LinkedIn’s extensive database, coupled with Microsoft’s insights from Microsoft 365, positions the company to enhance machine learning and predictive capabilities going into the future, according to Nadella.
Industry thought leaders indicated the deal benefits both companies, particularly because of LinkedIn’s business database.
Consolidation could continue with the possibility of more Microsoft acquisitions. Microsoft was recently named as one of the companies in the running to potentially buying Marketo, which was acquired by Vista Equity Partners for $1.79 billion in May. Microsoft’s hat was also thrown into the ring as a potential buyer when rumors started circling about Salesforce looking to sell.
With the acquisition of LinkedIn, industry experts noted that the possibility of Microsoft acquiring Salesforce is no longer likely.
Microsoft will likely continue to evaluate acquisitions in the future, according to Mary Shea, Principal Analyst at Forrester Research. "That said they have been very strategic with the Lynda.com and now LinkedIn deals. If you buy the combined total addressable market of $ 315B for the LinkedIn/Microsoft entity then there is more than enough market opportunity as well integration and execution challenges for Microsoft to focus on in the near and mid-term to fully maximize the potential of the LinkedIn deal.
Shea added that the LinkedIn acquisition is a huge boon for Microsoft. "Microsoft has already been enjoying some good market traction with Dynamics, and now with the LinkedIn asset Microsoft will have more arrows in its quiver — in and above price — to compete head to head with Salesforce in the enterprise CRM space."
She suggests that, down the road, therer is a possibility for Microsoft to acquire one of the leading sales enablement players. "Perhaps one of the content management platforms that utilize machine learning to push relevant content to B2B sellers at the right point in the cycle and provide other guided selling capabilities."