2015 Acquisitions Hint at Future Direction

Key acquisitions in 2015 shore up Microsoft’s product portfolio in areas such as mobility, online services, big data, and security. Acquisitions can signal that Microsoft is buying technology where it sees a market it needs to enter quickly but can also indicate internal product development is falling behind competitors, a need to improve its talent pool or patent portfolio, or a move to discourage other companies from entering a market.

Acquisition Strategy Shifting

In past years, Microsoft has made several large acquisitions, such as Nokia, Skype, and Yammer, to expand in a market quickly. In 2015, no single acquisition immediately impacted Microsoft’s market position within a segment. Rather, Microsoft’s recent acquisitions bring specific features and technology that complement existing Microsoft products or strengthen products in areas—notably, mobility and online services—where competitors have had a market lead. Recent acquisitions have also often been integrated quickly, particularly those that support Microsoft’s online services.