Now that Microsoft's $26.2 billion purchase of LinkedIn is a done deal, CEO Satya Nadella has spelled out some much-anticipated details surrounding plans to integrate the companies' technologies. Here are the key details from Nadella's post—which appropriately, was written on LinkedIn's publishing platform:
In the immediate term we will pursue a specific set of integration scenarios, for example:
LinkedIn identity and network in Microsoft Outlook and the Office suite
LinkedIn notifications within the Windows action center
Enabling members drafting résumés in Word to update their profiles, and discover and apply to jobs on LinkedIn
Extending the reach of Sponsored Content across Microsoft properties
Enterprise LinkedIn Lookup powered by Active Directory and Office 365
LinkedIn Learning available across the Office 365 and Windows ecosystem
Developing a business news desk across our content ecosystem and MSN.com
Redefining social selling through the combination of Sales Navigator and Dynamics 365
Save for the last item, Nadella's post didn't allude to what many see as the main rationale for the acquisition, namely the trove of curated business user data contained within LinkedIn, and the possibilites it holds for analytics, specialized applications and more.
Salesforce CEO Marc Benioff lost out on acquiring LinkedIn to Microsoft, and subsequently lodged concerns with regulators in the US and Europe that Microsoft would restrict third-party access to LinkedIn's database for competitive advantage. But regulators did not see it the same way, although the EU extracted some concessions from Microsoft regarding the deal (see our full report here).
Meanwhile, most of the short-term integration goals Nadella cited are "routine and obvious opportunities that will empower individuals and that few would object to," says Constellation Research VP and principal analyst Doug Henschen. "Adding your own LinkedIn identity and network to Microsoft Outlook and the Office suite, for example, is a win. Ditto LinkedIn notifications within the Windows action center."
Privacy concerns may crop up when and if Microsoft starts getting into the bulk use of LinkedIn data, such as by extending the reach of LinkedIn Sponsored Content across Microsoft properties, for example, and targeting news and content across the Microsoft content ecosystem and MSN.com based on LinkedIn profiles, Henschen adds. "This is no different than a lot of other examples of content targeting, however, so few people may bat an eyelash."
It's the combination of Sales Navigator and Dynamics 365 that holds the most interest for enterprise customers. "This is about Dynamics CRM, specifically, and it’s what Salesforce and other LinkedIn data customers are concerned about," Henschen says. "Salesforce has had and continues to have access to this LinkedIn data. It’s a powerful source of lead information for sales teams."
The question now is whether Microsoft creates a superior way for Dynamics customers to connect to and interact with LinkedIn data, Henschen adds. "Salesforce and other data partners of the formerly independent LinkedIn will obviously be keeping a close watch on whether their access to data is somehow diminished down the road or whether Microsoft exploits advantages in terms of the depth, breadth, cost or ease of using LinkedIn data in CRM scenarios."
24/7 Access to Constellation Insights
Subscribe today for unrestricted access to expert analyst views on breaking news.