Microsoft Israel is one of Microsoft's four strategic regional development centers, and home to some of the company's most exciting and innovative technologies.
 
Highlights

• 1989-Microsoft opened its 1st foreign branch in Israel with 3 employees.
• The Israel Research and Development Center, opened in 1991, is one of Microsoft’s 4 strategic regional development centers and home to some of the company’s most exciting and innovative technologies.
• The Israel R&D Center is strategically situated in two main locations—in Herzliya, and in Haifa, home to many graduates of the Technion, Israel’s leading technology institute.
• Along with its core R&D and incubation activities, Microsoft Israel is engaged in outreach activities to local communities through its Unlimited Potential Program.
• 2005- Bill Gates visited to Israel for the first time and signed a cooperation agreement with the Government of Israel, establishing a program to support Israeli start-ups in developing innovative technologies and bringing them to the global market.
• 2006- Microsoft Israel and SAP Labs Israel initiated “Mendocino,” a joint-product, which enables access to SAP business processes and data via Microsoft.
• 2008- Microsoft Israel is headquartered in Ra'anana and employs over 500 people.
• 2012 - The Microsoft Accelerator for Windows Azure at the Microsoft Israel R&D Center (ILDC) gives exceptional startups what they need to take their company and put it on the trajectory to success.
• 2012 -Microsoft Corporation (Nasdaq: MSFT) has completed the establishment of its Israeli innovation center, one of 31 Microsoft Technology Centers worldwide. Microsoft invested millions of dollars in the Microsoft Technology Center Israel, based at Microsoft Israel Ltd.'s premises in Ra'anana. The Microsoft Technology Centers serve mainly for the building and sale of IT infrastructure products. The centers function as places where company representatives spend several days in developing customized solutions with Microsoft staff.
• 2012 - Think Next, a Microsoft event, has become the most prestigious event in the Israeli high tech industry, providing a center stage for industry leaders, mind provoking speakers and groundbreaking developments. This celebration of innovation brings together dozens of demos, from companies big and small, in a variety of technological fields which offer a highlighted view of everything that is new from Israel and around the world.

Accomplishments 

• Microsoft Israel has significantly contributed to the development of Windows  NT software as well as other globally recognized  IT security and  telecommunications technologies.
• Microsoft Israel has developed the world's largest document management system for the Israeli Ministry of Defense.
• The Microsoft Corporation credits Microsoft Israel for developing the largest active directory in the world. This system, which helps manage identities and relationships that make up network environments, was created for an Israeli health fund that has 3.7 million users.
• Primesense, from which Microsoft licenses 3D camera technology, key to Microsoft’s Kinect gaming system. A number of MS technologies were generated in Israel: Microsoft gateway VPN technology; Microsoft Security Essentials anti-virus suite; and the newest product, the recommendation system for Xbox systems
• Israel, which has far fewer tech grads — but, according to CEO Steve Ballmer, the highest number of Microsoft workers per capita of any place on earth.

 Investments and Returns

• 1996-Microsoft acquired Panorama, an innovator of business intelligence solutions. 
•  1998-Microsoft makes its first venture capital activity in Israel by investing in the Orion Israel Fund l – part of the international AIG Global Investment Group
• 2000-Microsoft acquired WebAppoint for $10 million.  
• 2001-Microsoft acquired Peach Networks Ltd., a provider of technology for enhanced TV services for digital television for $72 million.
• 2002-Microsoft acquired Maximal Innovative Intelligence, a developer of information management software for $20 million.
• 2003-Microsoft acquired Pelican Security, a security software start-up for $300 million.
• 2006-Microsoft acquired Gteko, a provider of automated technical support for personal computers and electronic end-user devices for $120 million.
• 2006-Microsoft acquired Whale Communications, a developer of secure sockets layer (SSL) and virtual private networks (VPN) vendor for $76 million and turned the company into its 2nd R&D Center in Israel.
• 2007-Microsoft acquired Israeli start-up, Secured Dimensions, with its technology for the protection of applications.
• 2008-Microsoft acquired ad agency Yadata  and Kidaro, an innovative visualization solution company.
• 2012 -Microsoft accelerator for  Windows Azure is a unique project, the first Microsoft accelerator of its kind anywhere in the world. The accelerator is located in the Microsoft R&D Center in Herzliya Pituach.