Yahoo Prefers Technological Improvement Through Acquisitions, Microsoft Prefers Customer Hype
Yahoo and Microsoft are two giants of their times and have seen similar domination of their rivals, leading to a constant struggle of keeping up with the pace of the rest of the world.
Both companies, however, started to very slowly evolve as new CEOs took over, and new ideas splashed in after a long period of spiraling decline.
While Microsoft gains monetary advantage due to its software products, Yahoo generates revenues through advertisement like Google. Nonetheless, both tech giants have another thing in common – acquisitions are considered vital to lay the foundations for a stronger comeback in the arena.
Marissa Mayer of Yahoo has already acquired over 40 startups, the most note worthy one being Tumblr, which cost $1.1 billion. However, the more rather not note worthy of them include Blink (messaging), Cloud Party (virtual gaming), Rondee (conference calls), LookFlow (image recognition), and Ptch (mobile video).
Acquiring also requires a lot space and time for the newly merged company to settle and absorb the environment. The bigger the acquisition, the more focus is diverted from the company’s basic products and services. This is what happened when Mayer found 12,300 employees added to her company after the Tumblr deal was signed.
Tumblr is one acquisition that does not offer technological usefulness to Yahoo. The rest of the startups are one way or the other fulfilling some technological void for the company, as per Mayer’s strategy. Her focus is on making the company better first, instead of providing the services loved by people as a whole.
On the other hand, Satya Nadella of Microsoft has completely turned the tables for the drowning company. While launching the flagship version of Windows – the product that gave birth to the bloom of the company – Microsoft never stopped and went ahead by exploring more possibilities, like by acquiring Nokia it gained a full fledged product line of Lumia handsets. It then unveiled the idea of delving into the trending virtual reality scope, by talking of HoloLens, a wearable that would allow you to interact through holograms.
But these innovations do not mean that the company is not seeking acquisitions. A few weeks ago we told you about Microsoft buying Accompli, an email app, to be used to redesign Outlook and was loved in all reviews. Microsoft has now announced the acquisition of Sunrise, a popular calendar application for mobile devices that is appreciated by users and critics alike.
Tweets started pouring in:
Excited to see MSFT investing heavily in great software that people will pay for. Even if they had to buy it first with Accompli & Sunrise
— Josh Elman (@joshelman) February 4, 2015
Yup, I just deleted the Gmail app on my iPhone to use the Outlook/Acompli app instead.
— Shira Ovide (@ShiraOvide) February 8, 2015
This means that while the company has still a long way to go with acquisitions and regaining its position back in the market, Microsoft is making a wise set of decisions by winning the people’s heart as the first step.