BTW where you went to school can help GET the interview in the first place.
I would say this is the case with Microsoft & the UW. The geographical distance (< 10 miles) means it's easier to network, and students who are already familiar with the area are probably more likely to apply.
And FWIW, both Bill Gates and Paul Allen have strong family relationships with the University, and have donated a lot of money to the UW for various causes (and I can think of at least 4 buildings on campus named for a Gates or an Allen--and their family relationships go back to the 60s and 70s). So I wouldn't be surprised if there has historically been a tendency to look toward the UW for new recruits. There's a whole network of personal and community relationships at play.
On an aside, I would be interested in knowing how Amazon, which is also a major Seattle IT employer, compares.
