Microsoft buys Yammer

Social networking has become a big force in the consumer space, less so in the enterprise world. Yammer is one of the companies providing social networking solutions for the enterprise. It’s tagline says, “Yammer is a private social network for your company – collaborate securely across departments, geographies, content and business applications”.

So why did Microsoft pay $1.2B in cash to buy this company? Interestingly Yammer will be part of the Office product unit. Are they going to integrate it to the new Office product?

It does not look like the plan as we see the official verbiage – “The acquisition of Yammer adds best-in-class enterprise social networking to Microsoft’s growing portfolio of complementary cloud services; world-class talent that knows how to deliver rapid innovation in the cloud; and a unique adoption model that appeals directly to end users.” 

Microsoft is expanding its enterprise reach (Share Point has done well) by adding new cloud functions offered by Yammer. It was experimenting with a form of social networking inside Office called Office Talk, but now it may not see the light of the day as a product.

This acquisition will follow the Skype model, left to its own and not be part of the mainstream solutions. Yammer claims 5 million users which is impressive give its short life.

First Jive went public and now Yammer gets acquired for a high premium. introduced Chatter, a trusted employee social network. It seems social networking is finding its way inside the enterprise finally.


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