Microsoft Surface is a large multi-touch screen that allows for direct interaction through touch and gestures. It was developed by Microsoft and uses a combination of hardware and software with gesture recognition capabilities. The Surface has evolved over multiple versions with Surface 2.0 featuring an improved 1080p screen, more powerful processors and graphics cards, and new PixelSense technology. It has various applications in businesses like restaurants, hotels, and hospitals where it allows for multi-user and multi-touch experiences through direct interaction and object recognition.