded memory hardware.
Microsoft announces Microsoft Excel for Windows.
1988 - Microsoft becomes the top software vendor.
1989 - The first edition of Microsoft Office is released, on both standard disks and CD-ROM,
and IBM and Microsoft expand partnership.
July 25, 1990 - Kicking off its 15th anniversary celebration, Microsoft, with revenues of
$1.18 billion, becomes the first personal computer software company to exceed $1 billion in
sales in a single year.
June 23, 1992 - President George Bush awards Bill Gates the
National
Medal of Technology for Technological Achievement,
at a White
House Rose Garden ceremony. The President recognizes
Gates "for his early
vision of universal computing at home and in
the office; for his technical and
business management skills in
creating a worldwide technology company; and for
his contribution to
the development of the personal computing industry."
March 22, 1993 - Microsoft announces the availability of Microsoft Encarta, the first
multimedia encyclopedia designed for a computer.
June 28, 1994 - Microsoft completes the acquisition of SOFTIMAGE Inc., the leading
developer of high-performance 2-D and 3-D computer animation and visualization software.
August 24, 1995 Microsoft announces the availability of Microsoft
Windows 95.
Microsoft Internet Explorer takes full advantage of the advancement in
Windows 95
to offer users easy access to the Internet and high
performance.

Internet Explorer 4.0 The ultimate internet solution. Internet Explorer is

designed to take advantage of the latest Internet technologies available in
1990s.

1998 - Microsoft launches Windows 98 worldwide. Steve Ballmer, is

appointed president of Microsoft to broaden the leadership of the company and better
position the company to take advantage of future growth opportunities.
June 7, 1999 - Steve Ballmer officially launches Microsoft Office 2000, a key element of the
company's vision of "Knowledge Workers Without Limits."
2000 Microsoft launches Windows 2000 and announces the availability of Microsoft
Windows Millennium Edition (Windows Me).
2001 Microsoft Windows XP is released worldwide.
Microsoft Xbox launches, offering the only system on the market designed from the ground
up to deliver a complete online gaming experience.
2002 Microsoft and partners launch Tablet PC.
2003 - Windows Server 2003 launches. It is the largest software development project in
Microsoft history to date.
Microsoft announces Windows Mobile, a new global brand for Microsoft software for mobile
devices such as Pocket PCs and smart phones.
2006 - The next version of Windows WINDOWS VISTA released in January 2007.
Bill Gates retired from his role as Chief Software Architect on June 27, 2008.
On February 12, 2009, Microsoft opened the first retail chain of Microsoft-branded retail
stores in Scottsdale, Arizona. The same day the first store opened Windows 7 was officially
released to the public.
MICROSOFT SEGMENTS:

Advanced Technology
Applications and Services Engineering Group
Cloud and Enterprise Engineering Group
Devices Group
Dynamics
Operating Systems Engineering Group
Technology and Research
Business Development and Evangelism Group
Finance Group
HR Group
Legal and Corporate Affairs Group
Marketing Group

Products of Microsoft

Platforms & Services

Windows Azure
Bing
Windows 8
Windows 7
Windows XP
Windows Vista
Windows Server
SQL Server
Visual Studio
Premier Product Support
Services
Developer Tools
Training, Certification and
Press
Professional Product
Support
Microsoft Consulting
Services
Windows Live Portal
MSN Network
MSN Subscriptions
Hotmail
MSN Messenger

Business Division

MS Office, MS Project, MS Visio

SharePoint
LiveMeeting and OneNote
Dynamics GP, Dynamics NAV,
Dynamics CRM, Dynamics SL,
Dynamics AX, Dynamics
Marketplace
Enterprise Reporting
Small Business Manager
Small Business Accounting
Microsoft Business Network
Retail Management
Microsoft Partner Program
Office Communicator
Office Live Meeting
Office Communications Server
Microsoft Exchange Server
Office RoundTable
Office Communicator Mobile
Office Communicator Web
Access
Office 365

Entertainment
&
Devices
Xbox 360
Xbox
Xbox Live!
IPTV Platform
PC and Online
Games
Consumer
Hardware and
Software
Windows Mobile
Windows
Embedded Device
OS
Windows
Automotive

Microsoft Windows
It is a series of graphical interface operating systems developed, marketed and sold by
Microsoft. Microsoft introduced an operating environment named Window on November 20,
1985 as an add-on to MS-DOS in response to the growing interest in graphical user
interfaces (GUIs). Microsoft Windows came to dominate the worlds personal computer
market with over 90% market share, overtaking Mac OS, which had been introduced in
1984. (Windows 1.0, Windows 2.0, Windows 3.0, Windows NT, Windows 95, Windows 98,
Windows ME, Windows 2000, Windows XP, Windows Vista, Windows 7, Windows 8 and 8.1,
and son to be release Windows 10.)

SWOT ANALYSIS
Strengths:
1. Flexible workforce.
2. Multinational corporation operating through regional subsidiaries to minimize cultural
differences in more than 60 countries.
3. Software products have high name recognition.
4. Revenues and profits rising at 30% a year.
Weaknesses:

1. Microsoft leadership failed to correctly anticipate the growth or popularity of the

Internet.
2. Not a key player in the Internet space, wireless market and few products for Internet
applications.
3. Falling sales in the operating systems and server software sectors.
4. Dependency on hardware manufacturers to pre-install Microsofts PC operating
system.
Opportunities:
1. Cheaper global telecommunication costs open new markets as people connect to the
Internet.
2. The demand for personal computers in American and global markets remains strong
despite the growth and increasing popularity of personal handheld services.
Threats:
1. Currency exchange rate affect demand for application/operation software and
hardware.
2. Hardware manufacturers are issuing their own pre-bundled programs on their own
hardware.
3. Rapid development of mobile devices.

Strategies
Product Strategies
Gear product functionality and capabilities
toward Server Message Block customers,
delivering of ease of use versus enterpriselevel functionality
Counter open source threats with selective
participation and risk mitigation
Expand target markets by investing in
consumer and enterprise products
Provide well-received platforms to support
partner customization and development

Services Strategies
Enable and facilitate partner delivery of
services and solutions to end-customers
Participate and cooperate in partner
engagements as a product expert
Increase annuity service agreements to
provide revenue stability.
Deliver services to enterprise end-users,
for-going a direct relationship with Microsoft
Deliver the education and training needed
to foster the Microsoft ecosystem

Operating System Market Share (June 2015)

Game Console Market Share

Worldwide Smarthphone OS Market Share (Share in Unit Shipments)

FINANCIAL HIGHLIGHTS

(In millions, except per share data)

2014 (a)

Year Ended June 30,

2013

2012

2011

2010

Revenue
$ 86,833

$ 77,849

73,723

69,943

$ 62,484

$ 27,759

$ 26,764 (c)

21,763 (d)

27,161

$ 24,098

$ 22,074 (b)

$ 21,863 (c)

16,978 (d)

23,150

$ 18,760

2.63 (b)

2.58 (c)

2.00 (d)

2.69

2.10

1.12

0.92

0.80

0.64

0.52

$ 85,709

$ 77,022

63,040

52,772

$ 36,788

$ 172,384

$ 142,431

$ 121,271

$ 108,704

$ 86,113

$ 36,975

$ 26,070

22,220

22,847

$ 13,791

$ 89,784

$ 78,944

66,363

57,083

$ 46,175

Operating income

Net income

Diluted earnings per share

Cash dividends declared per share

Cash, cash equivalents, and short-term

investments
Total assets

Long-term obligations

Stockholders equity

INCOME STATEMENT

(In millions, except per share amounts)

Year Ended June 30,

2014

2013

2012

(In millions, except per share amounts)

Revenue
$

86,833

$ 77,849

$
3

73,72

26,934

20,249

17,530

59,899

57,600

56,193

11,381

10,411

9,811

15,811

15,276

13,857

4,821

5,149

4,569

6,193

127

27,759

26,764

21,763

61

288

504

27,820

27,052

22,267

5,746

5,189

5,289

22,074

$ 21,863

$ 16,978

Cost of revenue

Gross margin

Research and development

Sales and marketing

General and administrative

Goodwill impairment

Integration and restructuring

Operating income

Other income, net

Income before income taxes

Provision for income taxes

Net income
$

(In millions, except per share amounts)

Earnings per share:

Basic
$

2.66

2.61

2.02

2.63

2.58

2.00

Diluted

Weighted average shares outstanding:

Basic
8,299

8,375

8,396

8,399

8,470

8,506

Diluted

Cash dividends declared per common share

$

1.12

0.92

0.80

BALANCE SHEET

(In millions)

June 30,

2014

2013

Assets
Current assets:
Cash and cash equivalents
$

8,669

3,804

Short-term investments (including securities loaned of $541 and $579)

77,040

73,218

85,709

77,022

Total cash, cash equivalents, and short-term investments

(In millions)

Accounts receivable, net of allowance for doubtful accounts of $301 and $336
19,544

17,486

2,660

1,938

1,941

1,632

4,392

3,388

114,246

101,466

13,011

9,991

14,597

10,844

20,127

14,655

6,981

3,083

3,422

2,392

Inventories

Deferred income taxes

Other

Total current assets

Property and equipment, net of accumulated depreciation of $14,793 and $12,513

Equity and other investments

Goodwill

Intangible assets, net

Other long-term assets

Total assets
$ 172,384

$
1

142,43

4,828

Liabilities and stockholders equity

Current liabilities:
Accounts payable
7,432

Short-term debt
2,000

(In millions)

Current portion of long-term debt

0

2,999

4,797

4,117

782

592

23,150

20,639

558

645

6,906

3,597

45,625

37,417

20,645

12,601

2,008

1,760

2,728

1,709

11,594

10,000

82,600

63,487

68,366

67,306

Accrued compensation

Income taxes

Short-term unearned revenue

Securities lending payable

Other

Total current liabilities

Long-term debt

Long-term unearned revenue

Deferred income taxes

Other long-term liabilities

Total liabilities

Commitments and contingencies

Stockholders equity:
Common stock and paid-in capital shares authorized 24,000; outstanding 8,239 and
8,328

(In millions)

Retained earnings
17,710

9,895

3,708

1,743

89,784

78,944

$ 172,384

$ 142,431

Accumulated other comprehensive income

Total stockholders equity

Total liabilities and stockholders equity