Microsoft (MSFT) went on an acquisition spree in the first half of 2018, buying more than ten companies as it worked to expand its share of the cloud computing market and regain ground in the education technology market.
Microsoft inked 11 acquisition deals in the first six months of 2018, exceeding the total number of acquisitions it made in the whole of last year, according to Crunchbase data.
Microsoft reportedly beat Google to a deal with GitHub
Microsoft’s notable acquisitions in the first half of the year included the purchase of GitHub. The acquisition of GitHub, a code-sharing service popular with professional software developers, is seen as intended to supercharge Microsoft’s campaign for a larger slice of the cloud computing market.
According to CNBC, Alphabet’s (GOOGL) Google also showed interest in buying GitHub before Microsoft apparently beat it to a deal with the code-sharing service. Microsoft paid $7.5 billion for GitHub. At some point in the past, Amazon (AMZN) and Tencent (TCEHY) also explored buying GitHub.
Flipgrid could bolster Microsoft’s campaigns in the education market
Microsoft also acquired Flipgrid, a leading provider of video discussion platforms in the education space. Flipgrid is available in 180 countries, and it serves more than 20 million teachers and students. The company’s acquisition of Flipgrid was seen as aimed at helping it regain ground in the education technology market, where it has lost ground to Google.
Microsoft also acquired Bonsai in the first half of 2018. Bonsai is a developer of artificial intelligence–based software. The move seems to fit with Microsoft’s campaigns for more revenue in the cloud market.
Microsoft is playing catch-up to Amazon in the cloud
Microsoft’s share of the global cloud market grew to 13% at the end of the first quarter from 10% a year earlier, but it still trails Amazon, which controls 33% of the cloud market, according to Synergy Research. Google, IBM (IBM), and Alibaba (BABA) are other cloud vendors playing catch-up to Amazon.