Despite Microsoft’s meteoric rise, and one that made Bill Gates a billionaire, the same co-founder admitted he didn’t truly see the company as a success until the late 1990s, and often felt just one mistake away from death.
Microsoft isn’t called the software giant for nothing. Long before the razzle-dazzle of AI and Copilot, its bread and butter were Office and Windows, and they still are — driving broad adoption worldwide. That dominance helped transform Microsoft into a Fortune 500 powerhouse, with a market capitalization of $3.05 trillion at the time of writing.
In fact, our biggest mistakes, I would say, strategically would have been historically made when we didn’t view, like somebody else’s success doesn’t need to be your failure if you can ride it. It’s sort of a thing that needs to be talked about more. In fact, it is. Like, without Intel, I don’t know if Windows would have happened, right? Without, in fact, without Mac, I wonder whether Office would have happened, right? I mean, that’s sort of the world I come from, and I’m always looking for, first, what’s the non-zero sum, where we can add value to our customers.
Microsoft CEO, Satya Nadella
They explain how Excel was first released on Mac, and the first GUI version of Word also debuted there before Windows. That likely happened because Apple’s original graphical OS, System 1, was more user-friendly (and popular) than Microsoft’s post-DOS Windows 1.0.
That said, Microsoft CEO Satya Nadella indicated that the company was moving away from Bill Gates' software factory vision. "That idea has guided us for decades," Nadella admitted. "But today, it's no longer enough."
The company is now doubling down on its efforts across security, quality, and AI transformation as its core business priorities.
💬 Does Microsoft still hold the fort in productivity?
Nadella’s views almost echo Apple's recent unveiling of its $599 MacBook Neo. In a promotional demo, Apple highlighted Word, PowerPoint, and Excel as the most-used apps, underscoring the software’s enduring dominance in productivity.
Even I juggle between Windows and macOS as my daily drivers, though lately I’ve admittedly been leaning toward the latter — maybe it’s the hype around the new MacBook Pro with its M5 Pro chip?
Still, when it comes to productivity, I rely more on Microsoft Office. Years of using Windows have made me appreciate its simplicity and the seamless integration across apps like Word, Excel, and PowerPoint. That said, investors have begun voicing concerns over Microsoft’s heavy spending on AI with little return so far, especially after growth in Azure and Microsoft 365 apps fell well below expectations last quarter.
Microsoft recently highlighted its commitment to make Windows 11 better in 2026 based on user feedback and even reevaluating its AI strategy, which may include streamlining its user experience across its ecosystem and even removing Copilot in apps like Notepad and Paint.
What do you think about Microsoft's current strategy with Windows and Microsoft Office? Share your thoughts with me in the comments.
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