Microsoft’s Recent Buyouts: A ‘Mobile-First, Cloud-First’ Strategy?

Microsoft’s “mobile-first, cloud-first” strategy

Previously in this series, we discussed how Microsoft (MSFT) is likely to benefit from its recently announced acquisitions—Xamarin and SwiftKey.

Both these acquisitions are in line with what Microsoft’s CEO, Satya Nadella, has dubbed the company’s “mobile-first, cloud-first” strategy. IDC has stated in the past that by 2016, $1 out of every $5 spent on software is expected to be spent on the cloud model. As a result, Microsoft revised its corporate strategy in accordance with the change in the IT (Information technology) landscape that has heightened the price sensitivity of clients. Clients tend to want to pay only for those services that are delivered, based on the scale of operations. In late 2015, Microsoft changed its operating segment’s reporting too, according to the company’s “mobile first cloud first” strategy.
Microsoft’s Recent Buyouts: A ‘Mobile-First, Cloud-First’ Strategy?

Microsoft’s keenness on cross-platform app development

In line with its mobile-centric strategy, the company has taken multiple steps to strengthen its presence in the smartphone space. Microsoft has targeted its smartphones toward emerging markets (EEM), which are expected to witness substantial growth in smartphone adoption.

Microsoft’s Xamarin acquisition is positively looked upon, at least by some industry analysts. Jeffrey Hammond, an analyst at Forrester Research, believes that Xamarin acquisition “makes Microsoft a must-consider option” for mobile-app developers. Apart from Microsoft, Xamarin has also partnered with other peers, namely, IBM (IBM), (CRM), SAP (SAP), and Oracle (ORCL).

With Microsoft’s recent acquisition of Xamarin and SwiftKey along with acquisitions of Talko, Acompli, Sunrise Atelier, and 6Wunderkinder (or Wunderlist) in the past—as well as its development of apps for other platforms—it’s clear that Microsoft’s strategy centers on the development of cross-platform apps and services.

The question remains: How is Microsoft doing compared to peers in the cloud space? Continue to the next part to find out.