Microsoft Corporation, an American multinational technology company has recently snapped a business-oriented social networking service LinkedIn. The deal between world's professional cloud and the leading professional network is taken as one of the year's biggest technology deals.
Microsoft is buying LinkedIn for $26 billion. Both the companies are not doing great these days. Microsoft still runs few of the widely used software whereas LinkedIn carries its own professional social database.
Well Microsoft CEO Satya Nadella and LinkedIn CEO Jeff Weiner have joined their hands and one of the reasons behind their acquisition is to revitalize Microsoft as it can be found lost a long ago by the shifts in the technology.
Well both the CEO's are relating these reasons to their staff behind the acquisition.
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Microsoft is shifting to become such a company that basically sells online services to business customers and LinkedIn will help it to broaden its perspective easily.
No doubt, LinkedIn serves many job professionals in finding the new job opportunities and so Microsoft feels it as an indispensable tool to acquire new customers and balance the old ones.
After Meeting with two hard threats, first by Google that launched Gmail and Google Docs that outdated Microsoft Outlook and Microsoft Office, Microsoft tried to face these attempts by bringing Bing but it couldn't work well so it is thriving on to expand its customers.
Firstly, Microsoft is basically stressing on business consumers rather than consumer market.
Earlier Microsoft used to sell individual copies of software that can be run on customer-owned hardware but now it is shifting to selling online services backed up by subscription fees and marketing.
...as LinkedIn already has online services rather than individual selling thing.
As LinkedIn offers a Facebook-kind newsfeed to its users and Microsoft plans to club this newsfeed into Office 365 user interface so as to help people in keeping record of developments in professional network.
Microsoft hopes to enhance and broaden its software Dynamics so as to give better access to customers to find their data easily. And this will help Microsoft in gaining much profit.