The overview

As more or less everyone in the developed world will know, Microsoft is a US-based software company, which develops and licenses software products for consumers, businesses and public sector organisations. Since 1975, when it was formed by 19-year-old Bill Gates and 21-year-old business partner Paul Allen, it has grown into a global titan with turnover of $62,484m in its 2010 financial year.

Its UK subsidiary, Microsoft Ltd, was established in 1982, and was the company’s top-performing international subsidiary in 2010. It has more than 2,500 staff working at its Reading headquarters and its satellite offices in Manchester, Edinburgh, Guildford and Twycross, Warwickshire. There is also an office in London focused on its web portal business, The Microsoft Network (more commonly known as MSN), and a Microsoft Research facility in Cambridge, which is dedicated to research and development.

Five main businesses

The company is divided into five units:

  • Microsoft Business division: The biggest by volume at 30.6% of overall turnover, this comprises the ubiquitous Microsoft Office, as well as business suites Microsoft Dynamics and Unified Communications.
  • Windows and Windows Live Not far behind the business unit at 28.7% of turnover, this includes the standard and mobile editions of the immensely successful Windows operating system (Windows 7 is the world’s fastest-selling operating system to date). It also includes the Windows Live range of products and services.
  • Server and tools Unsurprisingly, this unit is focused on software server products, such as Microsoft SQL Server, Windows Server and Biz Talk Server.
  • Entertainment and devices Much smaller than (but probably as well-known as) Microsoft Business and Windows, this division is based around the Xbox video games console, as well as its internet community Xbox Live and the Zune digital entertainment device. Other platforms in the unit include Mediaroom, Surface and Windows Automotive.
  • Online services By far the company’s smallest unit at 3.6% of turnover, this is still a key growth area, comprising online advertising and information services like MSN and Bing.

Other products

Among the many other products not mentioned above (but included in one or other of these divisions) are:

  • Developer tools such as Visual Studio, .NET Framework and MSDN Homepage.
  • User experience and design software like Expression and Silverlight.
  • Educational software such as Encarta, Microsoft Money and AutoRoute.
  • Hardware including mouse and keyboard products, webcams and PC gaming equipment.
  • Surprisingly (considering they were pioneered by arch rival Apple), products for Macintosh computers.

Growth opportunities

While the company enjoys the benefits of a strong balance sheet and a world-famous brand, it is at risk from intense competition in the IT market, particularly in the internet search category. To remain competitive, it is focusing on growth areas, such as cloud computing, and is working to expand its already substantial consumer IT businesses.

Partnerships with other global brands such as Yahoo!, Ford Motors and Nokia are also expected to help boost the business, and its 2011 acquisition of internet telephony service Skype (which in turn is working with Facebook) are also expected to provide additional growth opportunities.

Investing in research and development

Research and development is another key strength and growth area for Microsoft; the company has invested heavily in this area for many years, and spent $8.7b on research in 2010 alone. As a result of this continued focus on innovation, it now holds more than 10,000 patents, and a further 3,000 new patents are filed each year. The employee responsible for each new patent receives a commemorative cube.

Rankings and awards

  • Won the 2011 TARGETjobs Award for the most popular graduate recruitment in IT and telecoms.
  • Ranked 2 in the 2011 Brandfinance list of the world’s most valuable brands.
  • Came 2 in a 2010 HireScores.com survey of the most appealing companies to work for in the UK, with a score of 69%.
  • Ranked 3 in the Centre for Brand Analysis’ Business Superbrands official top 500 list.
  • Ranked 9 in FORTUNE Magazine’s 2011 list of the world’s most admired companies.
  • Ranked 10 in the FT Global 500 for 2011.
  • Ranked 72 in the Fortune 100 best companies to work for in 2011.
  • Won the 2010 best large workplace in Europe award from the Great Place to Work Institute.
  • Topped the Great Place to Work Institute's 2011 list of the world's 25 best multinational workplaces.

Why work here?

  • Sponsors gay, lesbian and bi-sexual charity Stonewall in the UK, and is a supporter of gay rights and the legalisation of same-sex marriage in the US.
  • Runs the annual Imagine Cup, which invites students from around the world to come up with technology solutions based on a particular theme. Previous competition themes have included environmental sustainability, improving education, combating disease and disaster communication systems.
  • A diverse workforce, including people from over 135 countries and regions; among these are artists, cinematographers, linguists, psychologists and even racing drivers.
  • Has achieved the Carbon Trust Standard in the UK, in acknowledgement of its emissions management and reduction initiatives. It aims to reduce man-made IT emissions by 15% by 2020.

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