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Acquired

Acompli, Sunrise, and Wunderlist (with Kurt DelBene)

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Key takeaways

  • Microsoft’s acquisitions of mobile productivity apps like Acompli, Sunrise, and Wunderlist have been strategic moves to strengthen their cross-platform ecosystem and cloud-first approach.
  • Retention of talented teams and preserving their unique cultures are crucial for the success of acquisitions, alongside integrating strategic products.
  • Success metrics for app acquisitions are primarily based on user engagement and sentiment, not just revenue or financial return.
  • Microsoft prioritizes delivering high-quality, well-crafted products across all platforms, recognizing that innovation is now distributed worldwide.
  • The future of productivity tools lies in seamless, unified experiences that users can access on any device, emphasizing the importance of cross-platform compatibility.

Summary

Introduction to Microsoft's Acquisition Strategy in Productivity Apps

The episode begins with a discussion on Microsoft's strategic acquisitions of mobile productivity apps like Acompli, Sunrise, and Wunderlist. Kurt DelBene explains how these acquisitions align with Microsoft's cloud-first, mobile-first strategy, emphasizing the importance of cross-platform experiences to reach users on iOS, Android, and beyond. The conversation highlights how these apps have been integrated or maintained independently, reflecting on Microsoft's approach to retaining talented teams and preserving each product's unique culture while leveraging the broader Microsoft ecosystem.

The Evolution and Impact of Acquired Apps (Acompli, Sunrise, Wunderlist)

This section details the background and development of each app before acquisition. Acompli, founded in 2013, quickly gained popularity for its combined email and calendar app, leading to a 2014 acquisition shortly after a successful beta launch. Sunrise, a calendar app acquired in 2015, was seamlessly integrated into Outlook, while Wunderlist, a to-do list app, was kept as an independent product with potential for further integration. Kurt discusses how these products have contributed to Microsoft's mobile productivity ecosystem, with some like Wunderlist showing potential for deeper integration.

Balancing Product, People, and Strategy in Acquisitions

Kurt DelBene explains how Microsoft approaches acquisitions by focusing on strategic fit, technological benefits, and talent retention. The importance of maintaining the acquired teams' culture, location, and leadership structures is emphasized to preserve innovation. The episode highlights how leaderial support, clear objectives, and metrics around user engagement rather than immediate revenue are key to measuring acquisition success.

Microsoft’s Cross-Platform Strategy and Mobile Focus

The conversation emphasizes Microsoft's commitment to delivering excellent experiences across all platforms, including iOS, Android, and Windows. Kurt describes how native apps for mobile are primarily used for viewing and light editing, with the overall goal of maintaining a unified, seamless experience. Strategic decisions around product integration, such as linking Outlook and Wunderlist, are driven by user needs for a unified inbox and productivity suite accessible on any device.

Themes and Lessons from the Acquisitions and Strategy

Ben and David reflect on broader themes, including the importance of innovation being distributed globally, the shift towards 'bring your own device' and 'bring your own client', and the value of well-crafted products that deeply understand user workflows. Kurt adds insights into how Microsoft continually improves acquisition strategies focusing on talent, cultural integration, and product excellence. The panel underscores that successful products are those that excite users, are built with deep user understanding, and align with a global, cross-platform vision.

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Show notes

Ben and David have special guest Kurt DelBene on to discuss Microsoft's acquisition of Acompli, Sunrise, and Wunderlist. Kurt is the EVP of Corporate Strategy and Planning at Microsoft, and joins to discuss Microsoft’s cloud-first, mobile-first strategy, and the importance of being cross-platform in the modern era. They cover: 

  • How the app of Outlook Mobile on iPhone and Android came to be.
  • How to decide whether to build vs. buy, and how it plays into the strategy for Office.
  • How to preserve a culture and a team, and how Javier Soltero came to run all of Outlook at Microsoft.
  • The origin of Outlook on the PC, originally led by Brian MacDonald as “Ren”.
  • How to balance a business with competing priorities, and a decision-making framework for acquisitions in a large company.
  • How to measure the success of an acquisition, and how sometimes, it’s not by measuring revenue at all.

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