- Dec 22, 2022
- 9 min read

Understanding Microsoft from A-Z: The only post you'll need for interviews.

Microsoft is a technology company that has had a significant impact on the world of computing and technology. This blog is a comprehensive guide to understanding Microsoft for interviews. It covers the company's history, key products and services, vision and mission, financial performance, and criticisms and controversies. Whether you are preparing for an interview at Microsoft or just want to learn more about the company, this blog has all the information you need. Microsoft is a multinational technology company that operates in a variety of industries, including software, hardware, and cloud computing. Some key stats about Microsoft include:

Founded: 1975
Headquarters: Redmond, Washington, USA
Number of employees: Approximately 151,000 (as of 2021)
Total revenue: Over $143 billion (as of 2021)
Net income: Over $51 billion (as of 2021)
Market capitalization: Over $2 trillion (as of 2021)
Popular products: Windows, Office, Azure, LinkedIn, Xbox

History of Microsoft

Microsoft was founded in Albuquerque, New Mexico in 1975 by Bill Gates and Paul Allen. The company's first product was a version of the programming language BASIC, which was designed for the Altair 8800 microcomputer. In the years that followed, Microsoft continued to develop and release software products, including the MS-DOS operating system, which became the standard operating system for IBM-compatible personal computers.

Throughout the 1980s and 1990s, Microsoft continued to dominate the personal computer market with its Windows operating system and Office productivity suite. The company also expanded into other areas, including video game consoles and web services.

In the 2000s, Microsoft faced increased competition from companies like Apple and Google, and the company had to adapt to a changing tech landscape. Despite this, Microsoft has remained a major player in the tech industry and continues to release innovative products and services.

Vision and Mission

Microsoft has a clear vision and mission that guides the company's activities and decisions.

The company's vision is to "empower every person and every organization on the planet to achieve more."

This vision is reflected in the company's focus on creating technology that is accessible and useful for people around the world.

The company's mission is to "enable people and businesses throughout the world to realize their full potential."

This mission is reflected in the company's efforts to develop products and services that help people be more productive and efficient, as well as its efforts to use technology to address global challenges like climate change and economic inequality.

Microsoft Financials:

Microsoft is a publicly traded company, and as such, it releases financial information on a regular basis. Here are some key financial highlights for Microsoft:

Revenue: In the fiscal year 2021 (ended June 30, 2021), Microsoft's revenue was $143.015 billion. This represents an increase of 17% from the previous fiscal year.
Profits: In fiscal year 2021, Microsoft's net income was $58.042 billion. This represents an increase of 19% from the previous fiscal year.
Stock price: As of December 2021, Microsoft's stock price is around $253 per share. The stock has performed well over the past few years, and the company has a market capitalization of over $2 trillion.
Dividends: Microsoft has a dividend policy in place, and the company has consistently paid dividends to shareholders. In fiscal year 2021, the company paid dividends of $1.56 per share.

Microsoft's financial performance has been strong in recent years, and the company has consistently delivered strong revenue and profit growth. The company's diverse product portfolio and strong position in key markets like personal computers and cloud computing have contributed to its financial success.

Microsoft Revenue Breakdown:

Microsoft's revenue is generated from a variety of sources, including the sale of products and services, licensing fees, and more. Here is a breakdown of Microsoft's revenue by business segment in fiscal year 2021 (ended June 30, 2021):

Productivity and Business Processes: This segment includes products like Office, LinkedIn, and Dynamics, as well as cloud-based services like Azure. In fiscal year 2021, this segment generated revenue of $52.269 billion, representing 37% of total revenue.
Intelligent Cloud: This segment includes products and services like Azure, Windows Server, and SQL Server, as well as enterprise services like consulting and support. In fiscal year 2021, this segment generated revenue of $47.065 billion, representing 33% of total revenue.
More Personal Computing: This segment includes products like Windows, Surface, Xbox, and search advertising. In fiscal year 2021, this segment generated revenue of $43.681 billion, representing 30% of total revenue.

Overall, Microsoft has a diverse revenue stream, with products and services in a variety of industries contributing to the company's financial performance. The company's strong position in the productivity, cloud computing, and personal computing markets has been a key driver of its success.

Microsoft Competitors:

Microsoft competes with a number of other companies in the tech industry. Some of Microsoft's main competitors include:

Google: Google is a tech giant that offers a range of products and services, including search, advertising, cloud computing, and more. Google's Android operating system and Chrome browser compete with Microsoft's Windows and Edge products.
Apple: Apple is a technology company that produces popular products like the iPhone, iPad, and Mac computer. Apple's iOS operating system and Safari browser compete with Microsoft's Windows and Edge products.
Amazon: Amazon is a retail and tech company that offers a range of products and services, including e-commerce, cloud computing, and more. Amazon's Amazon Web Services (AWS) cloud computing platform competes with Microsoft's Azure platform.
Salesforce: Salesforce is a customer relationship management (CRM) company that offers a range of products and services for businesses. Salesforce's CRM products compete with Microsoft's Dynamics products.
Oracle: Oracle is a software company that offers a range of products and services, including database management systems, cloud computing, and more. Oracle competes with Microsoft in the database and cloud computing markets.
Adobe: Adobe is a software company that offers a range of products and services for creative professionals, including graphic design, video editing, and more. Adobe's Creative Cloud suite competes with Microsoft's Office and other productivity software.
IBM: IBM is a technology company that offers a range of products and services, including hardware, software, and consulting. IBM competes with Microsoft in the cloud computing, analytics, and artificial intelligence markets.
SAP: SAP is a software company that offers a range of products and services for businesses, including enterprise resource planning (ERP) and customer relationship management (CRM). SAP's ERP and CRM products compete with Microsoft's Dynamics products.

Microsoft faces competition from a variety of companies in different markets and industries. In order to stay competitive, the company must continuously innovate and adapt to changing market conditions.

Microsoft SWOT Analysis:

Strengths:

Strong brand recognition: Microsoft is a well-known and respected brand, which gives the company an advantage in many markets.
Diverse product portfolio: Microsoft offers a wide range of products and services, which allows the company to generate revenue from multiple sources.
Strong financial performance: Microsoft has consistently delivered strong revenue and profit growth, which reflects the company's financial strength.
Leading position in key markets: Microsoft has a strong position in markets like personal computers and cloud computing, which gives the company a competitive advantage.

Weaknesses:

Dependence on certain products: Microsoft's financial performance is heavily reliant on certain products, such as Windows and Office, which makes the company vulnerable to shifts in demand for these products.
Struggles in mobile market: Microsoft has struggled to gain a foothold in the mobile market, as competitors like Apple and Google dominate this space.
Legal issues: Microsoft has faced legal challenges in the past, including antitrust cases and intellectual property disputes, which can be costly and time-consuming to resolve.

Opportunities:

Growth in cloud computing: The demand for cloud computing is expected to continue to grow in the coming years, and Microsoft's Azure platform is well-positioned to take advantage of this trend.
Expansion into new markets: Microsoft has the opportunity to expand into new markets and industries, such as the Internet of Things (IoT), artificial intelligence (AI), and more.
Partnerships and acquisitions: Microsoft can strengthen its position by partnering with other companies or acquiring smaller firms to access new technologies and markets.

Threats:

Competition: Microsoft faces strong competition in many markets, and the company must continuously innovate and adapt to stay competitive.
Changes in technology: The tech industry is constantly evolving, and Microsoft must keep pace with new technologies and shifts in consumer demand.
Economic downturns: Economic downturns can impact Microsoft's financial performance, as businesses and consumers may cut back on technology spending.
Cybersecurity threats: Cybersecurity threats are a growing concern for all tech companies, and Microsoft must invest in security measures to protect its products and customers.

Overall, Microsoft has a number of strengths and opportunities, but the company also faces challenges and threats that it must address in order to maintain its position in the tech industry.

Microsoft Business Model:

Microsoft's business model is based on the development and sale of products and services, as well as licensing and subscription fees. The company generates revenue from a variety of sources, including the sale of software products like Windows and Office, cloud computing services like Azure, and gaming consoles like Xbox.

Microsoft also generates revenue through licensing fees, which are paid by companies that use Microsoft's software products. For example, many businesses and organizations pay a licensing fee to use the Windows operating system or the Office productivity suite.

In addition to selling products and services, Microsoft also generates revenue through subscriptions. For example, the company offers Office 365, which is a subscription-based version of the Office productivity suite that includes cloud-based services like online storage and email.

Overall, Microsoft's business model is based on providing a wide range of products and services that are useful and valuable to businesses and consumers. The company's diverse product portfolio and strong financial performance have contributed to its success.

Areas of Focus:

Here are a few potential areas of focus for Microsoft in the future:

Cloud computing: Cloud computing is a growing market, and Microsoft's Azure platform is a major player in this space. It is likely that the company will continue to invest in and expand its cloud computing offerings in the coming years.
Artificial intelligence: Artificial intelligence (AI) is an emerging technology that has the potential to transform many industries. Microsoft has a strong presence in the AI market, and it is likely that the company will continue to invest in and develop AI products and services.
Internet of Things: The Internet of Things (IoT) refers to the connectivity of everyday devices and objects through the internet. Microsoft has a number of products and services related to the IoT, and it is likely that the company will continue to focus on this area in the future.
Virtual and augmented reality: Virtual and augmented reality (VR and AR) are emerging technologies that have the potential to revolutionize many industries. Microsoft has a presence in this market with products like HoloLens, and it is possible that the company will continue to invest in and develop VR and AR products and services.

Stats:

Here are a few interesting statistics about Microsoft:

Microsoft is one of the largest and most valuable companies in the world. As of December 2021, the company has a market capitalization of over $2 trillion.
Microsoft has a diverse product portfolio, with products and services in a variety of industries, including personal computing, productivity software, cloud computing, gaming, and more.
Microsoft's Windows operating system is the most popular operating system for personal computers, with a market share of around 70%.
Microsoft's Office productivity suite is widely used, with over 1.2 billion users worldwide.
Microsoft's Azure cloud computing platform is a major player in the cloud market, with a significant share of the market.
Microsoft has a strong presence in the gaming industry, with the Xbox console being a popular choice among gamers.
Microsoft has a global reach, with operations in over 100 countries and a diverse workforce of over 150,000 employees.
Microsoft has a strong commitment to sustainability and social responsibility, and the company has set a goal to become carbon negative by 2030.

Conclusion

Microsoft is a technology company with a rich history and a strong focus on innovation and accessibility. The company has developed a wide range of popular products, and its vision and mission are centered on empowering people and businesses to achieve more. As the tech industry continues to evolve, it will be interesting to see how Microsoft adapts and continues to make an impact.