Microsoft was founded in 1975 by Bill Gates and Paul Allen and has grown to be a leading developer of software, services, and solutions. It launched its first operating system, MS-DOS, in the 1980s and has since released newer versions including Windows 98, XP, Vista, 7, 8, and 8.1. While Microsoft remains successful, it faces competition from companies like Apple, Google, and open-source software like Linux and MySQL that provide free alternatives and challenge Microsoft's desktop and server products.