Microsoft acquires LinkedIn! Decoding the ambitions behind the move…

Microsoft has confirmed its definitive agreement to acquire the world’s most valued professional network, LinkedIn. The talks were finalized on Monday (13^th June 2016) and the firm agreed to settle for $26.2 billion all-cash transactions. Being the costliest acquisition by Microsoft, this deal had also aroused the experts and entrepreneurs around the world with several questions. There is enough significance that this deal could construe drastic impact on the tech market. While the predictions about the future of these firms keep flooding the business world around every nook and corner, this blog crisply checks out the intentions and possible outcomes of this deal,

To dominate the Cloud Realm!

Microsoft once dominated the technology market with its remarkable software products. But those days were through when various other vendors planted their dominance. In spite of being a pioneer in the software market, Microsoft still remains in fourth in CRM share market. Cloud and networking platforms played a vital role in defeating the dominance of Microsoft. After many years, Microsoft had made its ambitious attempt to dominate the software market. Yes, by acquiring LinkedIn, now it can have a stronghold on the opportunities to connect with the entrepreneurs around the world. It can now push its cloud computing platform to enterprises around the world. In fact, there are bright chances where the open-source Azure for clients could be integrated with the LinkedIn professional network.

Though the acquisition of Yammer in 2012 and Skype in 2011 did not help Microsoft to grow its social network, now it could prove useful. It also owns powerful business tools like Outlook, OneDrive, SharePoint and Dynamics. These suites can now be effectively integrated to create the most powerful online business suite inside a familiar professional network, LinkedIn. And the primary purpose of CRMs being the relationship management, there could be no better platform than the huge social network like LinkedIn.

Better place to test its AI robots!

The world started hoping that the AI (Artificial Intelligence) is certain to be future. Leading Tech giants like Google are already preparing their prototypes to run their future games. Microsoft too was keen on marking its presence in AI technology. Recently, it introduced its AI chat robot to Twitter in the name of ‘Tay’. But soon it was deleted when this teen chat girl turned into Hitler-loving and sex-promoting chat robot. The main reason for this was the unhealthy interactions it had with the Twitter users.

Unlike any other social network, LinkedIn has genuine and legitimate users bonded with their professional network. So, incorporating the AI robots in LinkedIn and restricting any abuse would definitely help to reach success in incorporating Artificial Intelligence.

What Microsoft actually say about this deal?

Though both firms already shine successfully in the market, Microsoft claims that this move is intended to further accelerate the growth and progress of both. The CEO of Microsoft, Satya Nadella stated that,

“The LinkedIn team has grown a fantastic business centered on connecting the world’s professionals. Together we can accelerate the growth of LinkedIn, as well as Microsoft Office 365 and Dynamics as we seek to empower every person and organization on the planet.” He also added that “It’s really the coming together of the professional cloud and the professional network “

How LinkedIn sees this deal?

LinkedIn is arguably a strong and one of the rapidly growing businesses and it had incorporated several remarkable innovations that helped it to achieve tremendous growth. In addition to being crowned as the leading professional networking platform, LinkedIn also had become a strong job portal with more than 7 million job listings on its site. The CEO of LinkedIn, Jeff Weiner said,

“Just as we have changed the way the world connects to opportunity, this relationship with Microsoft, and the combination of their cloud and LinkedIn’s network, now gives us a chance to also change the way the world works. For the last 13 years, we’ve been uniquely positioned to connect professionals to make them more productive and successful, and I’m looking forward to leading our team through the next chapter of our story.”

And the co-founder and executive chairman of LinkedIn said,

“Today is a re-founding moment for LinkedIn. I see an incredible opportunity for our members and customers and look forward to supporting this new and combined business. I fully support this transaction and the Board’s decision to pursue it, and will vote my shares in accordance with their recommendation on it.”

What Tech Experts say?

Mitch Kapor (founder of Lotus Development Corp.) – “Sadly, history has shown [synergies] are very difficult to realize when two big companies combine, especially to the extent LinkedIn is remaining an independent fiefdom within the Microsoft empire.”

Steve Phillips (Chief information officer of Avnet Inc.) – “Tech companies and their customers are looking for ways to get even more out of social media.”

Michael Wade (Professor of innovation and strategy at Switzerland) – “The LinkedIn hasn’t lived up to its potential for a while. And, it hasn’t evolved quickly enough beyond its roots as a recruiting tool and job-search site. Most of its users aren’t looking for a job, and LinkedIn has so far done a poor job of getting them to come back to the site regularly to connect with and expand their professional networks. Only about one-quarter of LinkedIn’s 400 million “cumulative” users return to the site every month.”

Considering costliness of the deal and the history of failures incurred by previous acquisitions, there must be a vital and progressive plan for Microsoft to dare to take such a huge move. If rightly used to its maximum potential, Microsoft could make a remarkable change in the way cloud and professional networks work!

(Image Source: The Internet)