Friday, 25 November 2016

Week 12: Hi Microsoft?

With the ending closer in view, we touched upon how understanding the brains behind our biggest innovations of our times can help understand where we are heading towards the future. Dubbing them as the BIG 3, Apple, Microsoft and Google were highlighted and we learnt how they dominated the market and are able to stay relevant in this age of fast-paced, creative and ingenious innovations being brought out. 

Keep in mind that Alphabet is the parent company of Google
However, there was one that I was really unfamiliar with among the BIG 3. You know what they say, once you go Mac, you don't go back. So, I took it upon myself to learn more about Microsoft and what was their latest news whether it being innovation-wise or expansion-wise.

In latest news, Microsoft is acquiring LinkedIn! 

As the social network for professionals with some 433 million users, LinkedIn will be part of Microsoft’s productivity and business processes segment but will maintain its branding and product. Via the all-in-cash acquisition of $26.2 billion, or $196 per share, this is the biggest acquisition since Satya Nadella was appointed the CEO for Microsoft in 2014. In his words, Nadella aims to accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics. 

"But why LinkedIn? As social media platform that aims to connect working professionals, what can it offer Microsoft?" Those were the two questions at the top of my head, these two seem like completely different platforms focusing on different objectives.

Upon further googling, the Verge suggests that it is a "key way to boost the company's social networking presence". Having learnt that Microsoft did invest in Facebook back in the days, as well spent $1.2 billion on Yammer back nearly four years ago, Microsoft has struggled to break into enterprise social networks. 

From my perspective, I really hope that works out for Microsoft because that's a whole lot of $$ for an acquisition and with LinkedIn having 433 million users, I really hope their users are active (lol) 

Subsequent reports also suggest that this is great move for Microsoft to push out its products (i.e. softwares). According to Jasmine Sandler, CEO of Agent-cy Online Marketing, a B2B social media marketing agency and training business:
They are taking on a company that is the leader in B2B social networking and has an embedded user base (for any Microsoft products) of over 433 million captive global business professionals,” Sandler said. “The M&A makes a ton of sense in that they have common customers and can both expand their offerings and value to them.

The combination of Microsoft’s and LinkedIn’s graphs show the complementary nature of this deal. Adding the equation where LinkedIn had acquired (an online learning tools website),there is hearsay that Microsoft may leverage on that to sell their software products and provide assistance in learning to use them. So kudos to you Microsoft!
All the best?

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