In 2011, Microsoft spent $8.5 billion to acquire online telecommunications company Skype. I’m not sure how this fits into Microsoft’s portfolio of businesses other than to enhance its strength in productivity. Skype didn’t fit too well with online auction and payments company eBay, which had to take a write down on that company. Microsoft’s acquisition of Skype could turn into a lesson of history repeating itself with a huge write down for them as well.
More recently, Microsoft Corporation (NASDAQ:MSFT) seems focused on centering its acquisition strategy on enhancing its cloud service. This comes closer to its software core competency. Since October 2012 Microsoft bought three companies related to cloud technology. One company, PhoneFactor, deals with cloud authentication. Another company, StorSimple, pertains to cloud data storage. The most recent acquisition, MetricsHub, focuses on metrics in cloud management.
Microsoft could remake itself as a possible new cloud leader.
In summary, Microsoft lives in the shadows of Apple and Google in this new tablet era. Microsoft could redefine itself in the cloud arena. In the end, your investment dollars can find better fish in the sea.
The article 3 Risks Microsoft Investors Should Worry About originally appeared on Fool.com and is written by William Bias.
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