Nadella spends money to buy Microsoft's future: acquires two companies

Microsoft 's acquisition of Sunrise and Acompli is not just two simple transactions, but an important part of CEO Satya Nadella's strategy to "reshape" Microsoft. Today's Microsoft is changing rapidly.

Microsoft has been having good things to do with some well-designed iOS and Android apps lately. Following last year's acquisition of email client Acompli, Microsoft announced on Wednesday that it had acquired calendar app Sunrise. Both Acompli and Sunrise apps support both Android and iOS, but not Windows.

If you don't know about Microsoft's personnel appointments, you might think that Yahoo CEO Marissa Mayer has taken over Microsoft. But unlike Yahoo's acquisitions, these investments by Microsoft have immediate results. This is part of Microsoft's "reinvention" plan.

Microsoft's "reinvention" campaign, led by CEO Satya Nadella, aims to transform Microsoft from a Windows-centric company into a true software company. Acompli has been quickly turned into a cross-platform Outlook email app by Microsoft, and it is conceivable that Sunrise will have the same fate or become a standalone Office-branded calendar app.

The two deals have one thing in common: Office. Last year, Microsoft made its Office apps free for iPhone, iPad and Android, the first bold move by CEO Nadella after he succeeded Steve Ballmer.

Now consumers have a set of high-quality applications that allow them to easily transfer traditional desktop computing tasks to mobile devices. Many people have questioned this: How can Microsoft make money by launching free Office applications for iOS and Android? But some people have praised that there is finally a set of free high-quality Office applications. In any case, Microsoft's move makes people realize that Microsoft is changing.

Microsoft's strategy goes much deeper than launching free apps. Yahoo's acquisitions were about talent, and Microsoft Office, OneNote, OneDrive, and Skype apps have proven that Microsoft has enough capabilities to develop some great iOS and Android apps. Nadella's initial strategy seems to be focused on winning or delighting users.

The positive reviews from users and the brand awareness helped Outlook quickly rise in the AppStore rankings. This is exactly the same as when Microsoft released the iOS version of Office. But going back a few years, Microsoft did not have any iOS apps, which shows how much Microsoft's urgency and focus have changed.

Just as Microsoft is making a smart move by launching free Office apps for iOS and Android, it is also a smart move for Microsoft to acquire cross-platform app startups that compete with Office. Microsoft is well aware that its Office dominance faces a huge threat as more consumers and businesses turn to cloud services such as competitor Google 's Google Docs office app. Getting users and businesses to continue to embrace Office (whether it is Windows, Android or iOS) is a challenge, but once successful, it will benefit Microsoft greatly. In the era of Windows dominance, it was simply impossible to launch an Android or iOS version of Office. But now, Microsoft must make adjustments quickly.

The Sunrise deal also reflects Microsoft's willingness to work with competitors rather than redeveloping everything on its own. Sunrise integrates well with applications such as Facebook , Google Maps, Foursquare and Songkick. "We are very interested in how we can get these new Web applications that we don't have," Bing chief Stefan Weitz said in 2012.

Today, Microsoft has partnered with companies like Twitter, Facebook, and Apple to integrate Bing search into their services. If Microsoft really wants to beat Google and integrate its services into every relevant platform, working closely with popular Web services is essential.

The two recent acquisitions have enhanced Microsoft's cross-platform capabilities, and of course, they will be integrated into Windows. For a traditional behemoth like Windows, it is not easy to "reinvent" it, as can be seen from the setbacks encountered by Windows 8. However, Microsoft is already developing a universal email application for Windows 10 that supports mobile phones, PCs, and tablets at the same time.

Microsoft's future acquisitions may further tell us where they are going. Recently, it was reported that Microsoft spent another $200 million to acquire N-trig, the company responsible for manufacturing the Surface Pro 3 stylus. There is no doubt that Microsoft's strength in this area will be strengthened, because recently it was reported that Apple's iPad Pro will also be equipped with a stylus.

In a recent interview with ABC, Nadella said that fountain pens may disappear within 10 years. When the reporter asked "what common things may disappear within 10 years", Nadella said "fountain pens" without hesitation. This may also be a signal that Microsoft will invest in the stylus business. Microsoft has promised to innovate fountain pens for many years, and now may be the time to fulfill its promise.

It's clear that Nadella hasn't finished his M&A journey in Microsoft's "reinvention." As for where Microsoft will take Sunrise, Minecraft, and potentially N-trig, I believe there will be clearer signals at the end of this year. By then, it is almost certain that Nadella will have brought many talents and applications under his command. You can call this process transformation, reinvention, or rejuvenation. In any case, Microsoft under Nadella's leadership is changing rapidly.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.