Microsoft Cuts Display Ad Business, Sells Bing Maps To Uber - InformationWeek

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Microsoft Cuts Display Ad Business, Sells Bing Maps To Uber
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zerox203
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zerox203,
User Rank: Ninja
6/30/2015 | 10:23:01 PM
Re: Microsoft Cuts Display Ad Business, Sells Bing Maps To Uber
Like tzubair said, selling your ad business to AOL might seem a quite strange - but let's remember Verizon's acquisition of AOL earlier this year. In that deal, AOL's large market for video content delivery was cited as a major cornerstone (the numbers were pretty impressive but I, too, had no idea AOL had such a big video audience). One would think the deal with Microsoft has something to do with that, considering the Reuters article specifies the deal includes video ads. It looks to be a pretty broad deal, including Skype and Xbox, two major brands for Microsoft, but we still don't know all the details - how does this line up with Microsoft's mobile strategy? Mobile video was cited as a big goal for Verizon/AOL. Presumably they'll have control of  ads on Skype's mobile app, etc, but I notice no mention of how this will impact Windows 10 Mobile directly.

As for cutting your losses, I'd consider Bing Maps to Uber to be a good sell. It doesn't line up with Microsoft's enterprise productivity strategy, but it probably has enough users to make it worth maintaining. Though people like to make fun of Bing, 20% is really not bad when you consider how much of a juggernaut Google is. Compare to Windows phone's struggles in the mobile space (where Microsoft has around 2-3%, depending where you get your numbers, and Google has about 65% with Android), and one could actually see where Bing still fits into Microsoft's strategy for promoting growth in their mobile market. Expanding it through partnerships (the same way they're extending Office to other platforms) seems like a better recipe for success than brute forcing it.
shakeeb
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shakeeb,
User Rank: Ninja
6/30/2015 | 9:00:40 PM
Re: Mobile Devices
It is always better to look in to diversified business than focusing on one area. It will help in increasing revenue.
shakeeb
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100%
shakeeb,
User Rank: Ninja
6/30/2015 | 8:57:17 PM
Re: What makes sense
That is true.  Focusing more on process improvement will lead towards cost savings and increasing productivity. I think this is a good approach.
Kelly22
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Kelly22,
User Rank: Strategist
6/30/2015 | 5:37:03 PM
Re: Mobile Devices
@tzubair I agree Microsoft is trying to boost its mobile division, but it's strugglng. The recent reorganization (when Nokia's Stephen Elop got cut) is another indicator that Microsoft is willing to make big moves for mobile success. It'll be interesting to see whether Windows 10 makes a big difference in Microsoft's mobile business. There's promise, but it'll be hard to attract people already loyal to iOS/Android.
tzubair
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tzubair,
User Rank: Ninja
6/30/2015 | 5:24:01 PM
Mobile Devices
Apart from giving up control on their existing businesses, Microsoft is investing a lot into their mobile devices business. Having purchased Nokia last year, Microsoft is really looking to make the business division grow so that more and more smart devices are equipped with Windows Mobile. After a firm presence in the smart phones market, Microsoft will have much more avenues to grow.
tzubair
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tzubair,
User Rank: Ninja
6/30/2015 | 5:18:09 PM
Re: What makes sense
"I do agree with Microsoft's approach... it simply makes sense.... if they want to focus on innovation and core priorities, they need to take away those things that either consume time or simply need a different approach."

@mejiac: I agree with Nadella's decisions, but I am not sure if the approach is right. I think it's a good idea to form partnerships and let the other party handle your product such as the case with Uber and Bing Maps, but I'm not sure if you'd like to sell your revenue-generating business such as the ad program to AOL. I think that's a rather risky move.
mejiac
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mejiac,
User Rank: Ninja
6/30/2015 | 2:29:48 PM
What makes sense
Great Article Kelly,

I do agree with Microsoft's approach... it simply makes sense.... if they want to focus on innovation and core priorities, they need to take away those things that either consume time or simply need a different approach.

I think Microsoft has done a great job with Bing, but having it handed over to someone else so that they can focus on other business priorities, I think it's a smart decision.

With Windows 10 coming out, and Windows Phone trying to make a name for itself, having both of these intertwined products have Microsoft entire focus is a recipy for success!


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