Microsoft Seals Deal for Social web site Yammer
Yammer is usually known as Facebook for the workplace, offering firms a kind of social network that is designed to be a lot of appealing to employees. Microsoft said Monday it will continue Yammer as a standalone service, and it's longing for ways to weave Yammer functions into its Microsoft workplace suite of desktop applications.
"The acquisition of Yammer underscores our commitment to deliver technology that companies want and people love," said Microsoft Chief government Steve Ballmer during a statement.
Some executives in the business-software market said shortcomings in Microsoft's own technology have caused several start-ups and rivals to sprout up, together with Yammer, Jive Software Inc. and Salesforce.com Inc.'s Chatter.
Microsoft already has a product, SharePoint, with some of an equivalent features as Yammer. but while several firms use SharePoint as back-end software to power internal corporate websites, they don't essentially use SharePoint functions for document-sharing and different collaboration among colleagues. Jared Spataro, Microsoft's senior director of product marketing, said the company has been adding social features to SharePoint and that Yammer enhances what Microsoft plans to try to to with its software.Analysts conjointly said a buying deal of Yammer additional validates a cadre of young companies—which includes Box Inc., Jive and Basecamp—that are vying to shake up the ways people work. some of those firms promote themselves as add-ons to fill holes in Microsoft's dominant workplace software.
"It's nice to envision that Microsoft is finally acknowledging there's a brand new thanks to work," said Timothy Young, vice president of social enterprise at VMware Inc. VMW +0.10% and founder of Socialcast, that makes software that enables employees to figure together over corporate networks.
Yammer seeks to induce staff to adopt its free social-networking features in the hopes their employers will catch on and purchase upgrades. the corporate says it's quite 5 million registered corporate users, only about two hundredth of that are paying customers. during a conference decision Monday to discuss the acquisition, Mr. Ballmer said Microsoft's sales force will facilitate push up the percentage of paying users for Yammer.
Kurt DelBene, president of Microsoft's workplace division, said the company had been keeping tabs on Yammer and different business-social-networking firms and reached out to Yammer this spring as Microsoft was cementing plans for consequent version of the workplace software suite. Executives from each company said the initial conversations in the spring spawned acquisition discussions, talks that attracted attention earlier this month.
Qatalyst Partners, the firm led by veteran technology banker Frank Quattrone, suggested Yammer on the transaction, said David Sacks, Yammer's co-founder and chief government.
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Yammer
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