The birth of Microsoft
Microsoft was founded on April 4th, 1975 in Albuquerque, New Mexico by two childhood friends with an interest in computers — Washington State University dropout Paul Allen (left) and Harvard dropout Bill Gates (right
Finding a place to work
This inauspicious building was Microsoft's first headquarters in Albuquerque. They stayed here from 1975 to 1979, when they then moved to Bellevue, Washington, as they had too much trouble finding employees willing to move to New Mexico.
The actual first computer built by the duo that would become Microsoft
Fun fact: Microsoft wasn't actually their first company. The original Gates/Allen collaboration was Traf-O-Data in 1972, a computer to read information from city traffic counters and feed it to traffic engineers. It was only moderately successful, but it paved the way for Microsoft.
Microsoft's first product
Microsoft's first product ever was a version of the programming language BASIC for the Altair 8800 "microcomputer," released in 1975 — one of the earliest versions of what we now know as the personal computer, or the PC. Allen and Gates got the idea after reading about the machine in Popular Mechanics magazine.
The story behind the classic Bill Gates mugshot
Microsoft continued in the BASIC market for a while, growing slowly but steadily. It was during this time, circa 1977, that Bill Gates got pulled over for a traffic violation, resulting in this classic mugshot.
The company grows
By 1978, Microsoft was an eleven-person company. This picture often gets passed around with the caption "Would you have invested?" Because, well, look at them.
MS-DOS
In 1980, not long after Microsoft moved to Washington, IBM needed someone to make an operating system for its forthcoming IBM PC. Microsoft stepped in with the text-based MS-DOS, or the Microsoft Disk Operating System — which, funnily enough, it didn't develop itself, instead buying the license to the technology from a computer manufacturer called Seattle Computer Works. The IBM PC would go on to rule the market, and Microsoft made the operating system for it.
Ballmer joins the team
Something else happened in 1980: Bill Gates hired a former Harvard classmate named Steve Ballmer. This will be important later. Allen, for his part, left Microsoft in 1983 after developing Hodgkin's disease.
The IPO
This is also around when Microsoft started to get seriously noticed by the world (and the media). In 1986, Microsoft went public with an IPO that made Bill Gates, at least, $350 million dollars.
Windows 1.0
In 1985, not long before the IPO, Microsoft Windows 1.0 was released. It was originally intended as a graphical interface for the text-based MS-DOS to make it easier for people to use.
The first billion in annual sales
Windows 2.0, released in 1987, was a relatively minor update. But the best was yet to come: Windows 3.0 would be the operating system that would make Microsoft a household name. In 1990, Microsoft became the first software company to do $1 billion in annual sales.
Minesweeper and Solitaire
1990's much-gussied-up Windows 3.0, followed by 1992's Windows 3.1, was a massive hit, selling two million copies in the first two years. Windows 3.0 was also the first appearance of Windows classic games like Minesweeper and Solitaire.
Microsoft Office hits the market
But Windows 3.0 wasn't the only Microsoft product launch of 1990: The first version of Microsoft Office came out around the same time, marking the first time the world was introduced to Word, PowerPoint, and Excel — kicking off a dynasty that's run continuously for the last 26 years.
The golden years and the Gates/Jobs rivalry
At this point, Microsoft was the de facto king of personal computers. IBM set the standard for PC compatibility, and Microsoft Windows ran on all of them. The only competition was with Apple, whose Macintosh line of computers had a comparatively small but loyal fanbase. While they'd become friends later down the road, Gates and Apple's Steve Jobs were bitter business rivals.
Windows 95
Windows 95 was a tremendous overhaul to the operating system, and had a ton of hype leading up to its August 24, 1995 release. People even threw barbecues and parties to commemorate the launch (seriously). The commercials features the Rolling Stones' "Start Me Up" to highlight the new operating system's then-revolutionary Start button.
The 'Internet Tidal Wave'
Gates had identified the Internet as a coming source of much change in the market in his famous "Internet Tidal Wave" memo to staff, and saw Windows 95 as a grand entrance to the market. It included a trial of The Microsoft Network, an Internet service and competitor to AOL. The Internet Explorer web browser would come later, in a Windows 95 update.
Legal woes
Those Internet initiatives got Microsoft into some hot water — in 1998, the United States Department of Justice filed an antitrust suit saying that by packaging a web browser and Internet Service Provider in with Windows 95, it was risking becoming a monopoly. Ultimately, Microsoft was required to share some of its code with third-party developers, and submit itself to scrutiny, but there were little other long-term consequences.
Ballmer becomes President of Microsoft
In 1998, two things happened: Microsoft released Windows 98, a small update to the operating system that added more Internet-enabled features. And Steve Ballmer, Gates' old classmate, was appointed President of Microsoft.
MSNBC and the shrinking of Windows
The late '90s saw Microsoft expand in a lot of different directions. In 1996, Microsoft and NBC launched MSNBC, a joint news venture that's still with us today. It also released Windows CE, a version of the operating system meant for personal digital assistants and other tiny computers — more than a decade before the iPhone.