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How Cisco’s Accompany Acquisition Could Hurt Microsoft’s LinkedIn

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Microsoft’s approach towards collaboration space

Earlier in the series, we discussed how Microsoft (MSFT) could be impacted by Cisco’s (CSCO) acquisition of Accompany. Though Microsoft and Oracle (ORCL) are dominant players in the enterprise software space, they are yet to transition fully to a cloud model. They’re integrating their collaboration apps into their productivity suites to increase their appeal and cater to organizations that are content with the siloed approach. Enterprises that follow the siloed approach prefer not to share information with their own groups or departments.
social platform-linkedin

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Cisco’s Accompany could kill LinkedIn

Now let’s look particularly at how Microsoft’s LinkedIn could be affected. Microsoft’s LinkedIn is dependent on its members to not only “connect” with employees and friends but also to keep their profiles up to date. On the other hand, Accompany leverages AI and ML (machine learning) to search the web and gather information from social media websites like Twitter (TWTR) to create and update profiles of C-executives.

Sharing his views on Cisco’s acquisition of Accompany, Ray Wang, principal analyst and founder of Constellation Research, said, “This is kind of like the LinkedIn killer.” LinkedIn took more than 17 years to develop its database. Accompany, which has been in operation for five years, has become the “the richest database of senior decision makers in the world.”

The above chart shows the results of a recent report released by Business Insider and published on VideoInk. The report said that LinkedIn emerged as the safest social media platform to view or post content. It was followed by Facebook (FB), Instagram, Snapchat, and Twitter (TWTR). Google’s (GOOG) YouTube came in last with only 4% of respondents saying that they felt the safest posting content or participating on the platform.

Both Cisco and Microsoft have significant cash reserves, which they could put towards adding new features, enhancing their social components, and broadening their footprints, and thus the companies could prove to be a serious threat to each other. The companies are making substantial investments in AI (artificial intelligence) and ML (machine learning) to gain an edge over each other.

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