Saturday , February 16 2019

Microsoft is Focussed on LinkedIn Revenue Boosting-not Necessary the Bottom Line

Microsoft is focussed on driving revenue for LinkedIn, it’s chief financial officer Amy Hood said on Monday.


The reason behind Microsoft’s acquisition of LinkedIn is to boost revenues, not cost savings, chief financial officer Amy Hood said on Monday.

“I’m focused on growing the top-line revenue and accelerating that business and its potential with ours,” Hood said at the Morgan Stanley Technology, Media and Telecom Conference. “To add more customers. To increase their impact. To have it grow faster. To accelerate our business. To have the technical integration to deliver customer value…. I’m deeply, deeply focused on driving revenue growth.”

Although “smart things will happen” in the amalgamation of the professional social network, Hood said she’s not worrying LinkedIn CEO Jeff Weiner about whether the two companies can share an accounting team. Like the story “Fight Club,” (where the first rule is “you do not talk about fight club,”), Hood said her first rule of the LinkedIn integration is “just don’t mess with it.”

“You want to keep the core growing and they’re doing a great job of that, things are good,” Hood said. “They are motivated, Jeff’s a great leader.”

Hood also said that the two businesses utilize each other’s sales forces in the integration by citing the example of Microsoft integrating with LinkedIn on tools like Office 365.

Regardless of her commitment in scaling LinkedIn, Hood said that Microsoft employees would probably say she’s “cheap” when it comes to dealing cash. Hood said she emphasizes more on return on investment, and she will leave no stone unturned to invest in initiatives that drive revenue growth.

“If you ask anybody at Microsoft, could they spend more money, all of them would say yes,” Hood said. “They should say that! They should say, ‘Yes, I have so many terrific innovative, interesting, awesomely, impactful ideas, that you have to get me more money.’ I love that, I love that energy, and I listen to some really fascinating arguments ….then my job is to take those dollars, every one of them, and ask myself if we’re putting it in the right place.”

Further she discussed about Microsoft’s cloud business and tax plans.

Although Google, Amazon and Microsoft are considered the prominent cloud services providers, Hood said she wouldn’t count out companies like IBM and Alibaba.

“I think the IBM cloud gets a lot of mention with very large customers, you see that those in the press,” Hood said.

Moreover, Hood said that although Microsoft has encouraged for tax reform, CEO Satya Nadella is waiting to see what will be the new administration’s propose.

“I know we’ve not been a company to until to wait on tax reform to return capital,” Hood said. “It’s not been a reason to wait for the board or for Satya, who cares deeply about the topic.”

Microsoft must try to make the acquisition different. It has acquired many such companies with renowned leaders in the past, David Sacks’s Yammer and Mike McCue’s Tellme Networks among them. Ultimately, the real success measure can be determined on how it performs financially.



Facebook Comments
Rate this post

About Sirisha Rani

Check Also


Sapthagiri LLB Movie Review

Saptagiri LLB is a remake of director Subhash Kapoor’s Bollywood hit Jolly LLB. Sapthagiri, a ...