Microsoft’s LinkedIn Purchase – Why They Did it and Why SalesForce Should be Worried

‘s Purchase shocked a lot of people whereas others like myself saw it coming.  I read some really good articles on the subject from Business Insider and PC World and wanted to share some excerpts and my thoughts.   recently passed on a buyout from Microsoft because they couldn’t come to terms on a number and/or the lack of interest in giving up control of the company by its CEO.  Read more below.
Microsoft's LinkedIn Purchase - Business Insider Logo

Nadella wants to reinvent human resources and customer and sales software.

He’s going to marry LinkedIn with Microsoft’s Dynamics and . Dynamics is Microsoft’s customer relationship management (CRM), HR, and accounting apps.

What Nadella is imagining is a LinkedIn that’s so tightly bound with Office 365 and Dynamics that companies will naturally want to buy new cloud services that makes use of all three of them.

“It helps us differentiate our CRM product with social selling. It helps us take Dynamics into new spaces like human capital management with recruiting, and learning, and talent management.”

Remember, Nadella famously attempted to buy Salesforce last year but the deal fell through when the two couldn’t agree on a price. It surprised no one that Salesforce CEO Marc Benioff ultimately didn’t sell. 

What Nadella is imagining is a LinkedIn that’s so tightly bound with Office 365 and Dynamics that companies will naturally want to buy new cloud services that makes use of all three of them.

It wasn’t a big surprise to me that Microsoft decided to acquire LinkedIn. anyone who has been playing with the Office 365 people section has probably noticed it was already here at least similar to the newly acquired companies design. I already had begin telling clients that if they were used to linked in and they were going to love the new people experience with them and Office 365. But with that said what was Microsoft’s real reason behind the twenty-seven billion dollar acquisition? Linked In the largest Social Network for business users and has become the de-facto resume and reference checking site for myself and my colleagues in the technical world. It also is important for many other Industries especially any candidate looking for a job in the business world, corporate recruiters and headhunters, and companies seeking to hire new talent. Microsoft has came out and said that there are plans in the works to integrate with Microsoft Dynamics and Office 365 to create a truly transformational experience among the CRM social networking, job search, and business worlds. I am curious to see how much influence from from Office 365, SharePoint, and Dynamics is pushed into the LinkedIn space and vice versa.  Others PC world are speculating that it has more to do with integration with Cortana.  What do you think?

 

Microsoft's LinkedIn Purchase - The Microsoft / LinkedIn Experience will unify CRM, recruiting, and information about colleagues, clients, and partners.
Microsoft’s vision of how the LinkedIn / Microsoft / / Office 365 experience will play out. (courtesy of Microsoft)

Picture a typical business trip: meetings all day, drinks at night. A good salesperson knows their contacts before they step foot in the door. But that goes for coworkers as well: How do you make them feel comfortable? How do you make them part of a team? How do you let them know whom to approach, both inside and outside the company?

All of this usually takes some effort on your part, or at least a competent assistant. And that’s the role that Microsoft hopes to play, especially with its digital assistant, Cortana, and Office 365.

Right now, Cortana provides some basic information about your calendar, suggesting, for example, what time you’ll need to leave to arrive at your next meeting on time. In Microsoft’s digital future, Cortana will be able to sum up what you need to know about your business relationship, and what information you can use to cement a more personal connection, too. It sounds smarmy, but a good salesperson will tell you that an emotional connection helps seal the deal.

If you’re bothered by the thought of Microsoft’s owning more data about you—well, you probably should go delete your LinkedIn profile, now. Microsoft already knows your calendar (Outlook), your meetings (Outlook), your coworkers (Delve), your accounts (Microsoft Dynamics CRM), and some of your expertise (Delve). Microsoft calls this the .

For his part, Jeff Weiner, the chief executive of LinkedIn, said his company envisions a so-called Economic Graph, a digital representation of every employee and their resume, a digital record of every job that’s available, as well as every job and even every digital skill necessary to win those jobs. LinkedIn also owns Lynda.com, a training network where you can take classes to learn those skills. Then there’s the LinkedIn news feed, where you can keep tabs on your coworkers from a social perspective as well.

 

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