page_title: History of Microsoft
section_title: 1985–1994: Windows and Office
hierarchical_section_title: History of Microsoft / 1985–1994: Windows and Office
caption_attribution_description: English: Microsoft sign at the entrance of Microsoft Dubai office.
context_page_description: Microsoft is a multinational computer technology corporation. Microsoft was founded on April 4, 1975, by Bill Gates and Paul Allen in Albuquerque, New Mexico. Its current best-selling products are the Microsoft Windows operating system; Microsoft Office, a suite of productivity software; Xbox, a line of entertainment of games, music, and video; Bing, a line of search engines; and Microsoft Azure, a cloud services platform.
  In 1980, Microsoft formed a partnership with IBM to bundle Microsoft's operating system with IBM computers; with that deal, IBM paid Microsoft a royalty for every sale. In 1985, IBM requested Microsoft to develop a new operating system for their computers called OS/2. Microsoft produced that operating system, but also continued to sell their own alternative, which proved to be in direct competition with OS/2. Microsoft Windows eventually overshadowed OS/2 in terms of sales. When Microsoft launched several versions of Microsoft Windows in the 1990s, they had captured over 90% market share of the world's personal computers.
  As of June 30, 2015, Microsoft has a global annual revenue of US$86.83 Billion and 128,076 employees worldwide.
context_section_description: Ireland became home to one of Microsoft's international production facilities in 1985, and on November 20 Microsoft released its first retail version of Microsoft Windows (Windows 1.0), originally a graphical extension for its MS-DOS operating system. In August, Microsoft and IBM partnered in the development of a different operating system called OS/2. OS/2 was marketed in connection with a new hardware design proprietary to IBM, the PS/2. On February 16, 1986, Microsoft relocated their headquarters to a corporate office campus in Redmond, Washington. Around one month later, on March 13, the company went public with an IPO, raising US$61 million at US$21.00 per share. By the end of the trading day, the price had risen to US$28.00. In 1987, Microsoft eventually released their first version of OS/2 to OEMs. By then the company was the world's largest producer of software for personal computers—ahead of former leader Lotus Development—and published the three most-popular Macintosh business applications. That year the company purchased Forethought, the developer of PowerPoint and Microsoft's first major software acquisition on the 30th July 1987.
  Meanwhile, Microsoft began introducing its most prominent office products. Microsoft Works, an integrated office program which combined features typically found in a word processor, spreadsheet, database and other office applications, saw its first release as an application for the Apple Macintosh towards the end of 1986. Microsoft Works would later be sold with other Microsoft products including Microsoft Word and Microsoft Bookshelf, a reference collection introduced in 1987 that was the company's first CD-ROM product. Later, on August 8, 1989, Microsoft introduced its most successful office product, Microsoft Office. Unlike the model of Microsoft Works, Microsoft Office was a bundle of separate office productivity applications, such as Microsoft Word, Microsoft Excel and so forth. While Microsoft Word and Microsoft Office were mostly developed internally, Microsoft also continued its trend of rebranding products from other companies, such as Microsoft SQL Server on January 13, 1988, a relational database management system for companies that was based on technology licensed from Sybase.
  On May 22, 1990, Microsoft launched Windows 3.0. The new version of Microsoft's operating system boasted new features such as streamlined graphic user interface GUI and improved protected mode ability for the Intel 386 processor; it sold over 100,000 copies in two weeks. Windows at the time generated more revenue for Microsoft than OS/2, and the company decided to move more resources from OS/2 to Windows. In an internal memo to Microsoft employees on May 16, 1991, Bill Gates announced that the OS/2 partnership was over, and that Microsoft would henceforth focus its platform efforts on Windows and the Windows NT kernel. Some people, especially developers who had ignored Windows and committed most of their resources to OS/2, were taken by surprise, and accused Microsoft of deception. This changeover from OS/2 was frequently referred to in the industry as "the head-fake". In the recent years, the popularity of OS/2 declined, and Windows quickly became the favored PC platform. 1991 also marked the founding of Microsoft Research, an organization in Microsoft for researching computer science subjects, and Microsoft Visual Basic, a popular development product for companies and individuals.
  During the transition from MS-DOS to Windows, the success of Microsoft's product Microsoft Office allowed the company to gain ground on application-software competitors, such as WordPerfect and Lotus 1-2-3. Novell, an owner of WordPerfect for a time, alleged that Microsoft used its inside knowledge of the DOS and Windows kernels and of undocumented Application Programming Interface features to make Office perform better than its competitors. Eventually, Microsoft Office became the dominant business suite, with a market share far exceeding that of its competitors. In March 1992, Microsoft released Windows 3.1 along with 
caption: The Microsoft sign at the entrance of the Dubai Microsoft campus, Dubai Internet City. Microsoft has developed Arabic versions for most of its products.
exif: {"Image ImageDescription": "", "Image Make": "SONY", "Image Model": "DSC-P43", "Image XResolution": "72", "Image YResolution": "72", "Image ResolutionUnit": "Pixels/Inch", "Image DateTime": "2006:05:10 12:29:24", "Image YCbCrPositioning": "Co-sited", "Image ExifOffset": "328", "Image CustomRendered": "Normal", "Image ExposureMode": "Auto Exposure", "Image WhiteBalance": "Auto", "Image SceneCaptureType": "Standard", "Image Contrast": "Normal", "Image Saturation": "Normal", "Image Sharpness": "Normal", "Image PrintIM": "[80, 114, 105, 110, 116, 73, 77, 0, 48, 50, 53, 48, 0, 0, 2, 0, 2, 0, 1, 0, 0, 0, 1, 1, 0, 0, 0, 0]", "Thumbnail Compression": "JPEG (old-style)", "Thumbnail Make": "SONY", "Thumbnail Model": "DSC-P43", "Thumbnail Orientation": "Horizontal (normal)", "Thumbnail XResolution": "72", "Thumbnail YResolution": "72", "Thumbnail ResolutionUnit": "Pixels/Inch", "Thumbnail DateTime": "2006:05:10 12:29:24", "Thumbnail JPEGInterchangeFormat": "2428", "Thumbnail JPEGInterchangeFormatLength": "9204", "EXIF ExposureTime": "1/800", "EXIF FNumber": "28/5", "EXIF ExposureProgram": "Program Normal", "EXIF ISOSpeedRatings": "100", "EXIF ExifVersion": "0220", "EXIF DateTimeOriginal": "2006:05:10 12:29:24", "EXIF DateTimeDigitized": "2006:05:10 12:29:24", "EXIF ComponentsConfiguration": "YCbCr", "EXIF CompressedBitsPerPixel": "8", "EXIF ExposureBiasValue": "0", "EXIF MaxApertureValue": "47/16", "EXIF MeteringMode": "Pattern", "EXIF LightSource": "Unknown", "EXIF Flash": "Flash fired, compulsory flash mode, return light not detected", "EXIF FocalLength": "5", "EXIF FlashPixVersion": "0100", "EXIF ColorSpace": "sRGB", "EXIF ExifImageWidth": "960", "EXIF ExifImageLength": "1280", "EXIF FileSource": "Digital Camera", "EXIF SceneType": "Directly Photographed"}