Microsoft to acquire LinkedIn - Microsoft Dynamics CRM Online with Azure becomes the main business management tool of social networks

15 June 2016

Dynamics CRM Online with Azure becomes the main business management tool of social networks


Taking the IT world by surprise, Microsoft, the world’s leader of software and cloud, has announced a transaction to acquire LinkedIn, the world’s largest and most valuable professional network, for $26,2bn.


Two-thirds of LinkedIn’s turnover is generated through monetization of individual and organization subscriptions for recruitment solutions. This acquisition will allow LinkedIn’s communication tools and Microsoft’s productivity tools to work together on new shared platforms. Jeff Weiner will remain CEO of LinkedIn, reporting to Satya Nadella, CEO of Microsoft.

Along with the new growth of Office 365 commercial and Microsoft Dynamics CRM businesses this deal is key to a bold ambition to reinvent productivity and business processes : how people find jobs, build skills, sell, market and get work done and ultimately find success requires a connected professional world. This combination will make it possible for new experiences such as a LinkedIn newsfeed that serves up articles based on the project you are working on and Office suggesting an expert to connect with via LinkedIn to help with a task you're trying to complete. In short, reinventing selling, marketing and talent management business processes. For Microsoft, this means new opportunities will be created for monetization through individual and organization subscriptions and targeted advertising.


Our expert’s insights

Stéphane Dorrekens, Chief Technology Officer of Nerea

The acquisition of LinkedIn marks a turning point for Microsoft’s ambition for its CRM, which becomes a strategic product for the group. After the cancelled buyout of SalesForce, this new strategy aims to position Dynamic CRM Online and Azure as the main tool to manage social networks. This continues the trend set by recent extensions to Microsoft Dynamics CRM, such as Social Engagement and RelationShip assistant. In the short term, the buyout of LinkedIn will make headway for LinkedIn recruiting tools, which will help Nerea to expand its Recruit+’s solution. In the long term, the data of LinkedIn’s network will be analysed through Azure Analytics (i.e. Cortana, …), which would allow a native usage of the professional social network within Microsoft Dynamics CRM and drive new commercial opportunities.”


Our expert’s insights

Ziad Benslimane, Head of Operations

This acquisition will allow to enrich data through Microsoft BI tools such as Power BI. In the short term, LinkedIn should be available as a native source on Power BI, which will allow our clients to enrich their databases simply and automatically, including prospects.”


“What is it that is most needed in today’s world? For sure I’m a deep believer in productivity tools and communication tools because that’s what empowers people to be able to be great at their job. But think about taking that and connecting it to the professional network, and really having the entirety of what is your professional life being enhanced, more empowered, where you’re acquiring new skills and being more successful in your current job and finding a greater and bigger next job.” Satya Nadella, CEO of Microsoft.


Can this lead to a chain reaction?

« This acquisition marks the beginning of a big consolidation in the industry. Major actors such as Google, Facebook, Microsoft will acquire other brands and this trend will accelerate, because everyone wants to defend itself against others », remarked Mark Tluszcz, CEO of Mangrove Capital Partners.


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