Microsoft Sendit
...Using these four categories, we can evaluate the strategic fit of the proposed acquisition of Sendit:
1. Distribution partners
Sendit acts as a distribution partner through its use of Windows as a base operating system for its mobile Internet networks. This expands the potential customer base for Windows, as each mobile network operator will essentially become an ISP with a Microsoft platform.
2. Companies that offer services
Amar Nehru describes his definition of service providers as technology solution providers and system integrators. The solutions provided by Sendit build on the internet, email and operating system solutions provided by Microsoft, and customers are charged in a similar way; both Microsoft and Sendit used subscriber based revenue models, whereby clients pay for services and upgrades on a per user basis.
3. Emerging technologies
Many in the industry believed that one of the next major telecommunications developments would be in the “convergence” of mobile technology with data delivery. (Page 2). Sendit’s technology uses mobile phones as a platform for Internet access, in a market environment where both mobile phones and the internet had ballooning subscriber bases. This links to the first mover advantage associated with acquiring Sendit. Due to large community and network effects, first movers would have significant advantage. Microsoft should move fast before competing technologies take charge of the market. Furthermore, Sendit has a lead in wireless technologies and data provision. Microsoft may want to incorporate this technology with other products.
4. Demand generation
In choosing Windows as the platform for its software, Sendit has the potential to establish Microsoft software as the standard for mobile Internet providers. This will therefore increase traction...
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