How Microsoft’s recent initiatives inspire optimism in investors
How Microsoft is expanding its presence through acquisitions (Part 10 of 13)
Strategic acquisitions enhance Microsoft’s domain expertise
In late 2014 and early 2015, Microsoft (MSFT) made two strategic acquisitions, Equivio and Aorato, that pleased investors. Equivio provides machine learning technologies for eDiscovery and Aorato is a cyber security company. Microsoft has been working very hard to broaden and diversify its operations and develop the domain expertise to increase revenues.
With the acquisitions of Aorato and Equivio, Microsoft has demonstrated its intent to capture market share in the cyber security, big data, and machine learning spaces. Both the acquired companies operate in rapid growth spaces. Thus, if Microsoft is able to strategically align with the companies’ operations, it will bode well for Microsoft’s future growth.
Launch of HoloLens in virtual reality space
Microsoft attracted a lot of media interest not only with the detailed overview of Windows 10, but also with the announcement of HoloLens. HoloLens is a virtual reality (or VR) headset in the wearables space. The wearables space is attracting a lot of attraction and leading technology players like Salesforce (CRM), Accenture (ACN), Google (GOOG) (GOOGL), and Intel (INTC) have all launched or are planning to launch varied products in this space.
Microsoft’s focus on big data, IoT, and cyber security space
As seen in the earlier part of the series, through Raspberry Pi and Windows 10, Microsoft is taking fast steps to strengthen its footprints in the IoT (Internet of Things) space.
Gartner estimates that by 2017, more than 20% of organizations will have digital security services that will protect business initiatives using devices and services in IoT. Gartner also predicts that the number of connected intelligent devices will grow exponentially, and that these devices will have the ability to sense, interpret, communicate, and negotiate, and assume a digital “voice”.
Thus, it’s no wonder companies are looking for opportunities to create new services, usage scenarios, and business models based on these areas of high growth.
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