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.

Microsoft bolster its business by buying LinkedIn for $26.2Billion

Microsoft is set to acquire the professional business social network of $26billion all in cash transaction

Recently, in a conference Satya Nadella – CEO of Microsoft gave a shocking announcement to buy LinkedIn in billions of dollars. This is the largest acquisition in history for the world’s largest software company. And this deal make sense for both the companies. The largest acquisition deal till date could make the host integration between Microsoft and LinkedIn across the tools like office, outlook, calendar, Skype.

The company said that LinkedIn will continue to operate as usual. Jeff Weiner will still remain CEO of LinkedIn reporting to Satya Nadella. It was also reported that, transaction is expected to end by the end of 2016. This is the very smart move for the company, as it is trying to strengthen its position in the market.

LinkedIn could essentially become the “social fabric” behind all of Microsoft’s products, CEO Satya Nadella quoted in a conference. “It’s the bringing together of the world’s professional cloud with the world’s professional network,” Additionally he also added that, many business models could be applied to these integrations, from subscriptions to advertisements and social selling.

LinkedIn is the world’s largest and the most professional network and continuous to build the strong growing business. In the recent years, company has shown many updates in its mobile apps and this has led to enhance member’s engagement, business insights and much more. Nadella also quoted “The LinkedIn Team has climbed the ladders measuring the success on connecting’s world’s professional. 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.”

By integrating with LinkedIn, Microsoft user could access the latest updated profiles as well as the professional connection to generate the sales lead. Microsoft is also looking way forward to defeat Salesforce. Sichenzia one of the associate also quoted that “A lot of people feel that LinkedIn and Microsoft has become stagnant and it couldn’t grow beyond what is already done. The excitement is not anymore. By this deal, Microsoft will be the best partner and it will help it to grow in the ways it has become stagnant. And LinkedIn on the contrary, will put Microsoft at the level of more socially relevant company.”

There are also some other specific ways that, Microsoft and LinkedIn could strengthen each other’s product. For instance, LinkedIn offers Facebook-style newsfeed to the users. Microsoft plans to integrate those news feed into Office 365, allowing users to keep track of developments in their professional network while they are working on doc files and spreadsheet.

Access to the LinkedIn’s information will especially be helpful for Microsoft’s customer relationship software. CRM is considered as a software tool for maintaining the long term relationships with the customers. This deal has been unanimously approved by both the company’s board of directors and is subject to approval by LinkedIn’s shareholder and other regulatory approval.