Microsoft competes across various sectors. In operating systems, its competitors comprise Apple macOS, Linux, Google Chrome OS, and Ubuntu. In productivity software, Google Workspace, Apple iWork, LibreOffice, and WPS Office. Competitors in cloud services include Amazon Web Services (AWS), Google Cloud Platform, IBM Cloud, and Oracle Cloud. Additionally, web browser competitors such as Google Chrome, Mozilla Firefox, Apple Safari, and Opera are featured. In gaming consoles, competitors include Sony PlayStation, Nintendo Switch, PC Gaming, and Google Stadia.
A multinational technology company known for its hardware, software, and consumer electronics, including Mac, iPhone, and iPad. Apple competes with Microsoft in the personal computing and operating system market.
Apple offers personal computing solutions and competes with Microsoft in segments like operating systems, personal computers, and software applications.
Both compete in personal computing, operating systems, and software, providing hardware and software solutions to consumers and businesses.
Apple’s focus on premium hardware and ecosystem integration.
Google (Alphabet Inc.)
A multinational conglomerate known for its internet-related products and services, including Google Search, Android, and Google Cloud. Google competes with Microsoft in various technology markets, including cloud services and productivity software.
Google offers cloud services, productivity tools, and operating systems, competing with Microsoft in segments like cloud computing, search engines, and office productivity.
Both compete in cloud services, productivity software, and technology solutions, catering to businesses and consumers.
Google’s dominance in search and advertising, as well as its Android ecosystem.
Amazon Web Services (AWS)
A subsidiary of Amazon known for its cloud computing and hosting services. AWS competes with Microsoft in the cloud computing and infrastructure-as-a-service (IaaS) market.
AWS provides cloud computing services and competes with Microsoft Azure in segments like IaaS, cloud storage, and enterprise solutions.
Both compete in cloud computing and IaaS, offering scalable and secure cloud infrastructure for businesses and developers.
AWS’s extensive global cloud network and market leadership.
Oracle
A multinational technology corporation known for its database software and cloud services. Oracle competes with Microsoft in the database management, enterprise software, and cloud markets.
Oracle offers database solutions, enterprise software, and cloud services, competing with Microsoft in segments like database management, ERP, and cloud infrastructure.
Both compete in database management, enterprise software, and cloud services, targeting businesses and enterprises.
Oracle’s expertise in database technology and enterprise solutions.
Salesforce
A multinational customer relationship management (CRM) and cloud computing company known for its CRM solutions and cloud services. Salesforce competes with Microsoft in the CRM, cloud, and business productivity market.
Salesforce offers CRM solutions, cloud services, and business productivity tools, directly competing with Microsoft in segments like CRM, collaboration, and cloud platforms.
Both compete in CRM, cloud computing, and business productivity, serving businesses and organizations with software and cloud solutions.
Salesforce’s focus on CRM and cloud-based solutions for sales and customer service.
IBM
A multinational technology and consulting company known for its cloud services, artificial intelligence (AI), and enterprise solutions. IBM competes with Microsoft in various technology segments, including cloud, AI, and enterprise software.
IBM provides cloud services, AI solutions, and enterprise software, competing with Microsoft in segments like cloud computing, AI, and enterprise applications.
Both compete in cloud services, AI, and enterprise solutions, catering to businesses and organizations with technology and consulting services.
IBM’s focus on enterprise IT services and AI research.
VMware
A virtualization and cloud computing software company known for its virtualization technologies. VMware competes with Microsoft in the virtualization, cloud infrastructure, and hybrid cloud markets.
VMware offers virtualization solutions and competes with Microsoft in segments like virtualization, cloud infrastructure, and hybrid cloud management.
Both compete in virtualization, cloud computing, and hybrid cloud solutions, addressing the needs of businesses for IT infrastructure and management.
VMware’s expertise in virtualization technology and hybrid cloud management.
SAP
A multinational software corporation known for its enterprise software, including ERP (Enterprise Resource Planning) and business applications. SAP competes with Microsoft in the enterprise software, cloud, and ERP markets.
SAP provides ERP solutions, enterprise software, and cloud services, competing with Microsoft in segments like ERP, business applications, and cloud platforms.
Both compete in enterprise software, cloud computing, and ERP solutions, serving businesses and organizations with software for business processes.
SAP’s specialization in ERP and enterprise software for various industries.
Adobe
A multinational software company known for its creative software products, marketing solutions, and cloud services. Adobe competes with Microsoft in the creative software, marketing, and document management markets.
Adobe offers creative software, marketing solutions, and document management, competing with Microsoft in segments like design software, digital marketing, and document collaboration.
Both compete in creative software, marketing, and document solutions, serving creative professionals, marketers, and businesses with software and digital tools.
Adobe’s focus on creative and design software, marketing, and digital document solutions.
Hewlett Packard Enterprise (HPE)
A multinational technology company known for its enterprise IT infrastructure, servers, and storage solutions. HPE competes with Microsoft in the enterprise IT infrastructure, servers, and cloud markets.
HPE provides enterprise IT solutions, servers, and cloud services, competing with Microsoft in segments like IT infrastructure, hybrid cloud, and enterprise servers.
Both compete in enterprise IT infrastructure, server solutions, and hybrid cloud offerings, targeting businesses with technology and cloud solutions.
HPE’s expertise in enterprise IT infrastructure and server hardware.
Operating Systems: Competitors of Microsoft’s operating systems
Apple macOS: Apple’s desktop operating system.
Linux: An open-source operating system.
Google Chrome OS:Google’s operating system for Chromebook devices.
Operating Systems Competition: Microsoft competes with Apple macOS, Linux, Google Chrome OS, and Ubuntu in the operating system sector. These platforms offer alternatives for desktop and laptop users with different features and functionalities.
Productivity Software Rivals: Microsoft Office faces competition from Google Workspace, Apple iWork, LibreOffice, and WPS Office. These productivity software suites cater to various user needs and preferences.
Cloud Services Competitors: Microsoft Azure competes with Amazon Web Services (AWS), Google Cloud Platform, IBM Cloud, and Oracle Cloud. These cloud service providers offer solutions for businesses’ infrastructure and application needs.
Web Browser Alternatives: Microsoft Edge faces competition from web browsers like Google Chrome, Mozilla Firefox, Apple Safari, and Opera. These browsers offer diverse features and browsing experiences for users.
Gaming Console Challengers: Microsoft’s Xbox gaming consoles compete with Sony PlayStation, Nintendo Switch, PC Gaming, and Google Stadia. These platforms offer gaming experiences across various devices and ecosystems.
Major shareholders comprise co-founder Bill Gates, who stepped down from the company’s board in 2020, which is why these shares are no longer publicly reported. In 2019, Gates still owned a stake of 103 million stocks, which accounted for 1.34% of the company’s ownership (worth over $23 billion in January 2023). Other individual shareholders comprise Satya Nadella, the company’s CEO, Brad Smith (former president), Jean-Philippe Courtois (EVP), and Amy Hood (former CFO).
In 2023, on nearly $212 billion in revenue, Microsoft generated over $72 billion in profits. The company had over $111 billion in liquid assets (which can be easily converted into cash).
Microsoft is among the largest companies on earth, with a diversified portfolio. Owned by billionaire Bill Gates, Microsoft acquired other companies like LinkedIn, GitHub, Skype, and more over the years. Today, Microsoft is a tech empire that spans software, social media, gaming, and more.
In 2023, Google’s search advertising machine, generated over 175 billion dollars. Whereas Microsoft’s Bing generated 12.2 billion dollars. Thus, as of 2023, Google’s search advertising machine is over 14x larger than Microsoft’s search advertising machine.
As of 2023-4, Satya Nadella had 800,667, valued at over $300 million at Microsoft’s current market value. Nadella also got a $2.5 million base salary in 2022, plus $39.23 million in stock awards and over $6.4 million in non-stock incentives, for a total of $48.5 million in 2023. Nadella sold hundreds of millions of dollars of Microsoft stocks in the last ten years, making him a centi-millionaire. In 2023, 95% of Nadella’s salary was performance-based, whereas only about 5% comprised a base salary.
Microsoft’s first acquisition in 1987, Forethought, was the developer of a presentation program that would later become PowerPoint. Since then, the company has made an average of six purchases every year, with fourteen of those exceeding the $1 billion mark. Today’s Microsoft business model spans various segments thanks to an acquisition strategy, which saw Microsoft involved in multiple acquisitions.
Microsoft’s mission is to empower every person and every organization on the planet to achieve more. With over $110 billion in revenues in 2018, Office Products and Windows are still the main products. Yet the company also operates in Gaming (Xbox), Search Advertising (Bing), Hardware, LinkedIn, Cloud, and more.
Microsoft has a diversified businessmodel, spanning from Office to gaming (with Xbox), LinkedIn, search (with Bing), and enterprise services (with GitHub). In 2023, Microsoft made almost $212 billion in revenues, of which almost $80 billion came from Server products and cloud services, and almost $49 billion came from Office products and cloud services. Windows generated $21.5 billion, Gaming generated over $15.4 billion, LinkedIn over $15 billion, and search advertising (through Bing) over $12 billion. Enterprise (GitHub) generated $7.7 billion, and devices (PC) generated $5.5 billion.
Founded in 1975 by Bill Gates and Paul Allen, Microsoft is a revolutionary company in the world of personal computing. The company designs and manufactures software, hardware, operating systems, apps, and devices. Indeed, Windows and Microsoft Office are staples in billions of homes worldwide.
Microsoft has a product-type divisional organizational structure based on functions and engineering groups. As the company scaled over time, it also became more hierarchical while maintaining its hybrid approach between functions, engineering groups, and management.
OpenAI is an artificial intelligence research laboratory that transitioned into a for-profit organization in 2019. The corporate structure is organized around two entities: OpenAI, Inc., which is a single-member Delaware LLC controlled by OpenAI non-profit, And OpenAI LP, which is a capped, for-profit organization. The OpenAI LP is governed by the board of OpenAI, Inc (the foundation), which acts as a General Partner. At the same time, Limited Partners comprise employees of the LP, some of the board members, and other investors like Reid Hoffman’s charitable foundation, Khosla Ventures, and Microsoft, the leading investor in the LP.
OpenAI has built the foundational layer of the AI industry. With large generative models like GPT-3 and DALL-E, OpenAI offers API access to businesses that want to develop applications on top of its foundational models while being able to plug these models into their products and customize these models with proprietary data and additional AI features. On the other hand, OpenAI also released ChatGPT, developing around a freemium model. Microsoft also commercializes opener products through its commercial partnership.
OpenAI and Microsoft partnered up from a commercial standpoint. The history of the partnership started in 2016 and consolidated in 2019, with Microsoft investing a billion dollars into the partnership. It’s now taking a leap forward, with Microsoft in talks to put $10 billion into this partnership. Microsoft, through OpenAI, is developing its Azure AI Supercomputer while enhancing its Azure Enterprise Platform and integrating OpenAI’s models into its business and consumer products (GitHub, Office, Bing).
Stability AI is the entity behind Stable Diffusion. Stability makes money from our AI products and from providing AI consulting services to businesses. Stability AI monetizes Stable Diffusion via DreamStudio’s APIs. While it also releases it open-source for anyone to download and use. Stability AI also makes money via enterprise services, where its core development team offers the chance to enterprise customers to service, scale, and customize Stable Diffusion or other large generative models to their needs.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
