Microsoft Corp’s recent acquisition of Yammer for a whopping $ 1.2 billion has set the market abuzz.
The billion dollars plus transaction holds great significance for the software industry as well as signals the strengthening of a new form of intra enterprise organizing and consolidation.
The popularity of various social networking sites like Facebook and Orkut have taken the internet accessing masses by storm, now it’s time for the corporate to go social.
Yammer Inc., launched in 2008 boasts 5 million users and is one of the leading freemium enterprise social networking software allows all employees of a firm to freely interact with each other, share thoughts, information and personal details. This facilitates the integration of individual employees in a firm and raises he effectiveness and efficiency of a corporation. The initial service provided by yammer restricted membership of a particular network on the basis of domain name which was latter widened with the introduction of ‘communities’ via which a business could also interact with its customers and clients.
The deal has been Microsoft’s response to the obvious limitations of its 2001 application SharePoint which however has long needed an extensive revamp, given its roots in the pre-Facebook, pre-cloud era. Enhanced and integrated with Yammer it will now allow effective in-house networking and sharing between employees, closely integrated with the Microsoft Office suite. This will give Microsoft further sway on the enterprise market, particularly with Skype already in its pocket and Office being the most popular foundation for professional activities among enterprises. The benefits that Microsoft might reap of its Yammer crop apart, the valuation of Yammer at $1.2 billion also declares a new era in the use of cloud technology, online collaboration and the use of internet to organize corporate data.