Microsoft has been dominant in the IBM PC–compatible operating system and office software suite markets since the 1990s. A Big Tech company, Microsoft is the largest software company by revenue, one of the most valuable public companies, and one of the most valuable brands globally. The company became influential in the rise of personal computers through software like Windows and has since expanded into areas such as Internet services, cloud computing, artificial intelligence, video gaming, and more. Enjoy your free 30-day trial of Prime. Get access to a rotating selection of over a thousand e-books, comics, short works and more. Score Prime exclusive deals and savings, plus access to shopping events like Prime Day. Enjoy free delivery in as fast as one day—no minimum purchase on Prime eligible orders.

In October 2021, Microsoft announced that it began rolling out end-to-end encryption (E2EE) support for Microsoft Teams calls in order to secure business communication while using video conferencing software. In the same month, Microsoft acquired Australia-based video editing software company Clipchamp. The increased necessity for remote work and distance education drove demand for cloud computing and grew the company's gaming sales. During the summer of 2015 the company lost $7.6 billion related to its mobile-phone business, firing 7,800 employees. Increasingly present in the hardware business following Xbox, Microsoft 2006 released the Zune series of digital media players, a successor of its previous software platform Portable Media Center. It has been criticized for monopolistic practices, and the company's software received criticism for problems with ease of use, robustness, and security. Most notably provides the Azure cloud computing platform, Microsoft SQL Server database software, and Visual Studio.

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2011: Microsoft Azure, Windows Vista, Windows 7, and Microsoft Stores

In January 2023, CEO Satya Nadella announced Microsoft would lay off 10,000 employees. Microsoft also named Phil Spencer, head of the Xbox brand since 2014, the inaugural CEO of the newly established Microsoft Gaming division, which now houses the Xbox operations team and the three publishers in the company's portfolio (Xbox Game Studios, ZeniMax Media, Activision Blizzard). In February 2019, hundreds of Microsoft employees protested what they termed war profiteering by the company from its $480 million contract to develop virtual reality headsets for the United States Army. December also saw the company discontinue the Microsoft Edge Legacy browser project in favor of the "New Edge" browser project, featuring a Chromium based backend. In the same month, Microsoft announced the open source implementation of Windows Forms and the Windows Presentation Foundation (WPF) which will allow for further movement of the company toward the transparent release of key frameworks used in developing Windows desktop applications and software. In May 2018, Microsoft partnered with 17 American intelligence agencies to develop cloud computing products. Intune for Education is a new cloud-based application and device management service for the education sector.

2014: Windows 8/8.1, Xbox One, Outlook.com, and Surface devices

Since Nadella became CEO, the company has changed focus towards cloud computing. On the same day, John W. Thompson took on the role of chairman, in place of Bill Gates, who continued to participate as a technology advisor. On July 19, 2013, Microsoft stocks suffered its biggest one-day percentage sell-off since the year 2000, after its fourth-quarter report raised concerns among investors on the poor showings of both Windows 8 and the Surface tablet. To cope with the potential for an increase in demand for products and services, Microsoft opened a number of "holiday stores" across the U.S. to complement the increasing number of "bricks-and-mortar" Microsoft Stores that opened in 2012. The Surface was unveiled in June 2012, becoming the first computer in the company's history to have its hardware made by Microsoft. Following the release of Windows Phone, Microsoft undertook a gradual rebranding of its product range throughout 2011 and 2012, with the corporation's logos, products, services, and websites adopting the principles and concepts of the Metro design language. Other companies like Borland, WordPerfect, Novell, IBM and Lotus, being much slower to adapt to the new situation, would give Microsoft market dominance. With a few exceptions of new companies, like Netscape, Microsoft was the only major and established company that acted fast enough to be a part of the World Wide Web practically from the start.

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The company's retail locations are part of a greater strategy to help build a connection with its consumers. The "Connector" does not compete with the public bus system and works with it to provide a cohesive transportation network not just for its employees but also for the public. In 2011, Greenpeace released a report rating the top ten big brands in cloud computing on the sources of electricity for their data centers. This expands on the former requirement from 2015 requiring 15 days of paid vacation and sick leave each year. In August 2018, Microsoft implemented a policy for all companies providing subcontractors to require 12 weeks of paid parental leave to each employee. The Human Rights Campaign Corporate Equality Index, a report of how progressive the organization deems company policies towards LGBT employees, rated Microsoft as 87% from 2002 to 2004 and as 100% from 2005 to 2010 after it allowed gender expression. Bill Gates claims the cap on H1B visas makes it difficult to hire employees for the company, stating "I'd certainly get rid of the H1B cap" in 2005.

This is due to the company being tax resident in Bermuda as mentioned in the accounts for 'Microsoft Round Island One, a subsidiary that collects license fees from the use of Microsoft software worldwide. As reported by several news outlets, an Irish subsidiary of Microsoft based in the Republic of Ireland declared £220 bn in profits but paid no corporation tax for the year 2020. This characterization is derived from the perception that Microsoft provides nearly everything for its employees in a convenient place, but in turn overworks them to a point where it would be bad for their (possibly long-term) health. The company is often referred to as a "Velvet Sweatshop", a term which originated in a 1989 Seattle Times article, and later became used to describe the company by some of Microsoft's own employees. Historically, Microsoft has also been accused of overworking employees, in many cases, leading to burnout within just a few years of joining the company. The company has also been criticized for the use of permatemp employees (employees employed for years as "temporary", and therefore without medical benefits), the use of forced retention tactics, which means that employees would be sued if they tried to leave. Frequently criticized are the ease of use, robustness, and security of the Microsoft's software.