Microsoft announced yesterday the acquisition of Github which was by my account impressive on several levels.  I don’t particularly look at Microsoft as an innovative or even as a forward thinking company at all, until recently that is.   Like a lot of other mature companies I find Microsoft clumsy and too big to move in a nimble way to get ahead of the market.  Maybe Bezos is teaching them something about being strategic?

I was wondering what really drives Microsoft these days? They have only had a handful of strategic acquisitions or ones with some meaningful impact on their business (Great Plains, Hotmail, LinkedIn or Skype).  For 25 years there has been a trail of questionable acquisition decisions from online travel agencies to poorly executed internet marketing companies.  Microsoft seems to follow the “me too” with little strategic value and billions of dollars in write downs.

Who at Microsoft is has been asking Why?  or What drives us?  What drives our future?  It seems like someone may have started to ask these questions a couple years ago.  Until then there were more me too decisions than strategically relevant ones.   

Microsoft has been gaining momentum in its cloud business and giving Amazon a glimpse into potential long term competitors.  

Github shows a very strategic approach to building the cloud business, embracing the development community, and seeing that the future lies beyond just adding revenue in their acquisitions.  

Microsoft still needs to start thinking like Amazon or Google when it comes to strategic growth, but Github is a step in the right direction.

See more about how we see strategy:  https://www.meicor.com/winning-strategy/