Here’s How Facebook Will Be Impacted By The Microsoft-LinkedIn Deal
While its acquisition by Microsoft will give LinkedIn’s platform the much need fuel for growth, Facebook (NASDAQ:FB) ambitious enterprise social network project “Facebook@Work” will also get a much stronger competitor. The project, which is currently in beta mode, is being used by 450 companies globally, with several thousand others in queue to join the platform. LinkedIn was considered the closest competitor to this product, although the offerings of both platforms are quite different from each other. Still, the combination of Microsoft’s work productivity tools with LinkedIn’s professional network could prove to be a tough competitor for Facebook@Work. Microsoft plans to use LinkedIn as the social fabric across all its products, addressing the missing social piece in its established enterprise products. We admit that Facebook@Work is still in beta mode and Microsoft’s integration with LinkedIn will take a while. Still, Facebook needs to prepare itself for intense competition in the enterprise social network space.
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Facebook@Work Needs To Compete Against A Strong Combination Of Work Productivity And Social Expertise
Microsoft has dominated the work productivity software market for 30 years. With the acquisition of LinkedIn, the company is looking to add the missing “social angle” to its products. The company now has big plans for LinkedIn’s news feed which in future could be enhanced and expanded by Microsoft’s desktop and cloud productivity apps. The company’s search engine Bing will also be strengthened by connecting with LinkedIn’s people and professional network. LinkedIn could also be integrated with Microsoft’s voice assistant Cortana.
While Facebook is the industry leader in social networking, its experience in work productivity software is limited. Facebook is looking for innovative ways to make its enterprise social platform a success, such as a mobile first solution which will allow users to access corporate information on mobile devices — the most common way of accessing information. It is also focusing on emerging markets and small and medium enterprises. Such firms do not have an existing platform to communicate with employees and should prefer its “ready-made” solution. This segment could still be drawn to Facebook@Work, given the popularity of the platform and ease of use. That said, the Microsoft-LinkedIn combination will prove attractive for large users.
Facebook@Work is still in its early stages and the company is looking to make this a revenue driver in the future. Microsoft will need to use LinkedIn’s social platform to integrate the work-productivity and social streams in a seamless environment. This will determine how much it can impact Facebook@Work, eliminating the need for enterprises to look for another “social” platform. However, for small and medium enterprises here and abroad, Facebook@Work has a strong potential. The road definitely has gotten tougher for Facebook. Whether the company can now make a success out of its enterprise social platform remains to be seen.
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