- By Prateek Levi
- Sun, 25 Jan 2026 02:18 AM (IST)
- Source:JND
Microsoft was in trouble in the early 2000s because it was labelled “old” and “finished”, but now it has regained its position as one of the world's leading tech companies because of sound decisions and a change in management. Let's go back to 2013 when Microsoft's stock was valued at only $26, but now it's worth $450 or more per share. This is a clear indication of how investors view Microsoft today because of its tremendous growth in value.
The reason for the company’s struggles is not coincidental. Rather, it has been a string of missteps. Microsoft never experienced the revolution that occurred in mobile. With Steve Jobs’ introduction of the iPhone in 2007, former CEO Steve Ballmer never really took the introduction of the App Store and touch screen very seriously. Microsoft’s Internet Explorer, once a leading browser, continued to slow down and became less secure, causing users to use Google Chrome and Firefox. Microsoft’s Windows Vista, a version of Windows that followed the very successful Windows XP, proved to be a disappointment. The antitrust issues also did not help the cause.
The comeback started in 2014 when Satya Nadella became CEO. He shifted Microsoft’s focus to cloud computing, making Azure the company’s main growth engine. The company also began to partner with its competitors rather than avoiding them, and it wasn't unexpected that Office arrived on iPhones and Androids while also embracing Linux, which Ballmer had attacked so vociferously in the past.
Its strategic acquisitions of companies like LinkedIn, GitHub, and Minecraft gave it unprecedented market breadth and depth; large investments in OpenAI have also put it at the vanguard of an artificial intelligence revolution.
Today, the value of the company stands at $3.05 trillion in more than 200 countries. It employs more than 20,000 people in India alone, with 95% of Fortune 500 businesses being its cloud clients.
The company’s story begins on April 4, 1975, when childhood friends Bill Gates and Paul Allen founded it. The name “Microsoft” comes from “microcomputer” and “software”, reflecting their vision of putting a computer on every desk and in every home.
Its darkest period came around 2012–2013. Also, Windows 8 failed to connect with users, the Nokia purchase had been overpriced, and there had been a loss of $900 million on the Surface RT tablet. Ballmer stepped down in 2013; this effectively ended the Ballmer chapter to begin the Nadella age.
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In the case of Microsoft Corporation, their evolution over the years is the epitome of adaptability, vision, and the power of innovation that can change the tide for an organisation’s future relevance in the highly dynamic tech landscape. From being at the periphery to being the leader, the organisation has managed to achieve great success by adopting cloud technology, building partnerships, strategic takeovers, and embracing innovation in the form of AI.