The Role of Microsoft Research

Despite periodic press showcases, Microsoft Research (MSR) remains one of the quietest and most unusual divisions at the company, with operational practices found nowhere else at Microsoft. Although it plays an important part in product development, MSR also functions as an open member of the global research community, helping Microsoft gather intelligence and appeal to academics. Understanding MSR’s practices, goals, and areas of concentration can give IT planners and partners insight into how Microsoft sees its own product lines and technologies evolving over the next decade and help businesses plan their own research and development strategies.

Focus on the Next 10 Years

Founded in 1991, MSR now has about 600 researchers, five locations (Beijing, Cambridge, Redmond, San Francisco, and Silicon Valley), and an annual budget of approximately US$250 million. This is about 5% of Microsoft’s planned research and development (R&D) budget for this fiscal year, which ends June 30. The other 95% of the R&D budget goes to the product teams, which spend it on development, testing, and program management.