The company co-founded by Bill Gates, moved from second to first place in a list of the 500 brands that the public thought were reliable, distinguished, and the best quality.
In the second place was Rolex, the watch manufacturer, followed by Google, which was late year's winner.
At the fourth and fifth place were British Airways and the BBC, respectively.
A company called Superbrands compiled the list by using the votes of 2,100 consumers.
An expert panel drew up the shortlist of 500 brands, which even included Apple into the top ten.
The list showed that technology companies have dominated people's lives to such an extent they are more highly rated than most food, drink, car manufacturers as well as retailers and leisure giants.
"You may drink a Coca-Cola or Starbucks drink once or twice a day, but most of us interact with Microsoft and Google every hour of our lives. These technology companies have entered into our homes, our offices - even our friendships," the Telegraph quoted Shar VanBoskirk, an analyst at Forester, as saying.
She added that many consumers had "learnt to love" Microsoft, while some even think of it as an underdog as it is now challenging online media companies.
Other than technology companies, fast food restaurants also did well in the brand list.
While McDonald's rose 227 places to 143 on the list, Burger King climbed up 189 places.
Krispy Kreme, the doghnut company, also made its debut in the list of brands at 68.