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Acquiring Yammer Makes Microsoft Take the Lead in Enterprise SNS Market by Elizabeth Emma





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Acquiring Yammer Makes Microsoft Take the Lead in Enterprise SNS Market by
Article Posted: 06/26/2012
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Acquiring Yammer Makes Microsoft Take the Lead in Enterprise SNS Market


 
Business News
According to foreign media reports, Microsoft on Monday announced that the company will spend $ 1.2 billion in cash acquiring the enterprise social networking company Yammer. Through the deal, Microsoft will be able to provide enterprise customers with services like Facebook. Market analysts believe that the acquisition of Yammer will give Microsoft a leading position in the enterprise social networking market.

After joining Microsoft, Yammer will continue to develop its independent service and continue to fulfill its simple and innovative commitment of cross-platform experience. Microsoft plans to accelerate the accepting degrees of Yammer and Microsoft SharePoint, Office 365, Microsoft Dynamics, as well as services such as Skype. Yammer will become part of the Microsoft Office division, and the whole team will continue to report work to the current CEO of Yammer David Sacks.

Yammer provides a service similar to Facebook. However, the services provided by Yammer allow employees to join a secure and private social network for free, so that the company can easily make grass-roots movement change into the strategic plans that spread all over the enterprise. Yammer currently is providing services for over 200,000 companies, including Ford, eBay and so on. The acquisition of Yammer can allow Microsoft to better compete with Chatter of Salesforce.com, and enterprise social networking companies such as Jive Software and Asana.

Rob Koplowitz, the analyst of market research firm Forrester, said that in the social sphere, Microsoft has been lagging behind. The acquisition of Yammer can not only enhance the strength of Microsoft in the social field, but also even make it in a leading position.”

Yammer was founded in 2008 by saxophone and Adam Pisoni. Sachs served as chief operating officer of PayPal; Pisoni currently serves as the post of Yammer’s CTO. Yammer, through several rounds of financing, had raised more than 140 million U.S. dollars of funds from Charles River Ventures and Emergence Capital Partners and a number of venture capital firms.

After the completion of acquiring Yammer, Microsoft will add Yammer’s corporate social networking tools to commercial software such as Office and SharePoint products. Large technology companies are rushing to buy innovative companies, which sometimes occur before the IPO of innovative companies.

Kurt Delbene, president of Microsoft’s Office division, said in a conference call on Monday that in addition to integrating Yammer into the existing products, Microsoft will continue to provide Yammer service independently.

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