Why is Microsoft buying LinkedIn?

Microsoft purchases LinkedIn for exorbitant $26.2 billion. What does buying the world’s largest business social networking service by the Redmond-based company mean?

Jakub Skałbania, Lead Consultant and the Partner in Netwise comments:

Data, data, data. The acquisition of LinkedIn translates into obtaining by Microsoft a large, over 430 million contacts database of the biggest in the world business social networking service. It is, above all, a plentiful source of knowledge for Microsoft’s business applications and services, which progressively fare well as standard services in the digital transformation age. Microsoft Dynamics CRM and Office 365 products will in particular benefit from it.

Key benefits of Microsoft buying LinkedIn

Let us imagine a fusion of these incredibly valuable data with the stored in the systems business information – we get a uniform and professional profile of a potential customer (or a candidate or competition); we obtain a contextual stream of their activities and, what is more, from the very start we get it in the context interesting for us (business environment). Furthermore, in the occurrence of adding a person our CRM system we have a full access to the history of their records, career steps, as well as the relationship with our competition and potential clients.

One of the first benefits of purchasing LinkedIn, as it seems, will be a thorough integration with Dynamics CRM and Delve – an Office 365 product. On the basis of recommendations and a grand collection of LinkedIn profiles metadata CRM Online and Delve users will be able to receive information from LinkedIn on who is an expert in a given field as well as who has ever been interested in a particular product or service.

To sum up, Microsoft has bought the LinkedIn’s data base and not the concept of the portal. It is clear.

Here are some reasons why is Microsoft buying LinkedIn

Knowledge

Microsoft possesses an impressive business products portfolio. Outlook provides the knowledge of our calendar and meetings, Delve says a lot about the documents created in our company, Sharepoint gives access into the internal communication, and Microsoft CRM is a data base of our relationships with the customers.

LinkedIn and its Economic Graph

What about LinkedIn? The company has created the Economic Graph – a digital representation of every employee and their CVs, every available position and all the required skills that a candidate must have in order to get the job. Moreover, LinkedIn owns Lynda.com – a social learning tool that enables attaining competences. For Microsoft it means even more data for Azure machine learning, analyses, BI processes, but also the possibility of creating a service where organizations begin to use business systems (including CRM) that already have ready to go data packets about the market.

Microsoft buying LinkedIn

Office 365 will profit as well.

The products from the Office 365 packet will get a significant amount of information. It is speculated that on account of that the sale of the office software packets subscriptions in the cloud will increase, especially in case of large organizations and small firms. We should remember that Office is a powerful tool with 1.2 billion users including 70 million business subscriptions.

Productivity is a key

Satya Nadella, Microsoft’s CEO explained in the letter to the employees that LinkedIn’s acquisition is a realization of the vision about redefining the notion of productivity in business. He also notes that elements like the way people look for a job, develop competencies, sell, offer solutions, work, and eventually achieve success, require a coherent business environment – a place, network that will gather the information related to the professional life (LinkedIn) and the knowledge from Office 365 and Dynamics CRM. We are witnesses to the beginning of that world. If you use Dynamics CRM for seeking and following up sales leads, LinkedIn will give you easy access to the contacts database.

Cortana and mobile

The intention of buying LinkedIn fits well the Microsoft’s Cloud First, Mobile First strategy. The company consequently develop its cloud solutions, adapts them to mobile devices in order to make Dynamics CRM with analytics / BI or social tools available from anywhere, anytime. In the last quarter LinkedIn registered over 45 billion page views, 60% of which came from mobile devices.

Photo credits: Paul Sakuma, AP; Microsoft