LinkedIn the social network for business is bought by Microsoft for a record acquisition of $26.2 billion. The data component and algorithm component are basically the two components that Microsoft wanted. The two complex algorithms i.e. “Social network graph establishment” and the “information valuable to the person”used by LinkedIn is what interests Microsoft.
Algorithm is basically a set of operations that tells the computer what data to process, what calculation to run on what data to spawn the perfect result. These are the secret recipes that make or breaks the reputation and the firms guard theirs to life. Microsoft is looking forward to incorporating these algorithms into its existing products and relocate the LinkedIn’s public significance into the company’s internal networks.
The data LinkedIn has acquired from its 430 million users over the period of time will allow Microsoft to offer that data set to the CRM (Customer Relationship Management) software for in-app advertising and the company may also be able to harvest new products and services.
But from the users perspective, if Microsoft abuses this huge amount of data then LinkedIn’s customer may stop contributing to it. Microsoft has to be very careful while handling this data or might just end up in a muddle.