Why Microsoft bought LinkedIn?

As the news surprised the world that Microsoft acquiring LinkedIn for $26.2 billion, but it is still unclear, what Microsoft will do about this social network, how it will integrate data in LinkedIn and much more. Recently, Microsoft dogged in, and made a massive bet on social media and enterprise. It is reported that, company’s data will eventually be integrated with Microsoft’s collaboration and productivity tools. Melissa Parrish, VP and principal analyst of Forrester Research concluded that, Business users who have more consistent and professional experience - Microsoft will integrate those profiles, preferences and other data. It would look more traditional B2C user experience.

According to the Jack Gold who is president and principal analyst at J.Gold Associates told that, LinkedIn appreciates Microsoft’s Skype for Business, Yammer and other enterprise focused services. He additionally added that, this deal was natural and amazing. It would help Microsoft product to sell and expand Office 365 services. LinkedIn is also very much smart and intelligent to keep eyes out of Google and allows Microsoft to compete with Google in order to generate more revenue on the web.

Microsoft's bet on LinkedIn is not just about Data

Microsoft has millions of reason to buy LinkedIn since the company is around 41 years old but the foremost reason to buy LinkedIn is about data. With the network of around 450 million users with the majority of business users, makes the LinkedIn most powerful social media site. Parrish reported that, as the LinkedIn has a great social graph. Microsoft will get more capabilities for increasing the work and efforts and building the strong connection inside and outside firm. Better access to data turns out to a quick results.

As per the David Lavende VP of marketing and product strategy reported that, Microsoft’s office graphs should map with every office user from the LinkedIn’s information. However, it should use the data effectively as it has to overcome many integration challenges. With LinkedIn integration, not only will Office Graph knows, who is sharing what information but it will make the layer of information about the users supplied by LinkedIn.

Manish Sood, CEO of data management company, reported that the number of useful information on LinkedIn is unpatrolled and majority of the information is not dynamic. Though LinkedIn has around 450 million users but only around 25% people use the site at least once a month. And because of this, data can get decay due to neglect. Individuals update their profile, when they have reached some milestones or are trying to find the new jobs or want to get featured in some perspectives. This is totally contradict to the professional user who constant renowned their information and maintain the steady stream regularly.

However, LinkedIn has a potential value for Microsoft design, social DNA, marketing and more. Report says that, by integrating LinkedIn with Microsoft it will have multiple benefits of the shared infrastructure and connectivity and it will enable Microsoft competitors to benefit from the LinkedIn’s network.