You probably think you know what Microsoft does. You likely have a laptop running Windows, or maybe you've spent too many hours wrestling with a pivot table in Excel. Honestly, that’s just the tip of the iceberg. These days, Microsoft is less of a "software company" and more of a massive, invisible engine that powers everything from the servers running your favorite apps to the AI helping doctors diagnose rare diseases.
It is a $3 trillion beast. They’ve moved way past the days of selling plastic discs in cardboard boxes. Now, they are the backbone of the internet, a titan in the gaming world, and the primary reason the phrase "generative AI" is in every headline you read.
What Does the Microsoft Company Do for the Modern World?
To understand Microsoft today, you have to look at their "Intelligent Cloud." That sounds like marketing fluff, but it’s actually where they make most of their money. Azure, their cloud platform, is basically a global network of massive data centers that businesses rent to run their own websites, apps, and databases.
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In early 2026, Azure revenue jumped 40% because everyone is rushing to build AI. Microsoft isn't just selling you a chatbot; they are selling the "electricity" (computing power) that allows thousands of other companies to build their own AI. They have a massive partnership with OpenAI—the people behind ChatGPT—which means they have exclusive rights to provide the infrastructure for those models.
The Copilot Revolution in Your Inbox
If you work in an office, you’ve probably seen the little "Copilot" logo popping up in Outlook or Word. This is their big bet on "Agentic AI."
Essentially, they’ve embedded an AI assistant into every single tool you use. It’s not just for writing emails. It’s designed to:
- Summarize a 45-minute Teams meeting you missed.
- Draft a PowerPoint presentation from a messy Word document.
- Analyze data in Excel that would normally take a human three hours to filter.
By mid-2026, they are even updating their pricing to make these AI features a standard part of the Microsoft 365 suite. It’s no longer an "extra"—it’s just how the software works now.
Gaming is No Longer a Side Project
For a long time, Xbox was sort of the "cool younger brother" of the serious corporate business. Not anymore. After the massive $69 billion acquisition of Activision Blizzard, Microsoft is now one of the biggest video game publishers on the planet.
They own Call of Duty. They own Minecraft. They own World of Warcraft.
But they aren't just selling consoles. They want to be the "Netflix of Gaming." Their Xbox Game Pass service lets you play hundreds of games for a monthly fee on your PC, your phone, or your TV without even owning an Xbox. It’s a shift from selling hardware to selling a subscription that follows you everywhere.
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Professional Networking and Hiring
People often forget that Microsoft owns LinkedIn. It’s a huge part of their business because it’s where everyone goes to find jobs and hire people. In 2025 and 2026, LinkedIn has been leaning hard into AI-powered "Talent Solutions." It helps recruiters find the perfect candidate by analyzing skills rather than just looking at job titles. It’s a steady, high-margin business that fits perfectly with their goal of "empowering" workers.
The Hardware You Actually See
While the cloud is invisible, Microsoft still makes physical stuff. The Surface line of tablets and laptops is their way of showing off what Windows can do when they control the hardware.
They also make:
- HoloLens: Augmented reality headsets used mostly by engineers and surgeons.
- Xbox Hardware: The Series X and Series S consoles.
- Peripherals: Keyboards, mice, and webcams (though they’ve scaled some of this back lately).
Why This Matters for You
Microsoft has basically become a utility. If their servers go down, banks can’t process transactions, hospitals can’t access records, and millions of people can't do their jobs. They aren't just a tech company; they are the operating system for the global economy.
They are currently moving into what CEO Satya Nadella calls the "Year of Truth." This is the period where they have to prove that all the billions they spent on AI actually make people more productive. If you use a computer at work or at home, you’re living in a world Microsoft helped build, whether you like the Windows update notifications or not.
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To get the most out of what Microsoft offers right now, you should focus on these three actions:
- Audit your subscriptions: If you’re paying for Microsoft 365 and separate AI tools, check if the new "Premium" tiers or the upcoming July 2026 pricing updates make it cheaper to consolidate everything under one Copilot license.
- Explore "Agentic" workflows: Stop using AI just for chat. Start using the "Agent Mode" in Word and Excel to automate repetitive document formatting or data cleaning tasks that usually eat up your Friday afternoons.
- Enable Multi-Factor Authentication (MFA): Since Microsoft is a prime target for hackers due to its scale, ensure your Microsoft account is locked down with the Microsoft Authenticator app. This is the single most effective way to prevent the "shadow AI" or credential theft risks that are rising in 2026.