Social Networks, Considerably More than “Likes”
Microsoft’s acquisition of LinkedIn will bring together the professional Cloud and network under one roof. Microsoft’s Azure, which continues to have solid growth opportunity, could benefit from the acquisition as well. One potential is for LinkedIn to move most of its data/application needs to Azure, reducing costs (and generating a direct synergy), plus it would keep LinkedIn away from Azure’s closest competitor, Amazon’s AWS. In addition, LinkedIn’s wealth of data could be leveraged for B2B marketing and creating value by pooling all of Microsoft’s services. Microsoft, for instance, could provide more favorable deals for advertisers (e.g. cheaper access to user data) if they use Azure for cloud and/or virtualized services; Microsoft is also expected to move its services and platforms to Azure, including Office 365.
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