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Microsoft buys Skype for Business management technology from Event Zero

Microsoft is acquiring assets from Event Zero, an Australian vendor of management software for Skype for Business — its first purchase of 2016.  —  Microsoft is acquiring assets from Australia-based Event Zero …

ZDNet Mary Jo Foley

Context & Ripple Effects

Through 2015 Microsoft had been wiring Skype for Business directly into Office 365 — first a preview offering phone numbers to Office 365 users, then enterprise meeting, conferencing, and calling features rolled out that November. What those moves exposed was an operations gap: enterprises adopting SfB telephony needed management tooling Microsoft didn't natively own.

The Event Zero asset purchase closes exactly that gap, and it fits a recognizable Microsoft pattern of small capability buys around its business platforms — the same playbook behind the FieldOne Systems acquisition for Dynamics customer service and, later, FSLogix for Office 365 virtualization.

First-order effects

  • Event Zero's Skype for Business management technology is absorbed into Microsoft's own stack, giving enterprise IT admins native tooling for deployments they previously had to run with third-party software.
  • Event Zero, as an Australian vendor whose core product now belongs to the platform owner, is effectively taken out of the independent SfB management market.

Second-order effects

  • Remaining third-party SfB management vendors now compete against the platform itself bundling administration features — pricing and roadmap pressure they can't match on integration depth.
  • Bolstered manageability strengthens Skype for Business's enterprise pitch just as Amazon Chime and Google Hangouts begin pushing into the same collaboration space, a contest that shows up a year later when Microsoft ships automated call routing and analytics for SfB.

Third-order effects

  • If the tuck-in pattern holds — FieldOne, Event Zero, FSLogix — Office 365 consolidates toward an end-to-end communications and productivity platform where management, analytics, and provisioning are absorbed in-house, shrinking the standalone ISV ecosystem built around Microsoft's own products.
  • For Australian and other regional SaaS vendors, the deal is another instance of the quasi-exit path: building deep tooling on a hyperscaler's platform increasingly ends in asset sale rather than independent scale.

The trend: Microsoft is assembling unified communications end-to-end inside Office 365 through a steady cadence of small capability acquisitions rather than large platform bets.