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How Might Microsoft-Flipgrid Pose a Threat to Google’s YouTube?

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Flipgrid’s acquisition to boost Microsoft’s cross-platform mobile initiatives

Earlier, we discussed how the acquisition of Flipgrid would benefit Microsoft (MSFT) in the education and social learning space. We also learned that Microsoft’s acquisition of Flipgrid, a social video discussion platform, has now made the latter’s service free. Flipgrid is expected to complement Microsoft’s efforts in the education space.

Because Flipgrid runs on Apple’s (AAPL) iOS and Google (GOOG) Android, the acquisition will expand and enhance Microsoft’s cross-platform mobile initiatives.

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Google is a prominent player in education technology

Microsoft’s acquisition of Flipgrid will give the company the edge to compete with Google (GOOG) in the education technology industry, where through its Chromebook, Google is a prominent player. Launched in 2011, Chromebooks are cheaper than Microsoft’s Windows laptops and Apple’s iPads, which accounts for their increased adoption and popularity.

Chromebooks run Google’s Chrome OS (operating system), a free Linux-based OS that’s tied to the company’s cloud services. Also, Google’s Google Classroom has brought Drive and Docs, its productivity apps, together for schools, helping students to do their assignments with ease and collaborate with their peers.

For these reasons, Google dominates the education space. In 2017, Google accounted for 59% of all mobile device shipments to US K–12 schools as reported by Futuresource Consulting. Microsoft accounted for 21.6%, and Apple accounted for 19.3%.

In the education, learning, and productivity spaces, Microsoft’s Office 365 poses a serious threat to Google’s G Suite for education. Microsoft’s Office 365 is the company’s productivity suite. The acquisition of Flipgrid should further boost Microsoft’s position in the education space.

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