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Frédéric Fréry, Professeur de stratégie, CentraleSupélec, ESCP Business School

From IBM to OpenAI: 50 years of winning (and failed) strategies at Microsoft

Paul Allen (L) and Bill Gates in 1970 at Lakeside School in Seattle, Washington state, US. Microsoft was created five years later. Author unknown/Wikimedia

Microsoft celebrates its 50th anniversary. This article was written using Microsoft Word on a computer running Microsoft Windows. It is likely to be published on platforms hosted by Microsoft Azure, including LinkedIn, a Microsoft subsidiary with over one billion users. In 2024, the company generated a net profit of $88 billion from sales worth $245 billion. Its stock market value is close to $3,000 billion, making it the world’s second-most valuable company behind Apple and almost on a par with NVidia. Cumulative profits since 2002 are approaching $640 billion.

And yet, 50 years ago, Microsoft was just a tiny computer company founded in Albuquerque, New Mexico by two former Harvard students, Bill Gates and Paul Allen, aged 19 and 22. The twists and turns that enabled it to become one of the most powerful companies in the world are manifold, and can be divided into four distinct eras.

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